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AltTIIUU SMITH, M.A., 1.I..B. (Lonr) \i\ THE Minni.R TEUrUE, BARRI.->TER-AT LAW. L( )N 1 )( >X : STEVENS AND SONS. 119, CHANCERY LANE, 3falu publisbrrs anb SoohsrlTfrs, 1882. I 4 )KVV PREFACE. In tlie course of liis own reading for law examinations, and in (lirectins: the studios of othere, tlie author has often experienced a difficulty in distinjj^uishing between the principles of law and equity for the time being in force, and doctrines which have been rendered obsolete by the course of recent decisions or the current of legislation ; and he has observed that this difficulty is often traceable to the fact that though the standard books in use have, whilst passing through their many editions, re- corded the bare results of changes, yet no attempt has been matle to modify accordingly the general outline and classifica- tion of the subject. Another frequent difficulty has been to meet the require- ments of examiners by esUiblishing a clear association of leading princijiles with leaf the Work II. Division of the Subject PAGE 1—5 PART I. WHERK THK JURISDICTION RESTS ON THE DISTINCT SUBSTANTIVE PRINCIPLES OF EQUITY. Intbooiction . ' ^' I. Meaning of the word Equity II. Distinction between E-juity and Law 1. Equity acts I npfrw'/Ki HI 2. „ looks to the Intent rather than to the Fonii 3. Equality is Ef Mortgages . • • • • " IV. Persons entitled to redeem . • • • V. Time of Redemption VI. Mortgages of a Wife's Property VIL Mortgagee of Personalty. Bills of Sale Section II. Rights of Mobtoagob and Mortgagee . 234—255 I. Rights of a Mortgagor in Possession II. Accounting III. Remedies of Mortgagees IV. Tacking ... V. Consolidation. or.g 9(54 Section III. EgiiTABLK Moktoaoe.s I. By Agreement II. By Deposit of Title Decd.s Section IV. Liens ^^ (tenerally . I. LieuH at Law II. Equitable Liens ..•■••■■ 1 . Charges ...■••■ 2. Vendor'8 Lien .••■••' 8. Vendee's Lien Section V. Equitable Principles pabticularlt affecting Mortgages c, . 278 — ol5 AND Sales .... • • • • >-277 I. Notice 1. Effects of Notice 2. What constitutes Notice - ■ • • Actual Notice Constructive Notice .... II. Defence of Purchase for Value without Notice . III. Liability of Purchasers for application of Purchase-money IV. Assignment of Possibilities and Choses in Action . Vlll TABLE OF CONTENTS, CHAPTER VI. PAGE SURETYSHIP 316—333 I. Contrast between Legal and Eqviitable Doctrines . . . . II. General Principles of Equity ....... III. Releases and Compositions. ........ IV. Continuing Suretyship or Guarantee ...... V. Contribution between Co-sureties ....... VI. Right of Surety to Securities. ....... VII. Rights of Suiety in Bankruptcy CHAPTEli VJI. MARRIED WOMEN. Section 1. Separate Estate 334 — 361 General Comparison of Law and Ecjuity ..... I. 'J'he Creation of Separate Estate ....... II. The characteristics of separate et-tate ..... Voluntary Dispositions ........ Liability to Debts ........ III. Restraint on Anticipation ..... IV. Statutory Separate Estate ..... Mairied Women's Property Acts V. Pin-money ....... .... VI Paraphernalia .......... Section II. Equity to a Settlement 36J— 385 I. Histoi-y of the Doctrine ....... II. Characteristics of the Principle ....... 1. Rights of Children 2. Out of what Property Settlement may be claimed 3. Waiver of Settlement ........ 4. Equity, when barred ....... 5. Amount of Settlement ........ 6. Form „ ., ....... III. Reduction into I'ossession of Wife's Property by Husband IV. Fraud on Marital Rights CHAPTER VIII. INFANTS 386—403 I. Guardianship ........ Parents ........... Testamentary Guardians ....... Appointment by the Court ....... II. ^laintenance . .......... III. Advancement ........... Note. Jurisdiction as to Lunatics 403 — 5 TABLK OF CONTENTS. ix CHAPTEK IX. PACK ELECTION, CONVERSION, SATISFACTION, AND PER- FORMANCE. Section I. Election 407 — 42-2 I. General Principle .......... II. Conditions of Election ......... III. Election under Powers ......... IV. ,, as to Dower ......... V. MiscellaneouH Ca.ses ......... VI. Election, how effected ......... VII. Effects of Election Section II. Conversion and Reconversion .... 423 — 443 General Principle .......... I. Conversion, how effected ......... II. Effects of Conversion ......... HI. Time from which it takes place ....... IV. Failure of Piiq'oses of Conversion ...... V. Character of Resulting Property ....... Reconver-sion. Skction III. Satisfaction and Performance .... 444 — 465 Satibfaction. 1. Where the Satisfied Claim arises from Bounty Legacies. Portions ........ II. SutiNfaction of Debts ......... Performance. PART II. MIIKKE THE JURISDICTION RESTS ON THE DISTINCTIVE PROCEDURE OF EQUITY. Introduction 467 — 472 CHAPTER I. THE GENERAL PRINCIPLES OF ACCOUNT .... 473—483 I. Appropriation of Pajnnents ........ II. Set-ofif III. Apportionment. IV. Contributifin .......... V. Defences to an Action for iVLCount ....... TABLE OF CONTENTS. CHAPTER II. PAGE THE ADMINISTRATION OF ASSETS. Section I. Administration Generally 484 — 515 I. What is meant by Assets .....••■ Legal and Equitable Assets ....... II. Priority of Debts III. Order of Administration . IV. Marshalling of Assets V. „ „ Securities Section II. Matters Relative to Administeation . . . 516 — 532 I. Legacies ........•■•• 1. Specific .......... 2. Demonstrative ......... 3. Time of Payment and Interest ..... II. DonaLioncs Mortis Causa ......... CHAPTER III. PARTNERSHIP 533-552 Grounds of Jurisdiction I. The Nature and Formation of Partnerships ..... TI. Partnership Property ......... III. Rights of Partners inter se IV. The Relation of Partners to Third Persons . . ... V. The Dissolution of Partnership CHAPTER IV. PARTITION AND SETTLEMENT OF BOUNDARIES. Section I. Partition 555 — 567 I. Who may claim Partition ........ II. What is subject to „ ........ III. Mode of effecting „ . IV. The Partition Acts V. Costs Section II. Settlement op Boundaries 568 — 570 CHAPTER V. SPECIFIC PERFORMANCE. Section I. Principles of the Jurisdiction .... 571 — 578 I. Generally ............ II. Grounds for refusing Relief ....... III. Statutory Modifications TABLE OF CONTENTS. XI PA6E Section II. To what Contracts the Remedy is Applied . 579 — 590 I. Contracts relating to Land ........ II. „ „ „ Personal Chattels III. „ „ „ Personal Acts Section III. Defence of the Statute of Frauds . . 591 — 602 I. Part Performance .......... II. Other Grounds for Relief ........ III. Evideuce as to Parol Variations ....... Section IV. Specific Pekfokmance with a Variation . . 603 — 618 Contrast of Law and Equity ........ I. ^Vhe^e the Dispute relates to Time ...... II. „ ., ,, „ „ Quantity or Quality . . . CHAPTER VI. INJUNCTIONS. Generally .......... 619 — 622 Section I. Rehtkaining Equitable Wrongs .... 623 — 633 I. I'reventiny Abuse of Legal Processes . . . . . . II. Protecting Equitable Ebtates and Interests ..... Section II. Restraining Legal Wrongs .... 634 — 674 I. Protecting Rights in Land .... .... 1. Waste .......... 2. Tre.spa.ss .......... 3. Nuisances .......... II. Protecting Patent-rights, &c. ....... 1. Patents .......... 2. Copyright ......... 3. Trade-Marks ......... CHAPTEIt VII. INSTANCES OF JURISDICTION ANALOGOUS TO INJUNC- TION 675—691 T. Cancellation and Delivery up of Documents II. Actions to Establish Wills III. Actions Quia Timet .......... IV. Actions in the Nature of BiUs of Peace V. Writ of Xc Exeat Rcjno ....••••• VI. Actions to Perpetuate Testimony TABLE OF STATUTES. PAGE 20 Hen. III. c. 4 (Commons) 685 1 Kich. Iir. c. 1 (Uses) 20 19 Hen. VII. c. 15 (Uses) 20 26 Hen. VIII. c. 13 ( „ ) 20 27 Hen. VIII. c. 10 ( „ ) 20—2 31 Hen. VIII. 0. 1 (Statute of Partition) 555 32 Hen. VIII. c. 32 (Partition) 555, 557 13 Eliz. 0. 5 (Fraudulent Conveyances) 56, 60, 380 27 Eliz. c. 4 (Voluntary „ ) ;,3, 60, 223, 263 43 Eliz. c. 4 (Charities) 27 21 Jac. I. c. 3 (Patents) 662 c. 16 (Limitations) .......... 224 12 Car. II. c. 24 (Testamentary' Guardians) 389 29 Car. II. c. 3 (Frauds) s. 4 (Agreements in Writing) 257, 580, 591, 595 ss. 7 — 9 (Tru.sts) 32, 33 3 & 4 Will. & M. c. 14 (Fraudulent Devises) .... 248, 485, 488 4 & 5 Will. & M. c. 20 (Dockets) ' 49I 8& 9 Will. III. c. 11 (Penaltiesof Bonds) 207 3 & 4 Anne, c. 4 (Assignment of Notes) ........ 305 4 & 5 Anne, c. 16 (Penalties of Bonds ; Account) 207, 469 6 Anne, c. 2 (Irish Registration) ......... 279 7 Anne, c. 25 (Assignment of Notes) ........ .305 4 Geo. II. c. 28 (Leases) ........... 208 8 Geo. II. c. 13 (Copyright) 670 9 Geo. II. c. 36 (Mortmain) 27, 271, 573 11 Geo. II. c. 19 (Apportionment) 481 17 Geo. II. c. 38 (Poor Kates) 189 7 Geo. III. c. 38 (Copyright) ....... 670 13 Geo. IIL c. 63 (Evidence) 691 17 Geo. III. c. 57 (Copyright) 670 33 Geo. III. c. 21 (Roman Catholic Relief) 390 41 Geo. III. c. 109 (General Inclosure) 98 46 Geo. III. c. 69 (Assignment of Salaries) 313 47 Geo. IIL c. 25 ( „ „ ) 313 c. 74 (Real Assets) 485 XIV TABLE OF STATUTES. PAGE 54 Geo. III. c. 56 (Copyright) 670 55 Geo. III. c. 192 (Surrender of Copyholds) 193 4 Geo. IV. c. 76 (Marriage of Infants) 393 1 Will. IV. c. 22 (Evidence de bene esse) ........ 691 c. 40 (Undisposed of Residue) ....... 130 c. 46 (Illusory Appointments) . . . . . . . 174 2 & 3 Will. IV. c. 71 (Pre.scription) 656, 658 3 & 4 Will. IV. c. 15 (Copyright) 670 c. 27 (Limitations) 224, 225, 244, 247 c. 42 ( „ ) 244, 247 c. 74 (Fines and Recoveries) . . 342, 374—5, 440, 441 0. 104 (Real Assets) 248,485,488 c. 105 (Dower) 417, 429 c. 106 (Descents) 499 4 & 5 Will. IV. c. 40 (Building Societies) 489 5 Will. IV. c. 22 (Apportionment) 481 5 & 6 Will. IV. c. 65 (Copyright) 668 1 Vict. c. 26 (Wills), 193, 195, 244, 271, 390, 418, 427, 436, 501, 502, 517, 519, 530, 597 1 & 2 Vict. c. no (Judgments) 57 2 & 3 Vict. c. 54 (Custody of Infants) 389 4 & 5 Vict. c. 35 (Partition) 557 5 & 6 Vict. c. 45 (Copyright) 667, 670—2 c. 69 (Perpetuation of Testimony) ...... 690 c. 100 (Copyright, Designs) 670 6 & 7 Vict. c. 65 ( „ „ ) • ■ 670 7 & 8 Vict. c. 76 (Purchase-money) ......... 301 8 & 9 Vict. c. 18 (Lands Clauses) 82, 106, 428, 437 c. 19 (Railway Bonds) 305 c. 76 (Legacy Duty) 532 c. 89 (Registry of Ships) 586 c. 106 (Real Property) 49,301,307,374 c. 118 (Commons' Inclosure) . . . 98 10 & 11 Vict. c. 96 (Trustee Relief) 393 12 & 13 Vict. c. 26 (Leasing Powers) 193 13 & 14 Vict. c. 17 ( „ „ ) 193 c. 60 (Trustee Act, 1850) 564 c. 104 (Copyright, Designs) 670 14 & 15 Vict. c. 83 (Lords Justices) 403 15 & 16 Vict. c. 12 (Copyright, Lithographs, &c.) 670 c. 76 (C. L. P. Act) 200, 208 c. 83 (Patents) 664 c. 86 (Chancery Amendment) ...... 240 16 & 17 Vict. c. 70 (Lunacy) 403, 405 17 & 18 Vict. c. 36 (BUls of Sale) 229—31, 261 c. 90 (Usury) 149 I TABLE OF STATUTES. XV PAGE 17 & 18 Vict. c. 104 (Merchant Shipping) 70,586 c. 113 (Mortgage Debts) 272, 502, 506 c. 125 (C. L. Procedure) . . . 200, 470, 589, 624, 638, 645 18 & 19 Vict. c. 43 (Infants' Settlements) 396 c. Ill (Bills of Lading) 305 19 & 20 Vict. c. 97 (Mercantile Law Amendment) ..... 331 c. 120 (Settled Estates) 564 20 & 21 Vict. c. 57 (Malins' Act) 374, 375, 422 c. 77 (Court of Probate) 681 c. 85 (Divorce, &c.) 340, 341, 354 21 & 22 Vict. c. 27 (Cairns' Act) 576 c. 70 (Copyright, Designs) ....... 670 c. 94 (Partition) 557 c. 108 (Protection Order) 354 22 & 23 Vict. c. 35 (Lord St. Leonards' Act) 8. 4 (Insurance) ........ 208 ss. 12, 13 (E.xecution of Deeds) 195 88. 14—18 (Charge of Debts) .... 302—3 8. 23 (Trustee's Receipts) 301 8. 31 (Indemnity) 121 8. 32 (Investments) 112 — 3 23 & 24 Vict. c. 38, 88. 3—5 (Judgments) 223, 286. 491 88. 10— 12 (Investments) 112,113 c. 83 (Infants' Settlements) 396 c. 126 (C. L. Procedure) 207,209 c. 127 (Solicitors) 268 0. 145 (Lord Cran worth's) ........ 88.11 — 16 (Mortgagees' Powers) 242 s. 25 (Investments) 113 8. 26 (Maintenance) 398, 400 8. 29 (Trustee's Receipts) 301 8. 30 (Compounding Debts) 102 24 & 25 Vict. c. 73 (Copyright, Designs) 670 25 & 26 Vict. c. 28 ( „ Paintings) 670 c. 42 (Rolfs Act) 577, 654, 686 c. 53 (Land Regi.stry) 259 c. 63 (Merchant Shipping) . . . . . 70 c. 89 (Companies) 95, 535 c. 108 (Reserving Minerals) 195 26 & 27 Vict. c. 57 (Regimental Debts) 489 27 & 28 Vict. c. 112 (Judgments) 223,286 c. 114 (Improvement of Land) . . . .114 28 & 29 Vict. c. 86 (Bovill's Act) 536—7, 548 30 & 31 Vict. c. 47 (Companies) 535 c. 59 (Relief from Forfeiture) 208 c. 69 (Vendor's Lien) 272, 508 XVI TABLE OF STATUTES. 30 & 31 31 Vict. 31 & 32 32&33 •33 Vict. 33 & 34 Vict. c. 131 (Companies) c. 132 (Investments) c. 144 (Life Policies) . c. 4 (Sales of Keversions). Vict. 0. 40 (Partition) .... c. 86 (Marine Policies) . Vict. c. 46 (Specialty Debts) c. 62 (Debtora) . . . . c. 71 (Bankruptcy) s. 15 s. 29 s. 40 s. 91 ss. 125—6 ... c. 114 (Companies) c. 14 (Naturali.sation) . . . . Vict. c. 23 (Felon's E.state) . c. 28 (Solicitor's Kemuneration) c. 35 (Apportionment) c. 76 (Absconding Debtors) c. 93 (Married Women's Property) ss. 1, 7, 8 ss. 2—6, 10 . . . ss. 9, 11,12 . . . . ss. 13, 14 . 0. 27 (Debenture Stock) . . . . Vict. c. 48 (Roman Catholic Relief) . c. 12 (Infants' Custody) . . . . 34 Vict. 34 &35 36 Vict. 36 & 37 Vict. c. 66 (Judicature) PAGE . . 535 113—4 . 56, 305 . 146 428, 437, 559—67 56, 305 . 488—9 . 687 . 310 .129, 132 . 264, 493 57, 58, 356 . 325 . . 535 . -25, 26, 429 . . 223 98,314 . . 481 . 688 341, 364, 487 . 355 . . 356 . 357 72, 347, 400 . 114 . . 390 387—9 135, 205, 290, 292, 624, 680, 686, 688 s. 18 (Appeal to Privy Council) s. 24 (Concurrent Jurisdiction) . § 2 (Equitable Defences) § 5 (Injunctions) § 6 (Legal and Equitable Claims) . .s. 25, § 3 (Waste) .... § 5 (Mortgagor's Rights) § 6 (Assignment of Choses in Action § 7 (Stipulations in Contracts) § 8 (Injunction, Receiver) . § 11 (Equity to prevail) . s. 34 (Jm-isdiction of Chancery Div 291, 404 2 291 624 . 368 . 638 . 235 56, 312 . 604 . 651, 684 118,639 2, 217, 386, 533, 553, 577 O. XXXI 202, 689 37 & 38 Vict. c. 37 (Exclusive Powei-s) 175 c. 50 (Married Women's Property) 354, 358 c. 57 (Limitations) 225, 245, 650 TABLE OF STATUTES. XVll 41 & 42 Vict. 42 & 43 Vict. 37 & 38 Vict. c. 62 (Infants' Relief) .... c. 78 (Vendor and Purchaser) 38 & 39 Vict. c. 60 (Friendly Societies) c. 77 (Judicature) ..... 8, 7 (Lords Justices) 8. 10 (Administration) c. 87 (Land Transfer) .... c. 91 (Trade Marks) 39 & 40 Vict. c. 17 (Partition) c. 33 (Trade Marks) 40 & 41 Vict. 0. 33 (Contingent Remainders) 34 (Mortgage Debts) .... c. 31 (Hills of Sale) 76 (Companies) ..... 43 Vict. c. 19 (Companies) 44 & 45 Vict. c. 41 (Conveyancing and Law of Property') 8. 14 (Forfeiture of Leases) 8. 15 (Conveyance by Mortgagor) 8. 17 (Con.solidation) 8. 18 (Leases by Mortgagor and Mortgagee) 88. 19, 20 (Mortgagees' Powers) 8. 21 (Application of Purchase-money) 8. 30 (Descent of Trust Property) . B. 36 (Trustee's Receipts) . 8. 37 (Compounding Debts, &c.) 8. 39 (Restraint on Anticipation) 8. 42, 3 (Infants' Maintenance) B. 65 (Ixing Tenns) .... c. 44 (Solicitors' Remuneration) PAGE . 152 . 252, 604 . 489 . 292, 624 . 404 264, 488, 493 . 253, 259 . . 673 565—6 . . 673 . 644 . 272, 508 229—33, 261 . . 535 . 535 . . 113 209, 211, 213 . . 223 . 255 , . 234 . 242 . . 237 . 221 , . 302 . 102 353, 422 . 398 . Ill . 98 TABLE UF CASES. Abbot, Erp., 339 Alxly V. Loveday, 292 Aberan.an Iron Works v. W ickens, 277, 610 . ^. Aberdeen r. Chitty, 264 Abemethy r. Hutchinson, 6b8 Abrahal r. Bnbb, 640 ACKBOYU V. Smithson, 65, 4^4 Acton V. White, 350 . r. Woodgate, 62 Adair r. Shaw, 118 Adams v. Claxton, 248, 259 V. Fenrick, 522 V. Gamble, 342 Adamson, i'jp., 548 y. Armitage, .540 Adderley r. Dixon, 582, 583 Adey v. Arnold, 491 Adlington r. Cann, 597 Adney v. Field, 194 Agar V. Fairfax, 556, obb Agassiz V. Squire, 3 73 Agra &c. Bank,_i?f, 312 Aguilar r. A., 377 Ainaworth, Exp., 262 Aitcheson v. Dixon, 381 Albert (Prince) v. Strange, 669 Albion &c. Co., /Jf, 495 . r. Maitm, 94 Alcock V. Sloper, 105 Alderson J'. White, 219 AMis r. Fraser, 651 Aldred's Ca., 657 Aldrich r. CoorER, ..09 Alexander v. D. of Wellmgton, 314 V. Young, 351 Alf.yn v. Belchikr, 169 AlMay r. Fletcher, 373 Allen r. A., 562 V. Jackson, 162 V. Knight, 249, 273, 288 V. Martin, 651 V, M'Pherson, 681 V. Seckham, 283 Alley V. Deschamps, 610 Alven V. Bond, 93 Amand v. Bradboume, 127 Ames r. Parkinson, 107 Amis V. Witt, 529 Amphlett v. Parke, 4-36 Ancaster v. Mater, 496, 505 Anderson v. Radcliffe, 314 Andrew v. Trinity Hall, 413 V. Wrigley, 293, 295 Andrews v. Partington, 397 r. Salt, 388, 392 Angell v. A., 689 Angiis V. A., 12 V. Dalton, 658 Anon (1 Atk. 521), 687 (3 Atk. 314), 222, 224 {Freem. 137), 281 (Freem. 145), 305 (Freem. 224), 193 (Jac. 265, n.), 394 (2 K. & J. 441), 545 (6 Mad. 10), 633 (1 Salk. 155), 222 (2 Vem. 706), 381 (2 Ves. sr. 629), 588 (3 Ves. 515), 125 (5 Vin. Abr. 522), 600 Antrobns u. Smith, 51 Appleton V. Rowley, 343 Apreece v. A., 521 Ap-Rice's Case, 637 Arab, The, 515 Arbuthnot v. Norton, 31 3 Arccdeckne v. Howard, 329 Archer v. Hudson, 155 r. Preston, 12 Ardesoife r. Bennett, 422 Armitage v. Baldwin, 331 . — V. Coates, 351 Armstrong v. Burnet, 523 Arnold, Exp., 432 V. A., 527 V. Hardwicke, 170, 173 h2 XX TABLE OF CASES. Arnold v. Woodhams, 353 Ashburner v. Macgiiire, 521, 524 Ashburnham v. A., 420 Ashby V. Palmer, 429, 440 Ashenhurst ?'. James, 221 Asliton V. A., 522 V. Carrigan, 589 V. Dalton, 261 V. McDougall, 341, 385 Ashurst V. Mill, 183 Ashwell V. Lomi, 159 Askew V. Rooth, 341 Assoc, of Land Financiers, Re, 495 Astbury, JSxp., 261 Astley V. Weld on, 207 Aston V. A., 359, 640, 641 Atcheson v. A., 377 Atkins r. Hntt, 568 Atkinson v. Littlewood, 460 ■ V. Rawson, 492 Atterbury v. Wallis, 285 Att.-G. V. Alford, 115 V. Aspinall, 635 V. Bovvyer, 568 V. Bristol, M. of, 66 r. Cashel, Corp. of, 99 V. Clarendon, 90 v. Cleaver, 652 V. Crofts, 223 V. Day, 596, 614 V. Dixie, 99 V. Doughty, 657 V. Dudley, 100 V. Edmunds, 132 V. Forbe.s, 652 V. Fullerton, 569 V. Grote, 523 r. Hardy, 99 ?•. Herrick, 66 V. Holford 429 • r. laoxMONGEEs' Co., 29 V. Kingston, M. of, 660 V. Leeds Corp., 660 V. Lonsdale, 660 V. D. of Marlborough, 642 V. Mountmorris, 514 V. Norwich, M. of, 127 V. Plymouth, Corp. of, 99 V. Ray. 166 r. Sheffield Gas Co., 652 V. Sitwell, 598 V. South Moulton, 66 V. Stamford, M. of, 99 V. Stephens, 569, 570 V. St. John's Hosp., 24 V. Syderfin, 28 V. Terry, 660 V. Tonner, 66 V. U. K. Telegraph Co., 652, 654 V. Weymorith, 429, 435 Att.-G. of Jamaica v. Manderson, 474 Att. and Sol. Act, 1870, Re, 314 Attwood r. Small, 139, 142, 575, 618 Atwell V. A., 425 Atwood V. Maude, 550 Aubin V. Holt, 545 Austen v. Halsey, 397 V. Taylor, 41, 47 Ayerst v. Jenkins, 69, 679 Ayles V. Cox, 614 Aylesford's Ca., 593 Aylesford r. Morris, 146, 148 Aylifle v. Murray, 129 Aynsley v. Glover, 657 V. Woodsworth, 481 Aynsly v. Reed, 223 Baber's Trusts, In re, 63 Bach V. Andrew, 75 Back V. Stacey, 656 Backhouse v. Charlton, 264, 549 Bacon r. B., 118 V. Jones, 666 Baddeley v. B., 53 Badnall v. Samuel, 321 Baggett r. Meux, 349, 350 Bagnall v. Carlton, 95 Bagot v. B., 648 V. Oughton, 227 Bagshaw v. Winter, 379 Bade v. B.. 268 Bailey r. B., 500 V. Edwards, 325 • V. Finch, 480 V. Richardson, 283 BaiUie v. B., 630 Baily v. Taylor, 667, 672 Bain v. Sadler, 487 Bainbrigge v. Blair, 131 V. Browne, 155 Baker's Trusts, Re, 347 Baker v. Bradley, 350 V. Gray, 254 V. Hull, 380 V. Martin, 128 V. Monk, 99 V. Peck, 90 V. Sebright, 648 V. White, 163 Baldwin v. Rochford, 1 47 Balfour v. Welland, 297 Ball V. B., 388 V. Coggs, 582 V. Coutts, 376, 396 V. Harris, 299 V. Montgomery, 376 Balls V. Strutt, 633 Balmain v. Shore, 541 Balsh V. Higham, 127 TABLE OF CASES. XXI Balsh V. Symes, 268 Bank of England Case, 540 Bank of Ireland v. Beresford, 320 Bank of London v. Tyrrell, 97 Bank of Scotland i\ Christie, 476 Banks v. Scott, 427, 432 Barclay, Exp., 261 Bardswell v. B., 34, 35 Baring v. Nash, 555, 557 V. Noble, 547 Barker, Re, 267 Barker v. Goodair, 549 V. Lea, 367 V. Rayner, 524 V. St. Quentin, 268 V. Smart, 275 V. Vansommer, 148 Barling v. Bishop, 57 Barlow v. Grant, 400 Barnard's Case, 639 Barnard v. Ford, 373 Barnes v. Eacster, 515 Barnewell v. Cawdor, 499 Barnhart v. Greenshields, 280 Barrack v. McCulloch, 341 Barret v. Blagrave, 213, 590 Barrett v. Hartley, 125, 156 Barriugton v. Tristram, 526 Barrow v. B., 422 Barrow's Trade Marks, Jie, 673 Barrs v. Fewke, 65 Barry v. Crosket, 141, 166 Bartlett v. B., 310 V. Pickersgill, 68 Barton v. Cooke, 521 Basan v. Brandon, 525 Basingstoke (M. of) v. Bolton, 569 Basnett v. Moxon, 564 Basset v. Noswortht, 286, 290 Bastard r. Proby, 47 Hatard v. Hawes, 318 Bate V. Hooper, 105 Bateman v. Hotchkin, 647, 648 V. Willoe, 627 Bates V. Mackinley, 522 Bateson v. Gosling, 325 Bath (E. of) V. Sherwin, 686 Batstone v. Salter, 72 Bawtree r. Watson, 267 Bayley v. Williams, 158 Bayspool v. Collins, 59 Baxter v. Conolly, 586 V. West, 551 Beadel v. Perry, 656 Beak's Estate, Be, 529 Beale v. Symonds, 130 Beanland v. Bradley, 158 Beard v. Travers, 633 Beauchamp v. Winn, 182 V. Huntley, 630 Beauclerk v. Mead, 431 Beaufort r. Patrick, 168 Beaufo3''R Estate, In re, 106 Beaumont, Be, 196 Beaumont i'. Carter, 372 Beavan v. E. of Oxford, 59, 309 Beckford i;. B., 71 V. Tobin, 526 Beckley v. Newland, 306 Beecher r. Major, 72 Beere v. Hoff mister, 171 Beeston r. Stutely, 574 Beevor v. Luck, 253 Bell V. L. & N. W. E., 308 V. Phyn, 543 Bellairs v. B., 162 Bellamy v. Sabine, 286 Bellasis' Trust, In re, 43 Bellasis i>. Compton, 69 V. Uthwatt, 453 Bendyshe, Be, 372 Benett v. Wyndham, 127 Bennet v. B., 72 Bennett, Exp., 89, 90, 94 Bennett v. Biddies, 372 Bennitt v. Whitehouse, 666 Benson v. B., 440, 441 • V. Whittam, 34 Bentley v. Craven, 97 Benyoni'. Fitch, 148, 149 Berminghara v. Sheridan, 588 Berry v. Bryant, 398 Best V. Dra^e, 651 Bethell v. Abraham, 453 Betts V. Kimpton, 335 Beverley v. Att.-Gen., 66 Bickford r. Skewes, 666 Bidwell's Settmt., Be, 411 Biedermann v. Seymour, 499 Biel's Estate, In re, 93 Biggs r. Terry, 394 Bigland v. Huddlestone, 420 Bill V. Cureton, 679 — V. Sierra &c. Co., 631 Billinghurst v. Walker, 505 Bingham v. B., 180 Birch V. Blagrave, 65 V. EUames, 279, 281 V. Joy, 611 Birchall v. Pugin, 268 Birch-Wolfe v. Wolfe, 649, 650 Bird V. Boulter, 596 V. Fox, 298 Birkett, Be, 37 Birley r. B., 170 Birmingham v. Kirwan, 416, 417 Bisco V. E. of Banbury, 283 Bishop, Exp., 58 Bishop V. Wall, 343 Blackborn v. Edgeley, 155 XXll TABLE OF CASES. Blackburn v. Stables, 42 Blacket v. Lamb, 415 Blackett v. Bates, 589 Blackie v. Clark, 158 Blacklow ^'. Laws, 339 Blackwood v. London &c. Bank, 288 Blagden, £:vp., 479 Blagden v. Bradbear, 595 Blake v. Bunbury, 411 V. Peters, 644 Blakely Ordnance Co., He, 312 Blanchet v. Faster, 384 Bland v. Dawes, 339 Blandy v. Widmore, 464 Blenkinsopp v. B., 57 Blennerhasset v. Day, 98 Blogg V. Johnson, 126 Blore V. Sutton, 596 Blount V. Barrow, 530 Bloye's Trust, In re, 93 Blue V. Marshall, 102 Blunt V. Bestland, 381 Boast V. Firth, 199 Bock V. Gopisson, 266 Boehm v. Wood, 606 Bold r. Hutchiason, 190 Bolton V. Ward, 557 Bonar v. Macdonald, 324 Bond V. England, 505 V. Kent, 275 V. Simmons, 380 Bone V. Pollard, 78 Bonham v. Newcomb, 220 Bonithon v. Hickmore, 127 Bonner v. B., 373, 512 Bonney v. Ridgard, 294 Bonser v. Cox, 323 Booker v. Allen, 447 Booth V. Blundell, 497, 498 Bootle V. Blundell, 682 Bosanquet r. Dashwood, 678 V. Wray, 546 Bostock V. Floyer, 109 Bothamley r. Sherson, 518, 521 Boughton*'. B., 415, 418 Boultbee v. Stubbs, 322 Boulton V. Bull, 663 V. Jones, 185 Bourne ?'. B., 425 Boursot V. Savage, 285 Bouverie v. Prentice, 569 Bovill V. Crate, 666 V. Hammond, 544 Bowker v. Bull, 332 Bowles' Case, 637 Bowles V. Stewart, 84 Bowmaker v. Moore, 317 Bowra v. Wright, 560 Bowser v. Maclean, 652 Bowsher v. Watkins, 684 Boyd's Sett. Est., Re, III Boyd V. Dickson, 608 Boyes v. Liddell, 607 Boynton v. Parkhurst, 501, 510 Boyse v. Rossborough, 151, 682 Bozon V. BoUond, 267 Brace v. D. of Mablborough, 289 Brace v. Wehnert, 587 Bracebridge v. Buckley, 211 Bradbury v. Morgan, 326 Bradford i\ Romney, 191 Bradish v. Gee, 442 Bradly v. Westcott, 343 Bradshaw v. B., 393 Brain, Me, 211 Braham v. Bustard, 673 Brandon v. Robinson, 349 Brantom r. Griffits, 232 Brassey v. Chalmers, 558 Breadalbane v. Chandos, 190 Brecon (M. of) v. Seymour, 251 Breed's Will, Be, 398 Brennan v. Bolton, 593 Breslauer v. Brown, 333 Breton v. Woollven, 51 Brette, Re, 353 Brewer v. Swirles, 344 Brice's Case, 552 Brice v. Stokbs, 116, 119, 120, 123 Bridge v. B., 54 Bridges v. Hales, 390 V. Highton, 660 Bridgman v. Dove, 497 ^'. Green, 158 Bridson v. Benecke, 666 V. Macalpine, 666 Briggs V. Chamberlain, 441 V. Merchant &c. Assoc, 266 V. Penny, 36 Bright i\ Larcher, 436 ■ V. North, 127, 632 Brighton Arcade Co. v. Dowling, 480 Briscoe v. B., 421 Bristow V. B., 526 Bristowe v. Ward, 412 Britten v. B., 372 Broad v. B., 227 Brocksopp V. Barnes, 125 Brodie v. Barry, 347, 419 Bromfield, Exp., 427 Bromley v. Brunton, 50 ■('. Holland, 677 r. Smith, 146 Brook V. Badley, 429 V. Hertford, 555 Brooke v. B., 341 V. Garrod, 219, 606 V. Warwick, 524 Brooking v. Jennings, 491 Brookman v. Rothschild, 97 TABLE OF CASES. XXIU Brooks V. Stuai't, 317 Broughton v. B., 131 Broun v. Kennedy, 156 Brown v. B., 584 V. Cole, 224 V. G. E. R. Co., 2Q9 V. Gellatly, 106 V. Higgs, 37, 38 V. Litton, 133 V. Oakshot, 541 V, Peck, 164 V. SeweU, 237 V. Temperley, 399 V. Wales, 569 Browne, Re, 388 V. Carr, 325 Browning v. Wright, 18-8 Bruce, Exp., 260 Bruin v. Knott, 401 Bryan v. Clay, 491 Bryant, Exp., 267 Brydges v. Phillijjs, 497 V. Stevens, 641 Bryson v. Whitehead, 165 Buchanan v. Harrison, 438 Buck V. Robson, 490 Buckell V. Blenkhom, 196 Buckland v. Pocknell, 270 Buckle V. Mitchell, 59 Buckmaster v. Harrop, 595 Budge V. Gnmmow, 111 Buggins V. Yates, 35 Bull V. Hutchens, 286 Bullock V. Dommitt, 201 V. Menzies, 377 V. Wheatley, lai BuUpin V. Clarke, 345 Bulteel V. Jan-old, 317 V. Pliunmer, 174 Bunbury's Estate, Re, 61S Bunbury v. B., 12 Bunn V. Grey, 164 Burden v. B., 131 Burdon v. Barkus, 540 V. Dean, 369 Burge V. Brutton, 132 Burgess v. B., 673 V. Eve, 327 V. HUls, 674 V. Wheate, 129 Burgh V. Langton, 242 Burgoyne v. Hatton, 283 Burke v. Greene, 314 Burlase v. Cooke, 290 Burley v. Evelyn, 435 Burlinson's Case, 539 Burn V. Carvalho, 308 Burridge v. Bradyl, 500 Burrough v. Philcox, 38 Burro wes v. Lock, 140 Burt V. Hellyar, 556 Burton v. Gray, 259 Bury V. Bedford, 672 Bushell V. B., 279, 286 Butcher v. Kemp, 417 Bute V. Glamorgan Canal Co., 569 Butler V. Carter, 122 V. Cumpston, 341 V. Freeman, 393, 399 Buttanshaw v. Martin, 352 Butterfield v. Heath, 60 Buttricke v. Thurgood, 420 Buxton V. B., 102 V. Lister, 582 Byam v, B., 44 V. Munton, 436 Byne v. Blackburn, 397 V. Vivian, 677 Caballero v. Henty, 282, 617 Cafe V. Bent, 105 Caffrey v. Darby, 102, 127 Calcraft v. Roebuck, 611, 614, 617 Caldwell v. Vanvlissingen, 666 Calisher v. Forbes, 310 Calvert v. Gordon, 327 V. London Dock Co., 323, 324 Campbell v. Allgood, 640 V. Dalhousie (E. of), 690 V. French, 192 V. Home, 171 V. Leach, 195, 196 V. Walker, 90, 91, 100 Campion v. Cotton, 361 Canadian fee. Co., In re, 95 Cane v. Allen, 98 Canning v. C, 559 Cannon v. Johnson, 567 Capel V. Butler, 330 Cap23er v. Spottiswoode, 275 Carr's Trust, Re, 370, 371 Carr v. Eastabrook, 376 V. EUison, 440 Carrick v. Errington, 65 Carrodus v. Sharp, 612 Carron &c. Co. v. Maclaren, 629, 630 Carter v. C, 249 V. Palmer, 98 V. Taggart, 376, 379 V. Wake, 264 Carteret v. Pettus, 12, 13 Cartwright v. Pultney, 556 Carver v. Bowles, 414 V. Richards, 170 Gary v. C, 90 Casberd v. Ward, 262 Casborne v. Scarfe, 220 Castle V. Warland, 109 V. Wilkinson, 616 XXIV TABLE OF CASES. Catling V. King, 598 Caton V. a, 594, 595 V. Hideout, 347 Cator V. E. of Pembroke, 272, 2/4 Cavan r. Pulteney, 419 Cavander v. Bulte«l, 282 Cave V. C, 396 Cavendish v. Greaves, 311 Cawdor v. Lewis, 168 Cecil V. Jnxon, 340 Central R. Co. r. Kisch, 141 Chalk V. Danvers, 68 Chapman v. C, 259 V. Gibson, 193, 196, 197 V. Hart, 524 Charlton v. Coombes, 162 V. West, 460 Charnley v. Grundy, 200 Chartered Bank &c. v. Henderson, 312 Chase v. Box, 476 Chatteris v. Young, 457 Chatterton v. Cave, 669, 670 Chattock ?'. MuUer, 574 Chancey's Case, 458, 460 Chambers u Goldwin, 133, 218, 221 V. Howell, 97 V. Minchin, 119 V. Waters, 94 Champneys v. Burland, 250 Chichester v. Bickerstaffe, 431 V. Coventry, 449, 451, 452, 453 Child v.C.,UO V. Elsworth, 526 Childers r. C, 75 Chillmer v. C, 212 Chinnock v. Gainsbury, 588 Chitty V. Parker, 438 Cheale v. Kenward, 585 Cheetham v. Ward, 326 Cherry v. Mott, 514 Chertsey Market, Jle, 633 Chesterfield v. Janssen, 55, 136 Chorley, Exp., 312 Christian v. Field, 223 Christophers v. White, 131 Christy v. Courtenay, 74 Churchill v. C, 414 V. Small, 361 City Bank, Exp., 312 City Disct. Co. v. McLean, 474, 476 City of London Brewery v. Tennant, 577, 656 Civil Service Supply Ass. v. Dean, 674 Clack V. Carlon, 132 Clarendon v. Hornby, 559 Clark V. Gird wood, 191 V. Holland, 102 V. Sewell, 459, 526 Clark V. Taylor, 30 Clarke v. Boyle, 270 V. Cobley, 152, 168 V. Cort, 479 V. Franklin, 431, 439 v. Hart, 211 V. Henty, 317, 324 V. Tipping, 483 V. Wright, 60 Clavering v. C, 638 Clay, Exp., 548 Clayton's Case, 474, 476 Clayton r. Illingworth, 581 Clegg V. C, 645 V. Edmondson, 69, 85 V. Fishwick, 84, 540 Clements v. Hall, 84 Clementson v. Gandy, 411 Clermont v. Tasburgh, 575 Clifford V. Lewis, 500 V. Turrell, 583 Clifton V. Burt, 500 ■;;. Cockbum, 182 Clinan v. Cooke, 593, 600 Clinton v. Hooper, 227 Clive V. Carew, 123, 344, 353 Close V. C, 322 Clough V. Bond, 110, 204 V. Lambert, 52 Clowes V. Higginson, 600 V. Staff. Potteries Co., 660 Coal Consumers' Assoc, Re, 495 Coard v. Holderness, 525 Cochran's Estate, He, 332 Cochrane v. Willis, 181, 186 Cock V. Ravie, 687 V. Richards, 163 Cockbum v. Peel, 115 Cockcroft V. Black, 492 Cocker v. Be vis, 241 V. Quayle,lll, 123 Cockerell v. Cholmeley, 123, 195 Cocking V. Pratt, 1 55 Cocks V. Chandler, 673 Coffin V. C, 640, 645 V. Cooper, 610 Cogan V. Duffield, 43 V. Stephens, 435, 439 Cogent t: Gibson, 583 Colburn v. Simms, 672 Cole V. Gibbons, 149, 618 V. Gibson, 163 V. Wade, 39 V. White, 594 V. Willard, 459 Coleman r. Winch, 247, 248 Coles V. Trecothick, 91 Collier v. Jenkins, 614 Collins V. Archer, 291 V. C, 105, 270 TABLE OF CASES. XXV Collins V. Lewis, 501 V. Stutely, 577 V. Wakeman, 434, 437 CoUingwood v. Row, 433 Collinson v. C, 74 Collis V. Robins, 498 CoUyer v. Finch, 288 Colman v. D. of St. Albans, 234 Colston V. Morris, 392 Combe v. Hughes, 48 Coming, Exp., 259 Comyns v. C, 218 Consterdine v. C, 112, 115 Conway v. Shrimpton, 225 Conyers v. Abergavenny, 685 Cood V. Pollard, 275 Cook V. Black, 309 V. Gregson, 486 V. Hutchinson, 67 Cooke V. Clayworth, 151, 575 V. C, 589 V. Wilton, 252 Cookes V. Hellier, 409 Cookson V. C, 443, 541 Coombe, Exp., 260 V. Stewart, 241 Coope V. Creswell, 299 V. Twynam, 329 Cooper V. C. (5 Ch. 203), 171 V. — (6 Ch. 21 ; 7 L. R. H. L. 53), 419 V. — (8 Ch. 813), 453 V. Day, 457 V. Evans, 323 V. Gostling, 428 V. Jenkins, 330 V. Laroche, 351 V. Martin, 194 V. Phibbs, 82, 179, 601 Coote V. Boyd, 456 V. Lowndes, 508 Cooth V. Jackson, 593, 598 Cope V. Wilmot, 402 Copis V. Middleton, 331 Coppin V. Fernyhough, 283 Corbett v. Brock, 157, 158 Cordingley v. Cheeseborough, 617 Cork (E. of) V. Russell, 223 Cory V. C, 182 Cosens v. Bognor &c. Co., 271 Cosser v. Radford, 62 Coster V. C, 378 Cotterell v. Purchase, 219 Cottesworth v. Stephens, 626 Cottington v. Fletcher, 37 Cotton, Re, 400 Couch V. Stratton, 465 Coulson V. Allison, 157 Court V. Buckland, 436 Coutts V. Ackworth, 158, 410 Couturier v. Hastie, 185 Coventry v. C, 504 Cowdry v. Day, 218 Cowell V. Edwards, 318 Cowley V. Harstonge, 425 V. Wellesley, 649 Cowman v. Harrison, 35 Cowper V. Clerk, 686 V. Mantell, 37 V. Scott, 409 Cox V. Coventon, 284 — V. Dolman, 245 Cox V. Hickman, 535 Crabtree v. Bramble, 442 Cradoch v. Owen, 430 Cradock v. Piper, 131, 513 Cragg V. Holme, 575 Cragoe v. Jones, 324 Crampton v. The Varna R. Co., 589 Crane v. Drake, 294 V. Price, 663 Cranmer's Case, 460 Cranstown v. Johnston, 12 Craven v. Brady, 162 Crawshay v. Maule, 540, 541 Craythorne v. Swinburne, 317, 329 Creuze v. Hunter, 388 Crickett r. Dolby, 399 Croft V. Day, 673 V. Golds mid, 211 V. Lumley, 210 V. Lyndsey, 628 Croker v. Martin, 61 Crompton v. Sale, 459 Crook V. Corp. of Seaford, 593, 595 Croome v. Lediard, 601 Crosby v. Church, 344 Cross V. Berridge, 601 Crosse v. Smith, 628 Crossley v. Oerby Gas Co., 667 V. Lightowler, 659 Croughton's Tr., Re, 353 Crowder v. Stewart, 493 Crowe V. Ballard, 92 Crowle V. Russell, 628 Croxton v. May, 379 Croydon Gas Co. v. Dickinson, 322 Cruttwell V. Lye, 586 CUDDEE V. RUTTER, 581 Culpepper v. Aston, 298 Gumming, Re, 368 Cummins ^\ Fletcher, 255 Cunninghame v. Moody, 429 Cunningham v. Thurlow, 169, 170 Cunynghame v. Anstruther, 170, 195 Curling v. May, 425 V. Townsend, 148 Currant v. Jago, 71 Curtis v. C, 388 V. Piatt, 665 XXVI TABLE OF CASES. Curwyn v. Miller, 146 Ciistance v. Bradshaw, 543 Cuthbert i'. Baker, 614 Cutler, Re, 379 Cutts, Exp., 596 V. Thodey, 607 D'Abbadie v. Bizoin, 171 Dacre v. Patrickson, 507 Daglish, Exp., 232 Daking v. Whimper, 59, 61 Dalby v. Pullen, 611 Dale V. Sollet, 477 Dance v. Goldinghain, 633 Dane's Estate, In re, 85 Dangerfield r. Jones, 663 Daniels v. Davison, 282 Darbey v. Whitaker, 615 Darby r. D., 542 Darke v. Martyn, 109, 110 Darley v. D., 402 Damley v. L. C. & D. R., 601 Davenport v. Coltman, 438 V, Stafford, 108 Davey v. Prendergrass, 317 Davidson v. Macgregor, 324 V. Wood, 347 Davies v. Ashford, 443 V. Austin, 4(i0 r. Bowsher, 266 V. Bush, 500, 503 V. D., 188, 191 v. Goodhew, 426 r. Hodgson, 122 V. Humphreys, 329 V. Morgan, 521 T. Penton, 213 V. Sear, 283 1,. Thomas, 283 V. Topp, 499 • V. Wattier, 204 Daubeny v. Cockbum, 172, 173 Davis V. Dowding, 241 V. Marlborough (D. of), 676, 683 V. May, 236 V. Page, 421 V. Spurling, 118 V. Symonds, 189, 599, 600 V. Turvey, 560 V. Uphill, 173 V. WietUsbach, 562 Davy V. Barber, 612 Daw V. TeiTel, 260 Dawes v. Bagnall, 653 Dawson V. Clarke, 65, 121 V. D. (1 Atk. 1), 482 V. D. (8 Sim. 346), 219 V. D. (7 Ves. 173), 687 Dawson v. Kearton, 52 V. Paver, 655 V. Prince, 290, 343 Day V. Brownrigg, 661 V. Croft, 457 V. Luhke, 606 Dayreli v. Champneys, 643 Deacon v. Smith, 463 Dean v. Thwaite, 653 Deane v. Teste, 521 Dear, IJxp., 548 Dearie v. Hall, 309 De Bay v. Griffin, 268 De Beil v. Thomson, 164 Debeiiham v. Ox, 164 Debeze v. Mann, 447, 448, 454 De Bussche v. Alt, 96 Deere r. Cust, 652 v. Guest, 620 Deeth v. Hale, 442 Deg V. D., 413 De Gendre v. Kent, 522 De la Garde v. Lempriere, 367, 370 De Lancy, Re, 429 Delane v. D., 69 Delhasse, Exp., 537 De MandeviUe r. Crompton, 385 De Manneville v. De M., 389, 394, 633 Dent V. Bennett, 156, 157, 158 De Pothonier v. De Mattos, 305 Derbishire v. Home, 353 Dering v. E. of Winchelsea, 324, 327 Descrampes v. Tompkins, 399 Devaynes v. Noble, 121 V. Robinson, 300 Devese v. Pontet, 459, 464 De Visme, Re, 72 De Visme v. De V., 611 De Vitre r. Betts, 667 Devonsher r. Newenham, 686 Devoy v. D., 78 Dewar v. Maitland, 421 Dickens v. Lee, 669 Dickenson v. D., 297 Dillon V. Coppin, 51, 56 V. Parker, 410, 421 Dimech v. Corlett, 213 Dingwell v. Askew, 525 Dinham v. Bradford, 587 Dinn v. Grant, 277 Diplock V. Hammond, 308 Dipple V. Corles, 50, 53 DLsher v. D., 430 Ditton, Exp., 626 Dixon V. Gayfere, 442 V. Muckleston, 260 Docker v. Somes, 126, 470 Dodds V. Gronow, 566 Doe V. Manning, 59 Doe d. Jones v. Hughes, 299, 302 TABLE OF CASES. XXVll Doe d. Leach v. Micklem, 1S8 Roby V. Maisy, 234 D'Oechsner v. Scott, 353 Doherty r. W. & L. Ry., 580 Doloret v. Rothschild, 605 Dolphin V. Aylward, 58 Donaldson v. D., 55 Doncaster v. D., 44 Donne v. Lewis, 499 Dor an v. Wiltshire, 298 Dormer v. D., 39S V. Fortescue, 202, 203 Douglas V. Andrews, 400 V. Archbutt, 128 V. Cooksey, 514 V. D., 420 Dover v. Buck, 90 Dowell ('. Dew, 193 Dowling V. Betjemann, 584 Downe v. Morris, 223 Downes v. Grazebrook, 91, 93 V. Jennings, 384, 385 Downs V. Collius, 588 Downshire (M. of) v. Sandys, 640 Doyley v. Att.-Genl., 38 Drant v. Vause, 271, 433 Drew V. Corp., 613 V. Lockett, 330 V. Martin, 72, 74 Drinkwater v. Falconer, 521 V. Ratclitfe, 562, 563 Driver v. Ferrand, 498 Drosier v. Brereton, 112 Drover v. Beyer, 688 Drunimond v. Tracy, 24 Drury v. Smith, 530 Dryden v. Frost, 271 Drysdale v. Mace, 575 Dubost, Exp., 55, 445 Duckworth, Ee, 480 Duddell V. Simpson, 617 Duffield r. Elwes, 528, 529 Duffy r. Orr, 321 Dugdale v. D., 501 Duggan V. Kelly, 161 Du Hourmielin v. Sheldon, 429 Dummer v. Pitcher, 73 Dunbar v. Tredinnick, 279 Duncombe v. Greenacre, 369 Duncuft V. Albrecht, 585 Dundas v. Dutens, 60 Dunkley v. D., 377, 378 Dunnage v. White, 182 Dunne v. English, 96 Durell V. Pritchard, 577 Durham v. Friend, 524 (E. of) V. Legard, 617 V. Wharton, 448 Diu-sley v. Fitzhardinge, 690 Dyee v. Dyer, 65, 71, 427 Dyer v. Hargrave, 141 Dykes' Estate, Ee, 432 Eade v. E., 35 Eads V. Williams, 575 Earlom v. Saunders, 425 East V. Cook, 419 East I. Co. V. Boddam, 202 Eastwood V. Vinke, 459 Eaton V. Lyon, 210 Ebrand v. Dancer, 71 Echliff V. Baldwin, 633 Eccl. Com. r. N. E. R. Co., 653 Ede V. Knowles, 263 Edelsten v. E., 672 Edge r. Worthington, 260 Edgeberry r. Stephens, 663 Edmonds v. Peake, 109 Edmunds v. Low, 460 V. Townshend, 372 Edwards v. Aubrey, 347 r. Freeman, 203 V. Jones, 51, 53, 339, 528, 532 V. Lewis, 84 V. Meyrick, 98 V. M'Leay, 142 V. Pike, 35, 598 V. Warwick (C. of), 429, 442 Edwards-Wood v. Marjoribanks, 616 Eedes v. E., 378 Egerton v. Brownlow, 40, 165 Eland v. Baker, 172 V. E., 296, 300 Eley V. Norwood, 248 EHas V. Griffith, 638 Elibank v. Montolieu, 364 Ellard v. Llandaff, 142 Elliot v. Mekryman, 293, 294, 295, 298 Elliott V. Brown, 540 V. Cordell, 370 r. E., 75 V. Fisher, 429 — — V. N. E. R. Co., 655 EUice V. Roupell, 689 Ellison V. Airey, 128 Ellison v. E., 52, 54 V. El win, 382 EUis's Ti-ust, Ee, 353 Ellis V. Barker, 182 , V. Lewis, 416 V. Selby, 28 V. Walker, 521 V. Wilmot, 325 Elsey V. Lutyens, 279 Elworthy v. Wickstead, 372 Emery, Exp., 266 Emmerson's Ca., 186, 586 XXVIU TABLE OF CASES. Emmet v. E., 126 Emussr. Smith, 433, 511 England, Re, 389 V. Codrington, 219 V. Curling, 538, 588 V. Downs, 384 Ennor v. Barwell, 666 Eno V. Tatham, 507 Erlanger r. New Sombrero Co., 85 Errington v. Aynesley, 587 Erskine's Tr., Be, 373, 378 Esdaile v. Stephenson, 614 Esposito V. Bowden, 550 Essel V. Hayward, 550 Essex V. Atkins, 342 V. Baugh, 279 V. E., 542 Etches V. Lance, 686 Evans v. Bagshawe, 556 V. Bremridge, 323 v. Cockeram, 503 V. Llewellyn, 151, 158, 181 V. Massey, 402 Everitt r. E., 156 Ewer V. Corbet, 293, 294 Exhall Coal Co., Re, 127 Eykyn's Tr., Re, 72 Eyre v. Everett, 320 V. Hughes, 218, 237 V. McDowell, 257 Eyke v. C. of Shaftesbury, 387, 390, 391 Eyton V. Denbigh &c. Co., 271 Fairer v. Park, 459, 520 Fairfax v. Montague, 224 Fairthome v. Weston, 545 Falcke v. Gray, 575, 584 Fall V. Elkins, 556 Fane v. F., 143 Farebrother v. Welchman, 627 . V. Wodehouse, 332 Farley, Exp., 262 Farmer v. Curtis, 223 V. Dean, 91 V. Martin, 170, 173 Farquharson v. Cave, 529 V. Floyer, 501 Farrant v. Lovcl, 235, 642, 645 Farrar v. E. of Winterton, 271 Farrow v. Vansittart, 652 V. Wilson, 199 Fawcett v. Lowther, 220 Faulkner v. Daniel, 133 Fawkner v. Watts, 400 Fearon v. Desbrisay, 171 Featherstonehaugh v. Fenwick, 84, 133, 260, 549 Fell V. Brown, 223 Fellows V. Mitchell, 110, 119 Fells V. Read, 584 Feltham v. Clarke, 309 Fenner v. Taylor, 367 Fenton v. Browne, 139, 575 Fenwicke v. Clarke, 109 Fereday v. Wightwick, 541 Ferrand v. Corp. of Bradford, 659 Ferrars v. Cherry, 283 F"'erris v. Mullins, 258, 259 Fetherstone v. West, 122 Fettiplace v. Gorges, 336, 341 Fields. Brown, 649 V. Donoughmore, 63 V. Evans, 350 V. Lonsdale, 70 V. Megan, 308 V. Moore, 396 V. Sowle, 345 Fielding r. Preston, 500, 520 Finch V. ¥., 71, 73 V. Shaw, 291 Finden v. Stephens, 35 Fishmongers' Co. v. East India Co., 655 Fisk V. Att.-Gen., 30 Fitch V. Weber, 434 Fitzgerald v. Stewart, 308 Fitzgibbon v. Blake, 353 Flamang's Case, 650 Flamank, Exp., 428 Flanagan v. G. W. R., 94 Fleming v. Armstrong, 560 i: Buchanan, 502 Fletcher, Exp., 233 Fletcher v. Ashburner, 423 Fletcher v. V., 491 Flory V. Denny, 49 Flower r. Buller, 257 Foley V. Biirnell, 48 Forbes v. Adams, 441 V. Peacock, 296, 298 V. Ross, 99, 110, 126 V. Steven, 542 Ford V. Beech, 189 V. Fleming, 521 V. Olden, 93,^220 V. Peering, 679 V. White, 280 Fordyce v. Ford, 614 Forrester v. Cotton, 410 Forster v. Hale, 33 V. Patterson, 226 Fortescue v. Barnett, 53, 56 Foster v. Dennj% 391 V. F., 428, 437 and Lister, In re, 60 t:, Mackinnon, 184 Fothergill v. F., 194, 196 TABLE OF CASES. XXIX Fowkes V. Pascoe, 67, 69, 447 Fowler's Trust, Be, 412 Fowler v. F. (4 De G. & J. 250), 189, 190 V. F. (3 P. Wins. 353), 460, 461 V. Garlike, 65 Fox V. Mackreth, 88, 142, 154 V. Scard, 212 V. Wright, 147 Frail v. Ellis, 264, 274 France v. F., 562 Francis, Re, 233 V. Brooking, 378 V. F., Ill V. Wigzell, 346 Franco v. Bolton, 678 Franklin v. Green, 402 Franklyn v. Fern, 222 Franks v. BoUans, 91, 401 Fraser v. Wood, 611 Freeman v. Bishop, 146 V FairUe, 679 V. Lomas, 479 V. Pope, 57 Freemantle v. Bankes, 449 French v. Davison, 402 V. F., 61 V. Macale, 212, 213, 572 Frere v. Moore, 272 Friswell r. King, 267 Frost V. Brewer, 617 Fry V. Capper, 351 — V. Porter, 161 Fuller V. Bennett, 284 V. Knight, 111 Fynn, Re, 388, 392 Fytche v. F., 422 Gaffee's Settlement, 352 Gale V. Lindo, 164 Gallop, Exp., 70 Galton V. Hancock, 511 Gambart v. Bull, 670 Gardiner v. Fell, 418 Gardner v. G., 348 ■ V. Hatton, 524 V. Marshall, 378 V. Parker, 528 Garforth v. Bradley, 373 Garrard v. Dinorben, 491 V. Lauderdale, 62 Garret v. Wilkinson, 74 Garth v. Cotton, 642, 643, 644, 646, 648 V. Meyrick, 455 V. Townsend, 193 Garthshore v. Chalie, 464 Gascoigne v. Thwing, 68 Gaskell's Trusts, 353 Gaskell v. G., 555 Gaskin v. Balls, 651 Gedge v. Montrose, 612 Gee V. Pearse, 610 — V. Pritchard, 668 General Share Co. v. Chapman, 267 Gent V. Harris, 379 V. Harrison, 647 George, Re, 398 V. Milbanke, 57 Ghost V. Waller, 109 Giacometti v. Prodgers, 373, 378 Gibbs V. Harding, 589 Gibson, Re, 519, 524 V. G., 416 V. Goldsniid, 545 V. Ingo, 584 V. Smith, 635 Gibbens v. Eyden, 501 Gibbons v. Hills, 521 Giddings v. G., 85, 86 Gilbert v. Lewis, 340 V. Overton, 54 V. Smith, 564 Gilbertson v. G., 498 Gilchrist v. Cator, 377 V. Herbert, 594 Giles r. G., 192 Gillespie ?'. Hamilton, 549 Gillett V. Peppercorne, 97 Gillies V. Longiands, 443 Giffard v. Hart, 684 Gififord, £xp., 326 Gleaves v. Paine, 369 Glegg 2\ Rees, 63 Glendinning, Exp., 322 Glenorcht v. Bosville, 39 Glyn, Exp., 261 Glynn v. B. of England, 203 Goddard v. Snow, 384 Godfrey r. G., 34 V. Harben, 346 V. Littel, 569 V. Watson, 247 Godin V. Lond. Ass. Co., 266 Goldicutt V. Townsend, 594 Goldsmith v. Russell, 380 Goldsworthy, Re, 389 Goleborn v. Alcock, 288 Gompertz v. Pooley, 624 Good, Exp., 266 Goodenough v. G., 557 V. Tremamondo, 105 Goodlad v. Burnet, 518 Goodman v. ' Whitcomb, 551 Goodright v. Hodges, 69 Goodwin v. Waghorn, 259 Goodwyn v. G., 197 Gordon v. Calvert, 324, 327 V. Cheltenham R. Co., 653 XXX TABLE OF CASES, Gordon r. G., 143, 182 Gore, Exp., 94 r. Knight, 341 Goring r. Nash, 676 Gosling V. Carter, 299 i\ War burton, 416 Gould V. Eobertson, 63 Goulton r. London &c. Co., 211 Gower r. Main waring, 38 Gowland v. De Faria, 92, 146, 147, 149 Grace, Exp., 84 V. Newman, 667 Graham, Re, 393 V. Londonderry, 340, 360, 361 Granard v. Dunkin, 669 Grant v. G. (34 Beav.), 50, 340, 341, 360 V. — (3 Russ. 598), 687 Grave's Case, 670 Graves Minor, Re, 433 V. Ashford, 670 V. Dolphin, 37 Gray v. Johnston, 294 Grayburn r. Clarkson, 108 Great Luxembourg R. Co. r. Magnay, 133 Great W. R. Co. v. Cripps, 601 V. Rushout, 631 Greedy v. Lavender, 376 Green v. Bridges, 208 r. Britten, 339 r. Fanner, 266 V. G., 409 V. Otte, 378 V. Smith, 574 V. Symonds, 524 V. Wynn, 325 Greene v. Cole, 641 V. G., 498 Greenhill v. G., 429 Greening r. Beckford, 311 Greenslade v. Dane, 282 Greenway, Exp., 201, 202 Greenwell r. G., 400 Gregory v. G., 90, 100 V. Mighell, 574 V. Wilson, 210 Gretton r. Haward, 410 Grey v. G., 73, 74 Grierson r. Cheshire Lines Com., 580 Grieveson v. Kirsopp, 426 Griffies r. G., 560 Griffin v. De Veulle, 156 r. G., 81, 84 Griffith V. Ricketts, 62, 431, 439 Grigby v. Cox, 342 Grimstone, Exp., 427 Grissell's Ca., 480 Grissell r. Swinhoe, 419 Groom v. Booth, 297 Grosvenor v. Sherratt, 98 Grove v. Comyn, 562 Groves v. G., 69, 70 V. Perkins, 367 Gitigeon V. Gerrard, 224 Guest V. Homfray, 609 r. Smythe, 97 Gurnell v. Gardner, 308 Guy V. Sharp, 457 Gwynne, Exp., 270 V. Heaton, 145 Hack ■;;. Leonard, 210 Haddon r. Fladgate, 340 Hadow V. H., 397 Haigh V. Kaye, 37 Haines v. Taylor, 635, 655 Hale V. Webb, 203, 480 Hales V. Cox, 515 Halfhide v. Fenning, 589 Hall V. Barrows, 672 — V. H. (3 Atk. 721), 391 — V. H. (12 Bei.v. 414), 545, 549, 552 — V. H. (1 R & M. 481), 159 — V. Hallett, 93, 100 — V. Hardy, 589 — V. Hill, 416, 453, 461 — V. Hutchons, 325 — V. Laver, 267, 268 — V. Palmer, 52 — V. Thynne, 163 — V. Warren, 579 — V. Waterhouse, 342 Halsey v. Grant, 614 Hamilton v. Mohun, 163 V. Royse, 284 V. Watson, 319 Hammersley r. De Biel, 594 Hampton v. Hodges, 637 V. Hohnan, 49 Hanbury v. Kirkland, 119 V. Spooner, 128 Han by v. Roberts, 511, 512 Hancox v. Abbey, 503 Hankey v. Vernon, 256 Hansard v. Hardy, 224 V. Robinson, 200, 203 Hansen v. Miller, 380 Hansom v. Allen, 112 Hanson, Exp., 274 V. Gardiner, 635, 650, 685 V. Keating, 369 V. Reece, 267 V. Stubbs, 493 Harbidge v. Wogan, 191 Harbin v. Darby, 128, 129 Harcourt r. Knowel, 288 Harding, In the goods of, 335, 382 TABLE OF CASES. XXXI Harding v. H., 508 V. Glyn, 39 V. Met. R. Co., 432 Hardingham v. Thomas, 445 Hardwicke v. Wright, 330 Hardy, £xp., 281, 432 V. Martin, 208, 212 V. Met. &c. Co., 116 Harewood r. Child, 498 Harford v. Carpenter, 260 V. Purrier, 612 Hargreaves r. Rothwell, 284 Harland v. Trigg, 35 Harlock r. Ashberry, 244 Harmer v. Priestley, 224 Harmood v. Oglander, 511 Harms v. Parsons, 165 Harnett v. Yeilding, 573, 616 Harrington v. Du Chastel, 165 V. H., 48 V. Wheeler, 610 Harris, Exp., 548 V. H, 112 V. Fawcett, 327 Harrison, Uxp. (18 Ch. D.), 240 V. Barton, 77, 78 V. Forth, 280 V. Guest, 99, 145 r. Gurney, 629 V. H. (2 H. & M. 237), 130 V. H. (1 Keen, 765), 416 V. H. (1 R. & M. 71), 271 V. Nettleship, 627 V. Tennant, 550 Harrop's Est., Re, 429 Harrop r. Howard, 350 Hart V. Herwig, 586 Hartford r. Power, 339, 340 Hartley v. Ostler, 455 Hartopp V. H., 448 Hartridge, Exp., 590 Hartwell r. H., 165 Harvey's Estate, He, 346 Harvey v. Aston, 161, 162 V. Jebbutt, 247 V. Met. R. Co., 580 V. Mount, 158 Haselfoot's Estate, hi re, 248 Haslewood v. Pope, 498, 511 Hatch V. H., 156 Hatchell v. Eggleso, 369 Hatchett v. Pattle, 204 Hawes v. Wyatt, 151, 158 Hawkes v. Hubback, 352 Hawkins, Exp., 432 V. Day, 203 V. Holmes, 593 V. Maltby, 586 Hawksworth v. H., 394 Hawthorn v. Shedden, 502 Hay V. Palmer, 481 Haycraft v. Creasy, 139 Hayes v. Caryll, 610 Hayman, Exp., 549 Haynes v. H., 432 V. Mico, 464 Hays, Exp., 403 Hay ward v. Pile, 87 Haywood v. Cope, 574, 575 Head v. H., 377 Heams v. Bance, 248 Heap r. Tonge, 60 Heard v. Pilley, 68 Hearle v. Greenbank, 418 Heath v. Crealock, 291 V. Lewis, 162 V. Unwin, 665 Heathcote v. N. S. R. Co., 631 Heaton v. Marriott, 119 Hele V. Bexley, 234 Henderson v. Mclver, 128 Henley v. , 98 and Co., Re, 489 Hensman v. Fryer, 501 Hep worth v. H., 73 V. Hill, 507 Herbert's Ca., 395 Hercy v. Birch, 538 Hermann v. Hodges, 580 Hervey v. H., 196 V. Smith, 283 Hewison v. Guthrie, 266 V. Negus, 60 Hewitt V. Kaye, 529 V. Loosemore, 273, 281 V. Wright, 431, 439 Heysham v. H., 391 Hibbert v. Jenkins, 126 Hickley v. H., 91 Hicks V. Hastings, 570 Hide r. Haywood, 126 Higginbotham v. Hawkins, 650 Higinbotham v. Holme, 37 Higgins V. Frankis, 255 Hill V. Barclay, 210, 211 V. Boyle, 314 V. Buckley, 615 V. Caillovel. 312 V. Cock, 434 V. Edmondis, 369 V. Gomme, 392 V. Gray, 141 V. H., 83 V. Simpson, 294 V. Thompson, 665 V. Turner, 633 V. Wilson, 50 V. Wormsley, 507 Hillmann, Exp., 58 Hillman v. Mayhew, 578 XXXll TABLE OF CASES. Hills V. H., f;30 r. Rowhmd, 211 Hilton r. Barrow, 676 r. Granville, 634, 635 r. Scarborough, 686 V. Woods, 315 HiNCHCLIFFE V. H., 450 Hinchinbroke r. Seymour, 170 Hinde v. Blake, 306 Hindson v. Weatherill, 159 Hinton r. Priske, 521 Hinves v. H., 103 Hirst V. Tolson, 480 Hitchman v. Stewart, 318 Hobbs V. Hull, 589 V. Norton, 167 Hobday v. Peters, 98 Hobson r. Blackburn, 30 V. Ferraby, 396 r. Sherwood, 555 r. Trevor, 306 Hockley v. Bantouk, 260 Hodgens v. H., 347, 367 Hodge's Sett., Jte, 393 Hodges r. Peacock, 456 Hodgkinson v. The National &c. Co., 94 Hodgson V. Dean, 286 r. H., 342 r. Shaw, 331 Hodkinson v. Qninn, 299, 300 Hogg V. Jones, 48 V. Kirby, 662 Hoggart r. Scott, 607 Hoghton V. H., 158 Holden V. Webber, 96 Holderness v. Lamport, 70 Holdich V. H., 416 Holdsworth v. Macrae, 670 Hole r. Thomas, 645 Holford r. Wood, 455 Hollier v. Burne, 87 HoUoway r. Radcliffe, 442 Holmes r. Dring, 110 r. H., 4,50 V. Kidd, 312 V. Penny, 57 Holms V. Coghill, 502 Holroyd v. Marshall, 306 Holt, Bxp., 122 Holt V. Dewell, 286 V. Everall, 356 V. H., 86 Homfray v. Fothergill, 545 Honywood v. Forster, 411 V. H., 637, 648 Hood V. Claphain, 107 V. Easton, 238 r. H., 272, 507 Hooman, Etp., 233 Hooper r. Smart, 312, 616 Hope V. Carnegie, 626 V. H., 387 Hopgood V. Parkin, 112 Hopkins, Exp., 387 Hopkinson v. Forster, 308 V. Roe, 128 Hopton V. Dryden, 492 Hora V. H., 397 Horn V. H., 295 Horncastle v. Charlesworth, 557 Horniblow v. Shiiley, 614 Hornsby r. Lee, 381 Horwood V. Griffith, 523 V. West, 35 Hotchkin, Exp., 255 Hotten V. Arthur, 667 Houlton's Ca., 552 Hovey v. Blakeman, 117, 121, 350 How V. Wheldon, 153 Howard v. Digby, 359, 360 Howard v. Harris, 218, 223 Howarth, Ee, 399 Howe v. Ld. Dartmouth, 103, 107, 520 ?'. McKeman, 667 Howel V. H., 43 Howell V. Coupland, 199 V. Price, 215 Howman v. Corie, 381 Howorth V. Dewell, 34 Hubbard v. Alexander, 456 Hudson V. Bartram, 606 V. Carmichael, 227 V. Temple, 605, 606 Hue V. Richards, 551 Hughes V. Empson, 108 V. Howard, 85, 86 V. Jones, 616 V. Kearney, 270 V. Met. R. Co., 210 V. Morris, 586, 593 V. Williams (3 Mac. & G. 690), 515 V. Williams (12 Ves. 493), 237, 238 HuGUENiN V. Baseley, 155, 157 Huish's Charity, Ee, 171 Hull V. Christian, 128 Hulme V. Coles, 321 HuLME V. Tenant, 336, 339, 345 Hulse, Exp., 207 Humberston v. H., 49 Hume V. Edwards, 521 Humphrey v. Olver, 171 Humphreys v. Harrison, 642 Hungerford v. Clay, 234 Hunt V. Elwes, 292 V. Peake, 653, 653 V. Rousmaniere, 181 Hunter v. Atkins, 158 V. Daniel, 31 4 TABLE OF CASES. I Hunter v. Nockolds, 247 V. Walters, 185 Hurry v. H., 566 Hurst V. Beach, 456, 457 V. H., 241 Hutchinson v. Tenant, 34 Hyde v. Dallaway, 226 Hylton V. H., 98, 156 Ibbotson r. Rhodes, 167 Ilchester, Exp., 391 Imbert, Exp., 47 i Imperial &c. Assoc, v. Coleman, 94 Inchiquin v. French, 497 Incledon v. Northcote, 399 Ingle r. Partridge, 119 V. Richards, 90 Inglefield r. Coghlan, 333, 339 Inman r. Wearing, 240 Innes v. Sayer, 30, 196 International &c. Soc, Re, 514 lonides v. Pender, 143 Irnham r. Child, 180, 601 Irons V. Smallpiece, 49 Irvine v. Sullivan, 65 Irving V. Young, 482 Isaac r. Wall, 82 Iven V. Elwes, 490 Ivie V. I., 679 Jackman r. Mitchell, 144 Jackson, Exp., 240 Jackson v. Butler, 584 V. Cator, 635 r. J., 541 V. James, 228 V. D. of Newcastle, 656 Jacob V. Lucas, 107 Jacobs, Exp., 325 Jacomb v. Knight, 620 Jacques v. Chambers, 526 James, Exp., 90, 93 James v. Dean, 81 V. J. (13 Eq. 425), 673 V. J. (16 Eq. 153), 264 V. Lichfield, 617 V. May, 127 Jay, Exp., 233 Jeans v. Cooke, 75 Jeffereys v. Small, 540 Jeffery's Tr., Re, 523 Jefferys v. Boosey, 667 r. J., 56, 573 Jeffreys v. Connor, 106 Jeffrys v. Vanteswarstwarth, 394 Jeffs r. Day, 624 Jegon V. Vivian, 653 Jenkins v. Hiles, 298 V. Robertson, 321 Jenkinson v. Harcourt, 504 V. Pepys, 599 Jenner v. Morris, 679 V. Tracy, 224 Jennings v. Baddeley, 551 V. Broughton, 139, 141 Jerrard v. Saunders, 290 Jersey v. Briton &c. Co., 271 Jervis r. Wolferstan, 121, 492 Jervois v. Duke, 161 Jervoise v. J., 360 Jessop V. Watson, 435 Jesus Coll. V. Bloom, 646 Jewson ?'. Moulson, 363, 378 Job V. J., 628 Johnson v. Ball, 53 V. Gallagher, 345 V. J. (2 Coll. 441), 104 V. J. (1 J. & W. 472), 366 — V. Kennett, 295, 296, 297 V. Kershaw, 63 — V. Legard, 60 r. Medlicott, 151 V. Newton, 109 r. S. & B. R. Co., 588 Johnston v. Lloyd, 111 r. Renton, 677 Johnstone r. Baber, 558 V. Beattie, 395 JoUand i: Stainbridge, 280 Jones, Exp., 152 Jones V. Alephsin, 687 V. Badley, 597 V. Chennell, 111 V. Foxall, 126 V. Geddes, 630 V. Gibbons, 309 V. Green (5 Eq. 555), 525 (3 Y. & J. 298), 213 V. Higgins, 344 V. Hoy, 550 V. J. (1 Q. B. D. 279), 161, 162 V. J. (3 Sim. 633), 311 V. J. (12 Ves. 186), 581 V. Lewis (3 De G. & S. 471), 111 V. (2 Ves. .sr. 240), 108, 204 V. Lloyd, 550 V. Meredith, 223 V. Mitchell, 437 V. Powles, 288 V. Price, 609 V. Sampson, 687 V. Selby, 529 V. Smith (1 Ha. 43), 283, 284 (2 Ves. jr. 372), 229, 247, 255 V. Starkey, 308 XXXIV TABT.E OF CASES. Jones V. Tapling, 657 V. Williams, 258 Jope r. Morshead, 556 Jordan v. Money, 595 Joy V. Campbell, 118, 120 Joyce V. Do Moleyns, 290 Joynes v. Statham, 597, 600 Jupe V. Pratt, 663 Kate, Re, 393 V. Moore, 679 Keane, Re, 853 Keat V. Allen, 163 Keating v. Sparrow, 211 Keble, Hxp., 399 V. Thompson, 122 Keech v. Hall, 234 Keech v. Sandfoed, 80 Kekewich v. Manning, 55 Kelk V. Pearson, 656 Kelland r. Fulford, 428, 437 Kelly V. Hooper, 668 V. K., 81 V. Morris, 671 V. Wyman, 672 Kemble i\ Farren, 209 Kemp V. L. & B. R. Co,, 652 V. Prior, 677 V. Westbrook, 229 Kendall, Exp., 514 V. Granger, 27 V. Hamilton, 547 Kennedy, £xp., 548 V. Green, 184, 282, 285 V. Panama, &c. Mail Co., Kennell v. Abbott, 1S2 Kenney ?'. Browne, 100 V. Wexham, 583 Kensington, Exp., 262, 263 V. Dollond, 339 Kerr v. Corp. of Preston, 632 Kerr's Policy, Re, 262 Kestril, The, 239 Kettleby v. Atwood, 430 Key V. Bradshaw, 163 V. Flint, 478 Keys V. Williams, 260 Kidney ?'. Coussmaker, 413, 436 Kildare v. Eustace, 12 Killick, Exp., 340 V. Flexney, 92 Kilpatrick ?-. K.,"388 Kimber i'. Barber, 96 Kincaid's Tr., Re, 378 Kinnoul v. Money, 227 King I'. Bromley, 220 (The) r. Coggan, 130 V. Cotton, 384 185 King V. Denison, 67 V. Hamlet, 148 V. K., 415 V. Smith, 235, 642 V. Voss, 355, 356 V. Wilson, 607, 616 Kingdon v. Bridges, 72 V. Castleman, 108 Kinsman v. Rouse, 226 Kingston, Exp., 479 Kirby v. Potter, 518, 521, 526 Kirk V. Clark, 60 V. Eddowes, 449, 454, 461 Kirkman r. Booth, 102, 131 V. Miles, 442 Knight V. Bowyer, 283 V. K, 34, 373 V. Marjoribanks, 91, 93 Knott, Exp., 250 V. Cottee, 115, 391 Knox V. Gye, 85, 133 Kronheim v. Johnson, 33 Lacey, Exp., 88, 90, 91, 94 V. Hill, 417, 548 Lacon v. Liflfen, 258 Lacy V. Ingle, 247 Lake v. Brutton, 330 Lamb v. L., 420 r. Milnes, 370 Lambarde v. Older, 479 Lambe v. Eames, 34 Lambert v. Thwaites, 38 Lamport's Case, 305 Lamplugh v. L., 73, 75 Lance v. Norman, 384 Lancefield v. Iggulden, 501 Lander v. Weston, 111 Lane, Re, 403 V. Dighton, 69 V. Jackson, 286 Lanesborough v. Jones, 478 Langdale's Est,, Re, 562 Langdale t\ Briggs, 518 Langford v. Burnett, 217 V. Gascoyne, 117 V. Pitt, 610 Langham v. Sanford, 65 Langslow v. L., 415 Lang.staffe r. Fenwick, 218 Langston, Exp., 262 V. Ollivant, 111 Lanoy v. D. of Athol, 400, 515 Lansdown v. L., 178 Lascelles v. Butt, 568 Latham v. Chartered Bk. of India, 321 Law V. E, I, Co,, 330 Law.ler r. L., 327 TABLE OF CASES. XXXV I Lawes v. Bennett, 432 Lawrence v. L., 416 Lawrenson r. Butler, 194, 616 Laweon v. Laude, 5!>9 V. L., 505, 528 r. Stitch, 520 Leake v. L., 687 Leary v. Shout, 551 Leather Cloth Co. v. Amei'ican &c. Co., 673 Leavers v. Clayton, 28, 65 Lechmere v. Brasier, 611 Lechmere v. E. of Carlisle, 443, 462 Lee r. Alston, 647 — V. Brown, 402 — V. D'Aranda, 464 — V. Fernie, 172 — V. Haley, 673 — V. Jones, 320 — V. L., 524 — V. Nuttall, 492, 495 — V. Prieaux, 339 Leech v. Schweder, 656 Leeds (D. of) v. Amherst, 650 V. Barnard iston, 395 (D. of) r. Powell, 568 Lees V. Nuttall, 96 V. Patterson, 688 Legal V. Miller, 600 Legg v. Goldwire, 190 Leggatt V. Met. Ry. Co., 611 Lehmann v. McArthur, 609 Leigh V. Barry, 120 r. Macaulay, 684 Leighton v. L., 448, 686 Leith V. Irvine, 133 Lench v. L., 68, 69, 464 Le Neve v. Le N., 279 Leonard r. Sussex, 46 Leslie v. Baillie, 179 V. Crommelin, 616 Lester r. Foxcroft, 592 Lethbridge v. Thurlow, 453 Lethem r. Hall, 394 Lett V. Morris, 308 Lewers v. Shaftesbury, 576 Lewis, Exp., 233 V. Fullarton, 671, 672 V. Hillman, 96 i: Hopkins, 58 V. Jones, 317 r. L. (1 Co.x, 162), 402 r. L. (13 Eq. 219), 509 V. Matthews, 340 V. Nangle, 222, 227 r. Rees, 59 Life Ass. of Scotland r. Siddal, 92, 368 Lightfoot r. Heron, 575, 601 Lillia V. Airey, 345 Lincoln ?'. Windsor, 131 Lincoln v. Wright, 117, 597 Linden, Exp., 270 Lindsay v. Gibbs, 306 Lingen v. Simpson, 545 V. Sowray, 441, 443 Lister r. Hodgson, 50 Littlehales v. Gascoyne, 116 Liverpool &c. Co. v. Hunter, 630 Livesey v. Harding, 311, 402 Llewellyn r. Cobbold, 384 V. Mackworth, 409 Lloyd r. Atwood, 251, 259 V. Clark, 629 V. Cocker, 402 V. Collett, 609 V. L. (2 My. & Cr. 192), 602 V. —(2 Sim. N. S. 255), 162 V. Mason, 267, 367 V. Pughe, 75 V. SpiUet, 33, 65 V. Wait, 222 V. Williams, 367 Lloyds V. Harper, 326 Llynvi Co. r. Brogden, 653 Lock r. Venables, 522 Lockhart r. Hardy, 242, 503 Lodge r. Pritchard, 548 Loffus V. Maw, 164 Lugan V. Fairlie, 394 Lomax r. L., 400 Londesborough r. Somerville, 526 London Chartered Bank ?'. Lempriere, 195, 34.3, 346 V. Wliite, 266 London & B. R. Co. v. Winter, 602 & N. W. R. r. L. & Y. R., 651 & S. W. R. V. Black more, 189 Long, Ee, 402 V. Fletcher, 614 V. L., 396 r. Short, 522 Longbottom v. Berry, 261 Limgman r. Winchester, 668 Longmate v. Ledger, 99, 151 Lord V. Godfrey, 104 V. Jeffkins, 146 V. L., 526 Lorimer r. L., 559 Loscombe v. Russell, 545 Lovegrove, Exp., 127 Loveridge v. Cooper, 309 Lovett V. L., 682 Lowndes v. Bettle, 644, 651 V. Norton, 637 Lows V. Telford, 239 Lowson V. Cnpeland, 102 Lowther v. C. of Andover, 611 V. Gordon, 279 V. L., 96 Lowthian v. Hasel, 252 c2 XXXVl TABLE OF CASES. Loyd, Exp., 261 V. Mansel, 242 V. Reid, 73 V. Spillet, 33, 65 Luard's Case, 539 Lucas r. Dorrien, 260, 266 r. L., 361 Lumb V. Milnes, 339 Lumley r. Wagner, 590, 619 Lush's Trust, lie, 376 Lushington v. Boldero, 640, 648 Lyon V. Home. 157 V. Tweddle, 551 Lyons, i?e, 393 V. Blenkin, 392 Lyster v. Dollond, 540 Lyttleton r. Cross, 491 Maber v. Hobbs, 385 Macaulay v. Philips, 363 Macbryde v. Weeks, 605 Macclesfield v. Fitton, 221 Mackay v. Douglas, 57 Mackenzie, Exp., 311 V. Johnston, 470 V. Robinson, 235 Mackinnon v. Stewart, 63 Mackrell v. Hunt, 612 Mackreth v. Marlar, 608 Mackketh v. Symmons, 269, 275, 279 Maclaren v. Stainton, 522 Macleod v. Annesley, 112 Macnamara v. Carey, 108 V. Jones, 128 Macrae v. Holdswoi-th, 672 Maddison v. Chapman, 411 Maddy r. Hale, 87 Madeley v. Booth, 614 Magennis r. Fallon, 607, 612 Mahon v. Stanhope, 640 Mainwaring ?•. Newman, 546 Maitland v. Irving, 158, 320 Major r. Lansley, 342 Malcolm v. O'Callaghan, 127, 161 Maiden v. Merrill, 201 Mallock V. Galton, 241 Manby v. Bewicke, 150 Manchester & L. R. Co. v. G-. N. R. Co., 652 & S. R. Co., Re, 432 Mann v. Fuller, 457 Manning, Exp., 612 ■ V. Gill, 55 V. Pureell, 521 Manningford v. Toleman, 262 Manton v. Parker, 664 March v. Russell, 121 Mare r. Sandford, 144 Margetts v. Barringer, 339 Marker v. M., 653 Marlborough (D. of) v. St. John, 637 Marples v. Bainbridge, 161 Marriott v. The Anchor &c. Co., 239 Marryat v. Townly, 48 Marsack r. Lyster, 371 Marsden, ^e, 171 V. Kent, 102 Marseilles &c. Co., In re, 285 Mar.sh v. Hunter, 115 Marsh v. Lee, 245 Mar.sh v. Wells, 641 Marshal v. Crutwell, 76 Marshall r. Colman, 544 V. Holloway, 129, 399 V. Shrewsbury, 243 V. Watson, 545 Marson v. L. C. & D. R., 580 Martin, Exp., 262 V. Drink water, 456 V. Nutkin, 590 V. Py croft, 602 V. Reid, 229 Mary Smith, Re, 427 Mason r. Bogg, 494 V. Morley, 110 Massam v. Thorley's &c. Co., 673 Massey v. Parker, 339 Massy r. Rowen, 338, 339, 340 Master v. Fuller, 345 Masters v. M., 456 Mathew v. Brise, 391 Mathews r. M., 460 Mathias v. M., 464 Matthew v. Bowler, 270 Matthewman's Case, 345 Matthews v. Bagshawe, 133 V. Baxter, 151 V. Cartwright, 247 — V. Wallwyn, 221, 483 Matthison v. Clarke, 132 Maugham r. Mason, 435 Maunder v. Lloyd, 12 Maunsell v. White, 595 Mawman v. Tegg, 665, 671 Ma.wson v. Fletcher, 617 Maxfield v. Burton, 249, 281 Maxwell v. Montacute, 219 V. Wettenhall, 527 May V. Hook, 632 V. M., 75 Mayd v. Field, 345, 453 Mayhew v. Crickett, 321, 330, 332 McCalmont v. Rankin, 586 M'Carogher v. Whieldon, 452 M'Clellan, Exp., 387 McCormick v. Garnett, 179 V. Grogan, 35, 597 TABLE OF CASES. XXXVll M'Culloch V. Bland, 50 M'Donnell v. Hesilrige, 54 McFadden v. Jenkyns, 53 McHenry v. Davies, 345 McKay's Case, 95 McKenzie r. Hesketh, 616 M'Queen r. Farquhar, 172, 615 Meaden v. Sealey, 264 Medworth v. Pope, 37 Meek v. Devenish, 442 V. Kettlewell, 55 Meeley v. Webber, 481 Meggott V. M., 557 Megrath v. Gray, 325 Meinertzhagen v. Walters, 449 Mellish V. De Costa, 390 V. Vallins, 508 Meluish v. Milton, 681 Mendes v. Guedalla, 110 Mercer v. Graves, 268 Merchants' Co. v. Banner, 590 Meredith v. Heneage, 34 V. Vick, 443 Merewether v. Shaw, 140 M etrop. Bank v. Heiron, 85 Met. Counties Soc. v. Brown, 188 Meure v. M., 47 Meux V. Jacobs, 261 V. Smith, 271 Mews V. M., 340 Miall V. Brain, 417 Micklethwait v. M., 641 Middleton v. Greenwood, 587 V. M., 196 V. Spicer, 130 Midland C. R. Co. v. Ogwin, 428 Mildmay v. Hungerford, 601 V. Quicke, 437 Mildred v. Neate, 626 Miles V. Durnford, 294 V. Thomas, 545 Mill V. Hill, 86, 100 Miller v. Cook, 146, 149 V. Craig, 189 V. Harris, 390 V. Huddlestone, 500 V. Mackay, 132 V. M., 528 V. Thurgood, 420 V. Warmington, 559, 569 Millett V. Davy, 238 Millington v. Fox, 671 Mills V. Farmer, 28 V. Fowkes, 474, 475 V. Jennings, 254 — ^v. Osborne, 110 Milltown V. Stewart, 678 MUner v. Colmer, 373 V. M., 191 Milnes v. Gery, 587 Milroy v. Lord, 51, 531 Mil ward v. E. of Thanet, 609 Mirehouse v. Scaife, 500 Mitchel T. Reynolds, 164 Mitchell, Exp., 395 V. Dors, 650 V. Smith, 531 Mitford V. Reynolds, 37 Moet V. Causton, 674 Mogg V. Hodges, 514 V. M., 651 Moggridge v. Thackwell, 28, 29 Mole V. Mansfield, 559 MoUwo, March & Co. v. C. of Wards, 536 Molony v. Kennedy, 343 Mompesson's Case, 662 Monck V. M., 447 Mondey v. M., 241 Money's Trusts, In re, 87 Montague v. Dodman, 632 Montefiore v. Brown, 63 V. Guedalla, 449 Montfort v. Cadogan, 123 Moodie v. Reid, 197 Moorcroft v. Dowding, 33 Moore v. Blake, 575 V. Clark, 670 V. Darton, 529, 530 V. Fisher, 314 V. Frowd, 129 V. Greg, 263 V. M., 508, 530 V. Morris, 352 V. Painter, 247 Moores v. Choat, 263 More V. M., 395 Morecock v. Dickens, 279 Morell V. Wooten, 308 Morgan r. Dillon, 391 V. Hatchell, 390 ■ — V. Malleson, 51, 531 V. Minett, 156 V. M., 104 V. Surman, 174 Morice v. Bishop of Durham, 27 Morison v. Moat, 545 V. M., 127 Morland v. Cook, 283 Morley v. Bird, 77 V. Rennoldson, 162 Mornington v. Keene, 463 Morony v. O'Dea, 256 Morres v. Hodges, 87 Morret v. Paske, 222, 249, 251 Morrice v. B. of England, 628 Morris v. Barrett, 541 V. Kearsley, 545 V. M., 640, 641, 650 V. Wright, 671 XXXVIII TABLE OF CASES. Morrison i-. M., 129 . r. Universal &;c. Co., 143 Morse r. Martin. 195, 197 r. Palmer, 92 v. Royal, 91 Mortimer v. Capper, 188 V. Orchard. 574 Mortimore i: M-, 111 Mortlock r. Buller, 135, 194, 616 Moss, Ejcp.. 25S Motley v. Downman, 673 INIountfort. £xp., 229, 388 Mower's Tr., Re. 515 Mower i: Orr, 424 Muckle--t.>n v. Brown, 35, 597 Mucklow r. Fuller, 117 Mulkem i: Ward, 661 MuUins V. Smith, 527 Mulvauy i: DiUon, 81, 86 Mimiford i: Gething, 164 V. Stohwasser, 249 Mundy r. Howe, 400 V. Jolliffe, 593, 594 r. M., 557 Mimns r. I. of W. R, Co., 271 Miiriess r. Franklin, 75 Mvutjv r. Barlee, 335, 345 McrkIt r. Elib-VSK, 365 Murray v. Palmer, 92, 149 '- v. Parker, 189 Murrell i: Goodyear, 610 Miisprat V. Gordon, 306 Nairne r. Prowse, 275 Nandick r. Wilkes, 43 Napier v. X., 378 Nash V. Hodsrson, 475, 476 r. N., 381 National &c. Co., Re, 211 r. Prudential Ass. Co., 657 National Pro v. Bk. r. Harle, 313 Navlor v. Mangles, 267 — ^: V. Winch, 182 Neap r. Abbott, 600 Neesom v. Clarkson, 163 Neilson v. Betts, 667 v. Harford, 664 Nelson v. Buncombe, 150 r. Page, 509 r. Stocker, 140, 152 Nelthorpe r. Holgate, 617 Nerot i: BmTiard, 550 Nevill's Case, 324 Nevill V. N., 48 NevUle V. Fortescue, 105 r. Wilkinson, 595 Nevin r. Drvsdale, 448 Newbery's Case, 669 Newberv, Re. 394 New Bninswick &c. Co. i. Muggeridge, 5S5 Newcastle r. Lincoln, 44 Newcomb i: Bonham, 220 Newlauds v. Paynter, 338, 352, 629, 632 Newman, Re, 98 r. Rogers, 605 i: Selfe, 241 v. Wilson. 371 New Sombrero &c. Co. r. Erlanger, 95 Newstead r. Searles, 60, 284 Newton, Exp., 132 V. Marsden, 162 V. N., 289 f. Vaiicher, 664 Nichol r. Stockdale, 671 Nicholls r. Maynard, 207, 218 Nicholson r. ReviU, 325, 326 V. Tutin, 125 Nisbet r. Smith, 320 Norhurv, Re, 390 Norfolk's (D. of) Case, 37 Norfolk (D. of) v. Myers, 685 Nonis r. Chambers, 23 r. Frazer, 35 r. N.. 524 r. Wilkinson. 260 r. Wright, 111 NoiTish r. MarshaU, 309 North B. Insce. Co. r. Lloyd, 320 r. Gnman, 557 Northern Assam Tea Co., Re, 312 Northumberland (E. of) v. Aylesford (E. of), 421 Norton, Exp., 363 r. Mascall, 589 Nott r. Hill, 147 Nottley r. Pabner, 416 NOTS i: MOBDAUN-T, 407, 417 Nugent r. Tetzera, 395 Nvmn r. Fabian, 594 Oakde^ v. Pike, 607 Oakes, Exp., 263 Obee r. Bishop, 122 O'Brien v. O'B., 641 O'Connor v. Spaight, 470 Odessa &c. Co. r. Mendel, 573 Offord V. Davies, 326 Oglander v. Baston, 381 O'Hara v. Chaine, 417 O'Keeffe v. Casey, 390 Oldham v. Hughes, 440 OUve r. Smith, 478 Oliver r. Brickland, 465 V. Court, 96 TABLE OF CASES. XXJQX Olliver r. King, 57 Orby V. Trigg, 219 Ord V. White, 311 Oriental &c. Co. r. Briggs, 585 Corp. r. Overend & Co., 322 Omierod r. Hardman, 602 Ormond v. Kvnnersley, 64" O'Rorke r. Bolingbroke, li", 148 Orr r. Newton, 107 OrreU r. 0., 419 Orrett, Exp., 260 V. Corser, 122 Osbom V. Lea, 167 V. Morgan, 368 Osborne v. Williams, 678 Oswald i: M. of Berwick, 324 Oswell V. Probert, 363, 369 Ouseley v. Anstruther, 498 Overton v. Banister, 152 Owen V. Homan, 140, 320, 345 V. WilUams, 86 Owens V. Dickenson, 345, 347, 487 Oxenden v. Compton, 405, 427 V. 0., 378 Oaford's (E. of) Case, 13, 623 Oxford V. Rodney, 504 Oxiey V, Holden, 664 Padbuet r. Clarke, 410, 411, 421 Paddon v. Richardson, 108 Pad'ivick v. Stanley, 470 Page V. Adam, 296, 298, 618 V. Bennett, 209 V. Home, 157 V. Leapingwell, 522, 523 Paget r. Ede, 12 V. Read, 118 Pain V. Coombs, 593 Pale V. P., 73 Pahner v. Bate, 313 V. Danby, 223 V. Hendrie, 242 V. Newell, 454 V. Wakefield. 401 V. WTieeler, 172 V. Young, 83 Panama &c. Co. v. India Rxibber &c. Co.. 96 Pankhurst v. Howell, 448 Papillon V. Voice, 45 Pardo V. Bingham, 487, 502 Parfitt r. Lawless, 159 Paris Skating Rink Co., He, 314 Parker v. Brooke, 338, 348 r. Butcher, 212 V. Clarke, 263 r. Frith, 606 Parker V. McKenna, 96 V. Taswell, 601 r. Watkins, 237 Parke s, Exp., 274 V. White, 91, 92, 350 Parkin v. Thorold, 574 Parkinson v. Hanbury, 237 Pamall r. P., 34 PameU, In the goods of, 390 V. Hingston, 66 Parrot r. Palmer, 646 Parsons v. Briddock, 331 Parteriche v. Powlet, 227 Partridge v. P., 522, 525 Passingham v. Sherborne, 90 Patch r. WUd, 236 Patent &c. Co. v. Walter, 667 Patman v. Harland, 283 Payne v. Mortimer, 490 Peachey's Case, 68 Peachy r. D. of Somebset, 205 Peacock, He, 450 v. Burt, 250 V. Evans, 146 V. Monk, 337, 342 V. Penson, 574 Peake r. Highfield, 677 Pearce r. Crutchfield, 395 V. Loman, 51-3 V. Morris, 223 Pearl v. Deacon, 330 Pearse v. Green, 126 Pearson v. Ajnicable Ass. Co., 53 V. Benson, 100 Peckham v. P., 393 Pedder's Sett., Re, 443 Peers v. Ceeley, 127 V. Lambert, 615 Pegg V. Wisden, 607 Pegler r. White, 574 Peirce v. Corf, 596 Pell V. Northampton R. Co., 271 Pemberton v. Barnes, 562 V. M'Gill, 344 V. Oakes, 476 Pembroke v. Friend, 507, 508 V. Thorpe, 593 Penfold V. Mould, 372 Pexn v. Ld. Baltimore, 11, 23, 579 Penn v. Bibby, 667 Pennington r. Brinsop &c. Co., 655, 659 r. Dalbiac, 564 Percival v. Phipp, 669 Perkins v. Ede, 615 Perrin r. Lyon, 161 Perrot r. P., 644 Perry v. Marston, 225 V. P., 102 V. Truefitt, 672 Peter v. Nicolls, 61 xl TABLE OF CASES. Peters v. Bacon, 566 Peto V. Hammond, 273 Petre r. P., 523 Peyton v. M. of London, 658 Philipps V. Homfrey, 653 Phillips, Exp., 405, 427 Beal, 520 — V. Edwards, 593, 596 — V. Foxhall, 327 — V. Gutteridge, 253 — r. Hudson, 685 — V. MiUer, 617 — V. Parry, 499 — V. P. (4 De G. r. & J. 208), 289 291 — V. P. (i My. & K. 649), 541 — V. Smith, 637 V. Vaughan, 222 PhiUipson v. Gatty, 123 V. Kerry, 191 Philpot V. Brian t, 321 V. Jones, 475 Phipps V. Lovegrove, 311 Pickard v. Anderson, 111 r. Roberts, 375 Pickering v. 1. R. Co., 309 V. P., 103, 182 V. Voules, 82 Pickup V. Atkinson, 105 Pidcock V. Bishop, 319 Pierce v. Webb, 677 Pierse v. Waring, 156 Pierrepont v. Cheney, 401 Pigot V. Bullock, 647 Pike V. Fitzgibbon, 257 Pilcher r. Rawlins, 250, 287, 288 Pinchin v. Simms, 460 Pincke v. Curteis, 607 Pinney v. Hunt, 3, 681 Piper V. P., 507 Pisani v. Att.-G. of Gibraltar, 97 Pitcaim v. Osbourne, 600 Pitt V. Cholmondeley, 483 — V. Jones, 564 Pitt v. Mackreth, 88 Pitt V. P., 227 Playford v. P., 575 Pledge r. Buss, 330 Plimpton V. Malcolmson, 664, 666 V. SpHler, 666 Plumb r. Fluitt, 280 Plunket V. Penson, 487 Plunkett V. Lewis, 460, 461 Plymouth (Corp. of) w.Throgmorton,481 Pocock V. Att.-G., 28 r. Redington, 110 Pole r. P., 82 Pollard r. Clayton, 575 Pomfret (E. of) v. Ld. Windsor, 179, 252, 285 Poole, Exp., 463 V. Bolt, 161 V. Middleton, 585 r. Pass, 127 V. Shergold, 612, 615 Pooley V. Budd, 583 V. Driver, 537 V. Harradine, 317 V. Ray, 204 Pope V. Curi, 668 V. P., 35 Popham V. Eyre, 606 Portarlington v. Soulby, 626, 630 Portland i: Topham, 169 Portmore v. Taylor, 146 Post V. March, 573 Pott r. Todhunter, 59 Potter, Ee, 396 Potts V. Curtis, 147 V. P., 48 V. Smith, 657 Powel V. Cleaver, 392 Powell, Exp., 261 V. Aikin, 652 V. Evan.s, 101 V. Glover, 98 V. Hankey, 348 V. Knowles, 314 r. Merrett, 130 V. Price, 188 V. Riley, 498 V. Smith, 601 Powell &c. Co. r. Taff R. Co., 590 Powlett V. Balton, 648 Powys V. Blagrave, 641 V. Mansfield, 447, 450 Frees r. Coke, 93 Prendergast r. Eyre, 614 Prescott, Exp., 478 Price, Exp., 261 V. Barker, 326 r. Dyer, 602 V. Jenkins, 59, 593 V. Macaulay, 614, 617 V. North, 616 V. Penzance (Corp. of), 588 V. Perrie, 218 Priestman v. Tindall, 122 Printing &c. Co., He, 495 r. Sampson, 306 Prosser v. Edmonds, 314 r. Rice, 249 Proudfoot V. Montefiore, 143 Proudley v. Fieldes, 343 Pro\'ident P. B. Soc. v. Greenhill, 212 Prowse V. Abingdon, 513 Priidential Ass. Co. v. Knott, 661 Pryce v. Bury, 261, 264 Pulbrook r. Richmond &c. Co., 235 PuUen V. Ready, 180 TABLE OF CASES. Xli Pulsford V. Richards, 140 Pulteney v. Darlington, 431, 442, 443 Pulvertoft V. P., 59 Purdew v. Jackson, 375, 382 Purse V. Snaplin, 522 Ptisey V. Desbouverie, 181, 182, 420 PusET V. P., 584 Pybus V. Smith, 349, 350 Pte, Exp., 55, 445, 447, 523 Pym V. Blackburn, 201 V. Bowreman, 222 V. Campbell, 189 V. Lockyer, 447, 449 Quarrel v. Beckford, 127, 237 Queensberry r. Shebbeare, 669 Quennell v. Turner, 497 Radcliffe v. D. of Poi-tland, 657 Raggett V. Findlater, 673 Raikes r. Ward, 397 Rakestraw v. Brewer, 84 Ralston v. Smith, 663 Ramsbottom r. Gosden, 601, 602 Ramsden v. Dyson, 168 Ramuz v. Crowe, 200 Rancliffe v. Parkyns, 515 Rand v. Cartwright, 223 Randall v. Errington, 92, 123 V. Morgan, 594 V. R., 543 V. Russell, 520 Rankin v. Huskisson, 590 Ransome v. Burgess, 400 Raphael v. Boehm, 527 V. T. V. R. Co., 588 RatcUfEe v. Winch, 102 Raven v. Waite, 527 Ravenscroft v. Jones, 449, 450 Rawe V. Chichester, 81, 86 Rawlins v. Powell, 459 v. Wickham, 140, 551 Rawlinson v. R., 524 Raworth r. Parker, 63 Ray, £xp., 340 Read v. Bailey, 548 V. Lowndes, 325 V. R., 687 V. Strangeways, 523 Reade v. Lacy, 670 Redington r. R., 69, 72, 73, 75 Reece v. Trye, 584 Reed v. Norris, 331 Rees v. Berrington, 320 Rees V. Keith, 380 , Reese River &c. Co. v. Smith, 140 Reeve v. Hicks, 228 Reeves v. R., 679 Rehden v. Wesley, 121 Reid's Case, 74 Reid V. Shergold, 194 Renard v. Levinstein, 666 Rex V. Pease, 660 Reynell v. Sprye, 141 Reynolds, Ex}}., 100 V. Godlee, 439 Rhodes v. Bate, 158 Rice r. Gaultier, 687 V. R., 272 Rich V. Cockell, 338, 341, 342, 348, 419 i: Whitfield, 426 Richards & Co., Jie, 495 V. Cooper, 264 V. Delbridge, 51, 53, 54, 531 V. Lewis, 59 V. R., 521, 526 V. Rose, 659 Richardson v. Greese, 460 V. Horton, 299 — V. Merrifield, 396 V. R., 51 r. Smith, 615 Richie v. Couper, 97 Richmond v. X. S. R. Co., 432 r. White, 492, 495 Rickard r. Barrett, 511 Rideout v. Lewds, 360 Rider i: Wager, 524 Ridges V. Morrison, 456, 514 Ridgway v. Clare, 548 - — -r. Gray, 613 Ridley, Re, 351 Rigden r. Vallier, 76, 77, 531 Ripon r. Hobart, 635 Rishton v. Whatmore, 596 River Dun &c. Co. v. K M. R. Co., 652 Roach V. Garvan, 391, 401 V. Trood, 171 Roadley v. Dixon, 417 Roberts v. Berry, 606 V. Croft, 258 V. Dixwell, 47, 343 V. Eberhardt, 540 V. Kuffin, 483 V. R., 163 V. Williams, 247 Robinson, Exp., 551 V. Briggs, 233 V. Chartered Bk., 585 V. Gee, 227 V. Geldard, 514 V. Gov. of London Hosp., 30 V. Litton, 644 V. Lowater, 296, 299, 302 V. Page, 602 xlii TABLE OF CASES. Robinson v. Pett, 124, 131 r. E. (11 Beav. 371), 118 V. R. (19 Beav. 494), 440 ,.. R. (1 De G, M. & G. 247), 107. 115 V. Smith, 34 r. Wheelwright, 353, 422 Robson r. Kemp, 266 Roch V. Callen, 456 Roche V. O'Brien, 92 Rochford v. Fitzmaurice, 42, 43 r. Hockman, 394 Rodick V. Gandall, 308 Rogers r. Acaster, 382 V. Challis, 576, 589 V. Driver, 671 r. Jones, 410 V. South, 447 V. Waterhouse, 574 Rolfe V. Chester, 248 V. Peterson, 212 Rolls V. Pearce, 530 Rolt V. Somerville, 640 V. White, 311 Rook r. Worth, 443 Rooke r. Kensington, 190 Roper-Curzon v. R., 402 Rose V. R., 555 V. Watson, 277 Ross's Tr., Re, 350 Roswell's Ca., 193 Roughton V. Gibson, 562, 564 Rous V. Noble, 684 Rouse's Est., He, 527 Routledge v. Dorril, 172 V. Low, 667 Row V. Dawson, 307 Rowbotham v. Dunnett, 597 Rowe V. Gray, 562 . V. Jackson, 367 V. R., 50, 460 V. Wood, 238 Rowland v. Cuthbertson, 417 Rowley v. Adams, 543 V. R., 173 V. Unwin, 348 Roy V. Beaufort, 151 RumboU r. R., 73 Rundell v. Murray, 671 Ruscombe v. Hare, 228 Rush V. Higgs, 628 Ru.shforth, £xp., 332 Rushworth's Case, 84 Russel V. Dickson, 456 RussEL V. R., 257 V. Jackson, 597 V. Smith, 670 Rutter V. Bartley, 292 Ryal V. R, 68 Ryall v. Rowles, 310 Ryan v. JVIackmath, 676 Rycroft ?'. Christy, 55 Ryland v. Smith, 379, 380 Sackville v. Smyth, 509 Saddler v. Hobbs, 117 Sagitary v. Hyde, 513 Sale V. Moore, 35, 36 Salter ?'. Bradshaw, 149 Salusbiiry v. Denton, 38 Salway v. S., 109, 373 Samuel v. Howarth, 321 Samwell v. Wake, 497 Sanders v. Hooper, 127 Sanderson v. Aston, 324 V, Walker, 100 Sandon v. Hooper, 237, 238 Sanger v. S., 358 Sanson v. S., 314 Saull I'. Browne, 632 Saunders v. Dehew, 288 V. Leslie, 275 V. Smith, 635 Savage v. Foster, 123, 166, 168, 344 Savile v. Blacket, 522, 525 Savill V. S., 396 Sawrey r. Rumney, 456 Saxby V. Easterbrook, 667 Sayer v. S., 30 Sayre v. Hughes, 72 Scarfe v. Morgan, 265 Scattergood v. Harrison, 131 Scholefield r. Heap, 449 V. Lockwood, 236 Schroder v. S., 418 Scott V. Beecher, 504, 505 V. Hastings, 309 V. Porcher, 308 V. Payment, 588 V. Spashet, 363 V. Stanford, 669 Scott v. Tyler, 160, 161, 294 Scriven v. Tapley, 367 Scroggs V. S., 172 Scrutton v. Patello, 381 Scudamore v. S., 428, 430 Sculthorpe v. Tipper, 108 Seaborne v. Powell, 85 Seagram v. Knight, 91, 638, 648, 649, 650 Scale V. S., 45 Seaman v. Vaudrey, 614 Searle v. Law, 51 Sedgwick v. Daniell, 544 Seed V. Higgins, 664 Seeley v. Jago, 440, 442 Seixo V. Provizende, 673 TABLE OF CASES. xliii Selby V. Pomfret, '253, 255 Sells V. S., 190 Semple v. L. & B. R. Co., 652 Serle v. St. Eloy, 499, 503 Seton r. Slade, 603, 607 Sewell's Estates, Ee, 104 Sewell V. King, 53 Seymore i>. Tresilian, 361 Shaftesbury v. S., 525 Shafto V. Adams, 149 V. 8., 505 Shaftoe v. S., 687 Shakeshaft, £xp., 122 Shallcross v. Finden, 500 V. Oldham, 132 Shand v. Du Buisson, 308 Shannon r. Bradstreet, 193, 194 Sharp V. Leach, 158 V. St. Sauveur, 440, 442 Sharpe v. Toy, 285 Sharpies v. Adams, 249 Shaw V. Borrer, 298, 299 V. Bunnv, 93 r. Fisher, 585 V. Foster, 260 V. Jefifry, 220 V. Lawless, 35 V. Neale, 249, 251 Sheddon v. Groodrich, 418 Sheffield v. Buckinghamshire (D. of), 681 Sheldon v. Cox, 284 Shelly V. Nash, 147 Shelley v. S., 48 V. Westbrooke, 389 Shepheard v. Walker, 610 Shepherd v. Churchill, 560 V. Elliott, 236 V. Mouls, 115 V. Titley, 251, 262 Sherriff v. Axe, 131 Sherrington v. Yates, 380 Sherwin v. Selkirk, 489 Shipbrook v. Hinchinbrook, 119 Shirley r. Stratton, 575 Shirreff v. Hastings, 493 Shovelton v. S., 34 Shower v. Pilck, 49 Shrewsbury &c. R Co. v. S. & B. R. Co., 635 Shuttleworth v. Laycock, 248 Sibberiug v. Balcarras, 149 Sichel r. Mosenthal, 589 Sidmovith v. S., 67, 75 Sidny r. Ranger, 97 Siggers v. Evans, 49, 62 Silk V. Prime, 500 Sillem V. Thornton, 143 Simmons v. Pitt, 435 Simpson v. Denifeon, 631 Simpson v. Fogo, 630 V. Howden, 627, 677 V. Lamb, 314 V. Ritchie, 567 V. Vaughan, 318 Simson v. Ingham, 475 V. Jones, 879 Singer &c. Co. v. Wilson, 6QQ, 673 Sisson V. Giles, 440, 441 Skidmore v. Bradford, 74 Skillett r. Fletcher, 324 Skip V. Harwood, 266 Slade V. Barlow, 556 V. Rigg, 242 Slaney v. Watney, 128 Slanning v. Style, 684 Sleech v. Thorington, 377 Sleeman v. Wilson, 391 Slim V. Croucher, 140 Slocombe v. Glubb, 385 Sloman r. Walter, 206, 208 Sloper, Jie, 428 Smallman r. Onions, 645 Smart ,'. Hunt, 225, 236 Smee v. Martin, 403 Smith, £xp. (3 Bro. C. C. 1), 324 Exp. (2 M. D. & De G. 587), 262 V. Aykwell, 633 i: Bate, 391 V. Bruning, 163 V. Burnam, 609 V. Casen, 532 V. Chichester, 84 V. Claxton, 438 r. Clay, 575 V. Cooke, 646, 679 V. Evans, 275 V. (Garland, 61 V. Hibbard, 270 V. Hughes, 186 V. Iliffe, 191 ■(.'. Jeyes, 550 V. L. & S. W. R. Co., 667 V. Matthews, 33, 369 r. Morgan, 495 V. Peters, 587 r. S. (3 Atk. 305), 395 V. S. (21 Beav. 385), 118 V. S. (5 Ves. 193), 540, 543 V. Wheatcroft, 602 Smyth V. Griffin, 677 Sneed v. S., 194, 196 Snelgrove v. Bailey, 529 Snowdon, £xp., 329 Soames v. Edge, 577 Soar V. Foster, 72 Sobey v. S., 688 Sockett V. Wray, 343 Solomon v. S., 507 xliv TABLE OF CASES. Soltau V. De Held, 654 Somerset V. Cookson, 584 Sopwith v. Maugham, 421 Soutliall, Exp., 2t)5 South W. R. Co. r. Wythes, 587, 588 Southey v. Sherwood, 668 Sowden r. S., 463 Spalding v. Shalmer, 298 Sparke v. Foy, 280 Sparkes v. Cator, 453 Sparks v. Liverpool Waterworks, 211 Sparrow v. Friend, 558 r. O. W. & W. E. Co., 635 Spence, Re, 388, 393 Spencer v. Chesterfield, 390 V. Peek, 690 Spinks V. Robins, 448, 450 Spire V. Smith, 456 Spirett V. Willows, 56, 378, 379 Spoile V. Whayman, 260 Spring V. Pride, 90 Sproule V. Prior, 276, 511 Spurgeon v. Collier, 60 Spurway v. Glynn, 522 Squib V. Wyn, 305 St. Albans (D. of) v. Beauclerk, 455 St. George v. Wake, 385 St. Helens Smelting Co. v. Tipping, 657 St. John V. Boughton, 226 V. St. J., 678 V. Wareham, 221 St. Luke's V. St. Leonard's, 568 Stacey v. Elph, 92 Stackhouse v. C. of Jersey, 289 Stackpole v. Beaumont, 161 Stackpoole v. Beaumont, 372 Stamford &c. Bk. v. BaU, 341 Stanford v. Roberts, 679 Stanhope v. Manners, 207, 218 Stanley v. Potter, 523, 524 Stansfield v. Habergham, 644 V. Hobson, 226 Stanton v. Hall, 338 V. Percival, 583 Stapilton r. S., 182 Stead ('. Hardaker, 499 V. Mellor, 36 V. Nelson, 342 V. Newdigate, 429 Stebbing r. Walker, 191 Steed r. Preece, 437 Steedman v. Poole, 350 Steel V. Dixon, 330, 331 Stephens, Exp., 479, 673 Stephenson v. Chiswell, 548 V. Heathcote, 498 Stevens v. Bagwell, 314 Stevenson v. Blakelock, 267 Steward v. Blakeway, 343 Stewart v. G. W. R. Co., 135 V. Hoare, 127 V. S., 178 Stickland v. Aldridge, 573, 597 Stickney v. Sewell, 111, 112 Stikeman v. Dawson, 168 Stiles V. Cowper, 596 V. Guy, 117 Stirling v. Forrester, 326, 328 Stock V. M'Avoy, 74 Stockdale v. Onwhyn, 668 Stockton &c. Co., Re, 240 Stokoe r. Cowan, 57 Stone, Re, 174 V. Lidderdale, 313 r. S., 122 Stonehewer v. Thompson, 222 Storer v. G. W. R. Co., 587 Story V. Johnson, 559 Storry v. Walsh, 299 Stourton V. S., 394 Strang, Exp., 480 Strange v. Fooks, 330 Stratford x. Powell, 421 r. Tvvynam, 94 Str.\thmore v. Bowes, 382 Stratton v. Best, 411 Streatfield r. S., 42, 409, 420 Street r. Digby, 589 Strickland v. Turner, 186 Strovighill V. Anstey, 296, 300 Stuart V. Bute (M. of), 395 V. Kirkwall, 345 Stubbs V. Sargon, 30, 372 Sturge V. Starr, 289 Sturgis V. Champneys, 369, 370 . r. Corp, 341 Sty an. Re, 310 Suart r. Toulmine, 257 Suffolk V. Green, 690 Sugden v. Ci'ossland, 125 Suisse V. Lowther, 446, 455 Sullivan v. Jacob, 574 Supple V. Lawson, 174 Surcombe v. Pinniger, 594, 595 Sutherland v. Briggs, 594 Swain r. Wall, 329, 330 Swain.son v. S., 505 Swaisland r. Dearsley, 574 Swan V. S., 559 Swayne r. S., 311 Sweetapple r. Bindon, 45, 429 Swift V. S., 387 Syers v. S., 538 Sykes' Trusts, 54, 345, 349 Sykes v. Hastings, 125 Synge v. Hales, 48 TABLE OF CASES. xlv Tapf Vale Co. v. Nixon, 470 Taggart y. T., 43 Tait V. Leithead, 55 V. Northwick, 498 Talbot V. Frere, 248 V. Hope-Scott, 640 r. Marshman, 398 Talbot v. D. of Shrewsbury, 394, 458, 459 Talbot V. Stainforth, 148 Tankerville r. Fawcett. 505 Tanner v. Smith, 618 r. Wise, 679 Tardiffe r. Scrughan, 270 Tarsey's Trust, Re, 340 Tasburgh's Case, 372 Tate V. Hubert, 528, 529, 531 V. Williamson, 99 Tatham r. Piatt, 574 Taunton v. Morris, 371, 377 Tayleur, Ee, 690 Taylor, Be (4 Ch. D. 157), 389 Ee (8 Ch. D. 188), 495 V. Allen, 683 V. Caldwell, 199 V. Cartwright, 450 V. Coenen, 56 v. Eckersley, 590 V. Hawkins, 294 V. Haygarth, 130, 430 V. Johnson, 399 V. Meads, 342 V. Mills, 332 r. Plumer, 464 V. Portington, 574 V. Pugh, 384, 385 r. Stibbert, 282, 283 V. T. (10 Eq. 477\ 121 V. — (10 Ha. 475), 525 V. Wheeler, 196 Teague's Settlement, Ee, 351 Teall V. Watts, 565 Teasdale r. Braithwaite, 60 r. T., 168 Tebbs V. Carpenter, 126 Tendril r. Smith, 155 Tenham r. Herbert, 685 Tennant's Case, 663 Tennant, Exp., 538 V. Brail, 164 V. Trenchard, 100, 264 Tennent v. T., 145 Terry r. T., 110 Thelluson v. Woodford, 410, 418 Therry v. Henderson, 401 Thomas v. Bennett, 360 ■ V. Dering, 574 V. Griffiths, 492 V. Roberts, 389 r. T., 227 Thompson v. Ashbee, 92 I'. Bennett, 487 V. Bowyer, 226 V. Burra, 417 — V. Fisher, 47 V. Griffin, 400 V. Hudson, 236 i\ Lack, 326 i: Stanhope, 669 V. Tomkins, 311 Thornborough v. Baker, 220 Thorndyke r. Hunt, 116, 290 Thornhill v. Manning, 241 Thornton, Exp., 286 — - V. Dixon, 541 i'. Hawley, 426 V. Howe, 37 Thorley's Cattle Food Co. v. Massam, 661 Threfall v. Borwick, 266 Threlfall r. Lunt, 677 Thynn v. T., 35 Thynne v. E. of Glengall, 450, 459 Tibbits V. T., 421 Tidd V. Lister, 370, 371, 381, 515 Tilley v. Thomas, 606, 607 Tinkler's Est., Ee, 526 Tinsley v. Lacy, 669 Tipping V. T., 361, 501, 510 Titley v. Davies, 253, 254 Todd r. Wilson, 483 Toft V. Stephenson, 271 Toker v. T., 158 Tollemache r. T., 649 Toller r. Carteret, 12 Toilet V. T., 194, 196 Tolson V. Collins, 460 Tombes r. Elers, 395 Tomkins v. Colthurst, 501 Tompson v. Judge, 156 Tooker v. Annesley, 649 Tooth V. Hallett, 311 Topham v. Portland, 171, 173 Torrance r. Bolton, 276 Tourville r. Naish, 280 Tower t\ Rous, 497 Townend r. T., Ill, 126 Townley v. Bedwell, 432 Townley t. Sherborne, 116 Townsend r. Barber, 117 V. Devaynes, 541 V. Mostyn, 504 1'. Westacott, 56 Townshend Peerage Ca., 690 Townshend v. Stangroom, 598 Townshend v. Windham, 359 Tracy v. T., 643 Trafiford v. Boehm, 122, 441 Tremain's Case, 391 Trethowan, Ee, 261 xlvi TABLE OF CASES. Trevelyau v. Charter, 96 Trevor v. T., 42, 47 Trident, The, 515 Trimbleston v. Hamill, 238 Trimmer r. Bayne, 276, 448 — V. Danby, 529 Troutbeck v. Boughey, 343 Trowell v. Shenton, 60, 61 Truloek v. Eoby, 226 Trumper v. T., 82, 87 Trutch r. Lamprell, 110 Tubbs ?'. Broadwood, 463 Tucker v. Barrow, 71 V. Laing, 321 r. Wilson, 229 Tudor r. Anson, 197 Tuer r. Turner, 441 Tuflfnell V. Page, 30 Tnlloch r. Hartley, 13, 568 TuUet r. Armstrong, 342, 349, 351 Turner, Exp., 122 V. Blamire, 652 V. Buck, 527 V. Collins, 155 V. Harvey, 142 V. Letts, 262, 268, 584 i; Major, 544 V. Morgan, 558 -y. Spooner, 657 V. T., 82 V. Wright, 644 Turton r. Benson, 163, 311 T-weddell r. T., 149 Tvveedale's Settmt., He, 372 Tweedale r. T., 254, 284 Twining r. Powell, 449 Tyler v. Lake, 339 V. Yates, 146, 629 Tynt V. T., 501, 510 Tyrrell r. Hope, 339 Tyson v. Cox, 321 V. Jackson, 315 Ungley v. U., 594 Union Bank &c. v. Ingram, 218 Unity &c. Co. v. King, 258 Univ. of 0. & C. V. Richardson, 665, 671 Upperton r. Nickolson, 609, 614 Uvedall v. U., 647, 648 Vachell r. Roberts, 105 Vance v. V., 73 Vandeleur i\ V., 504 Vane v. Barnard, 638 V. Dungannon, 174 Vaughan v. Buck, 371 V. Noble, 90 V. Vanderstegen, 344, 345, 346 V. Welsh, 630 Veal I', v., 529 Vernon v. Vawdry, 483 Vickers v. Cowell, 77 V. Pound, 525 Vigers v. Pike, 144 Villareal v. Mellish, 388 Villiers v. Beaumont, 679 Vine r. Mitchell, 143 Viner v. Vaughan, 638 Vint V. Padget, 253 Vorley v. Cooke, 185 VuUiamy v. Noble, 479 Vyse V. Foster, 133 W. r. B. (11 Beav. 621), 161 W. V. B. (32 Beav. 574), 678 Wade V. Hopkinson, 396 V. Paget, 1 95 Wagstaffe v. Smith, 338 Wain r. Bailey, 200 Wake v. Conyeks, 568 V. Harrop, 189 V. W., 420, 421 Walcot V. Walker, 668 Waldo V. W., 649 Waldy V. Gray, 285, 291 Walford v. Gray, 594 Walker r. Denne, 429, 442 V. Flamstead, 286 — V. Laxton, 522 r. Micklethwait, 632 V. Preswick, 272 ,.. Symonds, 119, 123 r. Ware &c. Co., 271 V. WethereU, 400 Wall V. Tomlinson, 380 Wallace v. Auldjo, 367 ^^ Pomfret, 461 Waller v. Dalt, 148 Walley v. W., 85, 86 Wallinger v. W., 413 Wallis r. D. of Portland, 314 Walmsley r. Child, 202 Walsh r. Wallinger, 39 r, W., 402 Walter r. Maunde, 426 r. Selfe, 656 Walwyn v. Coutts, 62 V. Lee, 290 Ward's Tr., Be, 402 Ward r. Audland, 49 r. Baugh, 421 V. Beck, 586 TABLE OF CASES. xlvii Ward V. Gray, 500 V. Turner, 530 Warden v. Jones, 60, 594 Wardle v. Carter, 147 Ware v. Gardner, 57 V. Grand Junction Co., 590 r. Regent's Canal Co., 654 Wakmstrey v. Tanfield, 306 Warner, Exp. (4 Bro. C. C. 101), 633 Exp. (1 Rose, 286), 258 V. Baynes, 558 Warr v. W., 402 Warren v. Davies, 500 V. Rudall, 413 Warriner v. Rogers, 53 r. W., 531 Waring v. M. S. & L. R. Co., 574 V. Ward, 498 Waterer v. W., 541, 542 Waterfall v. Penistone, 232 Waters v. Taylor, 550 Wathen v. Smith, 459 Watkins v. Steevens, 58 V. Williams, 556 Watson V. Allcock, 332 t'. Brickwood, 497 V. Knight, 63 r. Marshall, 372 V. Marston, 574 V. Reid, 608 V. Swift, 429 V, W., 450 Watt V. Grove, 97 Watts V. Bullas, 197 V. Creswell, 168 V. Girdlestone, 1 1 V. W., 432 Way V. East, 37 Webb V. Grace, 162 V. Hewitt, 322, 325 V. Hughes, 606, 607 V. Jones, 499 V. L. & P. R. Co., 574 V. E. of Shaftesbury, 125 T'edderburn v. W., 93 iWedgwood v. Adams, 574 [Weeding v. W., 433 IWeeks v. Gore, 492 IWeiss V. Dell, 128 |\Veld V. Hornby, 657 ]Wellesley v. Beaufort, 388, 389, 393 V. Mornin^ton, 170 V. W., 397, 641, 647 IWells V. Maxwell, 606, 607 [West of E. Bk., Re, 495 [West V. Errissey, 190 ■ V. Francis, 670 ■ V. Shuttleworth, 28 ^Westby v. W., 183 '^astern of Canada &c. Co., fn re, 95 Westley v. Clarke, 120 Weston's Case, 74 Wetherall, Exp., 258 Wheateley c. Slade, 616 Wheatley v. Westminster &c. Co., 589 Wheeler v. Caryl, 379 Wheelton r. Hardisty, 143 Wheldale v. Partridge, 424, 431, 439, 442 Whichcote v. Lawrence, 90 Whieldon x. Spode, 497 Whistler v. Newman, 123 r. Webster, 409, 414, 415 Whitbread, Exp., 262 Whitchurch v. Bevis, 593 White f. Baugh, 109 v. Briggs, 34 V. Carter, 47 V. Hillacre, 254 V. Simmons, 264 V. Wakefield, 273, 275 V. W., 497 Whitfield r. Fausset, 200, 203 Whiting V. White, 225 Whitney ?•. Smith, 132 Whittaker v. Howe, 544 Whittencore v. W., 617 Whitton V. Russell, 201 Whit well V. Arthur, 550 Whitworth v. Gangain, 250, 262 Whorwood v. Simp.son, 610 Whyte V. W., 456 Wicks V. Hunt, 576 Widgery v. Tepper, 381 Wigg f. W., 280 WiLCOCKs V. W., 462 Wild V. Wells, 557 Wilday v. Sandys, 105 Wilding V. Richards, 62 Wilkes V. Holmes, 196 Wilkinson x. Charlesworth, 371 X. Dent, 411, 420 X. Duncan, 107 X. Joberns, 562, 567 V. Parry, 123 V. Sterne, 475 X. W., 127 Willan X. W., 181 Willesford v. Watson, 589 Willcock X. Terrell, 314 Williams, Exp., 240 r. Bolton, 648 X. Davies, 479 V. Games, 563 X. Higden, 616 X. Lambe, 291 X. Lonsdale, 130 X. Owen, 219, 333 V. Sorrell, 221 r. W. (32 Beav. 370), 73 xlviii TABLE OF OASES. Williams v. W. (15 Eq. 270), 490 _ v. W. (2 Dr. & Sm. 596), 596 V. W. (2 Dr. & S. 378 ; 2 Ch. 294), 182 V. W. (15 Ves. 419), 637 Williamson r. Barbour, 96 — V. Gordon, 241 Willie V. Lugg, 254 Willis r. Jeniegan, 482 V. Keble, 128 Willmott V. Barber, 573 Willock r. Noble, 341 WiUoughby r. W., 289 Wills r. Slade, 555 V. Stradling, 593 Wilmot r. Pike, 252, 289 Wilson r. Cluer, 236, 237 V. Dunsany, 490 r, Furness R. Co., 588 V, Maddison, 526 V. Metcalfe, 236, 237 V. O'Leary, 456 V. Piggott, 195 V. Townsend, 421 V. W. H. E. Co., 595 . V, W., 589 Wilton V. Hill, 353 Wiltshire v. "Rabbits, 311 Winch t\ Winchester, 601, 615 Winchester (B. of) v. Knight, 647 V. Paine, 285 Windham r. Jennings, 252 V, w., 455 Wing V. Harvey, 210 Winter r. Anson, 270, 272 Withernsea Brickworks, Re, 495 Witty r. Marshall, 394 WoUaston v. King, 413, 416 r. Tribe, 60 Wollen r. Tanner, 415 Wood's Estate, Re, 86 Wood V. Briant, 460 r. Griffith, 616 V. Ordish, 499 V. Penoyre, 526 r. Rowcliffe, 583 r. SutcUffe, 635 V. Zimmer, 663 Woodhouse r. Shepley, 163 V. Walker, 641 Woodmeston v. Walker, 352 Woods V. Huntingford, 505 Woodward v. W., 348 Wooldridge v. Norris, 684 Woollam V. Hearn, 599 Woolridge v. W., 415 Woolscombe, Re, 393 Woolstencroft v. W., 507, 508 Wortham r. Pemberton, 369, 395 Worthington v. Evans, 281 .^ V, Morgan, 273 Worrall r. Harford, 121, 126 Wray's Tr., Re, 379 Wray v. Hutchinson, 551 Wren v. Bradley, 164 Wright, Exp., 258 V. Atkyns, 645 V. GoS, 188 V. Hitchcock, 665 V. Hunter, 544 r. Laing, 475 V. Lambert, 107 — V. Morley, 370 V. Pearson, 41 V. Rose, 427 r. Rutter, 373 V. Simpson, 684 V. Vanderplank, 92, 155 V. w. (2 J. & H. 655), 352 V. W. (16 Ves. 188), 438 Wrigley v. Sykes, 299 Wyatt r. Sharratt, 111 Wyke V. Rogers, 322 Wyllie V. Pollen, 284, 285 Wyndham v. Richardson, 252 V, w., 394 Wynne v. Hawkins, 35 r. Price, 585 Wynstanley v. Lee, 655 Wythe r. Hfenniker, 276 Wythes r. Lee, 276, 277 Yem v. Edwards, 83 York &c. Co. r. Artley, 264 Buildings Co. v. Mackenzie, 100 (M. of) V. Pilkington, 632, 685 Young V. English, 474 ??. Macintosh, 43 V. Y., 558, 562 Younge v. Furze, 161 THE PRINCIPLES OF EQUITY. INTRODUCTION. I. Design of the Work. II. Division of the Subject. I. The design of this work is to present within mode- Design of rate dimensions as complete a view of English equitable jm-isprudence as is necessary for meeting the requirements of the examinations in this subject, and for a clear under- standing of the cases which most frequently present them- selves in the practice of the profession. For this purpose it has not been deemed necessary to Not his- enter into the attractive subject of the history of equity. To do this effectively would require more space than could well be spared in a work of moderate dimensions, the contents of which must necessarily extend over a wide field of inquiry; and to attempt to compress so extensive a subject within very narrow limits would perhaps be worse than useless. Occasionally, indeed, something in the nature of an historical retrospect is necessary for the explanation of certain features of the jurisprudence ; and in these cases, for instance in introducing the subject of trusts, we have, as concisely as has seemed to us consistent with clearness, narrated the steps by which the jurisdic- tion has become established. Such glances at history, however, are only introduced as ancillary to the compre- hension of the principles concerned, and are not designed B INTROnUCTION. Classifica- tion and division of the sub- ject. Story's division obsolete. Jud. Act. 1873, ss. 24, 25. Exclusive jurisdic- tion. to serve the purposes of those who desire to be well in- formed respecting the origin and growth of the jurisdiction of the Court of Chancery. II. It is a truism to say that a treatise designed as an exposition of so complex and intricate a subject as equitable jurisprudence requires to be systematic in form. Its multitude of details can only be brought within the reach of an ordinary memory through the means of a most careful classification. Yet to devise a system of classifi- cation which shall be at once logical, adequately compre- hensive, and simple, is a problem of no slight difficulty ; and scarcely two writers have agreed in its solution. The division which is perhaps most familiar to modern students is that of Story, which distinguishes be- tween the concurrent, the exclusive, and the auxiliary jurisdiction of the Courts of equity. This classifica- tion has in the main been followed in Snell's " Principles of Equity." It would be a presumption here to praise or criticise the conclusion of so great a writer, and it argues no disrespect for it that it is not here followed. However excellent a division at the time at which it was devised, it has, we think, ceased to be appropriate, simply because recent legislation has caused it to cease to be true. Since it has been enacted (a) that in every civil cause or matter commenced in the High Court of Justice law and equity shall be administered concurrently, and that whenever there is a conflict between the rules of common law and those of equity the rules of equity shall prevail, it is plainly an anachronism to speak of the exclusive jurisdic- tion of Courts of equity. It is indeed true that by the same Act {h) certain matters are specially assigned to the Chancery Division, and to the other divisions of the High Court respectively; but that this special assignment does not establish anything of the nature of an exclusive juris- diction is plain : " All the judges of the High Court have 25. ((() 36 & 37 Vict. c. 66, ss. 24, (h) s. 34. DIVISION OF THE SUBJECT. 3 the same jurisdiction, and it is clear that any judge may, if he chooses, when an action has been brought in the wrong division, retain the action and exercise the juris- diction " (c). Still more completely have the Judicature Acts put an Auxiliary end to the auxiliary jurisdiction of equity as such. For- ^0^^ ^''' merly there were many cases in which, though the common law remedies were sufficient, and the jurisdiction of Courts of common law was accordingly exclusive, yet it was necessary for one of the parties to have recourse to equity in order to procure requisite evidence for the successful assertion of the legal right. The jurisdiction of equity in these cases rested on the peculiarities of its procedure, and extended no further than was necessary to enable the party to maintain his position at law. The most important illustration of this branch of the jurisdiction was afforded by the stringent powers of equity to enforce discovery. But the Judicature Acts having established a system of procedure common to Courts of law and to those of equity, giving to the former identically the same powers as are enjoyed by the latter, it can no longer be necessary for any one whose action lies at law to seek for any prelimi- nary or auxiliary aid in equity. Not only, moreover, is the division of equitable jurisdic- tion into exclusive, concurrent, and auxiliary now obsolete, but we may perhaps venture to remark that it somewhat tended to confuse the student by treating as co-ordinate matters of substance and matters of form ; placing side by side as correlative divisions of the subject titles so incon- gruous as trusts and injunctions, mortgages and inter- pleaders. Yet, notwithstanding the fusion of law and equity which I^^w and 1 n 1 T T » 1 • ££• X 1 equity still has by the Judicature Act been m a great measure errected, distinct, the distinction between the two systems must still, for many purposes, be regarded. As long, at least, as the (c) Finney v. Ilimf, 6 Ch. D. 98, 100, 101, per Jessel, M.R. b2 INTRODUCTION. terms law and equity are contrasted by examiners, the student must continue to contemplate them as distinct. And further than that, notwithstanding their present concurrent adminiistraUon, the distinction remains sub- stantial and real. The differences between legal and equitable estates and interests and principles continue to exist, and to produce most important results, and if we were to cease to indicate the contrast by the terms legal and equitable, we should have to invent some others for the purpose. Accordingly it has been found repeatedly necessary for the purposes of classification to refer separately to the treatment of questions by law and by equity, and in other respects to contrast the two systems. It would have been tedious in every such case to remind the student of the provisions of the Judicature Act : it suffices once for all to call attention most emphatically to the change. It is perhaps impossible in dealing with such a subject as equity to avoid cross-divisions. The principle of trusts, for instance, reaches to almost all parts of the jurisdiction. The whole subject of mortgages might be treated as one sub-division of it; the remedies for fraud chiefly operate through its application ; the law respecting married women and infants continually makes reference to it ; and yet it would be obviously absurd in writing of equity not to treat such matters as mortgages and the separate estate of married women under completely distinct titles. A mutually exclusive classification of the subject matter of equity must not, then, be expected. The best that can be done is to lay hold of the leading distinctions between the various branches of the jurisprudence, and in the separate investigation thereof to clearly indicate their relation one to another. Story has sub-divided his head- ing of concurrent jurisdiction into two branches, the one where the subject matter constitutes the principal ground founded on of the jurisdiction ; the other where the peculiar reme- difference ^^igg administered in equity constitute the principal ground Cross- divisions unavoid- able. Distinc- tion })etween the juris- diction DIVISION OF THE SUBJECT. O of iurisdictiou (e). Under the chang-ed circumstances °^ ^"^" 1 r- 11-11 -1 ... stantive above referred to, which have made all equitable jurisdic- principle, tion concurrent, this now commends itself as an exceed- ^"0^1^^^' iugly apt and expressive division of the whole subject, founded on It will be observed that it coincides with Bentham's remedies. famous division of law into substantive and adjective law. Though it will often, and indeed generally, be seen that the distinctive principles and the distinctive remedies of equity have acted in combination in establishing the various branches of its jurisdiction, yet the contrast between those matters in which the substantive doctrines of equity form the most conspicuous feature, and those in which the peculiarities of its procedure are most prominent, is suffi- ciently marked to form the groundwork of a scientific classification of the whole jurisprudence. Adopting this as our main division, the work naturally Adopted. divides itself into two parts. Part I. will comprise those subjects the jurisdiction of equity respecting which origi- ginated in, or chiefly rests on, a substantive difference between its principles and those of the ancient common law. Part II. will comprise those branches of the juris- diction which have arisen chiefly from the peculiarities of its procedure or remedies. (e) See Story's Eq. Jur. preface, and s. 77. PART I. WHERE THE JURISDICTION RESTS ON THE DISTINCT SUBSTANTIVE PRINCIPLES OF EQUITY. INTRODUCTION. I. Meaning of tlie ivord Equity. II. Distinctions between Equity and Law. 1. Equity acts "in Personam." Penn v. Lord Baltimore. E. of Oxford's Case. 2. Equity looks to the Intent rather than to the Form. 8. Equality is Equity. III. Contents of Part I. I. Meaning of the ivord Equity. Almost every writer on equity has been careful to guard Ambiguity against the errors which are latent in the ambiguity of the word term equity. Equity, in common parlance, or what may "equity. be called its ethical sense, is an abstract name for that ggnse which is just, honest, and right, answering very closely to the definition given in Justinian's Institutes of Justice, " Justitia est constaiis et perpettta voluntas jus suum cuique tribuendi." It is sufficiently evident that in this broad sense e(][uity far too includes a multitude of matters which are altogether tensive for 8 MKANING OF '' Kt^UlTV. jurispni- bevond the cognizance of practical jurisprudence. It reaches quite across the field of morality, over only a small portion of which have legal tribunals ever asserted authority. It is equally plain that were a Court established to decide disputes under the very indefinite guidance of this wide principle, the character of its decisions would be continually varying in accordance with the characters of the judges. Different views on philosophical questions of great intricacy would lead to conflicting sentences respect- ing the same course of conduct. Such a tribunal might usefully mete out a rude justice to an uncivilised tribe, but could only be productive of wild disorder in the complex circumstances of organised and civilised society. Equity a The term equity has also been used to indicate principle .., „ ... t- -tip of peueral a prmciple ot general justice as distinguished irom strict justice. jg^^y . Qj. ^g modifying or mollifying the operation of the hard and fast rules of law, in consideration of certain circumstances, in which their rigid application would work hardship. To this effect is Papinian's definition of the praetorian law, " Adjuvandi, vel supplendi vet corrigendi juris civilis gratia" (/). This doubtless comes some- what nearer to the true definition of ec[uity as a technical term of English jurisprudence ; and as a matter of history some of the branches of equitable jurisprudence doubtless arose from efforts of the chancellors which might be well Also too described in this languao-e. But it is nevertheless very wide and . . . . indefinite, far from beiug an accurate expression of what is now meant by equity. On the contrary, it is probable that more cases of admitted hardshiiJ now occur in the Courts of equity themselves than in the Courts of common law : not indeed because equitable principles are more defective than those of law, but because the facts to which they have to be applied are of a more complex and ever varying description. From this reason it constantly (/) Dig. I. 1. 7. MEANIXG OF " EQUITY." 9 happens that cases come before the Court which have not been foreseen and provided for by legislation, whether judicial or statutory, but which must nevertheless be decided on fixed principles, in order to avoid the greater evil of a general ignorance or uncertainty as to what is, and what is not, lawful. In short, it is necessary in an advanced and civilised ^^^^'^ °^"8* community that the laws administered by its Courts minate, should be fixed and determinable at least approximately ; the more clearly determinable, the more perfect the juris- prudence.. This being so, it is obviously impossible to and cannot summarise those laws in a oeneral definition or maxim. ^""\' . * mansed m No one would dream of describino- the law of England or a defini- of anj^ country in a single sentence. No more possible is it to describe the equity of England in a single sentence. It is indeed sufficiently difficult to do so in a large volume. So equity All that can be said respecting equity in a general form is defined. that it is that portion of the law of England which in the Its mean- course of a long history gradually came to be administered En^dish in the High Court of Chancery. In so far as the Judi- jurispru- cature Act has fused equity and law, equity has no longer any distinctive meaning, except as indicating those prin- ciples which were previously distinct from those of common law^ II. Distinction betiveen Equity and Law. But the distinction between law and equity has been clearly marked, and has exercised a very important influence in the development of our legal system. Upon it the Distinc- division of our subject is based, and it is therefore at the clpLs^" outset incumbent upon us to indicate what the leading law and principles are in which equity for generations so far differed from common law as to have constituted a separate branch of the science of jurisprudence. Hereafter it will be neces- sary to advert to the peculiarities of equitable procedure ; at present the question is, what are the substantive diflfer- 10 UISTIN'CTION BETWEEN LAW AM) EQUITY, expressed by maxims. Different meanings of " in personam,' JUS m personam, actio in personam, judgment in per- sonam. enccs between equity and law which have been chiefly material in building up the most conspicuous parts of equitable jurisdiction. These principles have usually been expressed by text- writers in a series of maxims, which are often quoted by judges in Courts of equity. It is only requisite here to allude to and explain the most important of these. Others of less influence will be referred to in the subsequent por- tions of our investigation. 1. Equity acts " in personmn." The expression "in personam" is employed in juris- prudence in a variety of connexions, and with a variety of shades of meaning. In this maxim its signification is somewhat different from that which it bears in other and equally familiar contexts. Students of jurisprudence are familiar with the distinction between jus in rem and jus in personam, the former indicating a right available against all the world, or people generally ; such rights, for instance, as that which a man has to his life, his property, and his reputation ; the latter indicating a right which can only be asserted against a particular person or a definite number of persons, such as a right arising from contract, or a right to damages against a person who has infringed or violated a jus in rem, or in other words has committed a tort. Analogous to this distinction is that between an actio in rem and an actio in personam, so often appearing in the study of Koman law, the former being an action in which the plaintiff claims as against all the world that some particular thing corporeal or in- corporeal is his, the latter an action in w^hich he asserts his claim to an act or forbearance on the part of the indi- vidual defendant. The same expression appears also in English common law, which once recognised a distinction between real and personal actions, and which still dis- tinguishes between a judgment in rem and a judgment inn personam, the former being a judgment executed by a compulsory delivery of the specific subject matter in EQUITY ACTS IN PERSONAM. 11 dispute to the plaintiff, the latter a judgment executed by constraining the person of the defendant. But in saying that equity acts in personam, we use these In these words with a meaning somewhat different from any of^^^!,tL„ tj */ colli 111 On these. Equity protects j ura in rem as well as jura in ^a^ acts in personam. In the sense which distinguishes actions in as well as rem from actions in personam, common law quite as often ^'i^"*y- and as fully as equity acts i7i personam. It is ec[ually concerned with rights in personam, and it equally enforces its decisions by judgments and processes in persona^mi. If this were all that it meant, the maxim under considera- tion would guide us to no differentiating principle what- ever. But this is not all ; there are at least two senses in which Equity equity acts in personam in which it was not imitated by decrees as the Courts of common law. In the first place, regarding personal commands, its decrees as commands addressed to the defendant per- sonally, rather than as decisions directly affecting the subject matter of the dispute, it carried the consequences and carries of this view much further than did the Courts of common conse- quences OI law. this farther Of this there are two conspicuous illustrations. First the jurisdiction of equity in suits respecting land situated out of its jurisdiction. Secondly its jurisdiction to restrain proceedings at law. The leading authority on the first of these matters is — Illustra- tions. PENN V. LORD BALTIMORE. Pewnv. [I Ves. sr. 444; 2 W. & T. L. C. 939.] Baltimore. This case was founded on articles entered into between the plaintiffs and the defendant containing particular provi- sions for settling land in America by drawing certain lines as therein specified, and that commissioners should do this within a specified time. The bill sought specific per- formance and execution of these articleSi Lord Hardwicke, after an elaborate judgment, decreed that the relief sought might be granted, on the ground 12 EQUITY ACTS IN PERSONAM. Situs ot the subject matter im- luaterial. if defen- dant is within the jurisdic- tion. Remedies granted respecting property out of the jurisdic- tion. Limits f)f the juris- diction. (inter alia) that though the agreement could not be en- forced in rem, tlie strict primary decree in that Court was in personam; and the defendant being in England it could be enforced by process of contempt in 'personaTYi and sequestration, which was the proper jurisdiction of the Court. But the Court refused to decree quiet enjoyment of the lands, application for that purpose being proper only to Courts having jurisdiction over the land itself There are a great number of cases in which the jurisdic- tion here explained and established has been exercised, and they show that it is not confined to cases where the pro- perty in question appertains to the English Crown, as was the case there. It is evident from the principle and modus operandi of that judgment that it would be as applicable where the property concerned was strictly foreign as where it was in Scotland or in the colonies. The sole require- ment is that the party should be within the jurisdiction, and so subject to the jDrocess of the Court (g). In the exercise of this jurisdiction the English Chancery has with regard to foreign lands decreed an account of rents and profits between joint tenants (h), enforced specific performance of contracts of sale (i), foreclosed mort- gages (j), declared proprietors trustees (k), ordered recon- veyances and releases of lands fraudulently acquired (l), entertained bills for discovery of rents, profits, and deeds, on the ground of fraud (m), and restrained by injunction the prosecution of suits commenced in the situs for the recovery of immoveables (n). The limits of this jurisdiction also well illustrate the maxim in question. They have been concisely laid down {ff) Maunder v. Lloyd, 2 J. & H. 718 ; ToUer v. Carteret, 2 Vera. 494 ; Paget v. Ede, 18 Eq. 118. (h) Carteret v. Pettiis, 2 Ch. Ca. 214 ; 2 Swanst. 323, n. (i) Archer v. Preston, cited 1 Vern. 77 (j) Toller V. Carteret, 2 Vern. 494. {k) Kildare v. Eustace, 1 Vern. 419. (?) Cranstcnvn v. Johnston, 3 Ves. 170. {m) Angus v. -4 w^? ^^^^ which they be m the colonies, the Court cannot directly anect will not be them. Its action in such cases is strictly and solely in S'^^^^'^'^- personam. It follows that a suit which would require direct dealing with foreign or colonial land cannot be entertained. Thus a partition of land in Ireland will not be decreed in England, as no power could be given to a commission to take the necessary steps there for carrying out the decree (p). The distinction between such a bill and that in Pcnn v. Lord Baltiiniore is sufficiently clear ; for though in this case the ultimate result might be expected to be a somewhat similar dealing with foreign land, the matter expressly and immediately before the Court was simply the agreement of the parties. Its decree was directed merely to the enforcement of the articles, and could not involve the Court in any direct dealino- with the lands. It has been observed that on this o ground Lord Hardwicke would not include in the decree a direction for quiet enjoyment, and that he expressly disclaimed any original jurisdiction of the Court to settle boundaries out of the jurisdiction {q). As to the jurisdiction to restrain proceedings at law, the most celebrated authority is — (o) Westlake's Pr. Inter. Law, (7) See, however, Tidlock v. 64, 65. Ilartle;/, 1 Y. & C. C. C. 114. {p) Carteret v. Pettns, s«p. 14 EQUITY ACTS IN PERSONAM, £arlof THE EARL OF OXFORD'S CASE. case. [1 Ch. Rep. 1 ; 2 W. & T. L. C. 590.] Restraint In this case a bill was filed in equity in respect of a ingratlaw' flatter which had been already tried at law ; and after the filing of the bill judgment was entered at law. The defendants demurred, relying mainly on the judgment as barring the relief in Chancery ; but it was overruled by Lord Chancellor Ellesmere, who said that there was no opposition to the judgment, nor would the truth or justice of the judgment be examined, but yet the chancellor might, where a judgment was obtained by oppression, wrong, or a hard cod science, restrain the person in whose favour it was issued from proceeding upon it. We shall elsewhere (pp. 623-31) have to consider what remains of this peculiar jurisdiction. At present it suffices to refer to it as an illustration of the extent to which equity carries the principle that its decrees are personal com- mands. Both of these cases, it is true, were based upon the peculiar remedies of the Court; but it has nevertheless been considered convenient to refer to them here as striking illustrations of the general maxim. Equity Equity, however, acts in persotiam in another sense, conscience, fi'om which proceeds a large proportion of the substantive distinctions between equity and law. Equity acts on the conscience of the parties before it. It regards them not as mere passive subjects, whose position is arbitrarily deter- mined by the application of categorical rules of law, but as moral agents, bound in conscience to act in good faith one with another. As already said, this is far from seek- ing to miscellaneously enforce moral duties. The limits of the jurisdiction of equity are now clearly defined, and beyond them it is as powerless as common law. But as an historical fact many of the doctrines and much of the prac- tice of equity have originated in this moral view which it OTHER MAXIMS. 15 has taken of the parties before it. Thus originated its Conse- ^ , *^ . queiices of enforcement of the execution of trusts, its narrow scrutiny this, of all circumstances that savour of fraud, its relief against hardships arising from unavoidable accidents and innocent mistakes. As these various subjects and others have presently to be considered in detail, it is now only neces- sary to mention them as illustrations of those views which have been, until recently, peculiar to Courts administering equity^ as distinguished from law. Springing from this maxim, as considered in this sense, Derivative If 1 • T 1 TT 1 maxims. are others of a more detailed character, such as " He who seeks equity must do equity," " He who comes into equity must come with clean hands." " Vigilantihus non dor- mieiitibus ceqidtas siibvenit." The particular application of these will be hereafter seen. It suffices now to remark that they evidently spring from the broad equitable prin- ciple of imposing on its suitors a due regard for the obliga- tions dictated by conscience. 2. Equity looks to the intent ratlier than to the form. This maxim is also of great importance and of wide application. It would indeed be a great error to suppose that its converse would truly describe the principle of the common law. In many respects the Courts of law have This also been indifferent to matters of form in their vigilance to farther in carry out the true intentions of parties. But equity has equity . . . . . . than m certainly carried the j^rinciple much further. Thus origi- law. nated tlie extensive jurisdiction as to mortgages : law, guided by the form only, treated such assurances as abso- Conse- lute conveyances, and they have accordingly always ope- rated as conveyances of the legal estate ; but equity, considering the intention of the transaction to be only to effect a security for a money loan, relieved from the con- sequences of the legal transfer by creating the estate known as the equity of redemption. From the same principle has sprung the jurisdiction to relieve against penalties and forfeitures generally. From this maxim also two others have sprung as Derivative IQ OTHER MAXIMS. corollaries : " Equity looks on that as done which ought to have been done:" and " Equity imputes an intention to fulfil an obligation." Applyii g the principles thus expressed, agTeements to convey have been treated as equitable conveyances, effect being given to them through the medium of the doctrine of trusts ; the doctrine of con- version has arisen, by virtue of which money covenanted or devised to be laid out in land has been treated as land, and vice versa. The doctrines of satisfaction and per- formance may be traced to a similar origin. EquaUty is 3. Equality IS Equity. equity. rpj^^-^ jj^^^im is certainly of a narrower scope than those we have been considering ; but its influence is nevertheless lUustra- apparent in many branches of the jurisdiction. Under the tions. head of resulting trusts we see an instance of this in the tendency to regard a survivor of joint tenants as trustee for the representatives of those who are deceased, as well in the case of joint mortgages as in that of a joint purchase where the money has been advanced in unequal shares. In the administration of assets, also, the same principle finds an illustration in the continual efforts of equity to secure an equal division of assets among creditors of dif- ferent degrees. The equitable doctrine of contribution in cases of suretyship is of a similar character. Minor 4, Other maxims are often quoted in connexion with these as elucidating the general principles of equity : such are " Equity follows the law ; " " Where equities are equal the law shall prevail," " Qui prior est temijore, potior est jure." But these are evidently of much less general application than those above cited. To illustrate them here would necessitate either a repetition, or a trespass upon matter which falls much more appropriately under the detailed consideration of the various subjects before us. They, moreover, add but little information to our present inquiry, which has been to ascertain what are the distinctive principles of equity. III. For our present purpose we think this inquiry is maxims. CONTENTS OF PART I. 17 sufficiently answered by the three leading maxims above quoted, with the illustrations given under each. These Contents direct us to the following subjects as falling under the first division of our work ; that is to say, as falling within the jurisdiction of equity chiefly on the ground of its distinctive substantive principles. 1. Trusts. 2. Frauds. 3. Equitable relief against the consequences of Accident and Mistake, 4. Relief against Penalties and Forfeitures. 5. Mortgages and Liens. 6. Sui'etyship. 7. Modifications of the Law as regards Married Women's Property. 8. The Guardianship of Infants. 9. The peculiar doctrines of Election, Conversion, Satis- faction, and Performance, 18 CHAPTER I. TRUSTS. Section T. — General View. I. Historical Outline. II. What may he tlie Subject of a Trust. III. Wlio may he a Trustee. IV. Who rifiay he a cestui que Trust. Charities. V. Classification of Trusts. I. Historical Outline. Fklei- 1. Students of Roman law are familiar with the device irEoman which was resorted to in the later days of the Republic for law. enabling testators to dispose of their property in favour of persons who were unable to take it directly by way of inheritance or legacy. Where the civil law threw any impediment in the way of such a disposition as was desired, the practice arose of bequeathing the property to someone who could legally take it, in reliance on, or trusting to his good faith, to carry out the donor's intention with respect to it. Such gifts were known as fidei-com- missa. At first, the only security for their proper execution was the honour of the person so entrusted ; but in the reign of Augustus, though no legal action could be brought for their enforcement, jurisdiction was conferred upon a special praetor to take cognisance thereof, and to carry them into execution. From that time the operation of fidei- HISTORICAL OUTLINE. 19 commissa revolutionised the testamentary law of the State, and prepared the way for its later develojDment in directions little thought of at the time of their introduction. 2. The history of English law presents to us a very Common similar chapter. The common law imposed many restric- strictions tions upon the conveyance and devisinor of landed property, °?^ *^® . ■•■ •' _ ° . . alienation which the possessors thereof continually exercised their of land ingenuity to escape. Ownership in land the law has never recognised. Whoever was in immediate enjoyment of it could claim only an interest of greater or less extent and duration, subject to the rights of a superior lord, or at any rate of the Crown, as chief and paramount lord of all the soil of the country. It is plain that in many circumstances the power of free disposal of these interests might greatly interfere with such rights, especially with the ultimate right of receiving back the land itself. Particularly was this the case where land was transferred or assigned to a corporate body, such as an ecclesiastical order, or a bishopric, which subsisted perpetually, so that such land could never again revert as vacant or undisposed of to a superior lord. Accordingly, by the statutes of mortmain, lands were pro- Mortmain. hibited from being given for religious purposes. 3. It was with a view to elude such restrictions that trusts, or as they were anciently called, uses, were intro- duced in England. The device was that the transferor, while retaining the legal estate, or conveying it as the law Introduc- allowed, should declare the use of the estate to some third nature of person, affixing on the conscience of the legal owner the ^^^^' duty of carrying into effect such declared intention. By this means it was sought to transfer the beneficial interest in a manner v\,rhich the law would not sanction, or to persons or corporations whom the law would have forbidden to receive it. 4. As in the case of the fidei-conimiissa of Eoman law, at first these uses or trusts were originally dependent for their on good execution entirely upon the good faith or honour of the ^^^*^- legal owner or trustee. But in the reign of Richard II., c 2 20 TRrSTS : GENERAL VIEW. Writ of John Waltham, Bishop of Salisbury, who was then Lord sii >pu na. j^ggpg^,^ invented the writ of suhpcena, by which a refrac- tory trustee might he summoned before the Court of Chancery, there to answer on oath the charges of the bene- ficiary or cestui que use. This Court, claiming a special jurisdiction in matters of conscience, enforced the execution of the use or trust, though without affecting to interfere with the ownership at common law. The addition of this security for the enforcement of uses soon led to their extensive employment. Though arising from the restrictions on the assignment of freehold land, Extension their principle was equally applicable to other kinds of tnistr ^" property, and trusts of real and personal chattels came into common use. Trusts came also to be employed for other purposes than the beneficial transfer of property. It was often convenient to give an interest to a trustee for the per- formance of some specific duty, such as to convey in a given manner, or to sell for payment of debts, &c. More important still was the application of the doctrine by which landowners obtained the power of devising their estates by will. Statutory 5. go extensive were the inroads thus made on the ferences policy of the law, especially as to the legal incidents of therewith, ^^gj^yrg ajj(j t,he rights of creditoi's and purchasers, that uses and trusts soon became the subjects of statutory inter- ference (a). It is not, however, now necessary to do more than refer to matters so completely obsolete. At length it was determined to abolish the application of uses to freehold land entirely, and with that intent the Statute Statute of Uses (6) enacted that where any person stood H Vlii seised of any hereditainents to the use, confidence, or trust t'- i^^- of any other person, or of any body politic, such person or body politic as had any such use, confidence, or trust, should be deemed in lawful seisin of the hereditaments in such (a) 1 Rich. III. c. 1 ; 19 Hen. (b) 27 Hen. VIIT. c. 10. \'II. c. 15 ; 26 Hen. VIII. c. 13. HISTORICAL OUTLINE. 21 like estates as they had in use, trust, or confidence. The effect of this was at once to convert all uses into legal estates, and thus to bring them within the rules of law. The technical meaning of the words employed, however, I'o what prevented the statute from entirely subverting the doctrine referred, of trusts. The words "seised," "seisin," and "heredita- ments " being only applicable to freehold estates, the statute was adjudged not to affect any trusts of personal property "^^t to or chattels, or even leasehold interests in land, or copy- copyholds,' holds. Seeing also that the statute referred only to cases in which one person was " seised, &c., to the use of any other person," it obviously could not affect special uses, i.e., or n'^^^^l uses in which the conveyance was to the trustee for some limited or specific purposes, such as have been mentioned. These trusts, therefore, in which the trustee was not a mere passive owner of a legal estate the benefit of v/hich was secured to someone else, but had active duties to perform, remained as valid as before the statute. 6, This sweeping Act was, however, no sooner passed Ktfect of than its effect was destroyed by the construction put destroyed * upon it by the judges of common law ; aud the old uses in real property at once reajjpeared under the modern name of trusts. This came about as follows. If there was a feoffment to A. and his heirs to the use of B. and his heirs, then before the statute A. took a legal fee simple, and B. was a cestui que use, who could only seek his remedies in Chancery. After the statute the same limita- tion would secure not only the use but also the legal estate to B. The use would, in short, at once draw to itself the legal estate. But the judges held that where there was a limitation to A. and his heirs to the use of B. and his heirs to the use of (or in trust for) C. and his heirs, then the statute had no effect beyond the use limited to B. It converted the use first declared into a legal estate, but in so doing its power was exhausted, and a second use or trust, declared upon or after the first, remained unaffected thereby. Such being the decision of tlje judges, the Court and con- 22 TRUSTS: GENERAI- VIEW. sequent of Chancery asserted the same authority over the first ance^or cestui que use as it had previously exerted over the trusts. primary assignee, and enforced upon him the execution of the second use or trust. Thus it has been said that the whole effect of the Statute of Uses was to add four words, " to the use of," to every conveyance. Trusts having been thus curiously revived, have con- tinued down to the present day; and under the development of the doctrines respecting them which took place under the later chancellors, especially Lord Nottingham, now constitute one of the most advantageous branches of equitable jurisdiction. 7. It is not necessary to add to this brief sketch a history of the various steps by which trusts have attained their Definition present position in our juris23rudence. Sufficient has been said to indicate the nature of a trust, and to render a more formal definition intelligible. A trust has been defined as a beneficial interest in, or ownership of, real or personal property, unattended with the possessory or legal owner- ship thereof (c). But this is rather a definition of an equit- able estate than of a trust, and it omits to take account of special trusts, such as have been already referred to, in which the object of the trust is the performance of some particular duty rather than the vesting of the beneficial ownership in some person other than the legal owner. A trust is rather a duty deemed in equity to rest on the con- science of a legal owner. This duty may be either passive, such as to allow the beneficial ownership to be enjoyed by some other person, named the cestui que trust, in which case the legal owner is styled a bare trustee ; or it may be some active duty, such as to sell, or to administer for the benefit of some other person or persons ; such as the duties of a trustee in bankruj^tcy. (c) 2 Spence, 875. WHAT PROPERTY MAY BE THE SUBJECT OF A TRUST. 23 II. What Property may he the subject of a Trust. As a general rule property of any kind, legal or personal, Generally may be made the subject of a trust. perty may We have seen that trusts arose chiefly in connexion ^f ^toust* with freehold estates. They are equally applicable to Land of copyholds, or to lands subject to any special customs, such any tenure, as gavelkind or borough English. In such cases equity as usual follows the law in its treatment thereof : thus equit- able estates will be guided by the same rules, as to descent for instance, as legal estates in the same land. Courts of equity will also, as seen in Penn v. Lord Colonial Baltimore {sup. p. 11), enforce natural equities in and foreio-n contracts respecting colonial or foreign land, provided the ^'^^ °"^y parties be within the jurisdiction and the case admits of a remedy by action in personam (d). But trusts, strictly so called — that is, trusts of the nature of the ancient uses — cannot, it would seem, be engrafted upon foreign real estate, the tenure of which may have no harmony with the principles of English law (e). Trusts are applicable to leaseholds, personal chattels, Personal • 1 •• r property. choses m action, and every description oi personal property, and on the principle that mobilia sequuntur personam, as long as the party is domiciled within the jurisdiction of the Court, it matters not where the property in question is situate. The only limit is that in the case of property lying beyond the reach of the Court the practical obstruc- tions in the way of executing the trust may be sometimes a bar to relief (d) No7-ris v. Chambers, 3 De G. (e) Lewin, p. 45, 7th edit. F. & J. 584. 24: TRUSTS: GENbKAL VIEW. III. Who may be a Trustee. Proper In Order to a person being a trustee, he must be capable ti^^^l^or" °^ taking and holding the property of which the trust is trustee. declared, and competent to deal therewith. He should also be within the reach of the arm of the Court, or in other words, domiciled within its jurisdiction. Sovereign- (1.) The sovereign may sustain the character of a trustee, so far as regards the capacity to take the estate and to execute the trust. It is not clear, however, by what machinery a trust so vested could be enforced. Probably the only resource for such a purpose would be a petition of right (/). Corpora- (2.) A corporation may now be a trustee, since the ancient doctrine that trusts rested on the foundation of personal confidence has evaporated. There is ample juris- diction in the Coiuts to enforce the performance of its duty by such a trustee (g). The only restriction is that the license of the Crown is necessary for the conveyance of real estate to a corporate body ; and this restriction is as applicable to a bare legal estate as to a beneficial interest, A married (3.) A married woman is legally capable of being a trustee ; but her general amenability to the influence of her husband, the fact that he would be liable in case she should commit a breach of trust, and would thus for his own protection be prone to interfere with her in the dis- charge of her duties, and the impediments in the way of her execution of legal assurances, afford suflicient grounds for considering such an appointment undesirable, except for special reasons (h). On similar grounds it is not genemlly advisable to make an unmarried woman a trustee, tiOD. woman. (/) Lewin, 7th e 1 circum- cases IS to make such provision tor the issue oi the stances, marriage as it shall not be in the power of either parent to defeat, where articles are so framed that the concur- rence of both parents is requisite in order to defeat the provision for the issue, the Court has refused to interfere, considering that it may have been the intention of the parties to the articles that the husband and wife should jointly have such power. And so, where it appears on the face of the articles that the parties themselves knew and made a distinction betAveen limitations in strict settlement, and limitations leaving it in the power of one of the parents to bar the issue, a strict settlement of the whole will not be decreed (m). Where words are used in articles which would, if inter- Tenancy preted strictly, create a joint tenancy among the children preferred of the marriage, equity will decree a settlement upon ^° J*^"^^ . 1 . , . . tenancy. them as tenants m common, either with provisions for limiting over the shares of any who die under age and without issue (n), or for making the interests of the children contingent on their attaining 21, being sons, or being daughters, attaining that age or marrying (o). But surrounding circumstances ma,y modify the operation of this rule Q)). The same rules of construction apply generally to post- Same rules nuptial as to ante-nuptial settlements (q). ^^^^^f ° (2.) Where chattels are settled immediately or by a trust nuptial executed, upon the same trusts that have been declared of ments. (I) Nandick v. Wilkes, Gilb. Eq. 445; Cogan v. Buffield, 2 Ch. D Rep. 114. 44, 50. (in) Howel v. H., 2 Ves. sr. 358, (p) In re BeUasis" Trust, 12 Eq. 359. 218. {n) Taggart v. T., 1 S. & L. 84, 89. (?) Rochford v. Fitmaurice, 2 Dr (o) Young v. Macintosh, 13 Sim. & W. 1, 19. 4-i EXPRESS TRUSTS. Person- j-gal estate in strict settlement, that is. on the first and altv • . . . ' other sons successively in tail, if there is no restriction as to tlie attainment of 21 years or the fulfilment of any other condition, such chattels will vest absolutely in the first tenant in tail at his birth, whether the limitation of the chattels be expressed in extenso or created by refer- ence to the limitations of the realty (>'). But in the case of an executory trust by settlement, as where a person has agreed or covenanted to settle chattels upon similar trusts to real estate in strict settlement, a Court of equity, upon the principle of carrying into effect the intention of the parties as far as possible, will order a clause to be inserted in the settlement of the chattels to the effect that the Absolute ^gj^^^^^ ij^^ tail shall not be entitled to the absolute pro- potponed perty in the chattels unless he shall attain the age of 21 tin attain- ^^^^^^ ^^ ^^.^ Under that age leaving issue (s). twenty- Thoucyh a settlement ought to be executed in order to one years. ° , . . p . i • t • j_ Declara- carry the executory provisions ol marriage articles into tion in effect, the Court has, where the property was personal, at settle-" the request of the parties, in order to save expense, made ment. ^ declaration as to the true meaning of the articles, upon which the parties were able to act, without needing a formal instrument to be prepared and executed (t). B. As to executory trusts in quills. (1.) As to real property. In wills Unless the intention of the testator appears from the construed will itself that he meant the words " heirs of the body," or as at law, ig ^f similar import, to be words of purchase. Courts of unless con- ""-"^-i-^ " x ' j- trary in- equity will direct a settlement to be made according to Apparent, the strict legal construction of those words ; but if such an intention is apparent on the face of the will, the Court will give effect to it. The principles involved cannot be better illustrated than by comparing the cases of Sweetapple v. Ir) Boncaafcr v. B., 3 K. & J. coin, 3 Ves. 387. 20. _ (0 J^yam V. B., 19 Beav. 58; (.s) D. of Neu-castlc v. C. of Lin- EXECUTED AND EXECUTORY TRUSTS. 45 Bindon {ii), and Papillon v. Voice (v). In the former, B. What gave by will £300 to her daughter Mary to be laid out by indication her executrix in lands, and settled to the only use of her 1^.^°^' daughter Mary and her children, and if she died without intention, issue, the land to be equally divided between her brothers and sisters then living. Lord Cowper said that had it been an immediate devise of land, Mary, the daughter, would have been by the words of the will tenant in tail : and in the case of a voluntary devise, the Court must take it as they found it, and not lessen the estate or benefit of the legatee; although uj)on the like words in marriage articles it might be otherwise. Here there was an execu- tory trust indeed, inasmuch as the executrix was required to execute a settlement to give effect to the testatrix's intention ; but, occurring in a will, which conferred a benefit voluntarily on Mary, there was nothing to lead one to sup- pose that a lesser quantum of interest rather than a greater was intended to be conferred : therefore the Court had no ground for attributing to the words used any other than their strict legal meaning (x). In PapUlon v. Voice, A. bequeathed a sum of money to trustees in trust to be laid out in a purchase of lands and to he settled on B. for life, without impeachment of waste, remainder to trustees and their heirs during the life of B. to preserve contingent re- mainders, remainder to the heirs of the body of B., remain- der over, with power to B. to make a jointure ; and by the same will A. devised lands to B. for his life, without im- peachment of waste, remainder to trustees and their heirs during the life of B, to support contingent remainders, remainder to the heirs of the body of B., remainder over. Lord Chancellor King declared as to that part of the case where lands were devised to B. for life, though said to be without impeachment of waste, with remainder to trustees to support contingent remainders, remainder to the heirs of the body of B., this last remainder was within the (m) 2 Vern. 536. (x) Seale v. ,S'., 1 P. Wms. 290. (r) 2 P. Wms. 471- 4G EXPRESS TRUSTS. general rule, and must operate as Avords of limitation, and consequently create a vested estate tail in B.; but as to the other point, he declared the Court had a power over the money directed by the will to be invested in land, and that the diversity was where the will passed a legal estate, and where it was only executory, and the party must come to the Court in order to have the benefit of the will ; that in the latter case the intention, and not the rules of law must be followed ; so that as to the lands to be purchased, they should be limited to B. for life, with power to B. to make a jointure, remainder to trustees during his life to preserve contingent remainders, remainder to his first and every other son in tail male successively, remainder over. It will be observed that the great distinction between this case and Sweetapple v. Bindon lay in the fact that here the testator had divided his lands with which he intended to benefit B. into two parcels, one of which he devised to B. on certain limitations which were construed legally to carry an estate tail, and the other of which he directed to be settled on B. on the same limitations. This division afforded an index to the testator's intention, for there could have been no object in it if the limitations of both parcels were to be interpreted in the same way. There was here, therefore, an indication of intention which was lacking in Siveetapple v. Bindon ; and therefore the executory trust was interpreted, not strictly, as in that case, but in a manner similar to that in wliich it Avould have been treated had it occurred in marriage articles. Paitiniikr There are many ways in which a testator may so indi- sions. cate his intention as to lead the Court in construing an executory trust to depart from the strict legal signification of the words he employs ; for instance, by instructing trustees to take "special care in such settlement that it shall not be in the power of A. to dock the entail of the estate given to him during his life" (i/), or by directing that (.v) Leonard v. E. of Sussex, 2 Verii. 526. EXECUTED AND EXECUTORY TRUSTS. 47 the heirs of the body or issue shall take " in succession or piiority of birth/' or that the settlement shall be made "as counsel shall advise," or "as executors shall think tit " (z) ; or again, " in such manner and form as that if A. should happen to die without leaving lawful issue, then that the property might descend after his death unin- cumbered" («) ; so where a testator directed a coirveyance to his daughter for her life, and so as she alone, or such person as she should appoint, should take the rents and profits, and so that her husband should not intermeddle therewith, and from and after her decease in trust for the heirs of her body for ever. Lord Hardwicke considered that as there was a plain intention to exclude the husband ftom all benefit present or future interest, the words "heirs of her body" should be construed as words of purchase, and that the wife was entitled to a life estate only ; because otherwise if the wife predeceased her husband, he would get a considerable benefit contrary to the testator's intention, as tenant by the curtesy (&). It "Heirs "is requires, however, a stronger case to lead the Court to this word'm*^'^ interpretation when the word "heirs" is used than it does favour of a when " issue " is the term employed, the Avord " heirs '' stniction being naturally a word of limitation (c). And where the *^^^^ ^^^^^' trusts and limitations of land to be settled are expressly declared by the testator, the Court has no authority to make them different from what they would be at law (d). In wills, as in marriage articles, when the words " heirs Daughters of the body " or " issue " are construed as words of purchase, equ°a]iT they will be held to include daughters as well as sons, and ^^^^ ^o^^- the settlement will be decreed to be made in default of sons and their issue upon daughters as tenants in common in tail general, with cross remainders between them (e); and Children although, in the ordinary construction of a gift by will to parenls, " iz) White r. Carter, 2 Eden, 306 ; (c) Meure v. M., 2 Atk. 265. Bastard v. Prohy, 2 Cox, 6. (rf) Austen v. l\tylor,\ Eden, 361. (a) Thompson v. Fisher, 10 Eii. (e) Bastard v. Prohi/, sup. ; Trevor 207. V. T., 13 Sim. 108 ; i H. L. 239. (b) Roberts v. Dixwell, 1 Atk. 607. 48 EXPRESS TRUSTS. rather j^ ^yifg ^ikI children, they would take as joint tenants (/), as joint where there has been a direction to secure the fund for the tenants, jjcnefit of the wife and children, the Court has inferred an intention that the fund should be settled in the usual manner upon the wife for life, remainder to her children {g). Where in a vjIU there are directions for a settlement in terms which are ordinarily construed to create a joint tenancy, the Court has no authority, as in the case of marriage articles, to vary them in execution by giving a tenancy in common in the settlement unless there is something to indicate that such was the intention (h). (2.) As to personalty. Personalty "Where chattels are given by will, and directed to go by vests reference to hmitations of real estate m strict settlement at bh-th or as heirlooms, either simply or " as far as the rules of law and equity will permit," Courts of equity will not, even though the legal estate be in executors, construe the trusts of the will as executory, so as to prevent the chattels vest- ing absolutely in the first tenant in tail upon his birth, as we have seen would be done in the case of marriage C(jutri3ry articles (i). But if a plain intention be expressed that no followed if person shall take the chattels absolutely who does not live expressed, ^q become entitled to the possession of the real estate, the Court will execute that intention (Ji) ; and then the execu- tion of a disentailing deed of the real estate by a tenant in tail who does not live to become entitled to the chattels, will not prevent their vesting in the person who would have been entitled to the real estate in possession, if such disentailing deed had not been executed (l). C. The doctrine of cif-jjves. Execution Where an executory trust in articles or in a will if carried literally into effect would be void for illegality, as (/) Nmill V. N., 7 Ch. 253, 256. 274 ; Harrington v. H., 5 L. R. H. (fj) Comle V. Hughes, 14 Eq. 415. L. 87. (/i) Marryat v. Toimhj, 1 Ves. sr. {1-) Potts v. P., 1 H. L. 671. 102; ) 16 Beav. 315, 327. Beav. 346. (q) 2 H. & M. 110, 117. (o) Re Sykcs' Trusts, 2 J. & H. (r) Sugd. V. & P. 719, 14th ed. 415. VOLUNTARY CONVEYANCES AND TRUSTS. 55 tiou of the assignment itself, unaccompanied by other acts, was no better than a covenant or agreement to assign, and was therefore not enforceable (r/i). But the case of Keke- wich V. Manning {n), speaking with the authority of the Lords Justices Knight-Bruce and Lord Cranworth, must be considered as in effect overruling it. (3.) On the other hand, it is not necessary, in order to 3. Settlor render a trust in favour of volunteers enforceable, that himself there should have been an actual transfer of the legal trustee, and mterest to trustees. It suffices if the settlor has con- declares stituted himself a trustee and declared the trusts (o). trusts. (4.) And similarlv, if the interest be equitable a valid f Dn-ect- , . . "ig trus- trust may be created by the owners du'ection to the tees to hold trustees to hold the property in trust for the donee (p). t"ust1^^^^^ Notice to the trustees in whom the legal estate is vested Notice is necessary to protect the donee against third parties (q) ; °^J "eces- but the trust is good as against the donor without it (7") ; against nor is notice to the cestui que trust of the declaration of parties. trust necessary (s). 4. Although if a conveyance in favour of a volunteer ^^i^take . . or fraud be complete it will usually be executed by the Court, vitiates it will not be so if it arose from mistake (t) or fraud (u). ^ctions"^' On the contrary, in such cases it will usually be rescinded. Again, Courts of equity will not only refuse to carry In absence into effect a merely voluntary agreement, contract, or elements, covenant to transfer property, by which the relation of™'^"*^" ■■■■•■ ^ •' *' . . nous con- trustee and cestui que trust is not fully constituted, but it sideratiou will not be moved to assist a donee by the existence of a s^^ient meritorious consideration only. Thus it will not enforce a voluntary agreement or covenant, or give effect to an (m) Meek v. Kettlewell, 1 Ha. 464, (5) Donaldson v. R, Kay, 711. 474. (r) Ibid. (n) 1 De G. M. & G. 176. (s) Tait v. Leitliead, Kay, 658. (0) Exp. Pye; Exp. Duhost, 18 Ves. {t) Manning v. Gill, 13 Eq. 485. 140, 150. (u) Chesterfield V. Janssen, 2 Ves. {p) Rycroft v. Christy, 3 Beav. 238. sr. 125. 66 EXPRESS TRUSTS. Doctiine affected by statutes'. Fraud on creditors, 13 Eliz. c. 5. Fraudu- lentintent, express, or implied. imperfect gift, tliongli designed as a provision for a wife or children after marriage (x). The main question to be decided in all the cases is that above quoted from the judgment in Fortescue v. Barnett, "whether any act remained to be done by the grantor which, to assist a volunteer, the Court would not compel him to do." And it should be remarked that this question is considerably affected by several recent statutes by which many kinds of property have been made assignable at law which formerly were not so : e.g., policies of life assurance by 80 & 81 Vict. c. 144, policies of marine assurance by 31 & 32 Vict. c. 86, debts and other legal choses in action by the Judicature Act, 1873, sect. 25, sub-s. 6. It may well happen under these statutes that an incomplete assign- ment will be refused support, which, previous thereto, might have obtained it on the ground that the grantor had done all that he could do at law to pass the property. D. Btatiiiory modijications. 1. By 13 Eliz. c. 5, " all covinous conveyances, gifts, alienations of lands or goods, whereby creditors might be in any way disturbed, hindered, delayed, or defrauded of their just rights," are declared utterly void; but the Act is not to extend to any estate or interest in lands, &c., on good consideration, and bond fide conveyed to any person not having notice of such covin. Hence a voluntary settlement of real or personal property may be set aside by a creditor of the settlor upon his showing an intent on the part of the settlor to delay, hinder, or defraud his creditors. This intent may be actual and express (y), or it may be inferred in different ways, as, for instance, by showing that the settlor was insolvent at the time of the settlement, or even that he was largely indebted (z), or that after deducting the settled property, sufficient available assets were not left for pay- la;) Jefferys v. /., Cr. & Ph. 138 ; Dillon V. Coppin, 4 My. & Cr. G47. (y) Spirett v. WUloivs, 3 De G. J. & S. 293. (s) Totvnsend v. Westacott, 2 Beav. 340; Tayloi' v. Coenen, 1 Ch. D. C36. VOLUNTARY CONVEYANCES AND TRUSTS. 57 ment of the debts (a). To quote the Avords of Lord Wien Hatherley in Holmes v. Penny (b), " The settlor must liave ""^* been at the time, not necessarily insolvent, but so largely indebted as to induce the Court to believe that the inten- tion of the settlement, taking the whole transaction to- gether, was to defraud the persons who, at the time of the settlement, were creditors of the settlor." It has been decided, however, that the protection of the Extends Act is not limited to those who were creditors " at the creditors, time of the settlement." A deed designed to defraud future creditors, such as a settlement of all or nearly all his present and future property, especially by a person about to engage in trade, is void as against such credi- tors (c). A creditor may, by his concurrence with or acquiescence Creditor's in a deed voidable under 13 Eliz. c. 5, preclude himself and lost b^f his representatives from impeaching such deed (d), and an •'^cquies- inquiry may be directed to ascertain whether any creditors of a settlor had so acquiesced (e). A purchaser from a volunteer under a deed void under Purchaser the statute will be preferred to the general creditors who volunteer have no specific charge (/). T^'^^^rtV Choses in action, having since 1 & 2 Vict. c. 110, become choses in available for the payment of debts under an execution, are '^^}\^}^ , ": . withm the withm the statute (g). statute. A voluntary deed executed pendente lite for the purpose VoUmtary of defeating any process in the nature of execution will be ^pendente "^ set aside in equity {h) ; and also a cleed executed when ^''f ^et a man knows that a decision is about to be pronounced against him (i). 2. The Bankruptcy Act, 1809 {k), contains a clause more Bank- («) Freeman v. Pope, 5 Ch. 538. (/) George v. Millanke, 9 Ves. (6) 3 K. & J. 90. 190. (c) Ware v. Gardner, 7 Eq. 317 ; (g) Stohoe v. Coican, 29 Beav. G37. Mackay v. Douglas, 14 Eq. lOG. {/;) Blenkimopp v. B., 12 Bea\-. (d) Olliver v. King, 8 De G. M. 568 ; 1 De G. M. & G. 495. & G. 110. (i) Barling v. Bishop, 29 Beav. (e) Freeman v. Pope, 9 Eq. 206, 417. 212. (A) 32 & 33 Vict. c. 71. 58 EXPEESS TRUSTS. ruptcyAct, 32 & 33 Vict. c. 71. Excep- tions in. Fraud on pur- chasers. 27 Eliz. c. 4. Applies to lands only. Who are pur- chasers. stringent in some respects against voluntary settlements than 13 Eliz. c. 5, in that, with the exceptions to be men- tioned, it makes void as against ci editors any settlement made by a trader within two years previous to his bank- ruptcy ; and in case of bankruptcy within ten years of such settlement it throws upon the parties claiming under the settlement the burden of proving that the settlor was at the time of making it able to pay his debts (I). It, however, excepts from its operation settlements made before, and in consideration of marriage, or made in favour of a purchaser or incumbrancer in good faith and for valu- able consideration, or a settlement made on or for the wife or children of the settlor of property which has accrued to him after marriage in right of his wife. Such settlements will, therefore, be upheld, irrespective of any question of solvency (in). The word "purchaser" in this section has been held to mean a " buyer " in the commercial sense, not a purchaser in the wide legal meaning of the word, this section differing in this respect from 27 Eliz. c. 4 (ii). 3. By 27 Eliz. c. 4, it is enacted that every conveyance, grant, charge, lease, limitation of use of, in or out of any lands, tenements, or other hereditaments whatsoever, for the intent and purpose to defraud and deceive such persons, &c., as shall purchase the said lands, or any rent or profit out of the same, shall be deemed only against such persons, their heirs, &c., who shall so purchase for money or any good consideration the said lands, &c., to be wholly void, frustrate, and of none effect. Thus a voluntary settlement of lands will be held void against subsequent purchasers for value by the settlor, in- cluding mortgagees (o), lessees (p), and trustees taking under settlements for valuable consideration (q), even with notice (?) Sect. 91. (m) Exp. Bishop, 8 Ch. 718. (n) Exp. EiUmun, 10 Ch. D. 622. (o) Dolphin V. Ayhmrd, 4 L. R. H. L. 486. (|)) Leivia V. Hopkins, 9 East, 70, cited. (fj) Watkins V. Steevens, Nels. 160. I VOLUNTARY CONVEYANCES AND TRUSTS. 59 of the settlement (;•) ; and it is no support to a settlement that it is a fair provision for a wife and children (s). Volunteers, moreover, cannot restrain their settlor from selling the settled estates (t). A judgment creditor is not deemed to be a purchaser within the Act (it). A conveyance apparently voluntary may be supported by collateral evidence showing a contract for value (x). A bond fide settlement, though voluntary, cannot be defeated b}'" the conveyance for value of the heir or devisee of the settlor (?/). Nor can a person who purchases for value from one claiming under a second voluntary convey- ance, or from any other than the person who made the voluntary conveyance in his lifetime, claim the benefit of the statute (z). Where a voluntary settlement of land is avoided by a Volun- subsequent sale for "^^aluable consideration, the volunteers ^^^^^ ^j^^ '^ have no equity against the purchase money payable to the o^^ P""^- Settlor («). I mo^ney. It should also here be mentioned that a small and inade- Small con- quate consideration is sufficient to support a settlement ^^^'■''!'^^'"i against a purchaser (h). Thus, though leaseholds are to support within the Act, if a person takes them subject to onerous chaser, covenants, the liability so incurred is deemed a sufficient consideration to support his title against a subsequent purchaser (c). There has been much discussion as to the sufficiency Considera- and scope of the consideration of marriage under this !i*,°^.?!„„ Act. Marriage has always been recognised in both law and Valuable, equity as a valuable consideration ; and it is quite clear I ()•) Doe V. Manning, 9 East, 59. {z) Richards v. Leids, 11 C. B (s) Ihid. 1035. (t) Pidvertoft V. P., 18 Ves. 84; (a) BaUny v. Whimper, 26 Beviv. Buckle V. Mitchell, ihid. 100. 568. {u) Beavan v. E. of Oxford, 6 De (6) Bayspool v. Collins, 6 Ch. 228, G. M. & G. 507. 232. [x) Pottv. TocUnmter, 2 Coll. 76; (c) Price v. Jenkins, 5 Ch. D. Townend v. Toker, 1 Ch. 446. 619. {y) Leu-is v. Bees, 3 K. & J. 132. 60 EXPRESS TRUSTS. Nut sup- porting post- nuptial settle- ment. Scope of the con- sideration. Comp•) Wulmjn V. Coiitts, 3 Mer. 707 ; 3 Sim. 14. (s) Ibid. ; Garrard v. Lauderdale, 3 Sim. 1 ; 2 Russ. & M. 451 ; Acton V. Woodfjate, 2 My. & K. 492. (() Cosser v. Radford, 1 De G. J. & S. 585. (ii) Acton V. Woodgate, 2 My. & K. 492, 495. (.t) Slgijers v. Evaiis, 5 E. & B. 367. ((/) Wildinf) V. Richanls, 1 Coll. 655. (c) Griffith V. RicMts, 7 Ha. 307. VOLUNTARY CONVEYANCES AND TRUSTS. G3 of the debt due to that creditor, the deed is as to him irrevocable ; a valid trust in his favour is created (a) ; and what is true where a single creditor is cestui que trust, is of course equally so where there are many such. It suf- fices also if a creditor is party to a deed^ though in another right than as cestui que trust for the amount of his debt (b). In a case where an assignment was made to a trustee for the benefit of creditors, but no creditor was aware of such assignment, it was held that the trustee might sue in equity against a third party to recover pro- perty of the settlor outstanding in such third party (c). Though there is a time limited in the deed within which creditors are directed to execute it, yet if by acci- dent any of them fail to do so, they will not necessarily lose the benefit of the trusts, if they eventually act under or upon the faith of the deed, or acquiesce in it (d). A creditor, however, who for a long time delays (e), or Long delay who refuses to execute the deed, and does not retract his (j^ed or refusal within the time limited (/), and d fortiori if he conduct sets up a title adverse to the deed (g), will not be allowed the deed to claim the benefit of its provisions. And generally the ^^^t^ , ■■• _ ° -^ creditor s Court before it permits a creditor to claim the benefit of claim. a deed will see that he has performed all the fair condi- tions of the deed ; and if he has taken any step incon- sistent therewith, he will be deprived of all advantage therefrom (h). (a) Mackinnon v. Stewart, 1 Sim. (c) Gould v. Robertson, 4 De G. & N. S. 88. Sm. 509. {h) Montefiorc v. Bvoivn, 7 H. L. (/) Johnson v. Kershmo, 1 De G. 241, 266. & Sm. 260. (c) GJegg v. Rees, 7 Ch. 71. (rj) Watson v. Knifjht, 19 Beav. (d) Raworth v. Parker, 2 K. & J. 869. 16-3 ; In re Baler's Trusts, 10 Eq. (/() Field v. Donoiir/Jimore, 1 Dm. 554. & W. 227. G-k IIESULTING TIIUSTS. Section III. — Resulting Trusts. DefLnition and Classification. I. Parting luith Legal and retaining Equitable Interest. II. Purchase in name of TJdrd Persons. III. Exceptions. Preswinptlon of Advancement. Dyer v. Dyer. IV, Joint Purchases. Lake v. Gibson. Definition, Classifica- tion. On what groxmds intention to retain equitable interest is presumed. Express intention. Where the owner of property so deals with it that eqviity presumes an intention on his part to sever the legal and equitable interest, it gives effect to such presumed intention by applying the principle of trusts. These trusts are termed resulting (or, by some authors, implied) trusts. There are two leading classes of resulting trusts. First, where an owner parts with the legal estate by conveyance, devise, or bequest, and equity presumes that he had no intention to part with the equitable interest. Secondly, where a purchaser directs a conveyance of the legal estate to be made to a third person, but equity presumes an in- tention to retain the equitable interest. I. Resulting trusts where an owner parts with the legal interest intending to retain the equitable. The inquiry suggested by this class of cases is, on what oTounds the Court will now hold that a settlor or testator did not intend to part with the equitable interest ? (1.) WJtere such intention is exjjvessed. The clearest case is where an intention not to benefit PARTING WITH BARE LEGAL ESTATE. 05 tlie grantee, devisee, or legatee is actually expressed upon the instrument which transfers the legal estate. We have already seen that where a trust is evidently ^^ "o trust . 1111 specified, intended to be created, the person into whose hands the it i-eHults legal estate is transferred cannot hold it beneficially (p. 80). **" '^^"^'"^ Thus where a bequest is made to a person " upon trust," and no trust is declared (i), or the trusts declared are too vague to be executed (/v), or are void for unlawfulness (/), or fail by lapse (r/i), the trustee can have no pretence for claiming the beneficial ownership, the whole property being clearly impressed with a trust. In such cases, therefore, the trust will result to the settlor or his representatives, or his re- tire heir as to realty, the next of kin as to personalty ; and tives. the trustee cannot defeat the resulting trust by parol evidence in his favour (n). (2.) Where the intention is i^ resumed. Presumed ,. N T • T 11 1 • • 1 f •, intention. (i.) It was an ancient and well known principle ot equity before the Statute of Uses, that when a feoffment of real estate was made to a person without consideration, the use at once resulted to the feoffor, and in equity he con- tinued to enjoy the beneficial interest. The same prin- Resulting ciple is still applicable, but, as we shall see, upon some- what different terms from those which were anciently regarded with respect to uses. Formerly, a consideration, however trifling, was sufficient to entitle the feoffor to the use of the lands of which he was enfeoffed. Modern con- equity, however, makes a wnder inquiry than as to the ^fj]^ mere payment or non-payment of a nominal consideration, modern before it decides as to the title to the beneficial enjoy- ment; and it is especially vigilant to observe any indications of fraud or mistake having affected the transaction (o). (0 Dawson v. Clarle, 18 Ves. 247, C. C. 503, ct infra, p. 434, et seq. 254 ; Barrs v. Fewke, 2 H. & M. 60. {n) Langham v. Sanford, 17 (Z) Foioler v. Garlihe, 1 R. & M. Ves. 442 ; 19 ib. 643 ; Irvine v. 232 ; Leavers v. Clayton, 8 Ch. D. Sallkan, 8 Eq. 673. 584. (o) Birch v. Blagrave, Amb. 264 ; (?) Carrich v. Errington, 2 P. Lloyd v. Spillet, 2 Atk. 150. As Wms. 361. to tiie doctrine of advancement, see (m) Ackroijd v. Synithson, 1 Bro. Dyer v. Dyer, infra, p. 71. F GG RESULTING TRUSTS. Where tleclareil trusts do not cx- h.aust the property. Special rules as to charities. No result- ing trust where a general in- tention of charity expressed ; nor where trusts declared at the time exhaust the pro- ceeds. But trust results where all is not at first dis- posed of. Contrast between (ii.) Porhaps the most iinpoitant class of cases under this head are those in which a settlor conveys property on trusts which do not exhaust the whole property. In such cases generally there will be a resulting trust in favour of the settlor of so much of the i^roperty as is unaffected by the trust declared {p). With respect, however, to gifts to charities, there are certain special rules which must be observed (g). Where a person makes a valid gift, whether by deed or will, and expresses a rjeneral intention of charity, but either particularises no objects (r), or such as do not exhaust the proceeds (.s), the Court will not suffer the property in the first case^ or tlie surplus in the second, to result to the settlor or his representative, but will take upon itself to execute the general intention, by declaring the particular purposes to which the fund shall be applied. Where a person settles lands, or the rents and profits of lands, to purposes which at the time exhaust the proceeds, but in consequence of an increase in the value of the estate an excess of income subsequently arises, the Court will order the sui'plus, instead of resulting, to be applied in the same or a similar manner with the original amount (t). But even in the case of a charity, if the settlor do not give the land or the whole rents of the land, but, noticing the property to be of a certain value, appropriates part only to the charity, the residue will then, according to the circumstances of the case, either result to the heir-at- law {u), or if the donee be itself an object of charity (as in tlie case of a charitable corporation) will belong to the donee subject to the charge {x). (iii.) The distinction must be observed between a devise {p) Parnell v. Hinrjaton, 3 Sm. & (t) Beverley v. Att.-Gen., 6 H. L. G. 337, 344. 310. (g) Lewin, 7th edit. p. 147. (u) Att.-Gen. v. 3f. of Bristol, 2 (r) Att.-Gen. v. Herrkl; Amh. J. & W. 308. 712. {x) Beverley v. Att.-Gen., sup.; (s) Att.-Gen. v. Tanner, 2 Ves. Att.-Gen. v. South Moulton, 5 H. jr. 1. L. 1. PARTING WITH BARE LEGAL ESTATE. G7 to a pers()n for a particular purpose Avith no intention uf ^I'^rgo ami conferring a beneficial interest, and a devise with a view special of conferring a beneficial interest, but subject to a par- P^'l'os*^^ ticular direction. If a testator gives to A. and liis heirs all his real estate charged with his debts, that is a devise which includes a particular purpose, but is not restricted to it. The devisee, therefore, takes the beneficial interest subject to the debts ; but if the testator devises all his real estate to A. and liis heirs upon trust to pay his debts, that is a devise solely for a particular purpose, with no intention to confer a beneficial interest. If there be any surplus, therefore, after payment of the debts, it results to the heir of the testator (i/). 3. This sj)ecies of resulting trust being dej)endent upon Parol evi- presumption of law, may be rebutted as to instruments jeeds inter inter vivos by parol evidence of the settlor's intention (z). *■''.'<>'*. ^^■ • n 1- 1-111 missible to For the extensive class oi resultnig trusts which depend rebut the upon the doctrine of conversion, and which Avould in a strict [-q*!^"'"^'' classification be here treated of, see infra, p. 434', d seq. II. Purchases in the Names of Third Persons. (I.) The second order of resulting trusts comprises those Where which arise when a person purchases an estate but takes takes a a conveyance in the name of another person. ance m' The general principle on which they rest may be thus name of a illustrated. Suppose A. advances the purchase-money of pglJ^j a freehold, copyhold, or leasehold estate, and a conveyance, iii»«- surrender, or assignment of the legal interest in it is made either to B., or to B. and C, or to A., B. and C, jointly or successively ; in all these cases if B. and C. are strangers, a trust will result in favour of A. The doctrine applies equally to real and personal property («)• (y) King v. Denlson, 1 V. & B. 42, 50; Foides v. Pascoe, 10 Cii. 343. 272. (a) Sidmouth v. S., 2 Beav. 447, (z) Cook V. Hutchinson, 1 Keen, 454. F 2 68 lil::SL'LTING TKUSTS. Ill connexion therewith it will be convenient first to consider some important rules of evidence respecting these trusts. When (2.) General rules of evidence. dence ad- (i-) If the advancc of the purchase-money by the real prov^b ^"^ pwichaser does not appear on the face of the deed, and whom pur- cven if it is stated to have been by the nominal purchaser, money is P^^'o^ evidence is admissible to prove by whom it was paid. actaally made {h), resulting trusts being, by sect. 8, expressly excepted from the operation of the Statute of Frauds. But where the trust does not arise on the face of the deed itself, the parol evidence must prove the fact of the advance of the purchase-money very clearly {c) ; and doubt has been expressed whether such evidence is admissible after the death of the nominal purchaser {d). It is not, however, easy to see how his death affects the principle (e). If the nominal purchaser admits the payment of the money by the real purchaser, a trust will doubtless result (/) ; and where he, by answer to a bill, denied such payment, parol evidence was admitted to contradict him {g). In a case in which a defendant purchased an estate in his own name with his own money, and the plaintiff alleged that he did so as agent for him, which the defendant denied, parol evidence tendered by the plaintiff to prove a verbal agreement constituting the agency was rejected, on the ground that such a case was not within the exceji- tion of the statute, since no trust there arose by operation of laAv, but it was sought to raise one by parol evidence of an agreement (A). But this decision has been questioned as being inconsistent with the principle that the Statute of Frauds is not to be made an instrument of fraud (/). [h) Peachnfs Case, Sugd. V. & P. (t) Lench v. L , 10 Ves. 511, 517. 910, 11th ed. (/) Eyal v. li., 1 Atk. 58. (c) Gascoirjne v. Thioiny, 1 Vera. {fj) Gascoigne v. Thwing, sup. 366 ; Willis v. W., 2 Atk. 71. [h) Barthtt v. Piclersgill, 1 Eden, {d) Sandars on Uses, 1, .354, 5th 515. ed. ; CliaJk v. Darners, 1 Ch. Ca. li) Heard v. Pilley, 4 Ch. 548. 310. PURCHASES IN THE NAMES OF THIIJD PERSONS. 69 (ii.) Parol evidence is admissible to prove that a pur- 'i'"' F'^^'o 111 ^ • ^ IHircliase chase has been made witli trust money, and upon that with tmst being proved a trust will result in favour oi the cestui que ™""^">- trust, the real owner of the money (/■). (iii.) Since rcsultino- trusts arise from equitable pre- ?"° ^'"^^^' • 1 11 1 , , • T 1-1 intention sumption, they may be rebutted by parol evidence which ofadvancc- shows an intention in the person advancing the purchase- ™^"*' money that the person to whom the property was trans- ferred should take for his own benefit (0 ; and such an intention existing at the time of the purchase cannot be subsequently altered (m). Resulting trusts may also be Presnmp- rebutted as to part and prevail as to the other part, as butted'in where an intention is proved to confer a life interest on P^i't- the nominee (v). (iv.) Parol evidence of interested parties is admissible to Evidence rebut a resulting trust, but in order to be sufficient for that i-ested purpose it must be at least corroborated by surrounding parties, circumstances (o). (v.) The presumption of a resulting trust will be Acquies- CGT1C6 rebutted by acquiescence for a considerable time in the enjoyment of the property by the person in w^iose name it was purchased (p). (vi.) And where there is an express trust declared upon Express a purchase made in names of strangers, though but by evidenced, parol, there can be no resulting trust ; for resulting trusts, though excepted from the Statute of Frauds, were only left as they were before the Act, and a bare parol declaration before the Act would have prevented any resulting trust (q). (k) Lench v. L., sup. Foicles v. Pascoe, 10 Ch. 343. (?) GoodHght v. Hodfjes, 1 Watk. (o) Fowles v. Pascoe, sup. Cop. 227, Lofft. 230; Redlnrjton v. {p) Delane v. D., 7 Bro. P. C. R., 3 Eidg. P. C. 178. 279 ; Clegg v. Edmondson, 8 De G. (m) Groves v. G., 3 Y. & J. 163, M. &G. 787. 172. (q) Bellasis v. Comptov, 2 Vern. («) Lane v. Digldon, Amb. 409 ; 294; Aijerst v. /ch^-///.s16 Eff. 275. 70 RESULTING TRUSTS. III. Exceptions from the General Rule in such Purchases. Where it 1 . There will be no resulting trust where the policy of travene an an Act of Parliament would be thereby defeated. Thus i^°^"^ it was held that no trust resulted in favour of a person Parha- , . . T , ment. advancing the purchase-money of a ship registered in the name of another, for the register, according to the policy of the old Registry Acts, was conclusive evidence of owner- ship both at law and in equity (/■). By the Merchant Shipping Act, 1854 (.s), however, after enacting that not more than thirty-two individuals shall be entitled to be registered at the same time as owners of any one ship, it is provided that that rule shall not affect the beneficial title of any numbers of persons, or of any company represented by or claiming under or through any registered owner or joint- owner. S. 37 (2). Where, moreover, a person having no title to a ship procures it to be registered in his name, the Court of Chancery will compel liim to retransfer it to the rightfid owner, and account for the earnings, even though there have been no fraud, and notwithstanding the Merchant Shipping Act (t). On a similar principle, a trust will not, it seems, result in favour of a person who has purchased an estate in the name of another in order to give him a vote in electing a mem- ber of Parliament (?(). Where, moreover, a person having deposited moneys in a savings bank up to the full amount allowed by statute, made further deposits to an account in his own name in trust for his sister, giving her no notice of the investment, it was held that the only intention being to evade the Act of Parliament, no trust was created, and the claim of the sister was refused (*■). ()•) Ex2^. Gallop, 15 Ves. 60, 68. 129. (s) 17 & 1 8 Vict. c. 104, amended (u) 6Vows v. fr'., 3 Y.& J.163, 175. by 25 & 26 Vict. c. 63. {x) Field v, Lonsd.) The presumption also rises in fiivour of a wife (d); and also where there has been a purchase in the joint names of the purchaser, his wife, and a stranger (e). But tlicre is no similar presumption if the purchaser stands merely in loco mar it i, and has purchased in the name of a woman with whom he has been cohabiting, or has illegally gone through tiie form of marrying, such as a deceased Avife's sister (/'). No presumption of advancement a,rises in the case of a purchase by a manied woman out of her separate estate in the names of her children, she being under no legal obliga- tion to provide for them (g) ; and though by sect. 14 of the Married Women's ProjDerty Act {li) married women are made liable to maintain their children out of their separate property, the obligation is not of the same nature as that of the father, and no presumption of advancement arises in the absence of other evidence of such intention (i), A fortiori it is submitted that notwithstanding the similar provision in sect. 13, no presumption would arise in case of a purchase in the name of a husband. A widowed mother, however, is, it seems, a person standing in such relation to her child as to raise a presumption in favour of her child {j); and of course in all such cases, if apart from the relationship an intention to advance is proved, there is no resulting trust (/.;). Where a contract is entered into to purchase real pro- perty in the name of a wife or child, although the wife or child, being volunteers, could not sue for specific perform- ance of the contract, nevertheless, if the vendor enforces, or is entitled to payment out of the husband's estate, the conveyance must be made to the wife or child {I). A G7. 17. {d) Klngdon v. Brklrjes, 2 Vern. h (e) Re Eykyn's Tr., G Ch, D. 115. (/) Soar V. Foster, 4 K. & J. 152. ((j) Re de Visme, 2 De G. J. & S. J. (h) 33 & 34 Vict. c. 93. (i) Bennet v. B., 10 Ch. D. 474, 0) Sayre v. Iluyhcs, 5 Eq. 376 ; Batstone v. Salter, 10 Ch. 431. (A) Beecher v. Major, 2 D. & Sm. 431. (l) Redington v. R., 3 Ridg. P. C. 196 ; Dre^c v. Martin, 2 H. & IM. 130. DOCTRINE OF ADVAXCEMENT. 7:j binding contract to i^urcliase in the joint names of a man and his wife has been held to entitle the wife to the bene- fit of the purchase as survivor {m). 3. Many circumstances have been taken into considera- Circum- tion as rebutting the presumption of advancement ; but ffir^e^i most of those formerly of weight are not now regarded, rebutting Thus at one time the infancy of the child was a circumstance sumption against the purchase being considered an advancement ; ^° "°* ^"^ at present it tells strongly m the opposite direction (n). Again, it was once an argument against advancement that the property purchased was reversionary, and there- fore not a proper provision for a child ; but this would not now be of any avail (o). Lord Hardwicke regarded a purchase in the joint names of the parent and child as a weaker case for advancement than a purchase in the name of a son alone (p). Such a circumstance would now have little if any weight. The stranger, in such a purchase, would hold his share in trust for the father; the child would be considered advanced to the extent of his interest (q). If a child has been already fully advanced, this affords Presump- an objection to the presumption, and the child may butted'if be held a trustee for its father ; but such a circumstance is child fully by no means conclusive (r). Partial advancement is of no ^'^ ^^'^^^ weight against a child (s). It has been sometimes regarded as evidence of the absence of intention to advance, if the father remains in receipt of the rents or profits of the estate or fund purchased. The objection is, however, now v/ithout weight, certainly if the child is an infant (t), and apparently also if he is adult, unless strengthened by the additional circumstance of his being already fully ad- vanced (u). (in) Vance v. V., 1 Beav. 605. 599 ; Dummer v. Pitcher, 2 My. & (w) Lamplwjh v. L., 1 P. Wms. K. 262, 272. Ill ; Finch V. F., 15 Ves. 43. ()•) Ilcpworth v. H., 11 Eq. 10. (o) Rmnholl v. R., 2 Eden, 15, 17 ; (•?) Redinrjton v. R., sup. Williams v. W., 32 Beav. 370. (t) Loyd v. Reid, 1 P. Wms. 688. (p) Pah V. P., 1 Ves. sr. 70. («) Grey v. G., 2 Swanst. 594, (9) Grey v. G., 2 Swanst. 594, 600, 74 RESULTING TRUSTS. Advance- ment void against creditors. Child Solicitor for the parent. Son may repudiate onerouH property. Unpaid purchase- money payable out of father's assets. Evidence to rebut the pre- sumption. Contem- poraneous acts of father. Sub- sequent acts not admissible. Where an advancement is made by a person largely in- debted at the time, it will be void as against creditors nnder 13 Eliz. c. 5 (?') ; but 27 Eliz. c. 4, has no similar application in favour of purchasers (x). And where the relation of client and solicitor subsists between the parent and child, tlie ordinary presumption in favour of advancement will be excluded, and the burden of proving its validity will bo thrown on the son acting as solicitor (y). Where a father makes a purchase in the name of a son, of property which is attended with risk of loss, the Court may on the part of the son repudiate his interest, in which case the father remains liable (z). In a case of advancement, where part of the purchase- money remains unpaid, it is a debt payable out of the assets of the father ((/). 4. Rides of evidence as to presuinption of advance- ment. (1.) The jDresumption of advancement may be rebutted by evidence of facts showing the father's intention that the son should take the property as a trustee, and not for his own benefit. Such facts must, however, have taken place antecedently to, or contemporaneous and in immediate connexion with, the same transaction (6). For instance, if there is, on the purchase, an immediate and formal taking possession by the father, as by entering into a shop and putting his name over the door, that would be suffi- cient to establish ownership in the father and trusteeship in the son (c). Subsequent acts, however, are not admissible in evidence against the son's interest. Thus a devise as in Dyer v. Dyer, ((•) Christy v. Courtenay, 13 Beav. 90. (x) Drew v. Martin, 2 H. & M. 130, 133. (y) Garrett v. Wifhinson, 2 Pe G. & Sm. 244. (-) lieid's Case, 24 Beav. 318 ; Weston's Case, 5 Ch. 614. (rt) Skidmore v. Bradford, 8 E(|. 134. {b) Grey v. G., 2 Swanst. 594 ; CoUinson v. C, 3 De G. M. & G. 409. (c) Stock V. M'Aroy, 15 Eq. 5.'), 59. DOCTRINE OF ADVANCEMENT. 75 or a mortgage ((/), or other such disposition of the property is of no avail (e). (2.) The presumption of advancement may also be Parol rebutted by evidence of parol declarations of the father tjons con- contemporaneous with the purchase ; but not of any decla- tempo- raneous; rations made subsequently (/ ). not sub- (3.) A fortiori parol evidence may be given by the son ^^.'^^i*- to show the intention of the father to advance him, such to support evidence being in support of both the legal interest of the sumption, son, and the equitable presumption (g). (4.) The acts and declarations of the father subsequent Acts and to the purchase, though not admissible in his favour, are tions of admissible ao^ainst him in favour of the son CA), and it ^'^^'^^^ ^^^" ° . sequent. seems that subsequent acts and declarations of the son can be used against him by the father ; though they would not be sufficient to counteract clear evidence of the father's original intention to advance the son (i). (5.) The father may not tender evidence in support of Evidence the trust, the effect of which would be to show that the fraud on transfer was intended to effect a fraud on the law, such as *^! ^^7 • ' not admis- a conveyance of lands to the son for the purpose of quali- sible for fying him for an office or a vote (/v). (6.) Any surrounding circumstances may be taken into Surround- consideration to rebut the presumption of advancement, cum-"* Thus where a husband pays money into a bank to an stances ,.,..„, , . con- account opened m his wite s name, and it appears that the sidered. account was opened for convenience sake, the intention being not to give the wife any interest in the money, but to enable her to act as agent, the money will remain the property of the husband (l.) In another case, where it was considered that the ti'ansfer of tlie husband's account into the joint names of himself and his wife was made in (d) Bach V. Andrew, 2 Vern. 120. (h) Balington v. R., .3Ilidg. P. C. (e) MurlessY. Franklin,! Swanst. 195, 197. 13. (/) Sklnioutk V. S., sup. ; Jeans v, if) Elliott V. E., 2 Ch. Ca. 231 ; Cooke, 24 Beav. 513, 521. Sidmouth V. ,S'., 2 Beav. 447, 456. {k) Childers v. C, 3 K. & .J. 310 ; (g) Lampluyh v. /.. 1 P. Wms. Mag wM., 33 Beav. 81. 113. (I) Llotjd V. I'vghe, 8 Ch. 88. 70 RESULTING TRUSTS order to enable the Avife to draw cliC(|ueR, the same con- clusion ■\vas reached {m). General rule at law. How viewed in equity. Leaning against joint tenancy. Unequal IV. Resulting Trv.f^is arising from Joint Parchasefi. The principal authority on this species of trusts is LAKE V. GIBSON. LAKE V. CRADDOCK. [.3 P. Wms. 158 ; 1 W. & T. L. C. 200.] In this case five persons purchased an estate as joint tenants in fee, but contributed rateably towards the pur- chase, after which some of them died. They were held to be tenants in common in equity ; and though one of the five deserted the partnership for 30 years, yet he was let in afterwards on terms. 1. It is an invariable rule at law that when purchasers take a conveyance to themselves and their heirs they will be joint tenants and upon the death of one of them the estate will go to the survivor. The judgment of Sir J. Jekyll in the above case, expresses as clearly as possible how equity regards and treats this rule. Equity follows the law, except where circumstances exist which give rise to the presumption that the parties did not intend the rule of law to apply (n). This case shows that an unequal advance of the purchase money is regarded in equity as such a circumstance. In applying the rule thus stated, it must be remembered that in equity there is a strong leaning against joint tenancy ; and it readily seizes on any circumstance from which it can be reasonably implied that a tenancy in common was intended, so that it may hold the survivorsof joint purchasers trustees of the legal estate for the representatives of the deceased purchaser. Sir J. Jekyll qualified the general rule which he laid (m) Mo-shal v. CrutiveU, 20 Eq. 2 Ves. sr. 258 ; AvcVinrj v. Knipc, 328. 19 Ves. 441. (n) Iltgden v. VaUier, 3 Atk. 735; ARISING FROM JOINT PURCHASES. ll down by requiring, in order to justify the interference of •'^'^^^^^^*^° "^ equity with the rule of law, not only an unequal advance money, of purchase-money, but also that this should appear from the deed itself. Lord Hardwicke, however, lays doAvii the same rule v,'ithout this qualification (o). 2. Other circumstances than unequal advances mav ''^"'"'' on • ^ • 1 • ^ mortgages. siimce to raise the presumption that tenancy m common was intended. Perhaps tlie most important class of such cases are those which arise in what are at law joint mort- gages. At law the debt and security belong to the sur- vivor. In equity, whether the money was advanced equally or unequally, mortgagees are deemed to be tenants in common, and the survivor is held to be a trustee for the personal representatives of the deceased mortgagee (25). It follows that the personal representatives of a deceased mort- gagee are necessary parties in an action for foreclosure or redemption {q), and although the entire legal interest is in the survivor, they are necessary jjarties to a reconveyance, as they alone can give a valid discharge for their predeces- sor's share of the mortgage money ; that is, of course, unless the mortgage deed contained a clause rendering the receipt of the survivor sufficient. And if joint mort- gagees purchase or foreclose the equity of redemption, they will still be held in equity tenants in common, on the ground of presumed intention (y). In Robinson v. Preston (s) a similar intention was pre- sumed in the case of a purchase of stock and the opening of a bank account in their joint names by two sisters who resided together. The monies so dealt with arose from rents of land of which they were tenants in common. On this ground, strengthened by the facts that other monies similarly arising were invested on mortgage, the deed of whicli contained a declaration against joint tenanc}', and (o) Rlgden v. Vallier, sup. ; Harrl- 529. son V. Barton, 1 J. & H. 287, 293. (r) R'njden v. Vallier, siqx (t>) Morky v. Bird, 3 Ves. 631. (s) 4 K. & J. 505. (q) VicJcers v. 'Cowelf, 1 Beav, 78 RESULTING TRUSTS. further that the survivor (against whom, oi' course, her own declaration might be read), by her will, executed iu the lite- time of the deceased, spoke of " her share " of the property iu question, and affected to dispose of it in favour of her sister, Vice-Chancellor Page Wood declared that the sisters Avcre tenants in common in equity of the stock and bank balance. It should be mentioned, however, that in a some- what similar, though distinguishable case, Lord Romill}" came to a different conclusion (t). Parol cvi- It seems that parol evidence of subsequent dealings, as missible to Well as of surrounding circumstances, is, on a purchase by show in- ^^Q persons contributing equally, admissible to prove an hold intention to hold in severalty ; but that such evidence as severa y. ^^ statements of intention is not admissible (it). 8. As to the operation of the principle of resulting trusts in cases of lands held as partnership assets, see Partnership (infra, iDp. 539 — Sil). (t) Bone V. PoUunl, 24 Beav. 283. 1 J. & H. 287, and Devoi/ v. D., 3 (u) Compare Harrison v. Barton, Sm. & G. 403. DEFINITION AND DESCRIPTION. Section IV. — Constructive Trusts. I. Definition. II. *Reneival of Leases hi/ Trustees. Keech v. Sandford. III. Purchase of Trust Property hij Trustees. Fox V. Mackreth. I. Definition and Descriiotion. When oil the grounds of justice and good, conscience, Definition, without reference to the intention of the parties, equity- severs the legal from the equitable interest, a constructive trust is raised. The usual circumstances from which these trusts proceed Trustees, are where a trustee or any person clothed with a fiduciary -^^J fdvan- character gains some personal advantage by availing him- t*g? ^''om self of his situation as a trustee. As soon as such an advantage is acquired through the medium of a trust, the trustee, however good a legal title he may have, will be decreed in equity to hold for the benefit of the cestui que trust. The principle of constructive trusts enters into so many departments of equity, that it is desirable under this especial heading to deal only with some of the leading and most characteristic illustrations of it. In other parts of the work, for instance in considering the remuneration of trustees, and in the chapter on fraud, it will be necessary again to refer to the principle, and further illustrations thereof will be afibrded. The trusts by which efl:ect is given to the liens of vendors and purchasers, though frequently classed as con- structive trusts, are of a distinct nature. From their 80 CONSTRUCTIVE TRl'STS. intimate relation to mortgages, we have preferred to deal witli them in connexion with that branch of the subject. Uenewal II. Of Constructive trusts, one extensive class arises from trusrees ^ lenGwals of leases by trustees and other persons clothed &(;• with a fiduciary character, in their own names. The leading authority among cases of this description is KEECH V. SANDFORD [Sel. Ca. in C'li. 01 ; 1 W. & T. L. C. 4G] ; also commonly known as the Mumford Market Case. In this case a person being possessed of a lease of the profits of a market devised his estate to a trustee in trust for an infant. Before the expiration of the term the trustee applied to the lessor for a renewal for the benefit of the infant. This was refused on the ground that, it being only the profits of a market, there could be no distress, and must rest simply in covenant, which the infant could not make. There was clear proof of the refusal to renew the lease for the benefit of the infant. On this refusal the trustee got a lease made to himself. A bill was brought by the infant to have the lease assigned to him, and for an account of the profits. The plaintiff relied on the principle that wherever a lease is renewed by a trustee or executor it shall be for the benefit of the cestui (juc use. The defendant admitted the princijole, but denied that it was applicable to this case, because of the proof of an express refusal to renew to the infant. Lord Chancellor King said : " I must consider this as a trust for the infant ; for I very well see, if a trustee, on the refusal to renew, might have a lease to himself, few trust estates would be renewed to a cestui qne use. Though I do not say there is fraud in this case, yet the trustee should rather have let it run out than have had the lease to himself. This may seem hard, that the trustee is the only person of all man- kind who might not have the lease ; but it is very proper that the rule should be strictly pursued, and not in the RENEWAL OF LEASES BY TRUSTEES. bi least relaxed; for it is very obvious what would bo the consequences of letting the trustees have the lease on a refusal to renew to the cestui que use." So it was decreed that the lease should be assigned to the infant, and that the trustee should be indcmniticd from any covenants comprised in the lease, and on account of the profits made since the renewal. The rule laid down by Lord King has been invariably followed ; the ground of the decisions being the public policy of preventing persons in such situations from acting so as to take a benefit to themselves (x). 1. As to the persons to lultom the doctrine extends. 1'" whom Ihis doctrine oi constructive trusts extends to the trine general inclusion of all persons standing in a fiduciary •^'^t^"^^- relation with respect to the proj^erty affected. (1.) The leading case is sufficient authority for its appli- Trustees, vi J. X executors cation to express trustees. An executor stands in precisely and ad- the same position. Similarly an administratrix of a "i^'stra- ^ -^ _ tors. deceased yearly tenant, who obtained a new tenancy from year to year, was held to be trustee thereof for the next of kin of the intestate, though there was no suspicion of fraud {y). As to an executor de son tort renewing a lease in his own name, see Mulvany v. Dillon (z), Grifjin v. G. (a). (2.) Another class, which is the subject of a great Tenants number and variety of decisions, is that of tenants for life, or others having a limited interest in renewable leaseholds, who renew the leases in their own names. In these cases they will be held trustees for those entitled in remainder to the old lease (5). Thus in James v. Dean (c), a testator bequeathed leaseholds for years determinable upon lives to his widow (who was his executrix and residuary legatee) for life, with remainder over : the term expired during the testator's life, but he continued to hold as tenant from year to year : the widow obtained a new lease to herself, but it (x) Griffin V. G., 1 S. & L. 354. (a) 1 S. & L., 352. (t/) Kelly V. K. 8 \. R. Eq. 403. (b) Jioice v. Chichester, Arab. 715. (z) 1 Ba. & Be. 409, 417. (c) 11 Ves. 383; 15 Ves. 23G. G 82 CONSTRUCTIVE TRUSTS. was held to be subject to the trusts of the will, as the residue of the term at the testator's death, however short, would have been. (See also Trmnpev v. T. (d).) But if the testator had been only a tenant at will or on sufferance, Not to a ii^Q case would have been different. Then the tenancy tenant at will. would have been determined by the death of the testator, and thus no interest would have passed by the will to the persons designated to take in remainder, and therefore they could not set themselves up as cestui que trusts against the tenant who availed herself of her position to get a renewal in her own name. But Lord Eldon (c) was inclined to think that had not the tenant for life in that case been residuary legatee, she would have been held a trustee for the residuar}^ legatee, considering it impossible that the executrix (the life tenant) could hold for herself after availing herself of the position which she held for the benefit of the whole estate for the purpose of procuring the renewal. A renewal, then, under such circumstances, would have the effect of creating an accretion to the general estate (/). Although the tenant for life under a settlement be the settlor himself, if he renew in his own name he will be a trustee for the parties interested under the settlement (g). As to the effect of the purchase of the reversion by a tenant for life, see Isaac v. Wall (It). Tenant for Similar in principle to these cases is that in which a lifG I'GCGIV* ing pay- tenant for life receives a sum of money for withdrawing ment for i^[^ opposition to a bill in Parliament, and the Act then not oppoa- -^ ^ , , ' ing a bill passes authorising the taking of the land in settlement. Whether, then, the land is taken or not, and whether the Act is proceeded upon or not, the money so received must be held for the benefit of all parties interested (i). In Coo2^er v. PMbhs (j), Cooper, being in possession of certain estates and a fishery, which he had covenanted to (d) 14 Eq. 295; 8 Ch. 870. C. 197. (e) 11 Ves. 393. (/,) (5 Ch. D. 700. (/) Lewin on Trusts, 7th ed., p. (i) Pole v. P. 2 U. & Sni. 420 ; 167 ; Turnej- v. T., 14 Ch. D. 829. and see 8 & 9 Vict, c. 18, s. 73. {(j) Picker in f/ v. Voules, 1 Bro. C. (J) 2 L. R. H. L. 1 i'J. in Parlia- ment RENEWAL OF LEASES BY TRUSTEES. 83 settle, after previous limitations to himself and his issue oUainmga ' ^ _ _ _ _ _ parliamen- male, on his brother for life, with remainder to his issue tary title, male, procured an Act of Parliament, which, after recit- ing that the estates and fishery had descended to and were vested in Cooper, and that the said Cooper was desirous ot constructing canals, &c., at his own expense, in considera- tion of the exclusive right of fishery being vested in him, his heirs and assigns, enacted that the said powers to make canals and cuts should be granted to iiim, provided that the cuts should be altogether situated on the estates and pro- perty of the said Cooper. In all the provisions of the Act, Cooper was spoken of as the o"^^^ler of the estate. Cooper having died without issue male, the House of Lords held that under the Act of Parliament Cooper took the fishery, bound by the trusts of the settlement, Lord West- bury remarking, with characteristic irony : " I must of necessity assume that Cooper had the intention of stating the truth and the fact to the Legislature .... therefore you cannot impute to him that he intended to conceal the trusts of the settlement. Then if he stood before Parlia- ment as a trustee, the powers conferred are conferred upon him in his character as trustee, and Avould be subject to the trusts which affected the donee of those powers" (A). (3.) Joint tenants are subject to a similar equity. If Joint one of several persons jointly interested in a lease renews it in his own name, he will hold it in trust for the others according to their respective shares (/). Where a tenant for life, and a remainderman of a lease for lives, took a renewal thereof to themselves as joint tenants, in the absence of anything showing a contrary intention, equity regarded their prior interests as remaining unaltered (ni). If a person jointly interested with an infant renew, and the renewed lease turn out to be not beneficial, the person renewing must sustain the loss ; while if it prove bene- (h) See also Yem v. Edwards, 27(3. K. & J. 564 ; 1 De G. & J. 598. [m) llUl v. IL, 8 I. R. Y.^y 140. (?) Palmer v. Younrj, 1 Vern. g2 84 CONS TRUCnVE TKU STS. Pa,rtncr3. Agents. Slort- t'agree. Mort- gagor. ficial the infant can claim his share of the benefit, pro- vided that he contribute his due proportion to any sums which may have been paid for the renewal (n). (4;.) So, likewise, if a partner renew a lease of the part- nership premises in his own name, he will, as a general rule, be held a trustee of it for the firm (c). But this rule has been departed from in certain cases where the business of the partnership in cpiestion has been of a specidative nature, such as a mining concern. In such circumstances, when a surviving partner has renewed a lease in his own sole name, and carried on the business with his own capital, the Court has refused to assist the representative of the deceased partner unless he has come forward promptly, and is ready to contribute a due proj)ortion of money for the purpose of the business ; since it would be clearly imjust to let the executor of the deceased partner remain passive while the survivor is incurring all the risk of loss, and only claim to participate after the affairs have jDroved to be prosperous (ij). In order, however, to gain the benefit of this exception, the surviving partner must make full dis- closure as to the state of the concern, such as will enable the representative to exercise a sound discretion as to the course he ought to pursue (q). Similarly, a person acting as agent, or in any similar capacity for a person having an interest in a lease, cannot renew for his own benefit (r). (5.) If a mortgagee renew a lease of the mortgage pre- mises, the renewal, whether before or after the expiration of the lease, shall be for the benefit of the mortgagor, on condi- tion of his paying the mortgagee his charges (s). Vice versa, if the mortgagor obtains a new lease of the mort- gaged property, the new lease will be held a graft on the (n) Exp. Grace, 1 B. & P. 376. (o) Fcatlterdonehaugh v. Fanvicl; 17 Ves. 298, 311 ; Cleyy v. Fishwick, 1 Mac. & G. 294. (p) Clements v. Hall, 2 De G. & J. 173. (?) Ihid., 188. (?•) Griffin V. G., 1 S. & L. 353 ; Edicards v. Leicis, 3 Atk. .538. (s) Jiuxhicorth' s Case, Freein. 12 ; RaJcestraw v. Brewer, 2 P. Wms. 511. EEXEWAL OF LEASES BY TRUSTEES. 85 old one, for the benefit of tlie mortgagee (t). On tlie same principle, if a person entitled to a lease Avliich is subject to debts, legacies, or annuities, renews either in his own name, or in that of a trustee, the incumbrances will remain a charge on the renewed lease (u). (6.) The same remedies which may be had against trustees, Voiun- executors, and persons with limited interests, renewing ciafminrr leases in their own names, may also be had against through volunteers claiming through them, and against purchasers «^c. ' from them with notice, express or implied (x). 2. The extent a/acl incidents of the doctrine. These have to some degree been inevitably indicated in reciting the cases which show to whom the doctrine applies. But there remain some further comments neces- sary to a full exposition of the matter. (1.) Though a person in the fiduciary positions described Constmc- is termed a trustee, he is not in all respects treated like a trustee trustee who is such by virtue of an express trust. The not treated r< p T • • • -n p • • t ■ r as an ex- btatute ol Limitations will, lor instance, run m his favour, press against persons claiming the benefit of the constructive t"^^*®^- trust {y). And the cestui que trust may, apart from the in his statute, be bound by acquiescence and lapse of time ; ^^^o"^- especially, as we ha.ve seen in respect of partnership cases, where the property sought to be affected with the trust is subject to extraordinary contingencies, or is capable of being rendered productive only by a large and hazardous outlay {£). (2.) The remaindermen and others who seek the benefit Entitled to of a constructive trust, are required to indemnify the ^° ^"^"^ ^ ' trustee against any covenants he may have entered into with the lessor (a) ; and the trustee will have a lien upon (t) Smith V. Chiclmter, 2 Dr. & W. Eq. 498 ; Knox v. Gye, 5 L. R. H. 393 ; Hughes v. Howard, 25 Beav. L. 656, 675 ; Met. Banlc v. Heiron, 575. 5 Ex. D. 319. («) Seaborne v. Pov:el, 2 Vern. (:) C'kgg v. Edmondson, 8 De G. 11. M. & G. 787 ; Erlanyerx. Nevj Sum- {x) Bowles V. Steicart,! S. & L. Irero dr. Co., 3 App. C. 1218. 209 ; WaUey v. W., 1 Vera. 484. («) Giddinfji v. G., 3 Russ. 241. (y) In re Bane's Estate, 5 I, R, 86 CONSTRUCTIVE TRUSTS. and hen \]^q estate for tlic costs and expenses of renewing: the lease, for outlay . . ^ . . on im- With interest (h), and for the cost of lasting improve- ments' and ^^"^c^^s (^)' though Dot for alterations adopted as a matter costs. of taste or personal convenience (d). Per contra Qj^ i]^q contrary, charges in the nature of waste and for IS charge- . . "^ " , . i • i able for deterioration must be set off against anything thus found rratifand '^"° (^"^ > ^^^® trustee must account for the mesne rents and I'l-ofits. jDrofits (/), such account in the case of a tenant for lifo of course commencing only from his decease (g), and must assign the lease free from incumbrances. Court IS /3 N ^\^Q Court is viqilant to prevent any fraudulent vigilant to ^ / i i • p • mi prevent evasioii of the doctrine of constructive trusts. The case evasion. ^£ (JQQpfyy y pjiilljs above commented on is a good illus- tration of this. Where, therefore, a lessee by collusion with his landlord incurred a forfeiture of his lease, and then obtained a new lease, the former trusts were held to attach thereto (h). So if a person who has a right of renewal sells such right, the money produced by the sale will be subject to the same trusts as the leaseholds if renewed would have been (i). Cases of ^^ -^ Where renewable leaseholds are taken by a railway pulsory or other company under compulsory powers, a tenant for life will only be entitled to the interest arising from the purchase money, although the custom to renew may not have ceased until after the premises were thus taken; at any rate, when the primary intention of the settlor appears to have been to create a perpetual estate {k). Renewal /- \ \y]^e]^ [^ jg impossible to obtain the renewal of a impossible; ^ ^ _ ■•■ _ accumu- lease, if there be no predominant trust for renewal over- riding the disposition in favour of the subsequent tenant for life, the latter will, it seems, be entitled to the sum accumulated by the direction of the settlor for that pur- {h) Heme V. CliirJiester, Anil). 71.'). B. 409. (r) l/olt V. //., 1 Ch. Ca. 190; (,7) Gi(hlinf/s v. G., 3 Bms. 2il. Wdlloj V. n^, 1 Vern. 487. (k) Hiitjhes v. ffoward, 25 Beav. (d) Mill V. inil, 3 H. L. 828, 575. 869. (0 On-en v. WiUiams, Amb. 734. (c) Ihid. (k) Be Wood's I'Jstate, 10 Eq. 572. (/) Mvh-avy V. Dillon, 1 Ball & lated sums. RENEWAL OF LEASES BY TRUSTEES. 87 pose (/). But where it appears to liave been the paramount intention of the testator that those entitled in reversion expectant upon the decease of a tenant for hfe shoukl succeed to the enjoyment of substantially the same estate, the tenant for life, upon the renewal becoming impracti- cable, will only be entitled to the income of the sum set apart for renewal and of the sum produced by the sale of the leaseholds (m). And where a trustee, or person in a fiduciary position, who has acquired the legal possession of and dominion over an estate, subject to a covenant for perpetual renewal, so deals with the property as to make the renewal impos- sible, by his own act, and with a view to his own benefit, he is bound to give full effect to the charges on the trust estate, and to satisfy those charges out of the acquired estate, so far as may be necessary (n). (G.) Although trustees with power to renew have power to Purchase purchase the reversion in leaseholds under 23 & 24 Vict. sioiTiir* c. 124, the Court will not sanction such a purchase if it lieu of re- will have the effect of unduly burdening any particular person, as by considerably reducing the income of the tenant for life (o). But where a trust for renewal of lease- holds is absolute and overrules the interest of the tenant for life, he is not entitled to object on the ground of the reduction of his income, to any arrangement in lieu of renewal which may be made when renewal ceases to be joracticable, as long as the best possible terms are made (p). (I) Morres v. Hodges, 27 Beav. (n) Trumper v. T., 14 Eq. 295, 625 ; In re Mone>/'s Trusts, 2 D. & 310 ; 8 Ch. 870. Sm. 94. (o) Haiimtrd v. Pile, 5 Ch. 214. (m) Maddy v. Ihde, 3 Ch. D. {p) IloUier v. Btmie, IG Ec\. U3. 327. 88 CONSTRUCTIVE TRUSTS. rurchase III. Constructive Trusts aris'ing fvom a Purchase of ''^^l^^^^ Trust ProjMTty by a Trustee. tniruo. This class of trusts is usually illustrated by reference to the important case of FOX V. MACKRETH, PITT V. MACKRETH, [2 Bro. C. C. 400 ; 2 Cox, 320 ; 1 W. & T. L. C. 123] in which a mortgagee who purchased the mortgaged property himself by taking an undue advantage of the confidence reposed in him, and sold it at a higher price, was decreed to be a trustee for the mortgagor of the sum produced by this sale. This case is usually referred to as having established the statement rule, ever since recognised and acted upon by Courts of ()_fthepnn- gq^^j^y^ ^j^jj^^ ^ purchase by a trustee for sale from his cestui que trust, although he may have given an adequate price, and gained no advantage, shall be set aside at the option of the cestui que trust, unless the connexion be- tween them most satisfactorily appears to have been dis- solved, and unless all knowledge of the value of the property acquired by the trustee has been communicated to his cestui que trust The principle of the rule is, how- ever, more clearly expressed by Lord Eldon in ex parte Lacey (q). He says : " It is founded upon this : that though you may see in a particular case that the trustee has not made advantage, it is utterly impossible to examine upon satisfactory evidence, in ninety-nine cases out of a hundred, whether he has made advantage or not. Suppose a trustee buys any estate, and by the knowledge acquired in that character discovers a valuable coal mine under it, and, locking that up in his own breast, enters into a contract with his cestui qice trust, if he chooses to deny it, how can the Court try that against his denial ? The probability is that a trustee who has once conceived such a purpose will never disclose it, and the cestui que trust will be effectually (q) 6 Ves. 625, 027. PURCHASE OF TRUST PROPERTY BY A TRUSTEE. 89 defrauded." The decision then, in the principal case, depended not on whether the defendant purchased at an under vaUie, but on the fact that he purchased it from his cestui que trust while that relation continued to subsist. and without a full disclosure. There are indeed many passages in Lord Thurlow's judgment wliich seem to point to the other as the ground of his decision, but as to these he subsequentl}^ admitted himself to have been mistaken, and declared the latter to be the true principle. Upon this Value _ principle the value was immaterial ; for if the original material, transaction was right, it was of no consequence at what price Mackreth sold the estate afterwards ; if it was wrong, Mackreth, not having discharged himself from the character of trustee, if an advantage was gained by the most fortui- tous circumstance, still it was gained for the benefit of the cestui que trust, not of the trustee (r). We j^roceed to con- sider the application of the principle under the varying circumstances which have occurred in practice. This inquiry conveniently resolves itself into two divi- sions. First, What are the limits of the application of the principle ? Or, in other words, Is bargaining between a trustee and a cestui que trust ever supportable in equity, and if so, when ? Secondly, What persons come so far within the definition of a trustee as to be affected by the principle which forbids such transactions ? Subsidiary to these questions, it will be advisable to consider the nature of the relief afforded by equity in such cases. 1. Wliat are the limits of the aj)plication of the Limits oi • 7 o the prin- principle ? ciple. (1.) The cases already referred to are suflScient autho- Direct rity for the proposition that a trustee cannot by a direct contract, and private contract with his cestui que trust become a purchaser of the trust estate. The rule is the same as to both real and personal estate, and, as has been seen, the question is not one of price (though naturally, if (r) See Lord Eklon's judgment Ves. 381, 394. above qnnted, and exp. Bennett, 10 90 CONSTRUCTIVE TRUSTS. an adequate price was given, it would not probably be challenged), but of the position of the parties. Similarly, a trustee can no more take a lease than he can purchase from himself (ft). Purchase (2.) A purchase by trustees at a public auction will not at auction. , . • t r- t • i -j. i. be sustained ; for if persons m such a capacity were pre.sent at an auction as bidders, their mere presence would operate as a discouragement to others. The knowledge that certain persons who naturally have superior means of information are bidding must inevitably check compe- tition (t). tlirou^iror C'^-) ■^*-*^' ^^ ^^ admissible for a trustee to purchase through as an an agent, even at an auction (lo). On the other hand, he ° ' is equally disqualified from purchasing as an agent for or from CO- another person (v). A purchase from co-trustees is equally trustees. . ■, ^ / \ objectionable {x). Retiring M ) Nqj- can a trustee be allowed to purchase the trust from trust ..„ , •ii ^ • • on pur- property, by retiring from the trust with that object m pose. Yiew (J). Purchase (5.) Similarly it has been held that a trustee cannot pur- decrTe^ chase before the Master under a decree for sale (z) ; Prom (6.) And that he cannot purchase from the trustee in banf:-'^ '"^ bankruptcy of his cestui que trust, under an agreement to ruptcy. divide the profits, more especially if the purchase money consists of part of the trust funds (/ v. C., 2 S. & L. 17 B. 678 ; 13 Ves. 601 ; Ingle v. Richards, {a) Vaughan v. iXohle, 30 Beav. 34. 28 Beav. 361. (b) Baler v. Peel; 9 W. R. 472 ; (r) Exp. Bennett, 10 Ves. 381, ih. im ; Dover v. Buel;:>(J,m. a7. PURCHASE OF TRUST TROrERTY BY A TRUSTEE. 91 and has discharged him from the obligation which attached ftsudqw uponnim as trustee {<■) ; but such a transaction is subjected jkc/s. to jealous scrutiny, and must be free from all suspicion of fraud, concealment, or undue advantage on the part of the trustee (^*^- being in fact a trustee for sale, cannot either directly or by his solicitor purchase the charged estate, except with the express authority of a cestiu que trust who is sul juris (t). A mortgagee, however, does not ordinarily stand in a Turcliasc fiduciary position towards the mortgagor, so as to render a ^f redumj- purchase of the equity of redemption by him from the ^i^n. mortgagor (u), or from a prior mortgagee selling under a power of sale (x) impracticable. Nevertheless all transactions between a mortgagor and mortgagee are viewed with jealousy, and the sale of an equity of redemption will be set aside where, by the influence of his position the mortgagee has purchased for less than others would have given, or if there are any circumstances of misconduct in obtaining the purchase (?/). The same principles apply to the case of the granting of a lease from the mortgagor to the mortgagee (s). (3.) Executors or administrators will not be permitted, Executors either immediately or by means of a trustee, to purchase fstratoiT"' for themselves any part of the assets, but will be con- sidered as trustees for the persons interested in the estate, and must account to the utmost extent of the advantage o made by them of the subject so purchased («). Nor can an executor purchase a legacy from a legatee, even though a co-executor (h). So if they compound debts or mort- gages, or buy them in for less than is due ujoon them, they may not retain any benefit out of the transaction for themselves (c). Upon the same principle a receiver can- not purchase {d). (t) Doicnes v. Grazchrool; 3 Mer. (:) Ford v. Olden, sup. 200 ; In re Bhi/e's Trust, 1 Mac. & («) Hall v. Hallett, 1 Cox, 134 ; a. 488 ; 3 H. L. 607, 630. Weddei-burn v. W., 4 My. & Cr. 41. (u) Kniijlitw. Marjorihanl-s,2Mac. (h) In re BieVs Estate, 16 Eq. & G. 10. 577. (.r) Shaw v. Bunny, 33 Beav. 494, (r) E.rp. James, 8 Ve.s. 337, 346. 2 Ue G. J. & S. 463. (c^ Alvcn v. Bond, 1 ily. & K. (>/) Ford V. Olden, 3 Eq. 461 ; 196. Pries V. Coke, 6 Ch. 645, 649. 94 CONSTRUCTIVE TRUSTS. 'i'lustee in (4 ) A trustee of a bankrupt cannot purchase his pro- niptcy. pei'ty (e). A purchase by a trustee on being found bene- ficial has, however, been confirmed by the Court (/). He cannot, moreover, purchase the debts of the estate, since to do so would put his duty and his interest in confiict(^). The rule applies with ecpial force to a commissioner of bankrupts (A). Execution A creditor who has taken out execution is not pre- may pur- cluded from becoming a purchaser of the property seized chase. under it (/). Directors (5.) There is a very large number of cases based on the motera^of ti'^^^t relationship existing between the directors and companies, shareholders of companies, which comprise a great variety of transactions regarded by the Courts as unwarrantable or suspicious. Thus — Purchase ([\ Such directors cannot iDurchase shares from the of shtirGS from chair- chairman of the company, who is in fact their co- trustee, man. unless authorised so to do by the deed of settlement or constitution of the company (/r). Purchase (ii.) Nor can a director acting for the company deal partners of with himself or a firm in which he is a partner. If he a director, ^q^^ ^q \^q j^^^gt account to the company for all the profits of such dealing (l). Qualifying ^iii.) Persons about to become directors of a proposed from in- Company will not be allowed to accept money or to pur- tendmg- chase shares to qualify them for office, from a person vendor. 1 j ' r about to become a vendor to the company, and with whom it was their duty to deal as trustees for the com- pany ; such money if received Avill be held to belong to the company, and if it has been applied in the purchase of shares, such shares would be considered unpaid for, (c) £xp. Lacey, 6 Ves. 623. 42. if ) Exp. Gwe, G .Jur. 11, 18; 7 (I) Uodgkinson v. The National ib. 136. (tr. Co., 26 Beav. 47-3 ; De G. & J. (g) Pooleij V. Qullter, 2 De G. & 422 ; Imperial d-c. Assoc, v. Coleman, .J. 327. G Ch. 558 ; 6 L. R. H. L. 189. (/() Exp. Bennett, 10 Ve.s. 381. (I) Flanagan v. G. W. JR. Co., 7 (i) Stratford v. Twj/nam, J a.c. 41S. Eq. 116; Albion dr. Co. y. Martin, See also Cltamhcrs v. Waters, 3 Sim. 1 Ch. D. 580. PURCHASE OF TRUST PROPERTY BY A TRUSTEE. 95 and the directors liable on tlie winding up of tlie company to be put on the list of contributories in respect of them (m). Where, however, directors received not money but fully paid-up shares, allotted to the vendor as con- sideration for the sale, although it was held that they were liable to the company for a breach of trust, they Avere not placed on the list of contributories in respect of the shares (?i). (iv.) Schedule 1, Table A., of the Companies' Act, 18G2 (o) Companies provides that "the office of director shall be vacated if Sched. i,"' he hold any other office or place of profit under the com- '^'^^^^ ^^• pany," or " if he is concerned in or participates in the profits of any contract with the company " Qj), but it is provided that no director shall vacate his office by reason of his being a member of any company which has entered into any contracts with or done any work for the company ^ of which he is director ; he cannot, however, vote with respect to any such contract or work (q). (v.) The promoters of a company are also considered to Pio- bear such a fiduciary relation to the company that profits made by them out of contracts concealed from the com- pany cannot be retained by them (/'). And persons who create a company to purchase property from themselves, are required faithfully to inform the company of facts which would influence the company in their decision as to the reasonableness of purchasing it. If there is any concealment the contract of sale will be set aside (s) ; but the company must in such cases apply with reason- able promptitude (t). (6.) An agent apjiointed to sell, including an auctioneer, Agents for cannot as a rule purchase from his principal unless he make it jjerfectly clear that he furnished his employer {m) III re Canadian ttr. Co., Hai/'.-i (q) Ibid. Case, 10 Ch. 593 ; McKay's Case, 2 (r) Bar/nail \. Carlton, Ch. L). Ch. D. 1. 3/1. (n) In re Western of Canada iL-e. (s) New Somhrero iL-c. Co. w Co., 1 Ch. D. 115. Eriawjcr, 5 Ch. 1). 73. (o) 25 & 26 Vict., c. 89. {t) Ibid. [p) s. 57. 96 CONSTRUCTIVE TEUSTS. with all tliu knowledge whicli he himself possessed (u). If there be any suspicious dealing on the part of an agent, such as his purchasing in the name of a third person, the transaction will not be allowed to stand, however fair it may be in other respects (v). So also an agent for sale nvIio takes an interest in a jDurchase negotiated by himself, is bound to disclose to his l^rincipal the precise nature of his interest, and the burden of proving such full disclosure is on the agent (x). When, however, the contract for sale has been completed and the agency determined, there is nothing then to pre- vent his repurchase of the property {y), provided there be no suspicion of fraud ; but as long as the contract remains executory, the agent having power to enforce or rescind it at his pleasure, there can be no such repurchase (z). Agent for If an agent employed to purchase, purchases for himself, pure lase. |^^ ^^^^^ ^^ ^^^y ^ trustee for his principal (a), and he will not be permitted, except wath the plain and exj^ress con- sent of his principal, to make any jorofit by becoming a seller to him (6). ^^^^' So also if an agent employed by his principal to do contractor. . o i J J i i work for him, e.(j. as a sub-contractor, enters into a contract at a preposterous price, with a view to dividing the profits with the sub-contractor, the transaction will impress such profits with a trust in favour of the defrauded principal (c), and if an agent employed to contract, enters into any sur- reptitious dealings with the otlier contracting party, so as to cause a conflict between his duty as agent and his interest, equity will regard the transaction as fraudulent, and will not suffer the agent to retain any advantage thus gained (cZ). (v) LoKtJier V. L.,lZYes.95 ; Oliccr («) Lees v. NuttaV, 1 R. & My. V. Court, 8 Price, 127, 160. 53. (;■) Trereli/an v. Cliaricr, 9 Beav. (h) Kimher v. Barber, S Ch. 5C. 140 ; 11 01. & V. 714 ; Lewis v. IfiU- (c) Hohlcnv. Webber, 29 Beav. WT. mm, 3 H. L. G07. [d) Panama Ves. 678, 682 ; Mill V. Hill, 3 H. L. 828, 869. {I) Kenney v. Browne, 3 Ridg. 518. (m) Exp. Reynolds, 5 Ves. 707; Tennant v. Trenchard, 4 Ch. 537, 546. {n) Sanderson v. Walker, 13 Ves. 601. (o) Att.-G. V. Dudley, Coop. 146. {p) Oreyory v. (?., Coop. 201. GETTING IN OUTSTANDING TRUST PROPERTY. 101 Section V. — Duties and Liabilities of Trustees. I. Getting in trust property, perishable property and reversions. Howe V. Lord Dartmouth. II. Custody of trust property. III. Investment. ly. Liability of Go-trustees. Towuley v. Sherborne. Brice v. Stokes. In considering the position of trustees, we will first discuss their duties with respect to the trust property. And this naturally divides itself under three heads : 1st. As to the getting in of outstanding property of the trust. 2ndly. As to the custody of such property. 3rdly. As to its proper investment. I. Getting in Outstanding Trust Property. It is among the most important of the duties of a trustee Getting in to take such ste)3s as are necessary for the security of the ?"tstancl- trust property; and the first of such steps is to get all such perty. property into his hands, or under his control. In other words, all outstanding property must be reduced into possession. 1. (1.) Debts due to the trust must therefore, with all Debts reasonable diligence, be collected. Money may not be left outstanding upon personal security ; and it is not a suffi- cient reason that the debt arises from a loan made by the creator of the trust on a security which he considered suffi- cient (q). They are allowed the exercise of a fair discretion, and are not expected to commence legal proceedings unnecessarily, (rj) Powell V. Evans, 5 Ves. 839 ; Bullock v. Wkcatkj/, 1 Coll. 130. 102 DUTIES AND LIABILITIKS OF TRUSTEES. nor where such proceedings would be useless (r), but they will not be justified in granting any great indulgence (s). Tnistee In casB a loss to the estate is occasioned by neglect of this lossby"'^ duty, a trustee or executor will be personally answerable, neglect. (2.) But although a loss may have taken place by non- He may conversion of the assets by an executor, he will not be reasonable liable if the delay was caused by the exercise of a reason- discretion, able discretion ; and if there be more than one executor, each one is entitled to exercise such discretion without risk, notwithstanding the opposition or difference of opinion of another (t). Releasing (3.) In the exercisc of a sound discretion trustees might poumUng Q'VQ'^^ before 23 & 24 Vict. c. 14.5, release or compound a debts. debt (u), and by that statute this power was confirmed and 2,3 & 24 Vict. c. extended. Now by 44 & 45 Vict. c. 41, s. 37, executors and l4o, s. 30. trustees are authorised to accept any composition, or any Vict. c. 41, security real or personal, for any debt, or for any property ^- ^^- real or personal, claimed, and may allow any time for payment of any debt, and may compromise, compound, abandon, submit to arbitration, or otherwise settle any debt, account, claim, or thing whatever relating to the testator's estate or to the trust, and for any of those purposes to enter into, give, execute, and do such agreements, instru- ments of composition or arrangement, releases and other things as seem expedient, without being responsible for any loss occasioned by anything so done in good faith. Money 2. Money employed b}' a testator in trade may not be in"tracle. Suffered to remain so invested by his executors, without express authority (v). Reasonable time is of course allowed for the purpose of winding up the concern ; and the Court has jurisdiction in an administration suit to direct that a trade or business in which infants are interested shall be continued, and will so direct if it be for their benefit (x). ()■) Chirk V. Holland, 19 Beav. (m) Blue v. MarshaH, 3 P. Wms. 271. 381; RatcUffe v. Winch, 17 Beav. [s] Lowion V. C'ojidand, 2 Bro. C. 216. C. 156; Caffrcy y. IJarbi/, a Ye>i. 488. (r) Kirkimm v. Booth, 11 Beav. (I) Baxton v. B., 1 My. & Cr. 80; 273. Marsden v. Kent, 5 Ch. D. 598. {x) Perry v. P., 3 I. R. Eij. 452. GETTING IN OUTSTANDING TRUST PEOPERTY. 103 3. Very frequently we find in a will personal property Perishable of a perishable nature bequeathed to a person for life with with life remainder over. In such a case the question arises whether "^terests the intention was that the first legatee should enjoy the property specifically, with the possible consequence that by the consumption or falling in of the property the remainder- man will receive no benefit at all; or whether, for the equal treatment of both, the property should be sold, and the proceeds laid out on permanent investments. Con- aJi^i rever- 1 . . . . ., , sionary versely, reversionary property is sometimes similarly property, bequeathed, and the question is whether it is to remain in its existing state, with the possible consequence of its not falling into possession during the lifetime of the first tenant, so that though named as a beneficiary he will receive nothing from it, or whether again for the equal treatment of both it should be sold and invested so as to produce an immediate income. On these questions the case of General '■ rule requires HOWE V. LORD DARTMOUTH conver- [7 Ves. 137 ; 2 W. & T. L. C. 296] ^^°"- is a leading authority. From it we gather that whenever there is a general bequest of property of a wasting nature, such as long annuities or leaseholds, to persons in succes- sion, the general rule is that it should be forthwith con- verted, and laid out in permanent securities; and again, that reversionary property, or property the enjoyment of which is not to commence until a future time, or until the happen- ing of a contingency, ought to be similarly converted. The principle is thus expressed in Hinves v. H. (z) : " The result of the rule laid down by Lord Eldon in Hoive v. Lo7xl Dartmouth (a), and by Lord Cottenham in Pickering V. P. (h), is that where personal estate is given in terms amounting to a general residuary bequest to be enjoyed by persons in succession, the interpretation which the Court (2) 3 Ha. 609, 611. (6) i My. & Cr. 289. (a) Supra. 104 DUTIES AND LIABILITIES OF TRUSTEES. Subject to testator's inteiitii)n if ascer- tainable. What amounts to indication of contrary intention. Absence of direction to convert does not. Court will not interfere with dis- cretion if fjiven. puts upon the bequest is that the persons indicated arc to enjoy the same thing in successicn ; and in order to effec- tuate that intention, the Court as a general rule converts into permanent investments as much of the personalty as is of a wasting or perishable nature at the death of the testator, and also reversionary interests." This general principle is simple enough; but like all general principles it is subject to the paramount rule that in the construction of wills the testator's intention is, if ascertainable, to prevail. He may of course direct, if he chooses, that his property, however wasting, shall be specifi- cally enjoyed in the first place by a life tenant, and that the remainder- man shall take only what chance may leave for him ; and difficulties often arise in ascertaining whether such is, or is not, the testator's intention. This question is one which evidently depends upon the language of each particular instrument, so that no general formula can be laid down for its decision. We can only illustrate from actual cases what has and what has not been considered sufficient to entitle the legatee to enjoyment of perishable property in specie. The mere absence of a direction to convert the property has never been considered to mean that it should be enjoyed in specie (c). On the other hand, if there is a specific gift of such property, then the mere fact that trustees have a discretionary power to sell it is not a reason for converting it. The discretion is deemed to be given only for the security of the property, not with a view to vary or affect the relative rights of the legatees (d). But where there was a direction in a will that trustees should in their sole discretion sell so much and such parts of the residuary estate as they might think necessary, the Court declined to interfere with their discretion so as to prevent a tenant for life enjoying leaseholds in specie (e). An express direction (c) Johnson v. /., 2 Coll. 441 Morgan v. M., 14 Beav. 72, 83. [d) Lord V. Godfrey, 4 Madd. 455. (c) Re SeiveWs Estate, 11 Eq. 80. I GETTING IN OUTSTANDING TRUST PROPERTY. 105 'for sale at a given period indicates an intention that there should be no previous sale or conversion (/). There has been much discussion as to whether the use Use of of such particular words as " rents " and " dividends," in ^rynL " describing the proceeds of property bequeathed, amounts to ^^^ " divi- a sufficient indication of intention against conversion. The result of the cases seems to be that where there is in General a residuary gift a trust to pay " rents " to persons in succes- sion, and the residue comprises no other property except leaseholds to which it is applicable, then the leaseholds are to be enjoyed in specie (g). But if the residue comprised freeholds as well as leaseholds, the word " rents " would be sufficiently accounted for without supposing it to apply to the leaseholds, and its presence would not sufficiently indicate an intention to avoid the usual rule as to their conversion (Ji). The word " dividends " has been considered sufficient to entitle a legatee for life to the enjoyment of long annuities in specie (i). But it would not suffice to qualify an express direction to convert preceding it (k). A direction that power of attorney should be given to Power of cestui que trusts entitled to receive in succession the directed to income of property, may show an intention that they should '^f *^** ^^ enjoy it ^n specie (l). A direction to divide property after the death of the Direction tenant for life has been held to indicate a similar inten- after death tion (m). So an exception from a general direction to °^ tenant ^ ' ■*• . . '^ . . for life. convert may show an intention that long annuities are to be enjoyed in specie (n). Where a tenant for life is entitled to the enjoyment of Effect of (/) Alcoch V. Sloper, 2 My. & K. (k) Bate v. Hooper, 5 De G. M. & 699. G. 338. ([/) Goodenough v. Trcniaiiwndo, 2 (I) Neville v. Forksciw, 16 Sim. Beav. 512; Vachell v. Roberts, 32 333. Beav. 140 ; Cafe v. Bent, 5 Ha. 24, {m) Collins v. C, 2 My. & K. 36. 703. (A) Pickup V. Atkinson, 4 Ha. (n) Wilday v. Sandys, 7 E(i. 624. 455. {i) Alcock V. Sloper, sup. / 106 DUTIES AND LIABILITIES OF TRUSTEES. leaseholds leaseholds in specie, and they are taken by a company in specie Under compulsory powers, and the purchase money paid purchased j^^^ Court, he IS entitled to the same benefit thereout as compul- he would have had from the lease (o) ; the mere interest powers. ^^ t^^^ money would not be an adequate compensation (p). And where the tenant for life in such case outlives the term for which he was entitled as tenant for life, he will become absolutely entitled to the whole fund (q). Rule Where property, the subject-matter of a bequest given version to persons in succession, is found by the trustees of a su°t in ^ testator to be so laid out as to be secure, and to produce a I0S.S. large annual income, but is not capable of immediate con- version without loss and damage to the estate, there the rule is not to convert the property, but to set a value upon it, and to give the tenant four per cent, on such value ; j the residue of the income must then be invested, and the income of the investment paid to the tenant for life, the corpusheing secured to the remainder-man (r). The same case decides also that when, according to the construction of a will, the executors have full power to retain certain securities as long as they think advantageous, or to invest the monies of the estate upon similar securities, while any such securities remain a part of the testator's estate, the tenant for life is entitled to the specific income arising therefrom ; and also that when trustees do not convert unauthorised securities, the tenant for life will onl}^ be entitled to an income from the testator's death equal to the dividends of the consols which would have been pro- duced by a sale and investment in consols at a year from the testator's death, and not, as in Robinson v. R. (s), to interest at four per cent, on their value. Power of Where trustees were made liable to a remainder-man when for having improperly allowed perishable property to (0) 8 & 9 Vict. c. 18, s. 74. & G. 20. (p) J^ffi'eys V. Coniwr, 28 Beav. {r) Brown v. Gellatly, 2 Ch. 751. 328. (s) 1 De G. M. & G. 247. (q) In re Beaufoy's Estate, 1 Sm. GETTING IN OUTSTANDING TRUST PROPERTY. 107 remain in specie, and to be enjoyed by the tenant for life, made they were allowed by means of an inquiry in the same recover suit to recover back against the estate of the tenant for ^^^^ ^^"''^ ,.-,, ., i'/\ All tenant for hfe the amount overpaid to hini (r). And where trustees, life, having a discretion as to the time of conversion, allow reversionary property to remain unsold until it falls into possession, the tenant for life will be entitled to have paid to him in respect of interest out of the property, the amount which he would have received had the trustees sold the property at the end of one year after the testator's death {u). 4. Money invested on good real securities is not required Money in- to be called in, unless, of course, it is necessary for the o-ood payment of debts (x) ; and in an administration action the security to . . remain so. Court would not permit a real security to be called in without inquiry as to its expediency {y). It has been held that a trustee is not bound to call in a fund invested upon a second mortgage {z) ; but seeing that such a security. Second however apparently ample, is continually liable to damage from the operation of the doctrines of tacking and con- solidation (as to which see infra, pp. 245 — 55), such invest- ments are manifestly undesirable. If, moreover, a trustee has reason to suppose that any real security is not good, it is his duty to call it in at once («). 5. It is the duty of trustees also to place the trust Property property beyond the power of any third parties. Thus if of^hird'^ the trust fund is an equitable interest of which the legal parties, estate cannot be at present transferred, the trustees must at once give notice of their interest to the person in whom the legal estate is vested, in order to avoid a subsequent purchaser gaining priority by giving the first notice (6). Similarly a trustee of a settlement which requires registra- (t) Hood V. Clapham, 19 Beav. 7 Ves. 137,150. 90. (z) Robinson v. R., 1 De G. M. & («) Wilkinson -v. Duncan, 2mea,v. G. 252. 469 ; Wright v. Lambert, 6 Ch. D. («) Ames v. Parkinson, 7 Beav. 649. 384. (x) Orr V. Newton, 2 Oox, 276. (b) Jacob v. Lucas, 1 Beav. 436. (y) Howe v. Earl of Dartmouth, 108 DUTIES AND LIABILITIES OF TRUSTEES. Con- sequences of neglect to realise generally. Under order of Court. Where they have special discretion- ary i>ower, tion is responsible for any loss arising from a neglect to procure registration (c), 6. Where executors have neglected to realise outstanding assets, the pri'nifl facie rule is that they are liable for any loss which arises after the expiration of a year from the testator's death, and executors who have not completed the conversion by that time must be prepared to justify their delay {d). The rule, however, is not an absolute one, and if in the circumstances of any case a longer delay seemed reasonable, no liability is incuri'ed thereby (e). When trustees are ordered by the Court to realise securities, and they neglect to do so, they will be liable for any loss sustained by their neglect ; such direction over- rides their discretion (/). On the other hand, if by the instrument creating the trust trustees are given a special discretion as to whether funds shall be called in or not, this will override the usual operation of the rule ; and then, in order to charge them with loss, it will be necessary to establish a clear case of misconduct against them {g). General principle. Not liable for acci- dent. II. As to the custody of Trust Property. 1. The general principle is that trustees or executors are bound to take the same care of trust property as they would of their own. If a loss thereof occurs by unavoid- able accident, if, for instance, without any fault of theirs it is stolen from them or from any one to whom it was properly entrusted, they are not liable (Ji). 2. Similarly if in the ordinary discharge of their duty they deposit assets in a bank, and the bank fails, they are (c) Macnamara v. Carey, 1 I. R. Eq. 9. See also Kingdon v. Castle- inan, W. N. 1877, p. 15. (d) Graijhurn v. Clarkson, 3 Ch. 606; Sculthorpe v. Tipper, 13 Eq. 232. (e) lIiKjkes V. Enipson, 22 Beav. 181. (/) Davenpwt v.Staford, 14 Beav. 319, 338. (u) Paddon v. Ridiardson, 7 De G. M. & G. 563, 582. (/() Jones V. Letvis, 2 Ves. sr. 240 ; Job V. /., 6 Ch. D. 562. AS TO THE CUSTODY OF TRUST PROPERTY. 109 not liable (i). In such cases, however, it is most material ^^ ordi- to inquire whether there was good reason for allowinof the duct of"" money so to remain. The cases quoted show that it is business. considered a sufficient reason if it is necessary for the ordi- nary purposes of the trust that a certain sum should be kept in hand, as for the payment of debts, or current ex- penses or legacies ; or if the money is so deposited pending- negotiations for its more secure investment. Such monies must remain somewhere, and in the usual course of busi- ness one would utilise a bank for the purpose. It is also similarly reasonable to allow a deposit on a sale to remain in the hands of an auctioneer (k). If, however, monies be left unnecessarily in the hands Liable for of third parties, as in the hands of a banker or solicitor, necessarily more than a year after a testator's death, and after the incurred, debts and legacies are paid, and a loss occurs, the trustees or executors are liable (I). If money be handed to a solicitor to invest and he mis- applies it, the trustees will be liable (m) ; or if, after having sold property, they place the conveyance executed by them in a solicitor's hands and he receives and misapplies the money (n). 3. A trustee who, without entirely parting with control Associat- over the trust fund, associates another person with him in others in its management, and so loses the exclusive power over it, control of v/ill be liable for any loss which results from such a step (o). An illustration of this occurs where a sole trustee in- vests a fund in the joint names of himself and another, and so deprives himself of an unfettered discretion as to its removal (p). 4. A trust fund should not be left under the entire con- or leaving trol of a co-trustee. Thus trust money should, where control of co-trustee. (i) Johnson v. Newton,ll Ha. 160; (m) Bostock v. Flayer, 1 Eq. 26. Fcmoicke v. Clarice, 31 L. J. N. S. (n) Ghost v. Waller, 9 Beav. 497. Ch. 728. (o) Sahmy v. S., 2 TX. k My. {k) Edmonds v. Peake, 7 Beav. 215. 239. (^)) White v. Baurjh, 3 CI. & F. (0 Darke v. Martyn, 1 Beav. 525 ; 4-4. Castle V. Warland, 32 Beav. 660. 110 DUTIES AND LIABILITIES OF TRUSTEES. there is more than one trustee, be invested or deposited in the joint names of all, and payable only to their joint order or cheque (q). In the case of trust funds which consisted of stocks or securities payable to bearer, and of which the interest was payable upon coupons, it was hekl that a trustee might without breach of trust deposit such securities in a box at a banker's, on account of all the trustees, one being allowed to keep the key ; and that on the latter misappropriating the fund, the former was not liable (r). Trust pro- 5 j^ jg ^j^g duty of a trustee to keep trust property perty must . be kept distinct from his own It he mixes them together tlic distinct, onus will lie upon him of distinguishing one from the other, and if he fail to do so the whole will be held to belong to the trust (s). in. As to Investment. Not to in- 1. As we have seen that an executor or trustee may not vest on f^^iffer the trust fund to remain outstanding on personal personal _ . security, security, though the credit may have been given by the creator of the trust, so it is clear that he is not justified in lending trust-money on personal security, even to a person to whom the creator of the trust had been accustomed so to lend money if). Neither a joint personal security (it) nor a loan on a bond with sureties (x) is a proper investment. Save with In Order to warrant investment on personal security the authority express authority of the creator of the trust is necessary {y) ; mere general expressions giving to trustees a discretion are not sufficient {z). (q) Clou'jh V. Bond, 3 My. & Cr. Darke v. Martyn, 1 Beav. 526. 490 ; Trutch v. Lam2:>rdl, 20 Beav. [u) Holmes v. Bring, 2 Cox, 1. 116. [x) Watts V. Girdlestone, 6 Beav. (7-) Mendes v. Guedulla, 2 J. & H. 188. 259 ('/) Forbes v. Hos.i, 2 Bro. C. C. (.«) Fcllo^cs V. Mitchell, 1 P. Wnis. 430 ; Child v. C, 20 Beav. 50. 83 ; Mason V. Morlci/, 34 Beav. 475. (r) Pocock v. Redditii/ton, 5 Ves. See infra, p. 126. 794 ; Mills v. Osborne, 7 Sim. 30. {t) Terry v. T., Free. Ch. 273 ; AS TO INVESTMENT. 1 1 1 Even if trustees are authorised to lend upon personal Not even security they may not lend to one of themselves (a), or to one of a relation for the purpose of accommodating him (b). And <^liem- any terms specified in the authority so to lend must be Authority strictly complied with ; for instance, if the consent of any *'^ ]^^ person is required, or the security of a bond is directed (c). complied The term " personal security " has a wider meaning than "" the security of personal property. It has been held to include a loan upon mere personal credit (d). 2. Permission to invest in real securities does not " Real authorise the purchase of railway mortgages or debenture tj^g""' stock (e). Nor does such permission include the security What ? of a judgment upon lands (/), or upon an estate for life((/). Copyholds would be available (h), and now doubtless land held for a long term of years, if free from onerous covenants and at a pepper-corn rent (i), but not short leaseholds (h). Where trustees or executors are authorised to advance Loan on money upon mortgage, they should only advance two-thirds ^oukT"^ of the value of property even of a permanent value, as free- o^^y be to hold land. A still less proportion should be advanced upon two-thirds, fluctuating property, such as houses and buildings, especially if used in trade (J). If they have had the property duly surveyed and valued by a competent person, and then bond fide and to a reasonable extent advance money thereon, they will not be liable, although eventually less may be realised than the sum advanced (m). Evidence of value must, however, be procured from an impartial person (n). For the reasons elsewhere given (o) money should not Second mortgages. (a) Francis V. F., 51)6 G.M. &G. (i) Toioncnd v. T., 1 Giff. 211; 108. Jones v. Chennell, 8 Ch. D. 493, 507 ; (6) Langstonw. OUivant, G.Cooix 33. In re Boyd's Settled Est. ,14 Ch. ] ). 626. (c) Cocker v.Quaijk, IRuss.&My. Now, see 44 & 45 Vict. c. 41, s. 65. 535. (k) Ibid., Fuller v. Knight, 6 (d) Pickard v. Anderson, 13 Eq. Beav. 209. 608. (0 Stickney v. Sewell, 1 My . & Cr. (e) Mortimore v. M., 4 De G. & J. 8; Budge v. Gummow, 7 Ch. 719. 472. (m) Joiu's v. Lewis, 3 De G. & Sni. (/) Johnston V. Lloyd, T. J. Eii. 471. Rep. 252. (/() Norris v. Wright, ] 4 Beav. (g) Lander v. Weston,d Drew, 389. 291, 301. (h) Wyatt v.Sharratt,3 Bes,v. 498. (o) P. 107 and 245—256. 112 DUTIES AND LIABILITIES OF TRUSTEES. be lent on a second mortojago, unless, at least, the legal Mortgage estate can be promptly secured (^j). Nor should money 1)6 trustee. lent on mortgage to a co-trustee (q). Loss by If in consequence of the ignorance or negligence of a negli-*''^ solicitor employed by trustees to prepare a mortgage a loss gence. occurs, the trustees must personally make it good (r). Security of 3. A power to iuvest upon the security of the funds of incorpo- ^i^J Company incorporated by Act of Parliament will not rated com- warrant the purchase of preference railway shares (s). A jjanies. '■ . ^ . . power, however, to mvestupon the stock, shares or securities of any incorporated company paying a dividend, has been held to authorise an investment in railway stock bearing a fixed rate of interest (t). Statutory 4. Previous to certain statutes now to be referred to, a invest- trustoo's general power of investment was exceedingly ment. circumscribod. In fact, the tenor of some cases seems such as almost to have confined him to government or bank annuities {u). But it is not now necessary to consider restrictions whicli have long been obsolete. 22&23 (1.) By 22 & 23 Vict. c. 35, s. 32 (Lord St. Leonards' g 32'/' ' Act), it is enacted that "When any trustee, executor, or administrator shall not, by some instrument creating his trust, be expressly forbidden to invest any trust fund on real securities, in any part of the United Kingdom, or on the stock of the Bank of England or Ireland, or on East India stock, it shall be lawful for such trustee, executor, or administrator, to invest such trust funds on such securities or stock ; and he shall not be liable on that account as for a breach of trust, provided that such investment shall in other respects be reasonable and proper." It having been held that this section did not apjDly to trustees appointed by instruments executed before the passing of the Act, it has been made retrospective by 23 & 24 Vict. c. 38, s. 12. { p) DrosUr v. Brereton, 15 Beav. (r) IIop;iood v. Parlin, 11 Eq. 71 ; 221. Sutton V. Wiklers, 12 Eq. 373. (q) Stichiey v. Seivell, 1 My. &Cr. (s) Harris v. //., 29 Beav. 107. 8; Macleoil v. Anneshy, 10 Beav. (<) CojistercZiwe v. C^., 31 Beav. 330. 600. [u] Hansom v. Allm, 2 Dick. 498 AS TO INVESTMENT. ' 11 3 (2.) Agciin, by a general order, made in pursuance of 23 G. O. & 24 Vict. c. 38, s. 10, on February 1st, 1861, " Cash fg^i.^'*' under the control of the Court may be invested in Bank Stock, East India Stock, Exchequer Bills and 2| per cent, annuities, and upon mortgage of freehold and copyhold estates respectively in England and Wales, as well as in Consolidated, Eeduced, and New 3 per cent, annuities." And since the making of this general order, trustees, executors, or administrators, having power to invest their trust funds upon Government securities, or upon Parlia- mentary stocks, funds, or securities, or any of them, may invest such trust funds or any part thereof in any of the stocks, funds, or securities, in or upon which, by such general order, cash under the control of the Court may from time to time be invested (x). (3.) By 23 & 24 Vict. c. 145, s. 25 (Lord Cranworth's 23 & 24 Act), it was enacted that trustees having trust money in ^^^ 'g^s. their hands Avhich it is their duty to invest at interest, should be at liberty, at their discretion, to invest the same in any of the parliamentary stocks or public funds, or in Government securities, and should also be at liberty, at their discretion, to call in any trust funds invested in any other securities than as aforesaid, and to in- vest the same in any such securities as aforesaid (except in the 3 per cent. Consolidated Bank annuities) ; and no such change of investment as aforesaid should be made where there was a person under no disability entitled in possession to receive the income of the trust fund for his life, or for a term of years determinable with his life, or for any greater estate, without the consent in writing of such person. This section has now been repealed by 44 & 45 Vict. c. 41. (4.) Doubts having arisen as to the legal effect and sig- 30 & 31 nification of the words " East India Stock " in 22 & 23 J^f\\ Vict. c. 35, s. 32, it was by 30 & 31 Vict. c. 132, s. 1, enacted that the said words should include and express as (re) 23 & 24 Vict. e. 38, s. 11. 1 114 DUTIES AND LIABILITIES OF TRUSTEES, well the East India Stock which existed jDreviously to the 13th of August, 1859 (the date of the passing of the former Act), as East India Stock charged on the revenues of India, and created under and by virtue of any Act or Acts of Parliament passed on or after the 13th of August, 1859; and that it should be lawful for every trustee, executor, or administrator, to invest any trust fund in his possession or under his control in the stock created by the last-mentioned Act or Acts, to the same extent, and for the same purposes and objects, as he can now invest such trust fund in the East India Stock which existed previously e. 2. to the 13th of August, 1859. By s. 2 of the same Act it is enacted that " it shall be lawful for every trustee, execu- tor, or administrator, to invest any trust fund in his posses- sion or under his control in any securities the interest of which is or shall be guaranteed by Parliament, to the same extent and in the same manner as he may invest such trust funds in such securities as aforesaid." 27 & 28 ^5) By the Improvement of Land Act, 1864 (x), trustees 114, s. (io. having a power to lend on real securities are enabled (unless the contrary be provided), at their discretion, to invest their trust funds on charges under the Act or on mortgages thereof. This, however, is not retrospective. 34 Vicn (G.) By the Debenture Stock Act, 1871 (y), it is enacted that " where a power has before the passing of this Act been or shall at any time hereafter be given to trustees (including executors, administrators, and any other persons holding funds in a fiduciary capacity) to invest trust funds in the mortgages or bonds of a railway company, or of any other description of company, such power shall, unless the contrary is expressed in the instrument creating the power, be deemed to include a power to invest such funds in the debenture stock of a railway company, or such other com- pany as aforesaid, and an investment of trust funds in debenture stock may be made accordingly." Effect of These statutes have extended the number of invest- {x) 27 & 28 Vict. c. 114, s. GO. (y) 34 Vict. c. 27. AS TO INVESTMENT, 115 meuts wliicli may be utilised by trustees, iu their discretion, the but they do not at all affect the principles by which that "^ ^ " '^^' discretion must be guided, nor do they at all diminish the discretion or responsibility of trustees (z). Their invest- ments must be such as are equally just to all objects of the trust. They may not show favour to a tenant for life by Invest- in vesting upon securities which command a higher rate of j^^^g^ ^g interest, in consequence of their being determinable ; nor J"^* to all .„ , „ . , , „ . , . the cestui, Will the Court, m the absence ot special circumstances, que trusts authorise a transfer from Consols or New 3 per cents., into another investment producing a larger income, if it may be injurious to those in remainder. The Court will, however, be intiuenced by facts showing it to be for the interest of children that the income of their parents should be increased (a), 5, If trustees are expressly bound by the terms of their Remedies trust to invest money in public funds, and instead of doing so trustees they retain it in their hands, the cestui que trust may elect to charge them either with the amount of money, or with the amount of stock which they might have purchased there- with [h). An executor so retaining money will, however only be charged with simple interest at 4 per cent., unless there are circumstances showing that he has jDrofited by his misconduct (c). If there is an express trust for ac- cumulation, however, a trustee retaining trust funds in his hands wdll be charged 4 per cent, with annual rests ((?). If trustees are directed to invest trust money on Government or real securities, and they do neither, the cestui cjite trusts will not be allowed the option of charging them with the monies which would have been produced by investment iu the funds : they are only entitled to have the trust fund replaced with 4 per cent, interest (e). (2) Consterdine v. C, 31 Beav. 330, (<■) Att.-Gen. v. Alford, 4 De G. M. 833. & G. 843, (a) Coclburn v. Peel, 3 De G. F. (d) Knott v, Cottee, 16 Beav. 77, 80. & J. 170, 174. (f) RoUnson v. R.. 1 De G. M. & (6) Shepherd v. Moids, 4 Ha. 500, G. 247 ; cf. Shepherd v. 3fouIs, 504. sup. ; Marsh v. Hunter, 6 INIad. 295. I 2 116 DUTIES AXD LIABILITIKS UF TRUSTEES. Trustee may not set otF profits ugaiiist 1 osacs. TlcmuJy against third parties. If there are several distinct unauthorised invest- ments by trustees, in sonic of which a loss is incurred, for which the trustees are chargeable, and ou others a gain, they cannot set off the gain against the loss. The cestui que trud may retain the gain that has been made and still claim to have the loss entirely made good (/). Where trustees have adv^anced trust moneys in an un- authorised manner, proceedings may be taken in Chancery to recover the moneys so advanced by a breach of trust (r/). If, however, a trust fund fraudulently or improperly alien- ated gets into the hand of a third person without notice, it cannot be recovered from him, his equity being equal, and being strengthened by his legal possession (/<). The only remedy in such cases is the personal one against the defaulting; trustee. IV. Liahilitij of Co-trustees. The case of TOWNLEYv. SHERBORNE [Bridg. Rep. 35 ; 2 \V. & T. L. C. 870] has been long referred to as a leading authority on the general liability of a trustee for the acts and defaults of his co-trustee. BRICE V. STOKES [11 Ves. 319; 2 AV. & T. L. C. 877] illustrates the particular case of the liability which arises fx'om the joining of trustees in giving receipts. General The former case establishes the general principle that a affainsttLe trustcc is not to be held liable for the acts or defaults of a liability, co-trustee, in which he himself has not participated. As betvv'oen co-executors also the same rule applies (i). There are, however, many circumstances which will take a case out of this general rule. Thus a trustee or executor (/) Ruhinson v. IL, 11 Beav. 371, (A) Thormlijkc v. Hunt, 3 De G.& 375. J. 563. (y) Jlanhj V. Met. ea.v.A1'; (n) Ilovey v. Blaleman, 4 Vep. Stiles V. Guy, 1 Mac. & G. 422. COS ; Saddkr v. Ilobbs, 2 Bro. C. C. (m) Tou-nscnd V. Barhcr, 1 Dick. 114. 118 DUTIES AND LIABILITIES OF TRUSTEES. When a co-execu- tor may be rightly tnisted. Husband of exe- cutrix liable for devastavit. At law. Equity. Trustees joining in receipts. Where it is for- mally necessary. But if, in the usual course of the management of the trust, it is necessary for an executor to pay over some of the assets to his colleague, if, for instance, one of them resides in a neighbourhood where a debt has to be paid, and money is remitted to him for that purpose by the other, the executor so remitting money incurs no liability (o). Nor will an executor be liable for payment over of a fund which he had no legal right to retain (p). If a married woman who is executrix or adminis- tratrix commits a devastavit during the coverture, her husband will be liable for the loss (q), as he will be pre- sumed to have authorised the dealings of his wife (?•), and this, notwithstanding that she may have been living sepa- rate from him at the time (.s). At law, formerly, in case of such devastavit, as well as of a devastavit committed before the coverture, the husband's liability entirely ceased at the wife's death, unless a judgment had already been recovered against him, or goods remained in his hand in specie so as to be recoverable by trover or detinue ; but in equity, and now therefore in law also {t), the husband surviving the wife is liable to the extent of assets coming to his hands, upon the ground that all persons who come into possession of property subject to a trust, with notice of the trust, are bound by it (u). Where a trustee joins with a co-trustee in signing a receipt for trust money, it is necessary in order to estimate the liability thus arising, to inquire into the circumstances of the particular case. Every case will on examination be found to fall under one or other of the following heads. (1.) If the signature of all the trustees is formally neces- sary to the receipt, the signature of a trustee to whose hands the money docs not come will not suffice to render (o) Bacon v. B., 5 Ves. 331 ; Joij V. Campbell, 1 S. & L. 341. (jP) Davis V. tipurUivj, 1 Russ. & My. 61. (7) Adair v. Shaw, 1 S. & L. 243. ()■) Smith V. -S". 21 Beav. 385. (s) Pa'jct V. Read, 1 Vern. 143. (t) Jud. Act, 1873, s. 25. (h) Adair v. Shaiv, sup. LIABILITY OF CO-TEUSTEES. 119 him liable to account for it («). It is but reasonablo that in a case in which he has no power to refuse to sign, his signature should not without more fix him with a liability. And the rule as to executors is the same in similar cir- Executors, cumstances. It is true that it is not so often necessary for a co-executor to join in a receipt or discharge for con- formity's sake ; but where, as in the case of a sale of stock standing in the names of executors, the concurrence of both is necessarj^, the one to whose hands the funds do not come will not be liable (?/). But in these cases where the signing is alleged to have Burden of been for mere conformity, the burden is on a trustee seek- person"" ^ ing to clear himself, to prove that his co-trustee's were the ^Jgiiino- actual hands which received the money. The signature thus creates Vi primd facie liabihty in all cases {z). Where, moreover, the transaction of which the receijDt Where the forms part is, as it was in Brice v. Stokes (a), wholly unne- tjon jg ^n- cessary, and the trustee signing then permits his co-trustee necessary. to deal with the monies contrary to the trust, he will be charged with any loss thus occasioned. The entire trans- action being unnecessary, the fact that the mere signature was for conformity is not sufficient to discharge him (b). And it is the duty of a trustee to inquire as to the necessity Trustee of a transaction respecting the trust money ; he may not quh-e as to escape by alleging ignorance of the state of the trust (c). ^^^ neces- And similarly an executor will not be justified in those cases where his formal concurrence is necessary, in joining in a transaction ujDon the mere representation of his co- executor that it is necessary for the j^urposes of adminis- tration. He must make proper inquiries ; if he does not, he will be liable for any misappropriation (c?). (x) Ilcaton V. Marriott, cited Prec. (a) sup. Ch. 173 ; Fellows v. Mitchell, 1 P. {h) See Brlce v. Stolces. sup. ; Wms. 8 1 . Walker v. Sijmonds, 3 Swanst. 1 ; Iivjlc (?/) Ckamlers v. Minclun, 7 Ves. v. Partridge, 32 Beav. 661. 186, 197. (c)JIaniiurij\.KirUand,SSim.26iJ. (z) See Brice v. Stoles,!! Ves. 319; (d) Shipbrooh v. Himhlnhrook, 11 Fellows V. Mitchell, sup. Ves. 252, 16 Ves. 477. 12:) DUTIES AND LIAIUI.ITIES OF TRUSTEES. Voluntary (2.) Wlicro, Oil tlic Contrary, a person joins voluntarily a"recefpt? ii^ ^ receipt, in which his concurrence is not formally requisite, such interference being unnecessary, he is to be considered as assuming a power over the fund, and is therefore answerable for the application thereof, as far as it is connected with the particular transaction in which ho joins (e). Distinc- ^his difference usually distinguishes the case of receipts tween by oxccutors from that of receipts by trustees. In the trustees ^^^^ ^^ trustees it is commonly requisite that all should and execu- -^ •■ tors. join in order to effect a complete discharge. They arc, therefore, usually not liable for monies not coming to their hands. On the contrary, one executor being generally competent to give a valid receipt, the joining of a co- executor is as a rule unnecessary ; and as a rule, therefore, executors who so sign are bound by their signatures. Excep- But there are exceptions to this. Where the act of signing is merely nugatory and has not the effect of putting the trust funds in the hands of a co-executor, for instance, if he has already previously received the money, such signature will not raise a liability (/). This is a very extensive exception, and reduces the rule almost to this, that the question really to be decided is whether the money w'as ever under the control of both executors ((/). General The general conclusion, then, as to the receipts of " executors seems to be, that where funds belongiiify to executors are not under the separate control of each, although one of them joins with his co-executor in any act or receipt which will have the effect of putting the funds into his hands, as the joining is absolutely ne- cessary, and is not therefore evidence that the executor so joining thereby assumes a control over the fund, the principle which governs the case of trustees will be ap- plicable, and he will net be liable, if he has used due (c) See Brice v. StoJccs, 11 Ves. 357. 319 ; Lci'jh V. Bamj, 3 Atk. 584. (f/) Jmj v. Camnhcll, 1 S. & L (/) Westky v. Clarle, 1 Eden. 341. LIABILITY OF CO-TRUSTEES. 121 caution, for tlio misapplication of the fund by his co- executor (/i). An express clause was formerly usually inserted in trust Indemnity deeds, providing that one trustee should not be answer- ^ ''^"^'^*'- able for the receipts, acts, or defaults of his co-trustees. Equity infused such a proviso into every trust deed, whether expressed or not (, 1 De G. F. & J. 137 ; Butler v. Carter, 5 Eq. 270 ; Jud. Act. 1873, s. 25, sub.-?. 2. (f/) Stone V. S., 5 Ch. 74. ()•) Ex2x Shalceshaft, 3 Bro. C. C. 197. (s) Priestman v. Tindnll, 21 Bcav. 244. (0 Fctherstone v. West, 6 I. K. Eq. 86. («) Traford v. Boehn, 3 Atk. 440. (x) Davies v. Ilodrjson, 25 Bcav. 177. (y) Exp. Shalceshaft, sup, (z) Exp. Turner, 2 De G. M. & G. 927. ^rt) Exp. Ilolt, 1 Deac. 248. {h) Orreit v. Corser, 21 Beav. 52. REMEDIES AGAINST TRUSTEES. 123 original debt is not indeed revived, but a fresh liability springs from the negligent breach of trust. Where all the trustees are bankrupt, proof may be made against the estates of all, provided that not more than 20s. in the pound is recovered (c). (3.) The remedy of a cestui que tj-io4 who is sui juris Remedy of , , 111- • cestui que may be barred by his acquiescence, or concurrence, trust when or by his executing: a release (d). But persons under barred by ■^ ■=* \ / X acquies- disability do not so lose their remedy unless they have by cence, cou- th eir own fraud induced the breach of trust (e). A married o^rg^i^ase woman, however, being treated as a feme sole as regards her separate estate, may bind it by her concurrence in a breach of trust (/), unless she Avas either herself deceived, or under undue influence ([/), or was restrained from anticipation (h). Misrepresentation or concealment on the part of trustees will prevent their defending themselves on the ground of the cestui que trust's acquiescence {i). And mere conniv- ance of a cestui que trust at a breach of trust from which he derives no benefit, will not prevent his complaining of the transaction long after he first discovered it (k). Similarly the execution of a release or confirmation will not prevent his taking action unless he has full knowledge of the facts of the case (I) and of their legal effect (in). (4.) Fraudulent breaches of trust are not only actionable but also indictable (n), after leave obtained from the Attor- ney-General or from the judge before whom any civil pro- ceedings resi3ecting the trust have been taken (o). (c) Kehle v. Thompson, 3 Bro. C. {h) Coclccr v. Qiiayle, 1 Russ. & C. 112. My. 535. (cZ) See Brice v. Stairs, 11 Ves. [i) Wallccrv. Symonds, sup. 319; Walker Y. Symonds, Z ?^w.xn>it. (k) PhilUpson v. Gatty, 7 Hare, 1, 64. 516. (e) Montfort v. Cadogan, 19 Yes. (I) Randcdl v. Erring/ton, 10 Ve-i. 635, 639, 610 ; ^yilJcinson v. Parry, 423. 4 Russ. 272, 276 ; Savaga v. Foster, (m) Cockcrell v. Cholmdey, 1 Ens?, 9 Mod. 35. & My. 425. (/) Clive V. Carew, 1 J. & H. 199. {n) 24 & 25 Vict. c. 96. ((j) Whistler v. Newman, 4 Yea. {o) s. SO. 129. 12-1 ];k.mi'N'i:i!Ati()N of tuustkk«. SErxiON VI. — Remuneration of Trustees. I. General iivinciple. E-obinson v. Pett. ir. Limits of the iwinciple. III. To whom it applies. I. General prlaciple. The leading case of ROBINSON V. PETT [3 P. Wilis. 249 ; 2 W. & T. L. C. 207] is usually cited as establishing the rule that the Court of Chancery will not allow an executor or trustee to claim payment for his time and trouble in executing his trust, especially when an express legacy is provided for his pains. It is a well-established principle in equity that a trustee shall not be permitted to profit by his trust, and one of the most important deductions therefrom is the rule illustrated by this case. The acceptance of the office of trustee being optional, no hardship is occasioned by requiring that the performance of its duties shall be gratuitous ; while if remuneration was allowed, it is evident that it would be difficult if not im- possible to keep it within reasonable bounds, and to pre- vent the frequent and excessive burdening of trust estates. The rule thus enunciated is sufficiently simple, but in order to an adequate appreciation of its scope it is neces- sary to observe carefully some instances of its application to the ever-varying circumstances which occur in practice. The first inquiry will be. What are the limits of the application of the principle ? Secondly, To what persons does it extend ? LIMITS OF THE PRINCIPLE. 125 II. W/tat are the limits of the applicatiun of the principle 1- 1. It matters not to what extent the trustee may have Extent of devoted himself to the duties of the trust, or to what extent and of the the trust has been thereby benefited. As we shall pre- ijc'iefit re- 1 • -111 • 1 • suiting im- sently see, he is entitled to be repaid pecuniary expenses material, actually and properly incurred, but though he may have even carried on a trade or business at a great sacrifice of time and thought, he can claim no compensation for his personal trouble or loss of time {p). 2. Not only is a trustee not entitled to direct remunera- Indirect or tion for time and trouble devoted to the trust, but he is benefitr not suffered by any indirect or collateral means to obtain ^^^ 1 p 1 • • • m • 1 allowed. an advantage out oi his position. Iwo extensive classes of cases coming under this head have already been con- sidered in dealing with constructive trusts, where we have seen tliat a trustee is disabled from taking advantage of his position to benefit himself by means of any dealings with the trust estate or with his cestui que trust. But the cases go farther than that. Thus, though the lesfal estate Such as in land is vested in a trustee, it has been held that he ov°r t"ust cannot by means thereof claim the right of sporting over estate, the land. If the sporting could be let for the benefit of the cestui que truest, it should be ; if not, the game would belong to the heir (q). A trustee cannot sell his office. Selling hla If he attempts to do so, any money so paid to him will be ° ^®' considered part of the trust fund (r). A trustee also will not in general be appointed receiver Being ap- with a salary (s), but he may be so employed if no one receiver else can be procured who will act with the same benefit to ^ith a the estate (f). If he even offers to act as receiver Avithout (p) Broclcsopp V. Barnes, 5 Madd. G. 192. 90; Barrett v. Hartley, 2 Eq. 789. (s) Anon, 3 Vep. 515; Nicholson {q) Webb v. E. of fHiaftesburi/, 7 v. Tiitin, 3 K. & J. 159. Ves. 480, 488. (0 Sykes v. Ilastinrjs, 11 Ves. 363, {r) Swjden v. Crossland, 3 Srn. & 304. 126 llEMUNERATION OF TRUSTEE. a salaiy, lie will only be appointed on the ground tbat it is for the benefit of the estate, because it is the trustee's duty to see critically that the receiver does his duty (u). He may 3. Nor can a trustee utilise the trust funds in any way for not use the ,. ■, /->iTri- i j.* ^ • \ ■ trast funds ^^is own benefit. If he improperly retains such m his own for bi.s liands, even though it be not shown that he made any benefit. ^ ' , , .„ , , , . , . , profit thereby, he will be charged with interest there- upon (.X"). If he employs them in any trade or adventure of his own, the cestui que trust may either insist on having the profits made by such trade or on having the trust fund replaced with interest (y). Thus if the adventure be suc- cessful the cestui que trust gets all the benefit; if it fail the trustee must account for the fund with interest, ordinarily at 4 per cent., but not hmited thereto (z). Should a diffi- culty arise in any case as to the tracing and apportioning of the profits derived by a trustee or executor from the employment of trust funds together with his own in any trade or speculation, it may be a reason for preferring a fixed rate of interest to an account of the profits ; and it seems that the usual rate in such cases would be 5 per cent, with yearly rests ; i.e. compound interest (a). For further review of a trustee's liability in respect of invest- ments see su'pra, pp. 110 — 116. Such being the general doctrine in its full extent, we now inquire Avhat allowances to trustees are not deemed to be profits within the meaning of the rule, and which, there- fore, they are entitled to claim, and also what circum- stances may suffice to raise exceptions to the rule. But 4, Trustees are allowed all proper expenses out of areallowed pocket, whether jDrovided for in the instrument creating "'^V^t ^^^^ trusts or not (6), and none the less that remuneration exijenses. for their trouble has been allowed them by the author of (u) Jlibhert v. Jcniclns, 11 Vei^.oGS, {:.) Tells v. Carpenter, 1 Madd. cited. 290; Foo-lcs v. Ross, 2 Cox, 116. (x) Pearse \. Green, 1 J.& W. 135; (a) Jones v. Foxall, 15 Beav. 392. Blow V. Johnson, 2 Ch. 225, 229. But see Emmet v. E. 17 Cb. D. 142. - " " "-'"-- {I) Hkley. Haywood, 1 Aik.l2Q: Worrall v. Harford, 8 Ves. 4, 8. (y) Docl-er v. Somes, 2 My. & K. 555 ; Toxvnend v. T. 1 Giff. 201. LIMITS OF THE PEINCIPLE. 127 the trusts (o). Thus they are allowed travelling expenses (). 5. Though the office of trustee, being one of personal When confidence, cannot be delegated, trustees may in . special j^^y i,e cases employ agents whose expenses will be allowed out of employed, the estate. Thus, upon making out a proper case, a trustee may employ a bailiff to manage an estate and receive the rents (q), even though a recompense may have been given him by the creator of the trust for his trouble (r). So a ((■) Wilkinson V. W., 2 S. & S.237. ^ (I) James v. 3Ia>/, 6 L. R. H. L. (d) Exp. Loregrove, 3 D. & C. 763. 328. (e) Poole V. Pass, 1 Beav. 600 ; (to) Benett v. Wyndham, 4 De G, Amand v. Bradbourne. 2 Ch. Ca. ¥. k, 3.2^^; Att.-Gen.Y. M.of Nov- 138. wicli, 2 My. & Cr. 406. (/) Peers V. Ceeley, 15 Beav. 209; [n) Re Exhall Coal Co., 35 Beav. Caffrey v. Darhy, 6 Ves. 488 ; Mai- 449. colm V. O'Callaghan, 3 My. & C. 52. (o) Morison v. M., 7 De G. M. & (fj) Bright v. ^ North, 2 Ph. 216. G. 214, 226. (h) Quarrel v. Bedford, 1 Madd. (2?) Balsh v. Iligham, stq). 269, 282. iq) Bonithon v. Hiclmore, 1 Vera. (i) Balsh V. Higham, 2 P. Wms. 316; Stewart v. Iloare, 2 Bro. C. C. 453. 663. (Ic) Sarulers v.IIoo2xr,G BeSiV.2i6. ()•) Wilkinson, y. W., siqh 128 KEMUNEKATION OF TKUS'lEE. solicitor or an accountant may be employed where neces- sary («), or an agent to collect debts at a reasonable com- mission (t). But if a solicitor or other such agent is employed to do things which the trustee ought strictly to have attended to himself, his charges will not be alloAved (u). Remunera- G. It is quite open for the creator of the trust to autho- tion may ^.j^^ ^ trustee to charo'c for services rendered, and in doing be author- " . , . ised by so either to fix the amount of compensation or to leave it thrtrustf open. The most ordinary case of such allowances beino- authorised is where a solicitor is appointed trustee, with power to charge for professional services rendered. If the amount of the sum or salary to be paid in con- sideration of such services is specified, no question can arise ; if the compensation is not so fixed a reference will be directed to settle what is a proper allowance (v). It appears that such authorisation may arise from implication if clear (x). An annuity given to an executor for his trouble until a general settlement of the testator's affairs, was held not to cease on the institution of an administration suit (y) ; but where an annuity was given to a trustee as long as he should continue to execute the oflEice of trustee, it was held that it ceased upon the termination of all active duties upon the payment of the whole of the trust fund to a person absolutely entitled (z). If such an annuity or other remuneration is authorised, and the trustee does not act, even though he be rendered incajjable of so doing by the act of God, he is not entitled to receive it (a). Where a solicitor is authorised to charge for professional services, this is considered only to include services strictly (s) Macnamara v. Jones, 2 Dick. Willis v. Kihhle, 1 Beav. 559. 587 ; Henderson v. Mclver, 3 Madd. (x) JJouylas v. Archhutt, 2 De G. 275. & J- 148. (t) Hopkinson v. Roe, 1 Beav. ISO; (y) lialicr v. Martin, 8 Sim. 25. Weiss V. Dill, 3 My. & K. 26. {:) Hull v. Christian, 17 Eq. 546. (u) Harbin v. Darby, 28 Beav. (ft) Hunbvry v. Spooncr, 5 Beav. 325. 630; Slaney v. Watney, 2 Eq. 418. ((•) Ellison \: Aire y, 1 Ves. Jr. 115 ; LIMITS OF THE PRINCIPLE. 129 professional, and not matters which an ordinary executor ought to do without the intervention of a solicitor (6). 7. A trustee may contract with his cestui que trust to Or trustee , • f> , • , 1 r may cou- receive some remuneration lor acting or to make proies- tj-g^^^ f,)^ sional charges for so doing. But such a contract would be remunera- jealously watched by the Court, and would be set aside, the cestui unless it were perfectly fair, and obtained without any ^"^ *''"*'• undue influence (c) ; and the contract must in distinct terms take the trustee out of the general rule ((/), 8. A trustee may also contract with the Court that he Or with will not undertake the trust without proper compensation ; ® """^ ' and if he undertakes the trust upon the understanding that apjjlication should be made to the Court for compen- sation, a reference %vill be made to chambers to ascertain and settle what would be a reasonable allowance for his past and future services (e). The principle is the same as that of section 29 of the Bankruptcy Act, 1869, by which a solicitor trustee may contract for remuneration. 9. Lastly, a trustee may sometimes, from accidental cir- Accidental cumstances, profit by his trust in a manner quite irres- accrues in pective of any claim for remuneration or compensation. ^'^^^ "r- Where, for instance, a cestui que trust dies intestate and stances. without heirs, the trustee is entitled to the benefit of any Lapse of realty vested in him as such, subject to the rights of creditors of the deceased cestui que trust. This accidental benefit accrues to him, however, not from the strength of any title of his own, but because no other person can show any title at all (/). The only person who could j)ut in any claim would be the lord or the Crown, on the ground of escheat ; and in that case it was decided that where the legal estate was already vested there was no escheat, or right to compel a conveyance from the trustee. On the same principle where a mortgage in fee is made, {I) Uarlin v. Darly, sup. 432, 453; Morrison v. M., 4 My. & (c) AijUfe V. Murray, 2 Atk. 58. C. 215. (d) Moore v. Frowd, 3 My. & C. (/) Burgess v. Wheate, 1 Eden, 45. 177. (e) Marshall v. Hollowty, 2 Swanst. 130 REMUNEIIATION OF TRUSTEE. and the mortgagor dies intestate and without heirs, the equity of redemption does not escheat, but belongs to the mortgagee, subject to the mortgagor's debts (g). And where land is devised to trustees upon trust to convert into money for purposes which either fail or never take effect, and the testator dies without heirs, the land if unconverted, or if it has been unnecessarily converted the proceeds thereof, will belong absolutely to the trustee (h). But then Nevertheless, in such cases the trustee cannot come into cannot^ ^^ equity as plaintiff to assert his right (i) : the Court of come as King's Bench, however, has by mandamus compelled an plaintiff to . . n t t -i ■ t ,i\ assert his aduiission on the mere force of the legal title (A;). right. j^ trustee of personalty can reap no such advantages as spending those above described ; since if in this case a cestui que advantages fy^/^^i (\[q^ intestate and without next of kin, the Crown by m case of _ ^ _ _ _ "^ personal virtue of its prerogative can claim the chattels as bona estate. /• /7\ vacantia {(). ] Will. IV. Before 1 Will. IV. c. 40, where a testator made no '"' ' express disposition of the residue of his jiersonalty, the executors were at law entitled thereto ; nor did Courts of equity interfere with their enjoyment, unless it appeared to be the testator's intention to exclude them from interest therein. By that Act, however, as to wills made since the 1st Sept., 1830, executors are declared to be trustees of such undisposed of residue for the next of kin under the Statute of Distributions, unless it should appear by the will that the executors were intended to take it beneficially. The onus of proving an intention in their favour is thus thrown upon them (m). ig) Beale v. i:iijmonds, 16 Beav. 431. 406. (I) Powell V. Mcrrett, 1 Sm.&G.381 ; (/() Taylor v. Haygartli, 14 Sim. 8. Middleton v. Spker, 1 Br. C. C. 201. (t) 1 Eden. 212; Williams v. Lons- {m) Harrison v. H., 2 H. & M. dale, 3 Ves. 752. 237. (A) The King v. Coggan, 6 East, TO WHAT PERSONS THE DOCTRINE APPLIES. 131 III. — To what i')ersotis the doctrine apjMes. 1. In Robinson v. Pett (n), under circumstances some- Trustees what strongly in favour of allowing remuneration if possible, f execu it was refused to one who was apjjointed to the office of trustee and executor, notwithstanding that he had re- nounced the executorship. Express trustees and executors are, therefore, seen to be most fully under the operation of the rule. It matters not that the executor has been carrying on the Of what- business of a deceased partner (o), nor wdiat his occupation patLn"^^' or employment in life ; for instance, neither a factor (jj), nor a commission agent (q), nor an auctioneer (?•), is allowed, without such authority as has been above mentioned, to make business or professional charges for work done in the execution of a trust which he has undertaken. 2. A solicitor who is appointed executor or trustee is with- Solicitor tmstiGG in the rule («), but this case requires special consideration. Not only is such a solicitor personally disqualified from receiving remuneration, but it has been held that the firm to which he belongs is equally unable to charge the cestui que trust save for out of pocket costs and expenses (t), even though the business was actually attended to by a partner who was not a trustee (u). There are, however, certain special limitations of the principle as applied to solicitors. Thus — (1.) Under peculiar circumstances, for instance, in case of Excep- a protracted successful litigation Avhich the solicitor in ques- ^°^_ tion was alone qualified to conduct, an inquiry was directed stances, to give some remuneration or compensation to him (x). (n) 3 P. Wms. 249. & G. 160. (o) Burden v. B., 1 V. & B. 170. (t) Ibid. {p) Scattcrc/ood v. Harrison, Mos. (v) Christojihas v. fUiife, 10 128. Beav. 523 ; Lincoln v. Windsor, 9 (q) Shcrriffv. Axe, 4 Kuss. 33. Ha. 158; but see Cradodc v. Pijiir, (?•) Kirkman v. Booth, 11 Beav. 1 Mac. & G. 664. 273. [x) Bainhvir/fje v. Blair, 8 Beav. (s) Brotirjhton v. B., 5 De G. M. 588, 595. K 2 132 REMUNERATION OF TRUSTEE. inent of partner. Ghai'ges against third persons. Town agent's costs. Mort- gagees. Trustee in bank- ruptcy. Accents. Chairman and direc- (2.) An agreement between solicitors in partnership, that the one who is appointed trustee is not to participate in any of the profits or to derive any benefit from the business done for the trusts, has been considered sufiicient to admit of his partner being employed as solicitor on usual terms {y). (3.) A solicitor trustee is allowed any charges or profits he may make which are not chargeable against the cestui que trust, but against some person with whom he deals on behalf of the trust ; for instance, against a mortgagor to whom he advances the trust money on security {z). (4.) The costs of the town agent of a solicitor trustee are allowed (a). 3. A mortgagee with power of sale stands in a fiduciary relation with regard to the mortgagor, and so will not be allowed, either alone or conjointly with his partner in any business, e.g. as auctioneers, to derive any profit from the sale (6). 4. The trustee of a bankrupt, who acted as solicitor to the fiat, though allowed to charge for his clerk's time employed in the business of the bankruptcy, was not allowed to make any profit thereupon (c). As to trustees under the Bankruptcy Act, 1869, see supra, II. 8, p. 129. 5. An agent entrusted with money or any other property for the purpose of using it for the owner's benefit, cannot make any profit by the use thereof. Instances of such disqualification being considered to attach to agency are seen in the cases of a vendor of public stamps {d), the master of a ship (c), and a part-owner of or partner in a ship acting as ship's liusband (/). 6. A chairman or director of a company stands in a fiduciary relation towards the company, and will not as a ()/) Clacl: V. Carlon, 7 Jnr. N. S. 441. (2) W/tituei/ V. Smith, 4 Ch. .513. («) Jhirr/e V. Brutton, 2 Ha. 373. (h) Matthison v. Clarice, 3 Drew. 3. (c) Exp. Neicton, 3 De G. & Sm. 584. (d) Alt. -Gen. v. Edmunds, 6 Eq. 381 (e) Shalkross v. Oldham, 2 J. & H. 609. (/) 3IiUcr V. MacUy, 31 Beav. TO WHAT PERSONS THE DOCTRINE APPLIES. loS nile be allowed to derive any profit beyond his salary from tors of his office (g) ; and see also pp. 94, 95. companies. 7. The principle does not apply in all its strictness to Construc- a person who is merely a constructive trustee. Though trustees he must account for the profits of trust money employed, °"^ *"' he will have an allowance made to him for his expenditure treated. of time, skill, and trouble (h). Thus a surviving partner Surviving is in a sense a trustee for the estate of the deceased ^^^ ^^^' partner, but the trust is limited to the performance of the obligation. Time runs in his favour (i), and if he continues the business, though he must account for the profits, he is entitled to a proper allowance for the trouble of management (Jc). 8. There is a marked exception from the usual rule Managers in the case of trustees and guardians managing the estates j^^^^^j* of West Indian proprietors. By the West Indian Acts estates of Assembly such managers are entitled to a commission ^^^^'^ ^'' not exceeding 6 per cent, as long as they personally take care of the management and improvement of the estates committed to their charge (l). A mortgagee of West India estates, as long as he is out of possession, may stipulate for the consignment of the produce, and charge commission on the net produce as his compensation. But v/hen he is in possession he stands in the same position as a mort- gagee in possession in England ; and therefore, if he chooses to be consignee himself, he has no commission (m). Formerly an executor appointed in the East Indies was entitled, on passing his accounts in this country, to a commission of 5 per cent. ; but this law is now altered, and no commission will be allowed to such an executor unless expressly given by the testator (n). (g) Great Luxemhourg Ry, Co. v. H. L. 318, 329. Magnay, 25 Beav. 586. (/) Chambers v. Ooldimn, 5 Ves. (A) Bromi v. Litton, 1 P. Wms. 834 ; 9 Ves. 254. 140. (m) Faulkner v. Daniel, 3 Ha. (i) Knox v. Gye, 5 L. E. H. L. 199, 218 ; Leitk v. Irvine, 1 My. & 656. K. 277. {k) Featherstonehaugh V. Fenwick, (n) MattJieics v. Bagsliawe, 14 17 Ves. 298 ; Vyse v. Foster, 7 L. R. Beav. 126, and note. 134 CHAPTER II. FRAUD. Distinction between Lavj and Equity. Classification of Frauds. Chesterfield v. Janssen. I, Actual Fraud. 1. Arising from lurongfid acts. Attwood V. Small. 2. Arising from wrongful omissions. II. Transactions deemed on general grounds inequitable. 1. Fraud 2>resumed from the nature of the transaction. 2. Fraud presumed from the circumstances or relation of the parties. Huguenin v. Baseley. III. Frauds on imblic iJolicy. Scott V. Tyler. IV. Frauds on the private rights of third j^ersons. Barry v. Crosskey. Savage v. Foster. Aleyn v. Belchier. There is no part of equitable jurisprudence more bene- ficial, and probably none of more ancient date, than its jurisdiction to give relief in circumstances of fraud. In the early days of the Court of Chancery it would seem that no cause more frequently induced suitors to seek its CLASSIFICATION OF FItAUDS. 135 assistance than the fact that it relieved against many trans- actions which would not have been deemed fraudulent in the Courts of Common Law. It has never been possible to draw a precise line between Fraud at those cases in which common law would give complete equity "^ relief and those in which it would be necessary to resort to equity. The broad outline of the distinction may be thus expressed : In order to constitute fraud at common law, it is not enough to show that fraud in the sense of misrepresentation and undue advantage of the position of the parties said to be imposed upon has been committed, but the extent of the fraud must be broughti home to the party to the action who is charged with it. A Court of equity will take into account all the circum- stances of the case, — not only the act and intention of the party, but the circumstances imder which the act was done, the position of the party who is said to be imposed upon, his being inops consilli, his being in a state of bodily and therefore mental weakness, and so on. Non constat that these are sufficient to constitute legal fraud (a). Since the Judicature Act, 1873 (/>), it has become unnecessary to enter into this question. Neither is it possible to formulate any definition of Fraud not fraud, as that term is understood in Courts of equity, since define L judges have of set purpose avoided hampering themselves by laying down in general terms what shall constitute fraud. It has been said that "Fraud is infinite; and were a Court of equity once to lay down rules how far they would go, and no farther, in extending their relief against it, or to define strictly the species or evidence of it, the jurisdiction would be cramped and perpetually eluded by new schemes which the fertility of man's invention would contrive " (c). In the absence of any authoritative definition recognised (rt) Stewart v. G. W. R. Co., 2 Dr. {c) Parke's Hist, of Chanc, p. & Sm. 438. 508 ; Story, 186 ; Mortlock v. BaUer, (b) 36 & 37 Vict. c. 66. 10 Ves. 292, 306. 136 DISTINCTION BETWEEN LAW AND EQUITY. in English equity, little purpose can be served by quoting from foreign jurists attempted definitions, which usually contain terras as much requiring explanation as the term purporting to be defined. It is by a consideration of the various classes of cases in which relief has been afforded, and by this alone, that we can arrive at a prac- tical idea of the character of this branch of the jurisdic- tion. In this the memory will as usual be much assisted by a classification of the cases. In the leading case of CHESTERFIELD v. JANSSEN [2 Ves. Sr. 125 ; 1 W. & T. L. C. 592] Lord Lord Hardwicke enumerated the different species of fraud wicke's which Sufficed to induce the interference of equity to the ciassifica- following effect :— 1. Actual fraud or dolus mains ; fraud arising from facts and circumstances of imposition. 2. Fraud apparent from the intrinsic nature and subject of the bargain itself; a class comprising inequitable and unconscientious bargains generally. 8. Fraud which may be presumed from the circum- stances and condition of the parties to the transaction. 4. Fraud which is so considered from circumstances of imposition on other persons not parties to the transaction. 5. Fraud which is imputed in cases of catching bar- gains with heirs, reversioners, or expectants in the life of the fathers, &c. ; a class of cases usually compounded of all or several of the other species of fraud, since in them there is generally either actual deception, weakness on one side and extortion on the other, or are unconscionable con- ditions and some deceit and illusion on other persons not privy to the agi'eement, such as the father or ancestor. The last of these divisions is admittedly compounded of the others, and it will simplify the arrangement for our present purpose to treat the cases which would fall within it under the several headings to which they may be CLASSIFICATION OF FRAUDS. 1,S7 respectively referred. Moreover, the tliird class of fraiuls here specified seems rather to be a subdivision of the second than a distinct and correlative class. We shall therefore take as the second division, inequitable and unconscientious transactions generally; of these, some being deemed fraudulent on account of their intrinsic nature or subject-matter ; others, on account of the peculiar circumstances or condition of the parties. Again, the fourth class comprises two species of trans- actions so distinct as to warrant the consideration of each as correlative with the other main divisions. Some transactions are deemed fraudulent as being inconsis- tent with the general policy of the law ; others from their tendency to unfairly compromise the private rights of individuals not parties thereto. These we shall sepa- rately consider. We are accordingly left with four leadhig divisions, Division under one or other of which all the various transactions "^*!^®, siibject. regarded in equity as fraudulent may be classed. It will be observed that this classification does not expressly recognise the distinction often taken between actual and constructive fraud ; but it will be found tha.t those trans- actions which have been treated as constructively fraudu- lent are fully comprised in and will fall under one or other of the three last divisions. Constructive frauds, which are Construc- so called from their infringing public policy or some *^^® , ,^1 ooi^ 1 J frauds. artificial policy of the law, are indeed markedly dis- tinguished from frauds which are so esteemed from the proved or presumed covinous intention of the parties ; but the other transactions which have been styled con- structive frauds, namely frauds arising from some fiduciary relation between parties and frauds so considered be- cause of their injurious effect on the private rights of third persons, differ from actual frauds rather in respect of the evidence by which the fraud is proved than in any substantive characteristic of the fraud itself; and at any rate the distinction is often so fine as to be, in our view, a 138 FRAUD. liiiuhaiico rather than a help to a clear concej)tion of the subject. The entire division of the subject will then be as follows : — I. Actual Fraud (Dolus Malus). 1. Arisin 152 FRAUD. Infants. V. There is no necessity for discussing at length the contracts of infants in a work especially devoted to the exposition of the distinctive doctrines of equity, the law respecting them being now regulated by the Infants' Relief Act, 1874 (a)-, which enacts that thenceforth all contracts " entered into by infants for the repayment of money lent or to be lent, or for goods supplied or to be sup- plied (other than contracts for necessaries), and all accounts stated with infants shall be absolutely void ; provided ahvays that this enactment shall not invalidate any contract into which an infant may, by any existing or future statute, or by the rules of common law or equity, enter, except such as now by law are voidable" (6). "No action shall be brought whereby to charge any person upon any promise made after full age to pay any debt contracted during infancy, or upon any ratification made after full age of any promise or contract made during infancy, whether there shall or shall not be any new consideration for such promise or ratification after full age " (c). Wliere, however, an infant'induces persons to deal with him by falsely representing himself as of full age, he is bound in equity by payments made and acts done at his request and on the faith of such representations, and is liable to restore any advantage he has obtained by such representations to the person from whom he has obtained it (d). The princij)le is that an infant shall not take advantage of his own fraud (e). But in order to its appli- cation, there must have been an actual false representa- tion, not mere dissimulation ; and the party must have been in fact deceived (/). It has recently been held that the Infants' Relief Act applies to trading contracts ((j), but it expressly saves all such contracts as were not previously void- (a) 37 & 38 Vict. c. 62. (e) Ovei-ton v. Banister, 3 Ha. 503 ; lb) s. 1. Clarke v. Coblcy, 2 Cox, 173. (c) s. 2. (/) Nelson v. Stocka; 4 De G. {d) Pollock Contr. 35, 56, 2nd & J. 458. ed. (y) Exp. Jones, 18 Ch. D. 109. INEQUITABLE AND UNCONSCIENTIOUS TRANSACTIONS, 153 able at law. The detailed discussion of what contracts were not so voidable is a matter more appropriate to a treatise on law than to one on equity. It suffices here to state that they comprise contracts for necessaries, a term which is interpreted according to the infant's degree and station in life, and contracts in other respects essentially beneficial to the infant, such as contracts of service, and of apprenticeship. The law as to infants' settlements is else- where treated (h). vi. Many of the important distinctions between law and Married ■^ ^ . women. equity as regards the contracts of married women have been removed by the Married Women's Property Act, 1870 (i). This statute, and the principles of equity touch- ing the matters not affected thereby, are fully considered elsewhere (j). vii. A somewhat unique exception from the ordinary rules Common applicable to contracts is made in favour of common ' sailors. In consideration of their characteristic careless- ness and improvidence, equity carefully scrutinises any contracts made with them respecting wages or prize money due to them, and often gi'ants relief when it appears that undue advantage has been taken of them (k). Hitherto the contracts we have been considering have come under review in connexion with the subject of fraud, on account of some absolute incapacity total or partial in one of the parties ; that is to say, an incapacity not due to the existence of any particular relation between the contracting parties. The fraud imputed in these cases has usually been deemed a species of actual fraud (^). viii. But there is another large class of contracts usually Contracts esteemed to come under the head of constructive fraud, ^^^g under in which the incapacity which raises the suspicion of fitluciary fraud is wholly due to a special relation between the parties, such as that of trustee and cestui que trust, or solicitor and client. These cases we have fully considered (h) p. 396. (k) How V. Wheldo7i, 2 Yes. sr. (i) 33 & 34 Vict. c. 93. 516. ij) pp. 354—6. (I) Story, 228—243. 154 FRAUD. t'oiistruc- tivu trusts. Voluntary gifts. What relation raises the presump- tion. under the head of constructive trusts. All that was there said might with equal a})propriatencss have been inserted here. It is a good illustration of the interdependence of the various branches of equitable jurisprudence that such a complete class should fall so aptly under two distinct headings. Because of its jurisdiction in, and its jealous scrutiny of all matters tainted with fraud, equity has created, for the purpose of securing even justice, an exten- sive class of trusts. Or, viewing the same question from the other side, we may say that in devising a remedy for cases of fraud equity has utilised the principle of trusts, which was originally designed for very different purposes. (2.) Gifts. Our next consideration is that of voluntary gifts or donations which are deemed fraudulent through the presumption of undue influence which is raised by the relations between the donor and donee. These, again, might well have been dealt with under the heading of constructive trusts, the principles illus- trated by the case of Fox v. Mackreth (m) being precisely analogous to those which now present themselves. Not- withstanding this, we have preferred to consider these cases under the head of fraud. The very separation of things so similar will perhaps serve a good purpose in emphasizing the relation of the various branches of the subject to each other; while any confusion of arrange- ment will be completely avoided by a careful attention to this explanation, and to the reference made under each head to the other. The first subject of inquiry respecting voluntary donations induced by fraud is as to what relationship between the parties will raise a presumption of undue influence. One of the most frequently cited cases on this subject is {m) p. 88. INEQUITABLE AND UNCONSCIENTIOUS TRANSACTIONS. 155 HUGUENIN V. BASELEY. [14 Yes. 273 ; 2 W. & T. L. C. 547.] Here there was a voluntary settlement by a widow upon the defendant, who was a clergyman, and who had been appointed by her as her agent to manage her affairs. On her subsequently marrying, a bill was filed on behalf of herself and her husband praying that the settlement might be set aside, and this relief was granted on the ground that the defendant had exercised undue influence, and abused the confidence reposed in him. The first question is, what relationship between a donor and donee is within the principle of this case. i. Parent and child. Donations from a child to a parent have always been Parent jealously regarded in equity, and of course especially so''' when they take place but a short time after the attain- ment of majority. They will be set aside if it appears that any advantage has been taken of the parental autho- rity (ii) ; but the mere fact of the relationship will not be sufficient ground for interference when the transaction appears to be reasonable and bond fide (o) ; and cb fortiori if it is of the nature of a family arrangement, as to which see p. 182. If there has been undue influence, a volunteer, or a purchaser with notice claiming through the father, is in no better position than the father himself (p). In this, as in many other cases, a person standing in Per.sou in loco ixirentis is within the same rules as a parent {q). pf^^cntis The meaning of the expression in loco parentis is suffi- ciently explained elsewhere (r). ii. Guardian and ward. A gift from a ward to a guardian is always suspected ; Guardian and if made immediately on the ward's attaining his ma- '^"' ^^*' ' jority it is liable to be set aside upon the presumption of (n) CocMng v. Pratt, 1 Ves. sr. 2 Atk. 86. 400; Wright v. Vanderpl/mk, 2 K. (p) Bainhriyrjc v. Browne, IS Ch. & J. 1; 8 De G. M. & G. 1-33 ; D. 188. Turner v. Collins, 7 Cb. 329. (q) Archer v. Hudson, 7 Beav. (o) Blackhorn v. Ed). The case of conditions subsequent is more complex. It Conditions is necessary here to distinguish between a condition im- sequent posinof a particular restraint and one which would have the ^^ P^''" L o 1 ^ ^ ^ ticular effect of restraining marriage generally. Whether the pro- restraint, per ty concerned be real or personal, it is permissible to bestow it subject to a condition subsequent prohibiting marriage with a particular person (c), or with a native of a particu- lar country (d), or belonging to a particular religious body (e) ; or marriage may be forbidden until the attainment of a reasonable age, which is not restricted to majority (/). But it seems that at least with regard to personal property the condition in this case will be considered as merely in terrorem, and will not be insisted on, unless there is a gift over on breach of the condition (g). Conditions subsequent in general restraint of marriage In general attached to a gift of personal property are primd facie {z) Fry V. Porter, 1 Ch. Ca. 138 ; 1 (e) Buggan v. Kelly, 10 Ir. Eq. Mod. 300 ; Harvey v. Aston, 1 Atk. Rep. 295. 361. (/) Staclpole v. Beaumont, 3 Ves. (a) Scott V. Tyler, sup.; Younge v. 89 ; Younge v. Furze, sup. Furze, 8 De G-. M. & G. 756. ('/) See note to Harvey v. Aston, {b) Malcolm v. ff Callarjlian, 2 1 Atk. 380 ; W. v. B., 11 Beav. 621 ; Madd. 349. Pooh v. Bott, 11 Ha. 33 ; Marples v. (c) Jerrois v. Dulce, 1 Vern. 19. Bainlridqe. 1 ^radd. 590 ; Jones v. (d) Perrin v. Lyon, 9 East, 170. /., 1 Q. B. D. 279. 102 FRAUD. gifts of void, aud the gift remaius unalfected thereby. An instance personalty. ^^^ ^|^-^ -^ whcre a testator makes a bequest to a legatee with a direction that in case of his or her marriage the property sliall pass to another (g). And the same rule applies in the case of a mi.Ked fund, and also it seems to a legacy to be raised by the conversion of land (h). The fact that there is a gift over will not in any of these cases save the condition. Limitation But, nevertheless, where the gift is to a woman, and mirrliU. t^^® intention of the donor appears to be not to restrain marriage, but merely in good faith to make a provision for her as long as she remains single, a limitation of per- sonal property until marriage has been sustained (i). The distinction of principle between these two cases is clear enough, though its application may on the facts often be di fficult. In gifts of A condition subsequent in general restraint of marriage, real estate, j^^^-^gi^g^^l ^q ^ g^f^ of real estate, is, it seems, valid (k) ; cl fortiori if in this case, the intention appears to be to create a provision for a woman until marriage (/). Second It must be observed that conditions in general restraint ^oTwtfwn ^^ marriage are always valid in gifts to widows, and are the rule, indeed matters of every-day occurrence (m) ; and this not only in the case of a bequest by a testator to his own widow, but also in a gift to the widow of another person (n). A gift over on the second marriage of a man has also been sustained (o). Contracts (2.) Contracts in restraint of marriage are, on the same of ^nai-^^"^* principles as conditions to that effect, considered fraudu- riage. lent and void. (a) Morley v. Kennoldson, 2 Ha. {m) Craven v. Brady, 4 Eq. 209; 4 570. Ch. 206. (A) Bellairs v. B., 18 Eq. 510 ; (n) Charlton v. Coombes, 11 W. R. Lloyd V. L., 2 Sim. N. S. 25.') 1038 ; Neivton v. Marsden, 2 J. & H. (l) Webb V. Grace, 2 Ph. 701 ; 356. Heath V. Lewis, 3 De G. M. & G. 954. (o) Allen v. Jacison, 1 Ch. D. 399. (it) Harvey v. Aston, 1 Atk. 380. For a concise summai-y of tliese rules note. respecting conditions, see Pollock on (/) Jones V. /., 1 Q. B. D. 279. Contracts, p. 307, 2nd ed. FRAUDS ON PUBLIC POIJCY, 1 Go Thus where a woman gave a bond conditioned tu be paid in case she married again, it was on her marriage ordered to be delivered up (-p). Similarly a contract to marry a paiticular person who Contracts is not bound by a corresponding obligation is invalid as *^" '"''^''•■y> opposed to public policy (q). A contract by which per- sons are mutually bound to marry is valid at law (r), but will be set aside in equity if it amounts to a fraud upon a frauds on parent or person in loco parentis, as in Woodhouse v. 1^'^°*^' Shepley (s), where the father of the lady was known to be opposed to the match, and the suitors clandestinely entered into mutual bonds to marry each other after liis death, under a penalty of £600. Transactions also know^n as marriage Ijrokage contracts, Marriage in which a person undertakes for a stipulated reward to ^i t ^"^ , bring about a certain marriage, are void as frauds upon public policy, and as necessarily involving the decej)tion of one of the parties to the marriage or of the parents (t). Such contracts being void are incapable of confirmation (li), are voiH, and money paid thereunder may, it seems, be I'ecovered back (x). On the same principle every contract by which a parent or so con- guardian seeks to obtain any remuneration for promoting or tending to consenting to the marriage of his child or ward is void (y). deceive A 1 .1 1, . n • one of the And generally all contracts upon a treaty oi marriage parties. which tend to deceive or mislead one of the parties to it or their relatives are deemed fraudulent and void. Thus a security given by a son without the privity of his parents to return part of the portion of his wife was held to be invalid (z); and where a man, on the treaty for the marriage of his sister, lent her money, in order to increase her (■p) Baker v. White, 2 Vern. 215. 76. (5) Key V. Bradshaw, 2 Vern. (m) Cole v. Gtbson, 1 Ves. sr. 503. 102. (x-) Smith V. Bruniny, 2 Vern. (r) Cock V. Richards, 10 Ves. 429, 392. 438. (y) Keat v. Allen, 2 Vern. 588 ; (s) 2 Atk. 535. Hamilton v. Mohun, ib. 652. \t) Roberts v. R., 3 P. Wms. 65, (z) TurU)n v. Benson, 1 P. Wms. 76 ; Hall v. Thynne, 9 Show. P. C. 496. M 2 1G4 FRAUD. apparent portion, and she gave a bond for its repayment, this bond was decreed to be given up (a). In such trans- actions as these, relief will be given even on the suit of a 'particei')8 crimmis, the public interest causing a departure from the usual rule that a plaintiff in equity must come with clean hands. Attempts (3.) With equal or greater reason any attempts to effect a husband^ Separation between a husband and wife through the means and wife, of a conditional gift, are discountenanced. If a bequest is made on condition of such a separation, the condition is absolutely void, and the bequest remains unfettered (6). In a much more recent case, where an annuity was con- ditioned on a married woman continuing to live apart from her husband, the Court refused to give effect to the con- dition after a reconciliation had taken place (c). A^ee- 2. On a somewhat analogous principle, agreements to influence ^^^® influence with a testator in favour of a particular person testators, or object are considered void (cT) ; though a man may validly bind himself by contract to make a particular testamentary disposition (e). Contracts 3. Another class of transactions void as contravening the of Trade"^ policy of the law are contracts in general restraint of trade. This part of the subject does not indeed present for con- sideration any principles distinctively equitable, the Courts of law having long been as jealous as those of equity of any agreement tending to promote monopolies or dis- courage industry and just competition (/). Equity also recognises the same exceptions as prevailed at law, to the effect that special and limited restraints are lawful ; for instance a restraint against carrying on business at a particular place or within a defined area, or with certain (ft) Gale V. Lindo, 1 Vera. 475. 469 ; 12 CI & F. 45 ; Loffusv. Maw, (6) Tennant v. Brail, Toth. 141 ; 3 Giff. 592. Broicn v. Peck, 1 Ed. 140. (/) See Bunn v. Grey, 4 East, (c) Wrev V. Bradley, 2 De G. & 190 ; Mumford v. Gethinr/, 7 C. B. Sm. 49. (X. S.) 305, and the leading autho- (d) Dehenham v. Ox, 1 Ves. sr. rity of Mitchel v. Retpiolds, 1 P. 276. Wms. 181 ; 1 Sm. L, C. 406. (e) De Beil v. Thomson, 3 Beav. FRAL'DS ON PUBLIC POLICY. 165 specified persons, or for a limited time. In all such cases the Court will judge of the reasonableness or otherwise of the restriction, and support or subvert the contract accord- iDgly. Similarly a person may sell the secret of a par- ticular process of business and restrain himself from using it in future {g). 4. Another class of transactions which here invites atteu- Agi-ee- tion comprises those discountenanced on account of their fudkLl'to' tendency to interfere ^^^th the proper administration of f^^ adiuin- ■, - . . . istration of government and oi justice. Agreements to corrupt or govern- improperly to influence any officer of State, whether execu- ™®"* ^^'^ tive or judicial, are obviously void ; and so suspicious is to in- ' the law of everything which threatens danger of this kind, ^^^ers of that any agreements which have an apparent tendency State, in that direction are equally held void, though an intention to use unlawful means be disclaimed (li). Similarly, apart from the provisions of statutes which buying and are very comprehensive in their extent, agreements for the offices', buying, selling, or procuring of public offices are wholly void as well at law^ as in equity (*). As to assignments of salaries, pensions, &c., and agree- ments savouring of maintenance or champerty, see "Mortgages," sect. V., IV., .5, p. 313. IV. Frauds on IJiird Persons. The last species of fraud which remains to be considered comprises frauds so considered from their iuequitable inter- ference with the private rights of third persons not parties to the fraudulent transaction. These are of two classes : first, where such third person is deceived by the misrepresentation or concealment of (g) Bnjson v. Whitehead, 1 S. & S. Egerton v. Broivnlow, 4 H. L. 1— 74 ; Harms v. Parsons, 32 Beav. 250. 328. See generally Pollock on Con- (i) Harrington v. Da Chattel, 2 tracts, 309—317, 2nd ed. Swanst. 159 n. ; Hartwdl v. //., 4 (h) Pollock Cont. 286, 2nd ed. ; Ves. 811. IGG FRAUD. Deception of third person by fraudu- lent mis- represen- tation. Rules in Barrij v. Grosskeij. By con- cealment. Saccvje v. Foster. one of the parties to the transaction : secondly, the fraudulent exercise of powers for purposes other than those intended by the donor of the power. 1. Deception of Third Persons. The consideration of this subject brings before us again questions very similar to those dealt with under the first head, or actual fraud ; and generally speaking the charac- teristics of misrepresentation and concealment there exhibited are equally applicable here. There are, however, some important cases touching the particular application of them in the circumstances now under view, to which it behoves us to advert. Both misrepresentation and concealment may be treated as fraudulent, not only by a party to the transaction who is deceived, but also in some circumstances by third par- ties who suffer thereby. As to misrepresentation as affecting third parties, the following rules were laid down by Lord Hatherley in BARRY V. CROSSKEY. [2 J. & H. 1, 22.] (1.) "Every man must be held responsible for the consequences of a false representation made by him to another, upon which a third person acts, and so acting is injured or damnified — provided it appear that such false representation was made with the intent that it should be acted upon by such third person in the manner that occasions the injury or loss." (2.) " The injury must be the immediate and not the remote consequence of the representation thus made" [l). As to concealment as injuriously affecting third parties, a leading authority is SAVAGE V. FOSTER [9 Mod. 35 ; 2 W. & T. L. C. 620], which decided that a person knowing his own title, and (0 Pollock Contracts, 484, ed. 2 ; Alt.-G. v. Rmj, 9 Cli. 397. FRAUDS ON THIRD PERSONS. 167 not giving notice of it to a purchaser, could not be allowed to set it up against the purchaser; and that the coverture of the person was no protection to the transaction. In this case a married woman, knowing herself to be tenant in tail of property subject to her mother's life interest, upon the marinage of her half-sister, inducetl her mother to convey the lands to her for life, with remainder to the intended husband in fee. The husbcind under this title, and with no notice of the tenancy in tail, sold to a bond fide purchaser. It was held that the married woman could not set up her title against the purchaser, and that her right was extinguished. In this case there was active interposition to induce the conveyance ; but the same principle has been applied where a person has simply stood by and permitted others to deal with the property in a manner inconsistent with his rights. If knowing of such a transaction, he does not give the purchaser notice, he cannot afterwards avoid the purchase (m). So, if upon inquiry being made, a person denies an Denying incumbrance, he cannot afterwards set it up against the l^ances, purchaser {n). But in this case mere silence has been held not sufficient to avoid the incumbrance, unless at least inquiry is made (o). The distinction between this and the case of an owner lying by is plain, since there is nothing inconsistent in the sale of property subject to an incumbrance, and the incumbrancer might have assumed that the transaction was of that character. Even if a person in ignorance of his rights misleads a Purchaser purchaser, the purchaser will be relieved against him if ignorance, the circumstances were such that he ought to have known his rights ; as where a father stands by and allows his son to dispose of a fee simple, supposing the fee was in the (m) Hobhs v. Norton, 1 Vern. 554. 136. (o) Osborii v. Lea, 9 Mod. 96. (n.) Ibhotson v. Ehodes, 2 Vern. 168 FRAUD. son, while in fact it was in the father himself, subject to the son's life estate (p). Suffering The Same principle applies to a case in which a person money to , . be ex- stands by and suiters another to lay out money on his pended m property, supposing it to be his own. At law he could still have asserted his title without making compensation for the improvements ; but in equity the person who had so expended money would be entitled to be indemnified either by a pecuniary compensation, or sometimes, as in the case of a lessee under a defective lease, by a con- firmation of his title (g). The case is strengthened if there is some fiduciary relation such as that of agency between the parties (r). But a person spending money by mistake upon the property of another has no equity against the owner, if he was ignorant of the expenditure ; except in so far that if it is necessary for the owner himself to seek the assistance of equity with respect to the property, he will be required to do equity by making compensation as a condition of obtaining relief (s). And if after notice of an adverse title, a person proceeds to lay out his money, equity will not assist him merely because no active steps have been taken to establish the title (t). Coverture The case of Savage v. Foster (u) shows that coverture or infancy jg j^q excuse for such instances of fraud as those we are no excuse. now considering : it is equally well established that infancy affords no better protection (x). An infant cannot, it is true, be made answerable in equity any more than at law for a contract which he has made during his minority, on the mere ground tliat without any assertion on his part the other party believed him to be of full age {y) ; but he is never suffered to take advantage of his own wrong {z). (p) Teasdale v. T., Sel. Ch. Ca. zn^, 6 Ha. 273 ; Ramsden v. Dyson, 59. 1 L. R. H. L. 129, 141. (q) Beaufort v. Patrick, 17 Beav. (m) 9 Mod. 35. 60, 75. (x) Watts v. CressweU, 2 Eq. Ca. (r) Caiodor v. Lewis, 1 Y. & C. Ab. 515. Ex. 427. (y) Stikenuin v. Dawson, 1 De G. (s) Neesom v. Clnrksmi, 4 Ha. 97. & Hm. 90. (0 Master of Clare Ball v. Hard- (z) Clarke v. Cobley, 2 Cox, 173. FRAUDS ON POWERS. 169 2, Frauds on Poiuers. It is an established principle of equity that a donee of a Powers limited power must execute it bond fide for the end™"^*.*'®, ■•■ "^ exercised designed. Otherwise the appointment, though good in bond fide. law, will be held corrupt and void in equity. The leading case on this subject is ALEYN V. BELCHIER. [1 Eden, 132; 1 W. & T. L. C. 415.] A power of jointuring was executed in favour of a wife, but with an agreement that the wife should only receive a part as an annuity for her own benefit, and that the residue should be applied to the payment of the husband's debts. It was held that this agreement was a fraud upon the power, and the execution was set aside, except so far as related to the annuity. The appointor must, in exercising such a power, act with good faith and sincerity, and with an entire and single view to the real puri^ose and object of the power. He cannot carry into execution any indirect object, or acquire any benefit for himself either directly or indi- rectly {a). And though the donee of a limited power may validly release it, he may not do so fraudulently any more than he can appoint fraudulently (6). Such is the general principle ; and it includes cases in which there is not, as well as those in which there is an antecedent agreement with the appointee to effect purposes not within the scope of the power ; as well cases in which a benefit is sought to be attained for third parties foreign to the power, as those in which the appointor seeks to benefit himself. We may thus illustrate its application by four classes of cases. (1.) Where there is an antecedent agreement. (i.) For a benefit to the appointor himself. Ante- A frequent instance of this is where a father has a fraudulent (a) Portland v. Topham, 11 H. L. (6) Cunniwjham v. Thurloiv, 1 E.. 32. & M. 436, n. 170 l-'RAUD. agree- ment. For benefit of the appointor. For the benefit of strangers. Fraudu- lent design of appointor to benefit himself. Fraudu- lent release. power of appointment among children, and he bargains with some of them for some benefit for himself, e.g., the payment of his debts in consideration of the ajipoint- ment in their favour. Such an appointment is deemed fraudulent and void (c). The same was held where the appointor bargained that the appointed fund should be lent to him {d), and also where the appointment was exercised in consideration of an agreement for the pur- chase of other expectant shares belonging to them (e). (ii.) For the benefit of third parties foreign to the power. Instances of this are where the donee of a power of appointment among children stipulates for a benefit for his or her wife or husband, as in Carver v. Richards (/) ; or conversely where a power of jointuring is exercised under a bargain for the benefit of the children. And of course, a case in which there is not such close rela- tionship between the parties stands on no better ground {g). (2.) Where there is no antecedent agreement, (i.) and the appointor seeks his own advantage. Perhaps the most flagrant example of this form of fraudulent appointment is where a father, having a power of raising portions for children, directs a portion to be raised long before it is required, or in favour of a sickly child, with a view to acquiring the money as next of kin of the child on its decease {h). The case already cited of a fraudulent release may also bo referred to in this connexion. There a father released his power as to a part of the fund so as to vest it in him- self as representative of a deceased son. The Court, how- ever, refused to give effect to the release (/). Martin, 2 Sim. (c) Farmer 502. (d) Arnold v. Hardwick, 7 Sim. 343. (c) Cimynijliame v. Anstruther, 2 L. II. Sc. & b. 223. (/) 1 De G. F. & J. 548. {(/) Birley v. B., 25 Beav. 299. (/() Ilinckinr/brokev. Seymour,! Bro. C. C. 395 ; Wellesky v. Mornimjton, 2 K. & J. 143. ({) Cunningham v. Thurloiu, 1 R. & M. 436, n. FRAUDS ON POWERS. 171 But an appointment is not necessarily invalid because the appointee is an infant (k), nor because the appointor may derive some benefit from the appointment. If tlic whole transaction when looked at together shows no appearance of mala fides, but only an intention to improve the whole subject-matter of the appointment, there is no reason why the appointor should not participate in the improvement (I). So also an ultimate limitation in favour of the appointor may be unobjectionable (ni). In such cases the burden of proving a corrupt purpose is generally on the person who attempts to impeach the transaction (n), though the circumstances may be so strong against the appointor, for instance, where one appointment has already been set aside for fraud, that this position will be reversed, and the appointor will be required to show the innocence of his act (o). (ii.) Where the appointor intends benefit for strangers to the power. The intention of the donor of the power in limiting the Benefit- objects thereof must be strictly followed, and that inten- y"^j^j^,gj.g tion extends as well to the persons entitled in default of appointment as to the objects themselves. To allow the appointor to depart from the terms of the power would be to substitute his purpose for that of the donor in the disposi- tion of the donor's property (p). Thus an appointment amongst children is invalidated by a reservation of a benefit for another person, for instance a husband, though it may never have been communicated to him (q). And an attempt to impose upon the appointee a condition not authorised by the power falls within the same principle (r). Nor does it make any difference that the settlor himself {k) Beere v. Hoffmister, 2-3 Beav. (o) TopJiam v. Portland, 5 Ch. 40, 101 ; Fearon v. Desbrisay, 14 Beav. 62 ; Humphrey v. Olver, 28 L. J. 635. Ch. 406. [l) Re Huish's Chariti/, 10 Eq. 5 ; {p) Topham v. Portland, 1 De G. Jloach V. Trood, 3 Ch. t). 430. J. & S. 517; 11 H. L. 32. (m) Cooper- V. C, 5 Ch. 203. (q) Re Marsden, 4 Drew. 594. (n) Campbell v. Hoim, 1 Y. & C. \r) D'Abbadk v. Blzoitt, 5 I R. Ch. 664. Eq. 205. 172 FRAUD. is the donee of the power; having declared the trusts he must follow them (s). The mere fact that the appointee, soon after the appoint- ment re-settles the property on other persons, not objects of the power, will not in the absence of some further evidence of a bargain to that effect, invalidate the appoint- ment. Such re-settlement is quite consistent with perfect good faith in the appointor (t). Fraud It is further to be observed that a fraudulent execution against" of a povver will be set aside, not only as against the ap- ^'*!i^'^*^fr^ pointer, but also as against persons claiming under him as donee. volunteers, or even as purchasers for valuable considera- tion, unless they acquire the legal estate without notice of the fraud {u). If he takes the legal estate with notice, or the mere equitable estate even without notice, he can- not sustain his purchase against the persons entitled in default of appointment (x). But it seems that where he secures the legal estate, actual notice must be brought home to him ; a mere suspicion will not suffice (y). Fraudu- An appointment is equally invalid where the consent of consent. Certain persons is required, and such consent has been obtained by fraud (z), or on the other hand has been fraudulently given (a). Partial (3.) The quostion often rises, whether a fraudulent when arrangement as to part of the property appointed vitiates wholly the appointment in toto, or only as to the part to which anappofnt- the fraud extends. In the leading case of Aleyn v. meat. Belckiev we find an authority for the severance of the appointment, a part being sustained, and only the part intended for a corrupt or illicit purpose being set aside (6). In this case, the power was one of jointuring, and there was thus only a single lawful object of the power. But (s) Lee V. Fernie, 1 Beav. 483. (y) M'Queen v. Farquhar, 11 Ves. (t) Routledrje v. Doi-ril, 2 Ves. jr. 467. 357. {z) Scroygs v. ,S'., Anib. 272, 812. (m) Palmer v. Wheeler, 2 Ba. & («) Eland v. Baker, 29 15eav. 137. Be. is. (i) See also Lane v. Paye, Amb. {x) Daubeny v. Cockiurn, 1 Mer. 233. 626. FRAUDS ON POWERS. 173 in the case of a power of appointment to several objects an appointment fraudulent in part will usually be wholly set aside (c). The distinction seems to be sound and well established. For in the case of a power of jointuring where there is evidently an intention to exercise the power, there can be no mistake as to the benefit to be received by the donee ; but where there are several objects among whom the appointor may select at his discretion, and he appoints improperly, there is no means of ascertaining in what way he would have divided the fund had his intention been innocent (d). The exception to this rule illustrates the principle of this distinction ; for we find that where there is evidence by which the Court can distinguish what is attributable to an authorised purpose from what is tainted with fraud, the appointment may be severed, part being sustained, and part set aside (e). This is the case where, though the two appointments are contemporaneously made, the proper can be clearly distinguished from the improper transac- tion (/). (4.) The case of an appointor executing an appointment Contracts in pursuance of a bargain inconsistent with the terms of apnoi^t'ees. the power, and therefore corrupt and invalid, must be distinguished from a case in which the appointees con- tract with each other to allow some benefit to the appointor. This is frequently the case where a parent has a power to appoint among children, and the children agree to deal with the fund by way of a family arrangement under which the parent is benefited. Such an arrange- ment will, indeed, be carefully scrutinised (r/), but if it is found to be hondjide it will not be disturbed (A). Another distinction which it is important to indicate is Motive of that between the intention or purpose and the motive of ''^PP""i*'' (c) Dauheny v. Cockburn, 1 Mer. J. & S. 517; 11 H. L. 32. 626. (/) Eowley v. Ji., Kay, 242. (d) Farmer V. Martin, 2 Sim. ^02 ; ( • , • , relief. rebel against it. (1.) It is quite conceivable that the two parties to an agreement may both be labouring under a false impression as to a matter of law, the effect of which would be to make the agreement something entirely different from that which they intended. In such a case there is indeed no contract at all, the mutual agreement being different in substance from that which legally springs from their acts. It can scarcely be supposed that the law would in these circum- stances enforce an agreement which was in truth never made by the parties at all. The question here is not whether a mistake of law will avoid a contract, but whether there ever was a contract (k). Mistake in The case is quite analogous where, an agreement having ^^^ been made, it is erroneously expressed through a mistake of law. Here again, to refuse relief against the erroneous (/O 2 Atk. .587, 591. sr. 126. (t) See also IrvJiam v. CJiihl, 1 (k) See Pollock Contr. 394-.'j, Bro. C. C. 92; Bhujlam v. B., 1 Ves. expiesBion. MISTAKES OF LAW, 181 expression would be to hold the parties to an agreement which they never made (/). (2.) We have already excluded from the present consi- Misrepre- , . . , . , . . sentation deration cases m which erroneous impressions respecting actual the law have been actively produced in the mind of one of "'^' the parties by the other. Persons so deceived are entitled to relief, for in such a case there exist the most conspicuous elements of actual fraud, and equity is ever ready to relieve against fraud, whatever form it may assume (m). But circumstances less strong than active and wilful Implied deception may suffice to evidence such a fraudulent disposi- tion as to warrant the interference of equity for its discom- fiture. For instance, if one of the parties to a transaction parts with his property in manifest ignorance of a plain and settled principle of law, the fact of allowing him so to act is often deemed to be sufficient evidence of an unfair advantage having been taken to call for equitable inter- position. This has been illustrated by the case of an eldest son of an intestate agreeing, in ignorance of his rights of heirship, to divide the estates with a younger brother (n). But here, as before, the true ground of relief is not the fact of a mistake of law, but the fraud which is implied. (3.) There are cases also in which a formal and solemn Surprise. act performed in ignorance of a legal right has been re- versed on the ground of mere surprise ; for instance, where a woman who was entitled to elect, hastily decided in ignor- ance of her right to an account (o). Where the surprise has been common to both the parties to a transaction, there is of course still stronger ground for granting relief Such cases approach more or less closely to those already men- tioned, in which the error goes to the very foundation of the contract (p). (4.) The maxim has no application where the alleged Matters of (/) Ibid. (o) Pusei/v. Deshoiirerie, SV-WinH. (m) Willan v. W., 16 Ves. 72. 315, 321 ; and Evans v. L/ewel/i/n, (n) Story, 122; Hunt v. Rous- 2 Bro. C. C. 150 ; 1 C.x, 333. manierc, 1 Peters. Sup. C. U. S. 1, {p) See Cochrane v. IVU/is, 1 Ch. 15, 16. 58. 182 MISTAKE. doubtful construc- tion. Family com- promises upheld. ignorance is not that of a well-known rule of law, but that of a matter of law arising upon a doubtful construction of an instrument. In this case relief may be given (q). But where in such circumstances a fair compromise is entered into without any circumstances of fraud or surprise it will not be afterwards disturbed (r). (5.) Especially is this the case where such compromise is of the nature of a fiiniily arrangement (s). In Westby v. W. (t), Lord St. Leonards said : " Wherever doubts and disputes have arisen with regard to the rights of different members of the same family, and fair compromises have been entered into to preserve the harmony and affection, or to save the honour of the family, those arrangements have been sus- tained by this Court ; albeit, perhaps, resting on grounds which would not have been considered satisfactory if the transaction had occurred between mere strangers "(u). Long course of dealing and acquiescence by the parties concerned may suffice to sustain an arrangement of the nature of a family compromise, where there has been no written contract (x). Unless But an agreement cannot be sustained, even as a family with fraud, arrangement, if in the least degree tainted with fraud ; there must be full disclosure of all material circumstances known to one of the parties (^), and especially so if the parties are not on equal terms, or there is any confidential relation between them (z). Nor will a family arrange- ment be sustained if one of the parties has entered into it under a simple misunderstanding of his interests, respect- ing which there could be no reasonable doubt (a). Of course such circumstances as threats, or undue influence of any kind, will in these, as in other cases, invalidate an agreement (b). {q) Beauchamp v. Winn, G L. R. H. L. 223. (r) Piclicring v. P., 2 Beav. 56 ; Naylor v. Winch, 1 S. & S. 564. (.s-) Stapilton v. ^S^., 1 Atk. 2. (<) 2 Dr. & W, 503. («) See Cory v. 6'., 1 Ves. sr. 19. («) WiUiauis V. W., 2 Dr. & S. 378 ; 2 Ch. 294 ; Clifton v. Cock- lurn, 3 My. & K. 76. (y) Gordon v. G., 3 Swanst. 400. (z) Pusey V. Dcsbouveric, 3 P. Wms. 315. (a) Dunnaye v. White, 1 Swanst. 137. (/-) EUisv. Barlcr, 7 Ch. 104 MISTAKES OF FACT. 183 Mistakes of expression in the instrument embody iiig- Mistakes such compromises will be relieved against just as similar "^ '^'"^P'"*^^" mistakes occurring elsewhere (c). com- With these explanations and limitations, the principle P'^°'^^^'^^" that equity will not relieve against a mistake of law may be safely accepted ; and it will have been observed that those cases in which relief is given do not really amount to exceptions from the principle, since in all of them the relief is grounded not on the mere fact that there has been a mistake, but on some other fact which is, independently of that, efficacious to call forth the remedial power of equity. II. Mistakes of Fact The inquiry as to the effects of mistakes in matters of Mistake as fact is more complex and important. It must always be ggg^t"^ "" borne in mind that those cases, numerous though they are, in which transactions are deemed void or voidable on the ground of mistake, all constitute exceptions to the general rule, which is that as regards private law, " mistake as such has no legal effects at all " ((?). It will be found that in all cases in which legal effects follow, some other ingredient is present beside the mere fact that one or both of the parties have acted uuder an erroneous belief. In one large class of cases the effect of the mistake is to pre- vent any real contract from being formed at all ; in these the agreements, though seemingly and formally valid, are in effect void. In another, though a valid agreement has been formed, owing to mistake in its expression, an equity is raised for its rectification, which though it could not be formerly effected in the Courts of common law, was pro- vided for in those of equity. A third and important class comprises cases in which application is made to a special and discretionary jurisdiction of equity, in the exercise of (c) Ashurst V. Mill, 7 Ha. 502. (d) Pollock, Coutvacts, p. 384, 2ud ed. 184« MISTAKE. which Courts of equity are particularly careful that their decrees shall not be productive of hardship. This class applies almost exclusively to suits for specific performance ; and though the classification of the subject here would be clearly incomplete without reference to it, its full discussion falls more appropriately under the heading of specific per- formance (c). 1. Fundamental mistakes. Where By fundamental mistakes, we mean those the effect of prevents a which is to prevent any real contract from being formed contract between the pai'ties. Contract requires consensual agree- froin being , . r^ . i i • i formed. ment ; and it owmg to some error on one or on both sides the parties have never had a common intention, it follows that no contract is formed. Fundamental errors of this description being as effica- cious at common law as in equity to prevent an apparent agreement producing the effects of a legal contract, do not require exhaustive exposition here. It suffices to illus- trate them from cases which from their nature or their accompaniments have usually fallen under the special notice of equity. Mistake as (1.) First, there may be a fundamental mistake as to nature of the nature of the transaction itself Mistakes of this the trans- description may be peculiar to one, or common to both parties. Execution An instance of the former is seen where a person exe- mist'ake. ^ cutes a deed or signs an instrument under a mistaken belief as to its contents. Naturally cases of this descrip- tion usually raise questions of fraud as well as of simple mistake ; but it is clear that without fraud such a transac- tion may even at law be invalidated on the ground of mistake alone (rf). A strong illustration of this is aftbrded by a case in which a person executed a mortgage deed under the mistaken belief that it was only a covenant to produce deeds. This mortgage, having been assigned to a pur- (c) q. V. p. 603, et seq. C. P. 704, 711 ; Kenmdy v. Oreen, [d) Foster v. Macklnnon, 4 L. R. 3 My. & K. 699, 717, 718. MISTAKES OF FACT. 185 chaser for value without notice, was nevertheless decreed to have been wholly void, and ordered to be delivered up to be ca,ncelled (e). In this case had the deed only been voidable for fraud, no relief would have been given as against the bond fide purchaser for value. See also Hunter V. Walters (/). A fortiori, if in such cases both parties are mistaken as to the nature of the deed or writing, the fact of a mere formal signature will not suffice to establish a contract. (2.) Secondly, one of the parties may be mistaken as to Mistake as the person of the other party. Such mistakes are almost necessarily unilateral. It is evident that they are not in all cases fundamental, since in many transactions the per- sonality of the parties is quite immaterial ; for instance, where a person sells goods for ready money, or a railway traveller takes a ticket. But in other cases it is of the very essence of the intention of one of the contracting parties to deal with another particular person, and if so, a mistake as to the person will invalidate the agree- ment ((/); but it is at least questionable whether the same principle applies to deeds (Ji). (3.) Thirdly, the error may relate to the subject-matter Mistake as /• ,1 . , to subject- ot the contract. j^^^tt^J If a person intends by his contract to acquire one thing, he cannot be required to accept another. If, however, the mistake is as to a specific article, the agreement in English as in Roman law is not void unless there is a complete difference of substance (i). One important class comprised under this heading consists If subject- of those cases in which the subject-matter in the contem- i||\xtst-^° plation of the parties does not in fact exist at the time of ence con- -iTTi • 1 • 1-1 ti-act is the agreement. Wherein these circumstances the mistake void, is common to both parties, the agreement is void {k). (e) Vorley v. Coohc, 1 Gift'. 230. (0 Kennedy v. Panama d;c. Mail if) 7 Ch. 75, 88. Co., 2 L. R. Q. B. 580. iff) Boidton V. Jones, 2 H. & N. (k) Couturier v. UaMic, 5 H. L. 564. 673. (/i) Hunter v. Walters, sup. 186 MISTAKE. On this principle an apreement for the sale of shares in a company is void if, at the time of the agreement, a winding-np petition has been presented of which neither the vendor nor the purchaser knew (l). Similarly an agreement for the sale of a life interest after it has in fact, though without the knowledge of the parties, expired, is void (rn). Not if it is If in such cases the mistake is confined to one of the one i)arty° P'^^rtics, the agreement is prima facie valid ; but it will usually be found that there is some ingredient of fraud involved which will render it voidable at the option of the mistaken party ; these cases are quite distinguishable from those now under view, Mistake as Again, " a material error as to the kind, quantity, or to quality q^^^litv of a subiect-mattcr which is contracted for by a or quantity ^ / . . . when generic description may make the agreement void " (n). ma eria . Here again the agreement is only void in case the error is common to both parties (o). If only one is mistaken, it depends on circumstances presently considered whether or not it is voidable at his option (p). And the further limi- tation must be understood, that the difference is such as in the ordinary course of dealing and use of language amounts to a difference of kind. Eemedy as Where an agreement is void on the ground of funda- a°i-ee- mental error, it is open to either party to bring his action ments. in the Chancery Division to have the transaction declared void, to have any deeds or written instruments executed or signed therein set aside or cancelled, and to be relieved from any possible claims in respect thereof 2. Unilateral mistakes as to subject-matter. Agree- Though a strict regard for our classification would re- when^oid- ^l^ire US here to deal only with cases in which seeming able owing agreements are made void owing to mistake, this is a con- to mistake. • , ^ ±^ • i . • venient place to consider certain cases m many respects {L) Enimersons Case, 1 Ch. 433. (n) Pollock, Contr. 418. (;ni) titrlcldand v. Turner, 7 Ex. (o) ^Staith v. IIu(//u's,6'L.B,.Q,.'B. ^97, 208 ; Cochrane v. Williis, 1 Ch. 58. (p) p. 187. MISTAKES OF FACT. 187 analogous to them, in which the mistake, though not actually involving fraud, produces a similar effect, and the agreement becomes only voidable at the option of the mistaken party, or perhaps, more strictly speaking, one of the parties is estopped from asserting that it is void. This, as we have intimated, is often the case when a Unilateral mistake which, if common to both parties would make the "^^^ ^ ^' agreement void, is in fact confined to one of them. We have not to consider cases in which there is a distinct element of fraud, these being elsewhere investigated ; our inquiry lies on the border line between them, and the cases which have been up to the present occupying our attention. The circumstance that one of the parties has entered to be of into an agreement under the influence of a mistake of ^^^''*^ °^^^* fact has no legal effect unless — (i.) The fact is material to the transaction, or in other as to a words, is essential to its character. ^ct*'"''^ What is or what is not a material or essential fact is a question which scarcely admits of solution in general terms. Perhaps the closest practicable definition is that a fact is said to be material when the formation of the con- tract is conditional upon its existence ; but whatever the general expression employed, the ultimate decision must remain a matter of opinion. It must suffice here to state by way of illustration that defects of title, extensive difference as to the locality of an estate, or as to its extent, will give a claim to a rescission of a contract in equity (q). (ii.) The mistake is not due to the negligence of the not due to mistaken party. negh- r J ^ gence ; Equity will never encourage negligence ; and it accord- ingly will not grant any relief against a mistake of fact, however material, if it be such that the complainant might have avoided it by the exercise of reasonable diligence. (2) Story, 141 ; infra, pp. 613, ct seq. 188 MISTAKE. as to a (iii.) The fact is one which the part}^ who has knowledge there\s'aii *^^ ^^ '^^ Under an obligation to disclose, obligation This excludes facts the means of information as to which ' are open to both parties ; and cases in which each party is presumed to exercise his own skill and judgment and there is no confidence reposed ; and also facts which are in their nature doubtful, and as to the probabilities of which each may be supposed to calculate in his own dis- cretion {')'). It is evident that this qualification almost if not quite amounts to the statement that a unilatei'al mistake is only relieved against when ? non-disclosure by the better in- formed party amounts to fraud (s). In cases arising out of transactions voidable on account of unilateral mistake, it must be remembered that equity will not interfere against a person who has an equal claim to its consideration. In these circumstances it will leave the law to prevail. Thus no relief will be granted against a bond fide purchaser for valuable consideration {t). 3. Mistakes of expression. Mistakes of the kind last mentioned could from their nature only occur in mutual agreements. Those to which we now proceed may be found either in agreements or in voluntary dispositions of property. They occur whenever an ag]'eement or disposition is sought to be embodied in a formal instrument, and the instrument is so framed as not to express clearly or truly the intention of the parties or party. (1.) At common law as well as in equity the simplest cases of this description have long been provided for by established rules of construction, which it suffices here to refer to in general terms. Thus at law clerical errors and omissions which could be certainly supplied from the con- text, and all mere grammatical mistakes were remedied {ii) ; No relief against persons with an equal equity. How far law remedies mistakes of expres- sion. ()•) Mortimer v. Capper, 1 Bro. C. C. 158 ; 6 Ves. 24. (s) See Wr'iyld v. Goff, 22 Beav. 207 ; Met. Coantks Soc. v. Brown, 26 Beav. 454. {t) Poivdl V. Price, 2 P. Wms. 535 ; Bavies v. D., 4 Beav. 54. (m) Doe d. Leach v. Mickhni, 6 East, 486. MISTAKES OF FACT. 189 the context of a doubtful expression miglit be referred to to ascertain its meaning (x), and the general intent was alwaj^s regarded as jarevailing over the particular expres- sion (2/). (2.) Both at law and in equity indeed the rule has lonsf Oral evi- . . . dence. been established that oral evidence is not generally ad- missible to vary a written instrument. But notwithstand- ing the existence of a written instrument, such evitlence 'For what might even at law have been adduced to show that there admissible was not in fact any agreement at all (0). In equity ^^ ^a^- the general rule has been subjected to certain modifi- cations which require particular notice. Thus in equity oral evidence is admitted to show that In equity, either by accident, mistake or fraud, a written instrument does not truly express the intention and meaning of the parties (a) ; and if accident or mistake is clearly proved by such evidence, or is admitted by the other side, or is evident from the nature of the case, equity will rectify it (h). Again, equity has resorted to extrinsic evidence to modify the meaning of general words where there has been reason to suppose that they were not intended to bear their full and natural mea,ning. For instance, in constru- ing a release, the general words are always limited to the matter or matters especially within the contemjilation of the parties at the time when the release was given (c). One of the most important applications of this is seen in cases where a release is executed on the footing of accounts, which are subsequently found to be erroneous (d). (3.) Perhaps the most striking illustrations of the juris- Rectifica- diction of equity to rectify instruments which erroneously *^°"j"^ express the intention of the parties thereto, are found in ments. cases respecting the rectification of marriage settlements, (x) Brou-nhiff v. Wrl^jJit, 2 B. & 305, 308, P. 13, 26. {b) Davis v. Si/uwmh, 1 Cox, 402, (y) Ford v. Beech, 11 Q. B. 866. 404; Fotuler v. >., 4 De G-. & J. (■) P)/m V. Campbell, 6 E. & B. 250. 370 ; Wake v. Ilarrop, 6 H. & N. (e) L. d: S. W. B. v. Blackmore, 4 775. L. R. H. L. 610, 623. («) Murray v. Parker, 19 Beav. {d) Miller v. Craig, 6 Beav. 433. 190 MISTAKE. which cases usually arise when there is a discrepancy between the preliminary articles and the settlement as finally executed. Rules. The principal rules which regulate these cases are clearly stated in the leading authority of LEGG V. GOLDWIRE, [Ca. temp. Talb. 20; 1 W. & T. L. C. 17], and are to the following effect : — (i.) If both the articles and the settlement were executed before the marriage, and there are discrepancies between them, then the settlement will generally be considered to express the true agreement, and equity will not interfere to make it conform to the articles. (ii.) But if, even in this case, the settlement purports to be in pursuance of the articles, then, if there be a discrep- ancy, it will be presumed to have arisen from mistake, and equity will interfere to rectify it (e). (iii.) And further, even though the settlement does not upon the face of it purport to be in pursuance of the articles, extrinsic evidence maybe resorted to to show that such was the intention, and that the discrepancy arose from mistake (/). (iv.) If the articles preceded the marriage, and the settlement was executed after the marriage, then equity will in all cases consider that the articles express the true agreement, and will rectify the settlement to make it con- form therewith. The principle in this case is that after the marriage the parties are no longer in the same un- fettered position, and that the agToement as expressed when they were free should be regarded as the true one (g). Generally Generally speaking, in cases coming under the third of mus^be these rules, the Court will only interfere on evidence of a common, mistake common to all parties (h), and the extent of the (e) West V. Errissey, 1 Bro. P. C. (g) Legg v. Golduire, supra. 225. (A) Sells v. S., 1 Dr. & Sm. 45 ; (/) Bold V. Hutchinson, 5 De G. Jlooke v. Kensington, 2 K. & J. 753, M. & G. 558 ; Breackdlanev. Chan- 764 ; Foivler v. F., 4 De G. & J. dos, 2 My. & Cr. 711, 739. 265. KECTIFICATION OF INSTRUMENTS. 191 rectification required must be clearly ascertained and de- ^^^ "^^^^ , , , . . , . defined and fined by evidence cotemporaneous with or anterior to the proved, deed (i). But there are cases in which on proof of a clear mistake of one party only, the Court has taken upon itself to rectify a settlement (k), and it is especially disposed to do so by any unfair or underhand dealing on the part of the husband (l). A settlement has indeed been rectified even against previous articles on the settlor's uncontradicted evidence of mistake ())i). Courts of equity will not reform a voluntary deed as Eectifica- against the grantor (■??), nor will they decree a settlement voluntary as against purchasers for valuable consideration (including deeds, mortgagees) who have had no notice of the articles ; but if they have had such notice, a settlement may be decreed against them (o). (4.) The jurisdiction of equity to rectify mistakes in wills Rectifica- rests on widely different principles. In no case can oral ^l^" evidence or any evidence dehors the will be admitted to vary or control the terms thereof. It is only when a mis- take is apparent on the face of the will itself that the Court will interfere ; oral evidence may be resorted to to explain a latent ambiguity. Thus where a residue was directed to be divided between the testator's " two daughters equally," and in fact he had three daughters when the will was made, it was held that the three were entitled to share the property (p). A mis- take in computing the amount of a legacy has similarly been set right (q). A mere misdescription of a legatee will not defeat a legacy ; but if a legacy is given to a person for a particular motive dependent on a supposed character which he has falsely assumed, he will not be suffered to demand his legacy. (/) Bradford v. Romney, 30 Beav. 628. 431. (o) Davies v. D., 4 Beav. 54. (h) Harbidfje v. Wogan, 5 Ha. 258. (p) Stebhiny v. Walker, 2 Bro. C. {I) Clark V. Gird wood, 7 Ch. D. 9. C. 857. (m) Smith v. Iliffe, 20 Eq. 660. (q) Milncr v. M., 1 Ve.". sr 106. (n) PhlUhpaon v. Kerry, 32 Ijeav. 192 MISTAKE. This was the case where a woman gave a legacy to a man supposing him to be her husband, whereas in fact the mar- riage was bigamous and void (/•). Vice versa, if a legacy is revoked upon a mistake of facts, for instance, on the supposition that the legatee is dead, equity will grant relief (s). But in cases of this description, whether the suit be to set aside or to establish a legacy on the ground of mistake, the Courts proceed with great circumspection. It does not follow that because one motive is expressed or is apparent, that the legacy is intended to depend upon it alone. The testator may be in some degree moved to confer a benefit by an erroneous supposition of relation- ship between himself and the beneficiary ; but never- theless the primary motive may be a personal love and affection which exist altogether apart from the fact of such relationship ; and if this seems to be the case, equity will not, on mere proof that the supposed relation- ship did not exist, interfere to take away the benefit {t). Still less will proof that a testator has formed a false estimate of the character of a person form a ground for interfering with his testamentary dispositions. Equity never assumes to punish moral delinquencies by taking away civil rights (u). (5.) Defective execution of powers. One of the most useful heads of the jurisdiction of equity in relieving against accident and mistake, is its power to interfere in aid of the defective execution of powers. The principles on which it acts in these cases have been thus expressed by an eminent authority: " When- ever a man having power over an estate, whether owner- ship or not, in discharge of moral or natural obligations, shows an intention to execute such powei% the Court will operate upon the conscience of the heir (or other person benefiting by the default) to make him perfect this in- (r) Kennell v. Ahhott, 4 Ves. 808 ; [t) Kenvell v. AUott, sup. Giles V. G., 1 Keen, 692. («) Giles v. G., sup. (s) Campbell v. French, 3 Ves. 321. DEFECTIVE EXECUTION OF POWERS. 193 tention " {x). It was on the same principle that when a surrender of copyholds to the use of a will was legally- requisite in order to an effectual testamentary disposition thereof, the want of such surrender was supplied in equity ; but this interference has long been rendered unnecessary by statute (?/). The investigation of this subject resolves itself into the following inquiries : — (i.) To what powers the principle applies ; (ii.) What defects or mistakes will be relieved against ; (iii.) In whose favour equity will so interfere. (i.) Generally speaking it matters not what is the nature To what of the power respecting which the assistance of equity is p^^clpie^'^ sought. The cases in which it is material are exceptional, applies. Thus powers of sale, of raising portions, of jointuring, of re- voking uses, and of appointment generally, are continually the subjects of equitable relief. Powers of leasinof were at one time thought to form Powers of . 1 -■ (3- an exception to the general rule, but it has long been '^''^'''"»' established that this is not so, and that a defective execu- tion may in this as in other cases be aided (z). In certain cases of deviation from the terms of a power of leasing there is a special relief afforded to the intended lessee by statute (a), and such relief is available even if the power has been derived under an Act of Parliament. But generally speaking powers arising under an Act of Powers Parliament are construed strictly, and a defect in their ^"^'"S J ' under an execution will not be relieved against in equity (h). Act of (ii.) What defects Avill be relieved against. maut. The first and most essential condition of relief against a intention defect in the execution of a power is that there shall have "^"^*^ ^^'^ ^ clear, been a clear intention on the j^art of tlie donee of the power to execute it (c). {x) Chapmmi v. Gibson, 3 Bro. C. 345. C. 229, per Lord Alvanley. (a) 12 & 13 Vict. c. 26, 13 & 14 (y) 55 Geo. III. c. 192, 1 Vict. c. Vict. c. 17. 26. (b) Roswdl's Ca., per Hutton Ro. (.r) Shannon v. Brachtreef, 1 S. & Abr. 379, fol. 6 ; Anon., Freem. 2J4. L. 52 ; Boivdl v. Deio, 1 Y. & C. Ch. (c) Garth v. Townseml, 7 Eq. 220. O 194 MISTAKE. and con- formable to the in- tention of creator of the power. Defects of form relieved asrainst. Substitu- tion of a will for a deed. Equitable appoint- ment. Secondly, the granting of relief against a defective execution is always conditional upon the general rule that equity will not assist in defeating the intention of the person creating the power. It will not therefore dispense with any conditions imposed upon its execution which are not merely formal. Thus if the consent of any person is required, a power exercised without such consent will not be supported (cZ). And if a given time is prescribed within which the power must be exercised, this direction must be complied with (e). Still less will equity assist in setting up a defective execution which amounts to a breach of trust (/). The defects to which assistance of equity is afforded may be described generally as defects of form. The rule is that where an intention to execute the power is mani- fest, a mere non-compliance with prescribed forms will be remedied {g). Perhaps the most conspicuous illustration of the rule is the case in which a power, directed to be exercised by deed only, is in fact executed by will. This is regarded as a merely formal variation, and is relieved against (Ji). But the converse case is different ; a power directed to be exercised by will only cannot effectually be exercised by deed ; for a deed being an irrevocable instrument, to allow it to be used instead of a will would be to depart in sub- stance from the intention of the donor of the power {i). Another large class of cases in which relief is afforded comprises those in which there has been an appointing instrument competent on the general principles of equity, but ineffectual at law ; as where the donee of a power has covenanted or agreed to execute it (Ic), or has given a id) Lawrtnson v. Butler, 1 S. & L. 13. (e) Cooper v. Martin, 3 Ch. 47. (/) Mortlock V. Buller, 10 Ves. 292, 317. (g) Shannon v. Bradstreet, 1 S. & L. 63 ; FothergiU v. F., Freem. 256. (h) Toilet V. T., 2 P. Wms. 489 ; Sneed v. 8., Amb. 64. (0 Reid V. Sheryohl, 10 Ves. 370; Adney v. Field, Amb. 654. (k) Fothevjill V. F., sup. ; MorthrJ; V. Buller, sup. DEFECTIVE EXECUTION OF POWEES. 195 written promise to grant an estate, which he can only fulfil by the exercise of a power (/). A recital in a deed has been considered a sufficient indication of intention to amount to an equitable execution (rii). Other defects more formal still are d fortiori aided ; As to for instance, the presence of less than the prescribed num- witnesses. ber of witnesses, or an omission to seal an instrument which the donor of the power has directed to be signed and sealed (n). But the Wills' Act itself prevents any relief being given in case of non-compliance with its pro- visions (o). By 22 & 28 Vict. c. 35, s. 12, it is now provided that a deed executed in the pi^esence of and attested by two or more witnesses, shall so far as respects execution and attest- ation be a valid execution of any power of appointment by deed, notwithstanding that the instrument creating the power shall have required some additional or other forms of execution and attestation. This enactment covers many cases in which relief was formerly purely equitable. Where trustees have a common power of sale over land, Reserva- , , • 1 r • 1 1 IT • ^ 1 tions under and they execute it deiectively by selling without the powers of timber or with a reservation of the minerals, the Court • cannot, apart from authority conferred on it by statute, remedy the defect (jo). But now, in the case of a reserva- tion of timber, the Court is empowered, by 22 & 23 Vict. c. 35, s. 13, to aid the defect in its discretion, at the pur- chaser's expense ; and by 25 & 2G Vict. c. 108, unless in the instrument creating the powder a reservation of minerals is expressly forbidden, no sale, exchange, or partition made in exercise of the power is to be deemed invalid merely on the ground that the power did not expressly authorise such reservation ; and hereafter such reservation may be made (I) CmnplcU V. Leach, Arab. 740 ; (n) Wade v. Pa;/et, 1 Bro. C. C. London Chartei-cd Bankv. Lemp'iere, 363; 31orse v. Martin, 34 Eeav. 4 L. K. P. C. 572. 500. (m) Wilson V. Piygott, 2 Ves. jr. (o) 1 Vict. c. 2G, s. 10. 35i ; C'uni/ni/Jiaine v. Anstruthcr, (p) Oockerd/ v. Cliolmcly, 1 CI. & 2 L. R. Sc' & U. 223. F. 60, 1 R. & M. 418. o2 196 MISTAKK. by trustees and others, inclnrling mortgagees, with the sanction of the Court, to be obtained on petition (q). Non-exe- It is clearl}^ settled that the principle which supplies a reHeTecr* defect in the execution of a power does not extend to a against, non-execution. Thus if a person has been prevented from effecting an execution or an attempted execution by any accident such as sudden illness or death, there is no juris- diction whatever to take the property from those entitled in default of appointment (r). The only possible exception to this would be a case in which execution was prevented by fraud, the general rule being that equity considers that as done which has been fraudulently prevented from being done. But there does not seem to be any express decision on the point (s). (iii.) In whose favour equity will interfere. It has in many places been observed that equity will not interfere in favour of pure volunteers ; and that Relief principle applies here. It requires at least a meritorious purchasers, consideration to support the claim of the person seeking relief. The strongest claim is that of a purchaser, which term creditors, includes a mortgagee and a lessee (t). Creditors are also charities, entitled to relief (it), and charities, which are generally wife, favoured in equity (x). In the leading case of Toilet v. Toilet (y) similar assistance was afforded in favour of a wife ; a legitimate child is in the same position (z) ; and in these cases it matters not that the claim is made upon a meritorious consideration only, as, for instance, upon a provision made after marriage («) ; nor is the relief barred by the fact that the wife or child is otherwise provided for {h). (q) Re Beaumont, 12 Eq. 86. Camphell v. Leach, Amb. 740. (r) Toilet V. T., 2 P. Wms. 489 ; («) Wilkes v. Holmes, 9 Mod. 485. Bucicell V. Blenhhorn, 5 Ha. 131, [x) Innes v. Sayer, 7 Ha. 377. 141. {(/) Sup. (s) See Middleton v. M., 1 J. & {:) Sneed v. S., Amb. 64. W. 94. («) Jleri-ey v. ff., 1 Atk. 567. {t) Fothertiiil v. F., Freem. 256 ; [h] Ibid. ; Chapman v. Gibson, 3 Taylor V. meelcr, 2 Vern. 564 ; Bro. C. C. 229. i DEFECTIVE EXECUTION OF POWERS. 197 But in the absence of some natural or moral obligation on the part of the donee of the power to provide for the person in whose favour the defective execution has been made, no aid will be given (c). Thus a husband (d), a No relief grandchild (e), and collateral relations (f) have no title to band ^" relief; and d fortiori a volunteer, even though he be the grandchild, creator of the power himself (g). Voi'un- The interference of equity is also subject to the further *^®^^- condition that it will not be afforded if the person entitled in default of appointment has a claim on the donee equal ^^ against -^ ^ '■a, person to that of the person who seeks to have the execution having an aided (h). In other words, as between equal claimants, l^^^^y. equity will not interfere. This limitation is chiefly illus- trated by cases in which a child has been entitled in default of appointment, and the effect of the appointment would be to leave him totally unprovided for (/). (c) Farwell, 276. (:j) Watts v. BuUas, 1 P. Wms. (d) Moodie v. Eeid, 1 Madd. 516. 60, note. (e) Tudor v. Anson, 2 Ves. sr. (A) Farwell, 277. 582. (0 Chapman v. Gibson, siqy. ; (/) Goodivyn v. G., 1 Ves. sr. Morse v. Martin, 34 Beav. 500. 228. 198 ACCIDENT. Accident defined. Distin- guished from mistake. Jurisdic- tion to relieve condi- tional on defect of legal remedy. Section II. — AcciDENr. Definition. I. Extent of remedy at Law. II. Characteristics of remedy in Equity. Accident, in the sense in which the word is used in Courts of equity, lias been defined as comprising " such unforeseen events, misfortunes, losses, acts, or omissions, as are not the result of any negligence or misconduct in the party" (/t;). The distinction between accident and mistake is manifest and important. Mistake has reference to a state of things at the time at which the contract or other transaction in question takes place. Accident refers to some event which occurs subsequently to the transaction. Mistake is essen- tially subjective ; it indicates a mental condition of one or both of the parties concerned. Accident is objective ; it relates to facts Avholly external to the parties. Mistake affects the quality or character of the transaction itself Accident introduces some modification in the remedy which would otherwise be available, or gives rise to some particular claim for relief The jurisdiction of equity to grant relief in certain cases of accident is of very ancient date. In its inception it only extended to cases in which no adequate relief was attainable in a Court of law. From time to time Courts of law have acquired new powers of granting relief; but in this as in other blanches of equity, the jurisdiction having once arisen was never afterwards affected by the increased powers of the law. The study of equity, therefore, still requires an examination of the jurisdiction as formerly contrasted with that of common law. {k) Story, 78. REMEDY AT LAW. 199 I. Remedy at Laiu. In the iuquiry, tlien, whether in any particular case of Extent of accident, equity had jurisdiction to grant relief, the first H^^^ ^ ^ question was whether there was an adequate remedy at law. To answer this a brief resume of the legal jurisdiction in cases of accident is required. 1. Courts of law have always recognised the j)lea of "vis Vis mahr. major," or " the act of God." These terms are not indeed understood in a wide sense; but only as including "events which as between the parties, and for the purpose of the matter in hand, cannot be definitely foreseen or con- trolled"©. Thus where the performance of a contract depends on Destmc- the existence of a specific thing, and by the accidental subject- destruction of that thing j)erformance becomes impossible, matter of the contract is no longer enforceable at law (^n). The law in such a case implies a condition that the contract shall be off if a thing necessary to its performance perishes without default of the contractor. Similarly a contract for a future specific product is or non- deemed at law to be conditional on such product eventually thereof. coming into existence. For instance, a contract to deliver 200 tons of a particular crop of potatoes was held to be 2yro tanto discharged by a failure of the crop to reach that amount {n). Thus again, a contract for personal service is deemed to Personal be conditioned upon the continuance of the life and health of the contracting party (o). It scarcely need be said that these principles have no Warranty application where there is a warranty or express covenant ^^^^ ||ig.' against the loss or destruction of the thing in question, tinguished In such cases the destruction being evidently contemplated (?) Pollock, Contr. 361-2. Q. B. 462 ; 1 Q. B. D. 258. (m) Taylor v. Caldwell, 3 B. & S. (o) Farmw v. Wilson, 4 L. E. 826. C. P. 744 ; Boast v. Firtlt, ibid. 1. (w) HowtU V. Coupkmd, 9 L. E. 200 ACCIDENT. destruction of deeds. Bonds. and expressly provided for, does not fall within the definition of an accident ; and we shall observe that in this respect there is no distinction between equity and law. Loss and 2. In many cases the loss or destruction of deeds was remediable at law, evidence being admitted of the loss or destruction and of the contents (p). But in the case of bonds the legal remedy was long inadequate, owing to the technical rule that the defendant was entitled to demand that it should be read in open court : in other words, liTojert and oyer of the bond were necessary to its enforce- ment. Hence an equitable jurisdiction to grant relief in such cases arose, which, as usual, has not been displaced by the amendment of the law in the same direction (g). 3. A bill or note which was not negotiable might, it seems, notwithstanding its loss or destruction, have been proved and sued upon at law (z-) ; but an acceptor of a negotiable bill or note could not have been compelled to pay it to any one who could not deliver it up («). By 17 & 18 Vict. c. 12.5, s. 87, it is, however, enacted that "in any action founded upon a bill of exchange or other negotiable instru- ment, it shall be lawful for the Court or a judge to order that the loss of such instrument shall not be set up, pro- vided an indemnity is given to the satisfaction of the Court or judge, or a master, against the claims of any other person upon such negotiable instrument." But this extension of the legal remedy did not, of course, affect the equitable jurisdiction which had before arisen. Bills, notes, 17 &18 Vict. c. 125. II. Remedy in Equity. These few illustrations will perhaps suffice to indicate, as far as our present purpose requires, the extent and character of the legal jurisdiction to grant relief in cases (p) Whitfield V. Favsset, 1 Ves. sr. 387, 392. (q) C. L. Proc. Act, 1852, 15 & 16 Vict. c. 76, s. 55. (r) Charnlcy v. Grundy, 14 C. B. 608, 614 ; Wain v. Baiky, 10 Ad. & E. 616. (s) Hansard v. Robinson, 7 B. &C. 90 ; Ramuz v. Croicc, 1 Ex. 167. REMEDY IN EQUITY. 201 of accident. From them we may ascertain whether or not the first condition of equitable relief, namely, the inadequacy of the legal remedy, is complied with. There is a second condition, equally important ; Second namely, that the party seeking relief must show a consci- [^ con- '^ entious title thereto. scientious If, therefore, the party seeking relief has been guilty of relief, gross negligence, or of other misconduct in the transaction. Effect of he cannot successfully appeal to equity (t). Or if both or mfs- parties stand upon an equal footing in equity, in accord- conduct, ance with the common maxim, equity will not interfere equ"\.'^^ with their legal position. Thus no relief will be given against an heir-at-law where accident has prevented the making of a will, or the will has been imperfect (u). And, generally, against a bond fide purchaser for value without notice, a Court of equity will not interfere on the ground of accident {x). On similar grounds equity will not relieve against Matters of accident in matters of positive contract, where the possi- contract, bility of the accident may fairly be considered to have been within the contemplation of the contracting parties. Thus a lessee who covenants to pay rent, or to keep the demised premises in repair during a given term will remain bound by his covenants as well in equity as at law, not- withstanding an accidental destruction of the premises; for such express contracts indicate an intention to secure the lessor against the consequences of accident ; or at least it may be said that the lessee has been guilty of negli- gence in not protecting himself, by requiring exceptions from the general liability which he has deliberately under- taken [y). Bearing in mind these two leading principles on which the equitable jurisdiction in matters of accident rests, we (t) Exp. Greemvai/, 6 Ves. 812. Story, 108. (u) WJiitton V. Russell, 1 Atk. (//) Bullock v. Dommitt, 6 T. R. 148 ; 1 Mad. 46 ; Story, 106. 650 ; P/jin v. Blackburn, 3 Ves. 34, {x) Maiden v. Merrill, 2 Atk. 8 ; 38 ; Story, 101. 202 ACCIDENT. are now prepared to notice in greater detail some parti- cular instances of its application. 1. We have already briefly observed the nature and limits of the jurisdiction of Courts of law in the case of lost deeds and other instruments. We shall now investigate that of equity as dealing with the same class of cases. Relief in Equitable interposition is very common and very be- Sit'ifouds iieficial in the case of lost bonds. Not only was there claim to relief on the ground that originally the Courts of law refused to dispense with the profert and oyer of the bond, but there was the further ground that Courts of equity alone had the power of imposing just conditions on the party seeking relief. The maxim, " He who seeks equity must do equity," is conspicuously applicable to such cases ; Indem- and equity gives effect to it by requiring a plaintiff who "^ ^' seeks to enforce a bond while alleging its loss, to give a Proof of suitable bond of indemnity (0). The procedure of equity oath*^" also had the advantage of enabling it to require the plaintiff to maintain the fact of the alleged loss by affidavit (a). Former There was formerly a distinction between the position bet^^eeir"^ of a plaintiff merely seeking discovery and that of one suit for ^,}-^Q 0^^ \\yQ same time asked for relief. Where the plaintiff discovery n t- • i i i t • i and for asked Only for discovery equity would make a decree with- rehef. ^^^ ^^^^, affidavit of loss or offer of indemnity (6), the ground of the distinction being that in suits for discovery the interference of equity was merely auxiliary, and did not interfere at all with the original jurisdiction of the Courts of law. Under the new procedure, however, the reason of the distinction has disappeared, and the distinc- tion itself become of no importance (c). Lost title 2. Another illustration of the superiority of the relief afforded by equity is supj)lied by those cases in which a title deed of land has been destroyed or concealed, and the (2) Exp. Greenway, 6 Ves. 812 ; {h) Dormer v. Fortescue, 3 Atk. E. I. Company v. Boddam, 9 Ves. 132 ; Walmsley v. Child, 1 Ves. sr. 464. 344. (a) Exp. Greemuay, sup. (r) Jud. Act, 1873. Ord. XXXI. deed REMEDY IN EQUITY. 203 suffering party does not know which alternative is correct. In such a case equity can decree possession of the land to the plaintiff until the defendant shall either produce the deed or admit its destruction (d). Courts of law having had no power to put a defendant upon such terms, could afford no adequate relief in such a case. On similar princi- ples a plaintiff in possession might have had his possession established under a lost deed in a suit for discovery (e). 3. In the case of lost negotiable instruments, as in that l^-^st nego- of lost bonds, a Court of equity was the proper forum in struments. which to seek relief, because of its power to provide for an adequate indemnity to protect the defendant (/). 4. We have observed that contracts of personal service Contracts were at law deemed to be conditioned on the life and service, health of the contracting parties. In equity this princij)le is carried further. Thus where an apprentice has paid a premium in consideration of receiving instruction for a certain time, and before the expiration thereof the master becomes bankrupt, equity will apportion the premium and decree repayment of that for which, owing to the bank- ruptcy, the consideration has failed ((/). 5. Other cases of accident fall still more peculiarly Payments within the cognisance of Courts of equity. Thus iftOTs^^&cT' an executor or administrator pays the debts and legacies of his testator or intestate in full, in confidence that the assets are sufficient, but it is eventually found that from and acci- . T , .. ,-, 1 r • , dental loss some accident or untoreseen occurrence they are dencient, „£ te^t^- equity alone can relieve; and it will do so where the *°'''^ P''°" . . . perty. deficiency has resulted from an innocent accident or mistake (h). Instances of this kind are supplied by cases in which the goods of the testator have been stolen without any (d) Whitfield V. Fausset, 1 Ves. ([/) Hale v. Webb, 2 Bro. C. C. sr. 392. 78. (e) Dormer v. Forfescue, sujh (/*) Edwards v. Freeman, 2 P. (/) Hansard v. Rolnnsnn, 7 B. & Wnis. 447; Hawkins v. Bay, Amb. C. 90 ; Glynn v. B. of Ewjland, 2 160. ib. 38. 204 ACCIDENT. Anniuties accident- ally re- duced. negligence on the part of his executor (i), or have been destro^'Cd, or damaged by fire, or otherwise (k) ; and also by cases in which an executor has reckoned as an asset a debt which he supposed to be still due, but which proves in fact to have been paid to the testator (/). 6. If, again, an annuity given by a will is secured by public stock which is afterwards reduced by Parlia- ment (on), or becomes unproductive owing to a revolu- tion (n), equity will grant relief as against the residuary legatees on the ground of accident. (i) Jones V. Lewis, 2 Ves. sr. 240. {/t) Clough V. Bond, 3 My. & Cr. 490, 496. (/) Pooley V. Jlay, 1 P. Wms. 355. {m) Davies v. Wattier, 1 S. & S. 463. (w) Hatchett v. Pattle, 6 Madd. 4. 205 CHAPTER IV. RELIEF AGAINST PENALTIES AND FORFEITURES. Principle of granting relief. Peachy v. Somerset. Sloman v. "Walter. I. Relief when given. II. Limits of the jyrinciple. Relief against penalties and forfeitures was originally obtainable exclusively in equity, and this having been so, its jurisdiction remains, notwithstanding that its principles have from time to time been embodied in statutes, and thus become operative in Courts of Common Law ; and whatever distinctions between the two jurisdictions continued up to the passing of the Judicature Act, 1878, have by that statute been rendered unimportant. There are two leading authorities on the doctrine of relief against penalties and forfeitures. In PEACHY V. THE DUKE OF SOMERSET, [1 Strange, 447 ; 2 W. & T. L. C. 1100,] a person having incurred a forfeiture of a copyhold by making leases contrary to the custom of the manor, and by felling timber, digging stones, and grubbing up hedges, although he offered by his bill to make a recompense, was held not entitled to relief in equity. It was expressed that the true ground of relief against penalties was from 206 RELIEF AGAINST PENALTIES AND FORFEITURES. the original intent of the case ; if the penalty was designed only to secure money, then on recompense being given the Court would grant relief. But in SLOMAN V. WALTER [1 Bro. C. C. 418 ; 2 W. & T. L. C. 1112] a somewhat wider view was taken ; and the rule was laid down that " where a penalty is inserted merely to secure the enjoyment of a collateral object, the enjoyment of the object is considered as the principal intent of the deed, and the penalty only as occasional, and therefore only to secure the damage really incurred." So that whenever this is the case, even though the object of the penalty may be something more than to secure a payment of money, equity is wont to decree compensation in lieu thereof, to the extent of the damage really sustained. Relief not The test question therefore becomes, whether compensa- fined to ^io^^ "2^^ effectually be made. Penalties to secure pay- penalties rnents of money are doubtless the simplest cases, since in to secure . , . money them payment with interest is a complete compensation. payments. |3^^^ there are other cases in which dcimages for a non- compliance with a condition to perform some collateral act may be assessed with sufficient accuracy to render compensation equitable, and thus to avoid the extreme consequences of forfeiture. We shall first illustrate the operation of the princij)le by referring to those classes of cases in which it is most frequently applied ; and secondly, shall indicate the limits of the principle by referring to certain cases in which it has not been considered applicable. I. Relief when given. Bonds. 1. Among the most frequent cases in which in the early times of English equity this jurisdiction was exercised, were the cases of common bonds, in which the payment of a given sum and interest was secured by a conditional RELIEF WHEN GIVEN. 207 penalty of double the amount, or some other excessive sura. Relief in such cases was continually given in e([uity on the terms of paying the principal, interest, and costs, until the statutes 8 & 9 Will. III., c. 11, and 4 & 5 Anne, 8 & 9 c. 16, rendered applications to equity for this purpose no c. i{. longer necessary. i & 5 The same principle naturally applies where a penalty is c. 16.' inserted in any deed to secure a payment of money, for C'ovenarits instance, purchase money (a). And relief in cases of this description is now provided for by the Common Law C. L. P. Procedure Act, 1860 (6), which permits payment into ^''*' ■^^^^• Court to be pleaded by leave of the Court or a judge in any action on any bond which has a condition to make void the same ujDon payment of a lesser sum at a day or place certain (c). 2. Relief is, as we shall elsewhere observe, also given Interest when the penalty takes the form of requiring a higher rate ^Ja^g"^*^" of interest in case the principal or interest shall not be paid at the stated time or times (d) ; but if the agreement is that on condition of punctual payment a lower rate of interest shall be payable, then on breach of this condition the higher rate may be insisted on, and there is no equity to interfere with the claim (e). In short it may be regarded as a principle of universal application that where the payment of a smaller sum is secured by a larger, the larger sum will be regarded as a penalty, the enforcement of which will be relieved against (/). 3. Where in a lease there was a clause of forfeiture for Forfeiture nonpayment of rent at a stated time, equity always held pal'm'^Jiit that the right of entry was only intended as a security for of rent, the rent, and continually relieved against it on the lessee's paying the arrears of rent accrued due with interest (a) Exp. Ilulse, 8 Ch. 1022. (e) Nicholh v. Maynard, 3 Atk. (6) 23 & 24 Vict., c. 126. 519. (c) Sect. 25. (/) Astley v. Weldon, 2 B. & P. ((/) Stanhope v. Manners, 2 Ed. 350-355. 199, infra p. 218. 208 RELIEF AGAINST PENALTIES AND FORFEITURES. Mort- gages. Penalties to secure collateral acts. Covenants to insure. 22 & 23 Vict. c. 35, s. 4. thereon. This principle has now long been recognised by statute, but its application has been thereby limited to cases in which rehef is sought within six months after execution [g). 4. Similarly relief is continually given against the for- feiture of a mortgaged estate by default of payment at the time named in the deed ; the mortgagor having neverthe- less an equity to redeem on payment of the principal, interest and costs. 5. The case of Sloman v. Walter (A) affords another illustration of relief against a pecuniary penalty to secure a collateral act. There the condition of the penalty was that the defendant should have the use of a particular room in a house whenever he thought proper ; on his seeking to recover the penalty, he was restrained by injunction on the bill of the plaintiff, pending the decision of an issue to ascertain the actual amount of damage sustained. In a similar case, a bond with a penalty of £600 not to carry on business save as therein specified within a given area, was relieved against, and actual damages only awarded (i). 0. Apart from legislation, Courts of equity had no power to relieve against forfeiture for breach of a covenant to insure, on the ground that the risk occasioned was of such a nature as to be incapable of estimation in damages (k). But owing to the hardship often occasioned by the strict interpretation of such covenants, it was enacted (I) that "a Court of equity shall have power to relieve against a forfeiture for breach of a covenant or condition to insure against loss or damage by fire, w^here no loss or damage by fire has happened, and the breach has in the opinion of the Court been committed through accident or mistake, or otherwise without fraud or gross negligence, and there is an insurance on foot at the time of the application to the (i/) 4 Geo. II. c. 28 ; 15 & 16 Vict., c. 76, ss. 210, 211 ; 30 & 31 Vict. c. 59. (A) Su;pra, p. 206. (/) Hardy v. iMarthi, 1 Bro. C. C. 419, n. (k) Green v. Brichjes, 4 Sim. 96. (0 22 & 23 Vict. c. 35. RELIEF, WHEN GIVEN. 209 Court, in conformity with the covenant to insnre, upon such terms as to the Court may seem fit " (m). By s. 6 it is provided that the Court shall only have power to relieve the same person once in respect of the same con- dition (n). Similar power was conferred on Courts of 23 & 24 common law by 28 & 24 Vict. c. 126, ss. 2, 3. These cases ^ 126. are now included in the more comprehensive measure recently passed; see p. 213. 7. Where there are in a deed several covenants or pro- One sum visions for the performance of several acts or a succession severa"^ of acts, and a certain sum is by the same instrument stipu- ^^^^ , , regarded lated to be paid upon the breach of any or of all such as penalty; stipulations, the sum will be considered as a penalty, and only the actual damage sustained can be recovered. This is well illustrated by KemhJe v. Farren (o), where the con- tract was that the defendant should act at Covent Garden Theatre for four seasons, receiving £3 6s. ScZ. for every night the theatre was open. There was a proviso that if either party should neglect or refuse to fulfil the said agreement or any part thereof, such party should pay to the other the sum of £1000, and it was agreed that this sum should be considered as liquidated damages, and not as in the nature of a penalty. Nevertheless, on a breach of the agreement in the second season, the Court held that this sum was a penalty, since there was no attempt at propor- tioninof it to the extent of the breach. It will be seen that this case further establishes the ride notwitb- that even an express agreement between the parties that !'in^ express a certain sum shall be considered as liquidated damages, agreemtnt. and not as a penalty, will not override the principle of equity in cases where it clearly applies. 8, Another illustration of a similar kind is afforded b}^ those recent cases in which the Courts have refused to enforce a bye-law of a railway company to the effect that a passenger who travels without a ticket beyond the (m) s. 4. 117. [n) See Piuje v. Benmt, 2 Giff. (0) 6 Bing. 141. 210 RELIEF AGAINST PENALTIES AND FORFEITURES. distance for which his ticket is issued must pay the whole fare from the place from which the train started (j?). The principle resembles that of Kemhle v. Farren (q), it being considered that the same sum cannot be reasonably demanded as damages for breaches of contract differing in degree. Accident, 9. In cases in which relief might not otherwise have fraud!^^' "^"^ been given, if there have been auy unavoidable accident, surprise, excusable ignorance, or fraud, which has prevented the execution of a covenant, the Court will interfere upon compensation being made (r). Under such circumstances as these, relief has been given against a forfeiture of a breach of a covenant to rejDair (s) ; and similarly where the act of forfeiture has been committed in reliance on the as- surances of an agent of the defendant (t), and where the right to claim forfeiture has been waived {u). II. Limits of the Principle. 1. It being a condition of granting relief against a penalty or forfeiture that proper compensation for the breach of the agreement shall be made, it follows that where there is no means of ascertaining what amount of compensation would be equitable, no relief will be given. Thus in the case of a breach of a general covenant to to repair; j-^pair, by which a forfeiture has been incurred, equity has hitherto usually refused to interfere (x). The case of a covenant not in general terms, but to lay out a specific sum in a given time, has been sometimes distinguished (y), but Compen- sation must be ascertain- able. Covenant (p) Broivn v. G. E. R. Co., 2 Q. B. D. 406. ( T f> ^1 . . of calls. a reasonable case lor reliet on payment ol the arrears with interest ; but equity has, on grounds of public policy, re- fused to interfere in these cases (c). What distinguishes them from the case of a lessee who allows his rent to fall into arrear, is that in the former case the undertaking is usually of a more or less speculative character, and it would be inequitable to allow a shareholder to lie by and withhold his calls indefinitely until the chances of success were fully ascertained. The danger of a multiplicity of actions arising in case relief was so afforded has also been of weight in the decisions. Where, however, in the articles of association of a public company there is no stipulation or clause conferring upon directors a power to declare shares forfeited, they have no implied power to do so (d) ; nor have the managers of a cost book mine (e). And wherever such a power of forfeiture is provided, it will be strictly construed, and every condition prescribed for its exercise must be complied with (/). 3. The Court has no jurisdiction to grant relief against statutory any penalties imposed by statute (g). Within this principle ^^^^ *^^®' (z) Hill V. Barclay, sup.; Brace- (d) Re National d-c. Co., 7 W. indge v. Buckley, 2 Price, 200, 215. R. 369. (a) Croft v.Goldsmid, 24Beav.312. (e) Clarice v. Ea/rt, 6 H, L. 633. (6) Hills V. Rowland, 4 De G. M. (/) Ihkl. ; Goidton v. London dbc. & G. 430. Co., W. N. 1877, p. 141. (c) Sixtrks V, Liverpool Watei-- (g) Keating v. Sparroiv, 1 Ba. & xoorlcs, 13 Ves. 428. Be. 367 ; Re Brain, 18 Eq. 389. p 2 212 BELIEF AGAINST PENALTIES AND FOBFEITURES. fall penalties imposed by benefit building societies in accordance with their rules under 6 & 7 Will. IV. c, 92 (i). Persons 4. Though in many cases, as above shown, equity relieves ele^t be- against a penalty or forfeiture which has been incurred by tween an ^^ breach of contract, it will not suffer a person who has agreement ,i i v x- r and a entered mto an agreement, to escape the obligation ot penalty, specifically performing it by electing to pay the penalty stipulated in case of non-performance. The case of French v. Macule (k) is usually referred to on this ques- tion. There it was laid down by Lord St. Leonards that " if a thing be agreed upon to be done, though there is a penalty annexed to its performance, yet the very thing must be done ;" and the rule applies whether the contract be to do or to abstain from doing anything (J). Contiacts But care must be taken to distinguish between such Il^r,-!" °^ cases and those in which a certain sum is agreed to conditions. \,q paid as the price of or consideration for doing or abstaining from doing a given act — for instance, where a lessee covenants to reside on the premises or not to plough land, and if otherwise to pay an additional rent. Here the additional rent will not, on the one hand, be regarded as a penalty, so as to be relieved against, nor on the other hand can the lessee be restrained from exercising the option given to him {m). Where the contract is of this nature, the Court will not infer from the fact of the addi- tional sum reserved being disproportioned to the actual damage resulting that it is in the nature of a penalty (n) ; but if together with a covenant for additional payment there is also a clause of forfeiture, the payment will then, it seems, be deemed a penalty (o). Liquidated 5. The cases last discussed illustrate the distinction " ° ^' between a penalty and liquidated damages, on which dis- tinction the whole of the present question turns. It has (i) Parher v. Butcher, 3 Eq. 762 ; 327. Provident P. B. Soc. v. Greenhill, (m) Rolfe v. Peterson, 2 Bro. P. C. 9 Ch. D. 122. 436 ; Hardy v. Martin, 1 Cox, 27. (k) 2 Dr. & W. 269. (n) Chilliner v. C, 2 Ves. sr. 528. [l) Ibid. ; Fox v. Scard, 33 Beav. (o) French v, Macale, sup. LIMITS OF THE PRINCIPLE. 213 already been seen that the mere use of the term liquidated damages, or even an express agreement that a sum shall be considered as such, is not conclusive as to its character. The Court will look at the whole transaction in order to determine whether the payment provided for is rightly to be regarded as a penalty or not (q) ; and the leaning of the Court is in favour of the construction which regards the sum named as a penalty (/'). 6. By the recent Conveyancing Act (s) the powers of the Court to relieve against the forfeiture of leases has been largely increased. It is thereby enacted that a right of re-entry or forfeiture under any proviso or stipulation in a lease, or a breach of any covenant or condition therein, shall not be enforceable by action or otherwise until the lessor serves on the lessee a notice specifying the particular breach complained of, and, if the breach is capable of remedy, requiring the lessee to remedy the breach, and in any case requiring the lessee to make compensation in money for the breach, and the lessee fails, within a reason- able time thereafter to remedy the breach (if capable of remedy), and to make reasonable compensation in money, to the satisfaction of the lessor. Where the lessor is pro- ceeding by action or otherwise to enforce such right of re-entry or forfeiture, the lessee may apply to the Court for relief, which the Court may grant or refuse on such terms as it may think fit. The statute expressly excepts from its operation covenants or conditions against assign- ing, underletting, or parting with the possession, or dis- posing of the land leased, and also covenants or conditions in mining leases to allow the lessor to inspect the mine or its books, &c., and it does not affect the law relating to re- entry or forfeiture or relief for non-payment of rent. It relates to existing as well as to future leases, and repeals 22 & 23 Vict. c. 35, ss. 4—9, and 23 & 24 Vict. c. 126, s. 2. (5) Dimech v. Corktt, 12 Moo. P. (r) Davies v. Penton, 6 B. & C. C. 199 ; Jones v. Green, 3 Y. & J. 216. 298, 304. («) 41 & 4o Vict. c. 4], s. 14. 214 CHAPTER V. MORTGAGES AND LIENS. Section I.— Mortgages at Law and in Equity. I. Mortgages at Common Laiu. II. The Equity of Redemiption. Howard v. Harris. Casborne v. Scarfe, Thornborough v. Baker. III. Assignment of Mortgages. IV. Persons entitled to Redeem. V, Time of Reder)iption. VI. Mortgages of a Wife's Property. VII. Mortgages of Personalty. — Bills of Sale. vadium. I. Mortgages at Go'inmon Laiu. 1. The common law recognised two kinds of landed security, vivmn vadium and mortuum vadium. The Vivum vivum vadiuin consisted of a feoffment to the creditor and his heirs until out of the rents and profits he had satis- fied himself his debt. The creditor took possession, received the rents, and applied them in liquidation of the debt. When it was satisfied the debtor might re-enter and maintain ejectment. It seems to have been called vivwm vadium because neither debt nor estate was lost. Mortuum 2. The mortuum vadium was a feoffment to the credi- tor and his heirs to be held until the debtor paid his debt, vadium. MORTGAGES AT COMMON LAW. 215 until which time the creditor received the rents without account. The estate was unprofitable or dead to the mortgagor in the meantime, the original debt remaining undiminished. As in the vivum vadium, so in this security, the estate was never lost to the debtor. 3. Both these securities have long been obsolete, but there still exists a form of security which somewhat resembles each of them, namely, the Welsh mortgage. Welsh This consists of a conveyance of an estate to the creditor " ' and his heirs to be held until the debt is discharged, the creditor meanwhile receiving the rents and profits as an equivalent for interest, while the principal remains un- diminished. No covenant for the payment of the debt is inserted in the mortgage-deed, and the mortgagee has no power to compel redemption or foreclosure, though the mortgagor may redeem at any time (a). The Statute of Limitations (b) would probably bar the right of redemp- tion at the expiration of twelve years from the satisfaction of the debt, but would not commence to run until then, the possession being up to that point not adverse (c). 4. In the place of the ancient contracts of vivum vadium The and Tnortuum vadium, arose the modern mortgage, which ^orteage is thus described by Littleton (d) : " If a feoffment be made upon such condition that if the feoffor pay to the feoffee at a certain day, &c., forty pounds of money, then the feoffor may re-enter ; in this case the feoffee is called tenant in mortgage. ... If the feoffor doth not pay, then the land, which is put in pledge upon condition for the payment of the money, is taken from him for ever .... and if he doth pay the money, then the pledge is dead as to the tenant, &c." The mortgage was thus an estate upon condition ; a How feoffment was made to the creditor with a condition in the ^Uaw.^ deed of feoffment, or in a deed of defeazance executed at (a) Howell v. Price, Prec. Ch. (c) Coote, p. 327, ed. 4. 423. (d) s. 332. (6) 37 & 38 Vict. c. 57. 216 MORTGAGES AT LAW AND IN EQUITY. the same time, by which it was provided that on payment by the mortgagor or feoffor of a given sum at a time and place certain, it should be lawful for him to re-enter. Immediately on the livery made, the mortgagee or feoffee became the legal owner of the land, and in him the legal estate vested, subject to the condition. If the condition was performed the feoffor re-entered, and was in possession of his old estate. If the condition was broken, the feoffee's estate became absolute and indefeasible. Conditions The common law generally required strict performance required ^^ conditions ; and with respect to conditions in mort- strictly gagos, the rules on which it acted were, if not so rigid as pel oime . ^gj^.g observed in some cases, nevertheless sufficiently so to work great hardship on mortgagors. There were unbend- ing requirements as to the time and manner of payment, any neglect of which resulted in the irremediable loss of the estate, however much it might exceed in value the sum advanced. II. The Equity of Redemption. General 1. It is evident that tlie above stated principles of com- prii.cipe, ^^^^ j^^ ^^^^ repugnant to the general doctrines of Courts of equity, according to which unreasonable penalties ought always to be relieved against. In the jurisprudence of the praetors at Rome, it had been established that where pro- perty was pledged for a debt, the debtor might redeem the estate on payment of the debt at any time before the passing of a judicial sentence confirming the creditor in his estate. The Court of Chancery could not, indeed, alter the legal effect of the forfeiture at law; it could not deprive the conveyance of its legal effect ; but it brought the Roman principle into operation by another means. how esta- A.cting in personam on the conscience of the mortgagee, equity declared it unreasonable that he should retain for blished. THE EQUITY OF REDEMPTION. 217 his own benefit what was intended merely as a pledge, and it adjudged that the mortgagor had an " equity to redeem " the estate on payment within a reasonable time of the principal debt with proper interest and costs, notwith- standing the forfeiture at law (e). Thus was established, without direct interference with legal doctrines, the right known as the equity of redemption. So beneficial was this equitable interference found to be, and so tenaciously did the Courts of law still adhere to their rigid system, that mortgages soon fell almost entirely within the jurisdiction Mort- of the Court of Chancery, and have so continued to the within ^ present time. Now, by s. 34, sub-s. 3, of the Judicature jy"«dic- Act, 1873 (/), the redemption and foreclosure of mortgages equity. are expressly assigned to the Chancery Division of the High Court of Justice. 2. No sooner, however, was the equity of redemption established, than another bold decision was required to confirm the principle in its utility. It was found that Attempts creditors, eager to regain the unjust advantage which the the equity law had afforded them, attempted to evade the fairer ^^ ^°^'^' ••I'll nant. doctrine of equity by requiring their debtors expressly to preclude themselves by agreement from their right to redeem. Fortified by this express stipulation, they sought to rely on the maxim rrnodus et conventio vincunt legem, and to assert this in opposition to the interference of equity. But the firmness of the Courts of equity pre- vented this result. Always looking at the intent rather than at the form of things, these Courts laid it down that the debtor could not by any engagement entered into at the time of the loan preclude himself from his right to redeem, and generally that it was inequitable that a creditor should obtain, through the necessities of his debtor, and under colour of a mortgage, a collateral advan- tage beyond the payment of principal, interest, and costs. (e) Lamjford v. Burnard, Tothill, (/) 36 & 37 Vict. c. 66. 134; decided in 1594. 218 MORTGAGES. On this point the case of HOWARD V. HARRIS [1 Vern. 190; 2 W. & T. L. C. 1058] " Once a is a leading authority. It established the rule, curtly always!*^ exjjressed in the phrase " once a mortgage always a mort- mortgage." gage," that the same deed could not at one time be a mortgage, and at another an absolute conveyance. Other authorities have added to this other principles of a similar Invalid nature. Thus it has been established that a stipulation tions. in a mortgage that if the interest is not paid at the end of a year it shall be converted into principal, is invalid {g) ; so also is a stipulation that the mortgagor shall not pay the mortgage debt, or institute proceedings for redemption for twenty years (li), or that the mortgagee shall be receiver of the rents of the estate with a commission (i), or that the mortgagee in possession shall receive a certain sum for management {j). And though it is admissible, while reserving a given rate of interest, to agree that on punctual payment the interest shall be reduced {h), if it is stipulated that the rate of interest shall be raised unless punctually paid, this the Court will consider to be of the nature of a penalty, and will relieve against, even in a case of gross default (l). If there is a proviso for reduction of interest on punctual payment, a mortgagee in possession through the mortgagor's default is entitled to the higher rate (rn). In accordance with the same principle, equity will not allow a mortgagee to contract with the mortgagor at the time of the loan, for the absolute purchase of the lands at a specified sum in case of default in payment at a stated time {n). He may, however, agree for a preference of pre- (g) Chambers v. Gold/min, 9 Ves. (k) Nicholls v. Maynard, 3 Atk. 271. 519. {h) Cowdry v. Day, 1 Gifif. 316. {I) Ibid.; Stanhope v. Manners, (i) Lamjstaffe v. Femvick, 10 Ves. 2 Ed. 199. 405. (m) Union Bank &c. v. Ingram, 0) Comyns v. C, 5 I. R. Eq. 16 Ch. D. 53. 583 ; Eyre v. Hughes, 2 Ch . D. (w) Price v. Perrle, Freem. 258. 198. CONDITIONAL SALES. 219 emption in case of sale, and this will be enforced if claimed within a reasonable time (o). 3. The important distinction must also be observed Distinc- between a mortgage and an absolute sale of an estate tween with a proviso for the vendor to repurchase upon certain mortgage terms. If the Court considers that the transaction was on condi- not intended as a mortgage, but as such a conditional sale, ^^^^ it will bind the vendor strictly to his contract Q:)). So also where there is an absolute conveyance with a subse- quent agreement that if the vendor desires it he may have his estate again upon repayment of the purchase money with interest or costs (q). There being this important distinction between the depends effect of a mortgage and that of a conditional sale, it is ^^_ ^ necessary to consider what circumstances will furnish a stances of criterion by which to distinguish between the two transac- ticular tions ; since it is evident that they will often prwid facie ^^^®- much resemble one another. There is no positive rule of law for this purpose ; it depends upon the particular circum- stances of each case. Parol evidence will always be admitted Parol to show that an apparent conveyance was intended as a security only (r). If the money alleged to be purchase money is grossly inadequate as a price for the estate, or if interest is paid on the money, or the gi'antee accounts for the rents, or the grantor remains in possession, these are circumstances tending to show that the transaction was really a mortgage, and not a sale (s). The general principle is that iirimd facie an absolute conveyance, containing nothing to show the relation of debtor and creditor, does not cease to be a conveyance, and become a mortgage, merely because the vendor stipulates that he shall have a right to repurchase. The question is, what (o) Orhy v. Trigg, 2 Eq. Ca. Abr. (>•) England v. Codrington, 1 Ed. 699; Daiosonv. D., 8 Sim. M6. 169; Maxivell v. Montacute, Prec. (p) Aklerson v. White, 2 De G. & Ch. 526. J. 97. (s) Brooke v. Garrod, 3 K. & J. (q) Cotterdl v. Purchase, Ca. t. 608 ; 2 De G. & J. 62 ; WiUiams v. Talb. 61. Owen, 5 My. & Cr. 303. 220 MORTGAGES. Release or sale of equity of redemp- tion. Mortgage by way of family settlement. Equity of redemp- tion an estate. Legal personal represen- tative of mortgagee entitled to mortgage debt. upon a fair construction is the meaning of the instru- ment (t). There may also be a valid sale or release of the equity of redemption by the mortgagor to the mortgagee, and even if the consideration is inadequate, it will be enforced in the absence of fraud or duress (u). Where the conveyance of an estate to a person by way of mortgage is intended to be in the nature of a family settlement, the equity of redemption may, contrary to the general rule, be confined to the life of the settlor or mort- gagor, and his heirs will not be allowed to redeem (x). 4. The case of CASBORNE V. SCARFE [1 Atk. 603; 2 W. & T. L. C. 1051] shows that an equity of redemption is not a mere right, as was considered in some early cases. It is, on the contrary, an estate in the land, and may be dealt with as such ; for instance, it may be devised, granted, or entailed with remainders, and such entail and remainders might be barred by fine and recovery. Or it may be settled or mortgaged ; only so, however, that all incumbrancers subse- quent to the first, if he has the legal estate, will take subject to his prior right. Further, the owner of an equity of redemption being considered as owner of the land, on his death intestate the descent of the equity of redemption will be governed by the same rules of law as the legal estate, whether the general rules of law or those of a special custom, such as gavelkind or borough English (y). 5. The leading case of THORNBOROUGH v. BAKER [1 Ch. Ca. 283 ; 3 Swanst. 628 ; 2 W. & T. L. C. 1046] illustrated another incident of the equity of redemption : namely, that while in the case of a mortgage in fee, on the (t) Coote, 22; Skate v. Jcffry, 13 7; Bonliani v. Neivcomb, ib. 214; Mo. P. C. 432. ' King v. Bromley, 1 Eq. Ca. Abr. 595. (u) Ford V. Olden, 3 Eq. 461. (//) Faivcett v. Lowther, 2 Ves. sr. (x) Neiccoinb v. Bonliam, 1 Vern. 301, 301. ASSIGNMENT OF MORTOAGES. 221 decease of the mortgagee, his heir must reconvey, on pay- ment of the mortgage money, interest and costs, yet his legal personal representative will be entitled to the money. Now, however, power is conferred on the personal repre- sentatives to convey, the estate being deemed to vest in them as if it were a chattel real {y). In the case of an absolute conveyance with a collateral agreement for repur- chase, if the purchaser dies, and the person who conveyed to him exercises his option of repurchase, the heir, and not the executor, of the purchaser will be entitled to the money {z). III. Assignment of Mortgages. A mortgagee has power a,lone at any time to assign the Mortgagee mortgage ; but the assignee should for his own protection aione^-^^'^" always obtain the concurrence of the mortgagor. This is but necessary because the assignee can only take subject to ^j^sigiiee all equities, and to the state of the account as between the require mortgagor and mortgagee. If the mortgagor does not rence^of concur, he is not bound by the amount of the debt appear- mortgagor, ing upon the face of the mortgage. If, in fact, the mort- gage debt has been paid off, the security is determined ; if partly paid, it is determined pro tanto (a). Further, if or at least a mortgage is assigned, and the assignee fails to give notice notice, of the transfer to the mortgagor, his security is liable to be prejudiced by any payments made by the mortgagor to the mortgagee subsequent to the assignment (h). A fortiori a mortgagor cannot be prejudiced by any agreement between a mortofaofee and his assignee to increase the amount of the principal due, as by converting interest into principal (c) ; but if the assignment is with the concurrence of the mort- gagor, and there is an arrear of interest thereon, any interest paid by the assignee to the mortgagee will be taken as principal, and will carry interest (d). (y) a & 45 Vict. c. 41, s. 30. (h) C'ha)nbersv.Goklwin,9Ves.25i. (z) St. John V. Wareham, cited, 3 (c) E. of Macclesfield v. Fitton, 1 Swanst. 631. Vern. 169. (a) Mattlmcs v. Walhvi/n, 4 Ves. {d) Ashenhurst v. James, 3 Atk. 118 ; Williams v. Sorrell, ibid. 389. 271. 222 MORTGAGES. Mortgagee in posses- sion ac- countable after assign- ment. Assignee may usually recover the whole mortgage debt. Secus if there is a fiduciary relation. Moreover, if a mortgagee is in possession, he is con- sidered in equity for many purposes as a trustee ; and then if he assigns the mortgage without the consent of the mort- gagor he will still remain liable to account for the profits, on the principle that it would be a breach of trust to assign to an unreliable person (e). It has been questioned whether, in cases in which an assignee purchases a mortgage for less than is due upon it, he is entitled to claim from the mortgagor the whole of the original sum, or only the amount which he has paid. As a general rule, it appears that he is entitled to the benefit of his purchase, and may claim the whole debt(/). But if the purchaser stands in any fiduciary relation towards the owner of the estate, as trustee, executor, guardian, or agent, he will be considered as having purchased for the benefit of the estate, and will only be allowed repayment of what he actually gave (g). Persons entitled to redeem : Heir. Devisee. Assignee. Trustee in bank- ruptcy. IV. Persons entitled to Redeem. Having discussed some of the principal characteristics of an equity of redemption, the next inquiry is as to what persons are or may be entitled to redeem. (1.) We have seen that the equity of redemption may descend to an heir. In other words, an heir may redeem ; and it is suflScient for him to show a primd facie title (k). (2.) An equity of redemption may be devised — i.e., a devisee may bring an action to redeem (i). (3.) An equity of redemption may be assigned ; thus, an assignee may redeem (j). (4.) An equity of redemption, being an estate in the mortgagor, devolves upon his bankruptcy upon the trustee ; thus a trustee in bankruptcy is entitled to redeem (Z;). (e) 1 Eq. Ca. Abr. 328. (/) Phillips V. Vaurjhan, 1 Vern. 336 ; A7ion, 1 Salk. 155. ( g) Morret v. PasJce, 2 Atk. 52, 54. (h) Pym V. Botm-eman, 3 Swanst. 241 n. ; Lloijd v. Wait, 1 Ph. 61. (i) Lewis v. Nanyle, 2 Ves. sr. 431. {j) Anon, 3 Atk. 314. (k) Franiclyn v. Fern, Barnard. Ch. 30. PEESONS ENTITLED TO REDEEM. 223 (5.) Judoinent creditors, who have a lieu on an equity of J"*^&™ent . . . . creditors redemption, are entitled to redeem (/) ; but it is necessary when their that they should have issued execution under 23 & 24 ^'^^ *? ^ •^ complete. Vict. c. 38, or 27 & 28 Vict. c. 112 (m), as otherwise their lien on the land is not complete. (6.) A plaintiff in a creditor's suit for administration Plaintiff in may, after a decree for sale of the real estate, bring an action tratiou against the mortgagee to redeem, in order to carry out the '*"^*- sale {n). (7.) When an equity of redemption became forfeited to Crown on the Crown, the Crown or its grantee might redeem (o). Under 33 & 34 Vict. c. 23, the administrator or interim curator of the estate of the felon may presumably do so. (8.) So a lord claiming the reversion by escheat may Lord on redeem a mortgage term Q^). (9.) Although a voluntary conveyance be void under "Volun- 27 Eliz. c. 4, as against purchasers, and so against the mort- gagee, who is ^3ro tanto a purchaser, nevertheless a volun- teer under such a conveyance of an equity of redemption may redeem (q). (10.) In short, any person interested in the equity of Any redemption may redeem — e.g., a dowress (r) ; a tenant for terestecnn life, remainderman or reversioner (s), the tenant for life equity of 1 ' T n • 11 redemjj- havmg the first option ; a tenant by the curtesy (t) ; and a tion. jointress (u). (11.) Lastly, a subsequent mortgagee may redeem, mak- A sub- ing the mortgagor or his heir a party to his action (x). mortgagee. Where any person entitled to redeem tenders the mort- gage money and interest, he is entitled to a delivery of the title deeds, and to have a conveyance of the property (y). A mortgagor entitled to redeem has power to require the (I) StoneTievxr v. Tliompson, 2 Atk. 59. 440. (r) Palmer v. Lanhy, Prec. Ch. [m) E. of Cork v. Russell, 13 Eq. 137. 210, 215. (s) Aynsly v. Reed, 1 Dick, 249. («) Christian v. Field, 2 Ha. 177. {t) Jones v. Meredith, Bunb. 357. (o) Att.-Gen. v. Crofts, 4 Bro. P. C. {u) Hon-ard v. Harris, sup. 136. (x) Fell V. Brown, 2 Bro. C. C. (f>) Domne v. Mon-is, 3 Ha. 394. 276 ; Farmer v. Curtis, 2 Sim. 466. (5) Rand v. Carturight, 1 Ch. Ca. (y) Pearce v. Moms, 5 Ch. 227. 224 MORTGAGES. mortgagee, instead of reconveying, to assign the mortgage debt, and convey the property to any third person {y). V. Tiine of Redemption. No power 1. A person cannot redeem before the time appointed in to redeem ^^ mortfTaffe deed, althoiioh he tenders to the mortgagee beinre the o o ' o o o time both the principal and the interest due up to that time {z). jj ^*^ ■ If he does not pay the debt at the appointed time, he must then, six give six months' notice of his intention to do so, since it notiW^ would evidently be unfair to the mortgagee to compel him to accept his money without giving him an opportunity of providing for its reinvestment. If due notice is given, and then the mortgagee refuses to accept a full tender of the principal, interest, and costs, thus compelling the mortgagor to seek a remedy in an action for redemption, the mortgagee will be compelled to pay the costs of the action (a). Limitation 2. Independently of the Statute of Limitations (1)), a thestatute. mortgagee could not generally be disturbed after twenty years' possession without any acknowledgment of the Disability, mortgagor's title (c). The imprisonment, infancy, cover- ture, or absence beyond seas of the mortgagor were re- garded as exceptional circumstances entitling him to exceptional consideration, and, after the analogy of the older statute {d), ten years were allowed after the removal Acknow- of the disability (e). Moreover, even in the absence of " ^ ■ fraud or oppression, a very slight act of acknowledgment of title on the part of the mortgagee, such as keeping private accounts of the profits, sufficed to preserve the equity of redemption (/). A fortiori the keeping of accounts with the mortgagor or his heir, or an acknowledg- ment of the equity of redemption in a conveyance or iy) 44 & 45 Vict. c. 41, s. 15. (rf) 21 Jac. I. c. 16. (z) Brmvn v. CoU, 14 Sim. 427. (e) Jenner v. Tracy, 3 P. Wms. (a) Grugeon v. Gerrard, 4 Y . & C. 287, n. Ex. 119, 128; Harnicr v. Priestley, (/) Fairfax v. Montague, cited, 2 16 Beav. 569. Ves. jr. 84 ; Hansard v. llardtj, 18 (6) 3 & 4 Will. IV. 0. 27. Ves. 455. (c) Anon, 3 Atk. 313. TIME OF REDEMrXION. 225 devise would suffice for that jDurpose (g) ; and even parol Parol evidence of the conversation of the mortgagee has been admitted on behalf of a mortgagor seeking redemption (h). 3. But the many difficulties which thus arose were in a ^t-'itute great measure put an end to by 3 & 4 Will. IV. c. 27, Will. IV. which fixed the limitation of the mortgagor's equity at *^' ^'^' ^" ^^' twenty years after the time at which the mortgagee ob- tained possession or receipt, unless in the meantime an acknowledgment of the title of the mortgagor or of his right of redemption should have been given to the mortgagor or some person claiming his estate or to an agent of such mortgagor or person, in writing signed by the mortgagee or the person claiming through him. The same statute further provides that if there be more than one mortgagor, or more than one person claiming through the mortgagor or mortgagors, such acknowledgment if given to any of such mortgagors or persons, shall be as effectual as if given to all ; but that if there shall be more than one mortgagee, &c., the signature of one shall be only effectual against himself and the persons claiming through or under him (i). This section has now been replaced by the provisions of a 37 & 38 more recent statute (Jc) which came into operation on the 1st January, 1879, and which enacts that when a mortgagee shall have obtained possession or receipt of the profits of land, or of any rent comprised in his mortgage, the mort- gagor or any person claiming through him shall not bring any action or suit to redeem the mortgage, but within twelve years next after the time at which the mortgagee obtained such possession or receipt, unless in the mean- time an acknowledgment in writing of the title of the mortgagor or of his right to redemption shall have been given to the mortgagor or to some person claiming his {g) Smart v. Hunt, 4 Ves. 478 n. ; See Whiting v. White, 2 Co.x, 290. Conway v. Shrim.pton, 5 Bro. P. C. (0 s. 28. 187. (i--) 37 & 38 Vict, c 57. (h) Perry v. Marston, 2 Cox, 295. 9 226 MORTGAGES. Time only runs when possession is adverse. What is sufficient acknow- ledgment. estate, or to the agent of such mortgagor or person, signed by the mortgagee or the person chiiminti; tlirongh him ; and in such case no action shall be brought but within twelve years after such acknowledgment. The provisions for the cases of an acknowledgment by one of two or more mortgagors or to one of two or more mortgagees correspond to those of the earlier act. Time will not run under these acts against the mortgagor while the possession of the mortgagee is not adverse, but may be referred to another title ; thus for instance, if a mortgagee purchased the estate of a tenant for life who had joined the remainderman in mortgaging the estate, and entered into possession, time would not run against the remainderman during the life of the tenant for life (I). 4. There are numerous cases respecting the question as to what is a sufficient acknowledgment within the statutes. It will be observed that by the language of both Acts the acknowledgment must be given to the mortgagor himself, or to those claiming his estate ; an admission to a third person does not suffice, except indeed to an agent or solicitor of the mortgagor or claimant (m). No particular form of acknowledgment is required, nor need the amount due be stated (7i) ; an acknowledgment will not, however, be inferred from equivocal expressions (o). It has been decided that the sections suspending the running of the statute pending disability do not apply as between mortgagor and mortgagee (p). VI. Mortgage of Wife's Property by Husband and Wife. Wife's j^ ig a well-established rule that whenever a husband sidered and wifo join in mortgaging the wife's estate of inheritance {/) Hyde v. DaUaway, 2 Ha. 528. (;n) Tridock v. Jiobi/,' 12 Sim. 402 ; 2 Ph. 39.5 ; Stansfiel'd v. Bohson, 3 De M. & G. 620. (n) Ibid. ; St. John v. Boughton, 9 Sim. 219. (o) Thompson v. Bowyo; 9 Jur. N. S. 863. {p) Kinsman v. Rouse, 17 Ch. D. 104 ; Forster v. Patterson, ib. 132. MORTGAGE OF WIFE's PROPERTY. 227 for the benefit of the husband, her estate will be con- only a* a sidered only as surety for his debt ; and on the husband's ""'^^ ^* death the wife or her heir will be entitled to have her estate exonerated out of his property, and may if necessary prove with other creditors for the debt (q). Upon the same principle where a wife paid her husband's If wife mortgage debt by a loan out of her separate estate, she f,lll ^^^^' was held entitled to stand in the place of the mortgagee (r), she may and where she joined with him in charging her estate she place of was similarly entitled (s). A fortiori if she alone mort- *^® ™*''"*" , . gagee. gages her separate estate to raise money for her husband, she is in the same position as any other of his creditors (t). But in order to claim exoneration from the husband's But the estate, the debt must be distinctly his debt. A mortgage 'y^l his""**' of the wife's estate in order to pay debts contracted by ^1*^^*- her before marriage (;:), or a mortgage effected before her marriage, which the husband afterwards covenants to pay, will not be charged against the husband's property to exonerate that of the wife (a-). And the same rule applies if the wife receives into her own hands or has the absolute disposal of the mortgage money (y). The burden of proof The is not, however, on the wife, to show that the money was proof on applied for her husband's benefit, but it is for his represen- j:'^'' l'""' tatives to show that it was not so (z) ; and they may avail represen- themselves of parol declarations of the wife for this pur- ^ '^^^" jiose (ft). Where the wife's estate is mortgaged, notwithstanding Resulting fff that the equity of redemption is reserved to the heirs of t^e wife. the husband, there will be a resulting trust for the wife and her heirs (6). The mere form of reservation is not (q) Hudson V. Carmickael, Kay, (.r) Bagot v. Oughton, 1 P. Wms. 613, 620 ; Pitt v. P., T. & R. 180. 347. ()•) Parteriche v. Potvlet, 2 Atk. (y) Clinton v. Hoopei; 1 Ves. jr. 384. 173 ; 3 Bro. C. C. 20L 212 ; Thomas (s) Ibid. ; Robinson v. Gee, 1 Yes. v. T., 2 K. & J. 79. sr. 252. (z) Kinnoul v. Money, 3 Swanst. (i) Hudson v. Carmickael, sup. 202, 208 n. (m) Lewis V. Nangle, 1 Cox, 240 ; (a) Clinton v. Hoopei; sup. Amb. 150. (b) Broad v. B., 2 Ch. Ca. 161, Q 2 228 MOKTOAGES. sufficient to alter tlie previous title, but is considered as an inaccuracy or mistake to be corrected by the state of the title as it was before the mortgage (c). Nevertheless, if it appears to have been the intention of the wife to alter the limitation of the equity of redemption, effect will of course be given to it. The presumption is the other way, but may be rebutted by satisfactory evi- dence (d). VII. Mortgages of Personalty. — Bills of Sale. For the protection of creditors against secret disposi- tions of property to their prejudice, and at the same time for the protection of debtors against the machinations of money-lenders, mortgages of personal chattels have been made the subject of special legislation. Before, however, directing attention to the provisions of the Acts by which such transactions are regulated, it is necessary to refer to certain rules which, apart from the statutes, distinguish mortgages of personalty from mort- gages of real estate. Mortgage First, the distinction must be observed between a mort- wUh^''*'^ gage and a pledge, a distinction analogous to that of pledge. Roman Law between the contracts of hypotheca and ly'igniis. We have seen that a mortgage is a conveyance or transfer of property upon condition, becoming absolute if the con- dition is not performed, but subject to be avoided by per- formance of the condition. And this definition is as applicable to mortgages of personalty as to those of realty. Pledges. A pledge or pawn, on the other hand, is a security created by the actual or constructive delivery of the possession of a personal chattel to a bailee, or pledgee, the (c) Ruscombe v. Hare, 6 Dow. 1 ; ((/) Jackscm v. James, 1 Bli. 104 ; 2 Bli. N. S. 192. Reeve v. Hicks, 2 S. & S. 403. MORTGAGES OF PERSONALTY — RILLS OF SALE. 229 general property in the chattel remaining in the pledgor; the pledgee having only a special property or right of retainer until the payment of the debt secured (e). Tlie law as to pledges does not require detailed exposition here, falling rather under the head of bailments at Common Law than under any doctrine of equity. A pled.iree may indeed sue in equity for foreclosure and Kemedies sale of his pledge (/), and if a time for redemption has l^^'^*^^- been fixed by the contract, he may, on giving due notice to the pledgor, sell without applying for the authority of a judicial decree {g). A Court of Common Law is, how- ever, the proper forum for a pledgor seeking to redeem, unless the need of some special equitable relief, such as account or discovery, or an assignment of the pledge necessitates an appeal for equitable assistance (/<). Mortgages of leaseholds generally follow the analogy of Lease- those of freeholds, giving rise to the same remedies of foreclosure or sale on the one hand, and redemption on the other. There is, however, an important distinction Personal between such mortgages and mortgages of personal chattels. The latter are indeed subject to redemption in the usual way {i) ; but the mortgagee, after breach of condition, has a right to sell, upon giving due notice, without suing for foreclosure (A'). But the chief distinctions relating to such mortgages Bills of are those which arise from the provisions of the Bills of '^ ^ ' ^^^' Sale Acts, 1854 and 1878 {I). The former Act applies to all bills of sale executed before the 1st of January, 1879 ; the latter to all since that date. Their provisions are in the main the same, the later Act differing from the earlier chiefly in the stringency of the regulations required, and (e) Jones v. Smith, 2 Ves. jr. (li) Jones v. Smith, sup. 372, 378. (0 Kemp v. Wcsthrook, sup. (/) Exp. Mountfort, 14 Ves. (k) Tucker \. Wilson, 1 P. Wms. 606. 261. (g) Martin v. Reid, 11 C. B. N. S. (l) 17 & 18 Vict. c. 36 ; 41 & 42 730 ; Kemp v. Wcsthrook, 1 Ves. sr. Vict. c. 31. 278. 230 MORTGAGES. in its greater comprehensiveness and clearness of defini- tion. 17 & 18 The causes and purposes of the Acts are well indicated 'in the preamble of that of 1854, which recites that, " Frauds are frequently committed upon creditors by secret bills of sale of personal chattels, whereby persons are enabled to keep up the appearance of being in good circumstances and possessed of property, and the grantees or holders of such bills of sale have tlie power of taking possession of the property of such persons to the exclusion of the rest of their creditors." Section 1. To check such dishonest obtaining of credit, and to tion!^ " place at least within the reach of the inquiries of creditors and purchasers, knowledge of all transactions of the kind respecting personal chattels, the Act of 1854 provided that every absolute or conditional bill of sale of personal chattels, whereby the grantee or holder should have power, with or without notice, immediate or future, to seize or take possession of any property and effects subject to such bill of sale, should unless registered as therein directed within twenty-one days after the making thereof, be void as against the assignees in bankruptcy, or under an assign- ment for the benefit of creditors of the person whose goods were comprised in the bill of sale, and as against all sheriffs' officers and other persons seizing any property or effects comprised therein in the execution of any process of the Courts of law or equity, so far as regarded the pro- perty in or right to the possession of any personal chattels comprised in such bill of sale, which at or after the time of such bankruptcy, or the execution of such assignment for the benefit of creditors, or of the executing such process, and after the expiration of the twenty-one days should be in the possession, or apparent possession, of the person making such bill of sale (m). Bill of sale A bill of Sale was defined as comprising assignments, defined. transfers, declarations of trust without transfer, and other (nl) S. 1. MORTGAGES OF PERSONALTY — BILLS OF SALE. 231 assurances of personal chattels, and also powers of attorney, authorities, or licenses to take possession of personal chattels as security for any debt; but not comprising certain other specified dispositions, the most important of which are assignments for the benefit of creditors, and marriage settlements. Personal chattels were somewhat vaguely defined as Personal meaning goods, furniture, fixtures, and other articles defined! capable of complete transfer by delivery, and as not including chattel interests in real estate, nor shares in stocks or public companies. Apparent possession was also dimly explained as mean- Apparent ing the remaining or being in or upon any house, mill, P"^"'^'**''""- &c., or other premises occupied by the giver of the bill of sale, or as being used or enjoyed by him in any place whatever (n). The great number and difficulty of the questions arising respecting the interpretation of this Act necessitated further legislation for their satisfactory solution. At the same time it was equally necessary to provide for and counteract some ingenious evasions of the Act which had been invented by keen practitioners. Hence the more detailed and stringent measure of 1878 (o). It would occupy too much space here to quote in par- 41 & 42 ticular the j)rovisions of this important statute, to which every student should refer for himself It must suffice to summarize its effects. 1. As to registration. This Act requires that the execu- Reffistra- tion of every bill shall be attested by a solicitor of the Supreme Court, and that the attestation shall state that before its execution its effect was explained by the solicitor to the grantor ; also that the bill with every schedule and inventory annexed thereto, with true copies of such bill and schedule or inventory, and of every attestation of its execution, and with an affidavit of the time of its execution and attestation, and a description of the residence and (») s. 7. (o) 41 & 42 Vict. c. 31. 2:52 JKJKTGAGKH. occupation of the person giving the same and of the attest- ing witnesses, shall be filed with the registrar within seven clear days after the making or giving of such bill of sale. If two or moi-e bills of sale are given comprising in whole or in part the same chattels, they shall have priority in order of the date of their registiation as regards such chattels (p). Moreover, the registration of a bill of sale must be renewed every five years (q) ; and where a sub- sequent bill of sale is executed within or on the expiration of seven days after the execution of a prior unregistered bill of sale, and comprises all or any part of the personal chattels comprised therein, and is given as security for the same or any part of the same debt, such subsequent bill shall be absolutely void as regards such chattels and debt, unless proved to have been given hond fide to correct some material error in the prior bill of sale (r). Definitions 2. The definition of the term " bill of sale " is in the bill of sale, j^^^ ^^ jj^yg somewhat amplified, being in particular ex- pressed to include " inventories of goods with receipt thereto attached or receipts for purchase monies of goods," " and also any agreement whether intended or not to be followed by the execution of any other instrument by which a right in equity to any personal chattels or to any charge or security thereon shall be conferred" (s). Personal 3. The expression " personal cliattels " is also more fully explained. Growing crops were held not to be within the Act of 1854 (t); and great difficulties arose in deciding what was a bill of sale of fixtures within the Act (u). The Act of 1878 has expressly provided for these cases by enact- ing that fixtures and growing crops when separately assigned or charged shall be deemed personal chattels; but not fixtures (except trade machinery as elsewhere described) when assigned together with a freehold or leasehold in- terest in any land or building to which they are affixed; chattels. {p)s. 10. 349 ; 2 lb. 212. (q) S. 11. (u) Exp. DagUsh, 8 Ch. 1080 ; {?•) s. 9. Waterfall v. Perristone, 3 Jur. N. S. (s) s. 4. 17 ; 6 E. & B. 876. {t) Brantom v. Grlffits, 1 C. P. D. MORTGAGES OF PERSONALTY — BILLS OF SALE. 2o3 nor growing crops when assigned together with any interest in the land on which they grow (x). Fixtures and growing crops are not to be deemed to be separately assigned or charged by reason only that they are assigned or charged by separate words, or that power is given to sever them, if by the same instrument any freehold or leasehold interest in the land or building to which they are affixed or in the land on which such crops grow, is also conveyed or assigned to the same persons or person (y). Trade machinery is the subject of important new pro- visions. A detailed and exhaustive definition thereof is given, and it is expressly declared to be within the expres- sion personal chattels. 4. The definition of the term " apparent possession " Apparent remains in the Act of 1878 the same as in that of 1854. P°''^®^*^°^- The " occupation " must be a de facto occupation ; mere tenancy without residence will not suffice (z), but if the debtor is allowed the use of the goods, notwithstanding the formal putting a man into possession for the grantee, the debtor is none the less deemed to be in apparent posses- sion (a). Secus, however, if the man in possession really has control of the goods (6). Wrongful possession takes a case out of the Act (c). It is enacted (d) that chattels comprised in a bill of sale which has been and continues to be duly registered under the Act shall not be deemed to be in the possession, order, or disposition of the grantor of the bill of sale within the meaning of the Bankruptcy Act, 1869. It must suffice here to specify these salient points of import- ance in connexion with the Bills of Sale Acts,but the student is recommended to refer carefully to the Acts themselves, and he will find an exhaustive comparison and ex^Dosition of the two statutes in Coote on Mortgages, pp. 459 — 480, 4th edit. (x) s. 4. Ch. 626. {y) s. 7. (6) lie Francis, 10 Ch. D. 408, (z) Robinson v. Bvvjgs, 6 L. R. 414. Exch. 1. (c) Exp. Fletcher, 5 Ch. D. 809. (a) Exp. Jay, 9 Ch. 697 ; Exp. (plifa- mortgaged property under a power of sale in the mort- cgg'^g X*^' gage, must apply the proceeds of sale, first in payment of ^ale. interest and costs, and then either pay the balance to the mortgagor, or apply it in reduction of the principal due on the mortgage (hh). A rest will always be directed at the time of the sale if any surplus of sale money beyond the interest and costs is retained by the mortgagee, notwith- standing that interest may have been in arrear when he entered into possession (c). 3. A mortgagee in possession liolding over after payment IM^i'tgagee n 1 • ^ ■ •^^ T \ i • i • holding or his claims will be charged with any surplus receipts, and over after with simple interest at four per cent, thereon (d). The ^"^^ P*'^" Court may in its discretion direct compound interest (e). In accounting, a mortgagee in possession is, as a rule, Mortgagee only liable for fair rents and profits, or for what he has chaVo-ed actually received. If, however, he has been guilty of wil- "^^^^ ^*^f* „,,„,. . . » J he actually ful default in not receiving them, as by turning out a good receives. tenant, or by letting at less than is offered, he will be charged with what he might have received (/). 4. A mortgagee in possession is liable to account for any Account of damage done to the property, as by pulling down buildings exIJeif-^*'' improperly (g), or by destroying or losing the title deeds (Ji). Jiture, On the other hand, he will be allowed for money laid out in necessary repairs, with interest thereon (/). So also he will be allowed the costs of protecting the title of the mortgagor (k). 5. Further, he will be allowed for moneys laid out with ^^^'^^ J , / moneys the mortgagor s consent or acquiescence in the improve- paid for (6) Wilson V. Clue); sup. 493 ; Parkinson v. Hanhury, 2 L. (hh) And see 44 & 45 Vict. c. 41, R. H. L. 1. s. 21. [g) Sandon v. Hooper, 6 Beav. (c) Thompson v. Hudson, 13 Eq. 246. 497. [h) Broivn v. Sewell, 11 Ha. 49. (d) Quarrel v. Brcl-ford, 1 Madd. (i) Sandon v. Hooper, sup. ; Ei/re 269. V. Hughes, 2 Ch. D. 148. (e) Wilson v. Metcalfe, sup. (k) Sandon v. Hooper, sup. ; Par- (f) Hughes v. Williams, 12 Ves. . ker v. Watkins, Johns. i33. 238 RIGHTS OF MORTGAGOR AND MORTGAGEE. improve- ments con- sented to. Specu- lative out- lay not required, or proper. Waste only allowed when security in- sufficient. 44 & 45 Vict. c. 41. Property must be preserved. Smploy- ment of mort- gaged ship, ment of the property {I). He may not, however, lay out money so as largely to increase the value of the property, and thus place it beyond the power of the mortgagor to redeem (m). He is not bound to engage in any speculative adventure for the benefit of the estate, as by opening mines or quar- ries (n), Avhich must be at his own risk and hazard. If mines are already opened, he should not make large outlay in improving them (o). G. Until recently it was only when a mortgaged estate was insuflficient in value to pay the mortgage, that a mort- gagee in possession might open mines and cut timber (p). If, having a sufficient security, he committed such waste, he was charged with the gross receipts, and disallowed the expenses of working (q). Now he is empowered when in possession to cut and sell timber and other trees ripe for cutting, not planted or left for shelter or ornament. This applies only to mortgages made after Dec. 81st, 1881. A mortgagee in possession is responsible for the in- tegrity of the property ; thus a mortgagee was required to account for the proceeds of coal dug from the mort- gaged laud by the trespass of adjacent coal-owners (r). Formerly a mortgagee of houses could not insure them against fire at the mortgagor's expense in the absence of an express agreement with him, nor could he require the mortgagor to insure them. The power to insure and add the premiums to the mortgage debt was given by Lord Cran worth's Act (s) ; and by 44 & 45 Vict. c. 41, ss. 19 and 23, this power is confirmed and regulated, the in- surance money being limited, in the absence of stipulations to the contrary, to two-thirds the value of the property. 7. The mortgagee in possession of a ship is not charge- able, if in the exercise of a fair discretion he refrains from (/) Trimleston v. HaniiU, 1 Ba. & Be. 385. (m) Sandon v. Hooper, 6 Beav. 246. (n) Ilughesv. Wmiams,12Yes. 493. (o) Roire V. Wood, 2 J. & W. 553. (p) MlUett V. Davy, 31 Beav. 470. (q) Ibid. (r) I/ood V. Easton, 2 Gifif. 692. (s) 23 & 24 Vict. c. 145, s. 11. REMEDIES OF THE MORTGAGEE. 239 selling it; and if he cannot reasonably etfoct a sale, ho may employ the ship in accordance with the ordinary course of business (t). 8. A mortgagee is allowed his costs of an action of re- Costs as demption or foreclosure ; they will be taxed as between '^artv and party and party (it). party. III. Remedies of the Mortgagee. 1. A mortgagee, being the legal owner of the estate, is Mortgagee entitled to possession. on default of payment entitled at law to immediate posses- ^^^ ^ ^ sion, or to the receipt of the rent if the land be in lease ; and equity will not interfere to prevent him from pursu- ing his remedy. He may enter into possession at any time, and without notice (v). 2. He has also, of course, a right at any time after pay- May sue ment of the debt has become due, to sue the mortgagor n'bt^^ for the money. Moreover, as it would be unjust that a mortgagee should be subject to a perpetual account by the perpetual continuance of the mortgagor's equity of redemp- tion, he is allowed, after giving a reasonable notice for the payment of the debt, to come into equity and sue for the foreclosure of the equity of redemption ; in other words, and for he may seek a decree which will give him the entire equit- closure oi able as well as the legal interest in the property ; or in the '^^le- alternative, he may seek the enforcement of a sale of the estate. 3. An additional remedy is sometimes provided for a Attorn- mortgagee by the insertion in the mortgage deed of an ™ause. attornment clause, that is, a proviso that in case default shall be made in payment of the mortgage debt, the mortgagor shall co\itinue to remain in possession as a tenant of the mortgagee, paying a certain specified rent, (t) Marriott v. The Anchor iL-c. E. 8. Co., 2 Giff. 457 ; 3 De G. F. & J. (r) Per Sir W. Grant, M. R. 2 177. Mer. 359 ; Loios v. Telford, 1 App. (u) The Kestril, 1 L. R. A. & C. 414. 240 RIGHTS OF MORTGAGOR AND MORTGAGEE. usually the same in amount as the interest. This provi- sion enables the mortgagee, if necessary, to utilise the special remedy provided for the recovery of rent by land- Distraint, lords; namely, distraint. Whether the rent reserved equals or exceeds the interest, the mortgagee has a prmid facie right to apply the proceeds of a distress in satisfaction of Rent miist principal as well as interest (w). The rent reserved must, be reason- j^Q-^gyer, be of reasonable amount with regard to the value not of the premises (a-). If it is exorbitant, or the attornment amounting ^^ expressed only to come into operation on bankruptcy, it lent pre- will be deemed a fraudulent preference and void (y). erenee. ^ rpj^^ remedies of foreclosure and sale being equitable are subject to equitable conditions which require detailed consideration. Action for (l.j The usual course pursued on foreclosure is for the closure. mortgagee to bring his action praying that an account Usual j^-^g^y ]3Q taken of the principal debt and interest, that the defendant may be decreed to pay the same with costs by an early day to be appointed by the Court, and that in default thereof he may be foreclosed his equity of redemp- tion. If there are prior incumbrances, he must also offer to redeem them (z). On the defence coming in there is a reference to chambers to take the account, and a judg- ment is made for payment of principal, interest, and costs within six calendar months after the chief clerk's certificate of what is due on the account, or in default that the mort£aofor shall stand foreclosed. If default is made the order for foreclosure is made absolute ; and on being signed and inrolled the foreclosure is complete (a). Sale (under (9.) Before the passing of the Chancery Amendment Vict. c. 86) Act (6), Courts of equity would not, as a rule, decree a may be g^jg instead of a foreclosure of the mortgaged estate against directed • ^ n ^ ro ^ • • in discre- the wish 01 the mortgagor, it the estate was situate m {w) Exp. Harrison, 18 Ch. D. 127. (z) Inman v. Wearing, 3 De G. & (a;) lie Stockton J i tion action want of prosecution, the dismissal operates as a decree of operates as foreclosure against him. The action admits the debt and ofig,,^^'j admits the mortgagee's title ; being dismissed he cannot again sue for the same object, and the result is in effect foreclosure (y). The dismissal, however, of the similar but not of action respecting an equitable mortgage would not have a°ie'^"' " the same effect (0). mortgage. 7. The following limitations affect the remedies of the Limlta- mortgagee : tioi). (u) Palme)' v. Hcndrie, 27 Beav. 28 Beav. 341. 349, 351. (y) Marshall v. Shreivsbvri/, 10 (i) LocJchart v. Harchj, 9 Beav. Ch. 250. 349 ; Palmer v. I/cvcb-ic, sup. ; (") Und. u2 244 EIGHTS OF MORTGAGOR A.ND MORTGAGEE. 3 & 4 By 3 & 4 Will. IV. c. 27, it is enacted that after the 31st c. 27, s. 40. of December, 1833, no action, suit, or other proceeding shall be brought to recover any sum of money secured by any mortgage, judgment, or lien, or otherwise charged upon or payable out of any land or rent, but within twenty years next after a present right to receive the same shall have accrued, unless in the meantime some part of the principal money or some interest thereon shall have been paid, or some acknowledgment of the right thereto shall have been given in wi'iting, signed by the person by whom the same shall be payable, or his agent, to the person entitled thereto or his agent ; and in such case no such action or suit or proceeding shall be brought but within twenty years after 37 & 38 such payment or acknowledgment (a). By 37 & 38 Vict. ^° '^' c. 57, this is repealed, but is re-enacted with the substitu- tion of twelve years for twenty as the period of limitation. It has been recently held that a foreclosure action is an action to recover land, and not money secured (b) ; but by the combined effect of 1 Vict. c. 28, and 37 & 38 Vict. c. 57, the period of limitation is the same as that for the recovery of money. 3 & 4 Again, s. 42 of 3 & 4 Will. IV. c. 27, provides that no Will. IV. . . c. 27, s. 42. rewt or interest in respect of any sum of money charged upon land or rent shall be recovered by any distress or action but within six years next after the same shall have become due, or shall have been formally acknowledged by the debtor or his agent. 3 & 4 And by 3 & 4 Will. IV. c. 42, it is enacted that all Will. IV. c. 42. actions of covenant or debt upon any bond or specialty shall be sued and brought within twenty years after the cause of such actions and suits, or within twenty years after an acknowledgment by deed, or part payment, or part satisfaction. Effect of These limitations remain unaffected by the more recent the . . Btatutes. statute. The result is, that in the absence of a covenant or collateral bond securing a mortgage debt, an action for its (n) s. 40. (b) Ifarlock v. AsJihcrry, 18 Ch. D. 229. REMEDIES OF THE MOlirOAGKE. 245 recovery must be brought within twelve years from the accruing of the right, or of an acknowledgment or payment on account thereof ; an action for foreclosure must be brought within the same period ; and an action for arrears of rent or interest within a period of six years. If, how- ever, there is tlie additional security of a bond or covenant, the period of limitation of the personal remedy thereunder is twenty years. Formerly, if a trust term was created or agreed to be Trust term assigned for securing the payment of principal and interest, mentT^' express trusts being excepted from the Statutes of Limita- fo"nt=rl.y tion, the amount of arrears recoverable was not limited from to six years ; nor was an action for the principal limited "^^^it^tioo- to twenty years (b). But by s. 10 of 37 & 38 Vict. c. 57, this effect of the security of an express trust was removed, and in such a case the limitation as against the land is now the same as if there were no trust (c). As against the trustee it remains as before the statute. IV. Tacking of Mortgages. The case usually cited as the leading authority on the doctrine of tacking is MARSH V. LEE. [2 Ventr. 337 ; 1 W. & T. L. C. G.59.] In this case one English being seized of the manor of Wicksall and of the manor of Monfield, mortgaged in 1649 part of the manor of Wicksall to Burrell for £1000. Afterwards, in 1655, he acknowledged a statute to Burrell of £800 for the payment of £400. In 1662 Englisli mort- gaged both the manors to Mrs. Duppa for £7000. In 1665 English mortgaged the manor of Wicksall to Lee for £7000. Lee had no notice of the former mortgages, but he subsequently purchased Burrell's incumbrances. The Lord Keeper Bridgeman, assisted by Hale, C.B., and Eainsford, J., held that Lee might make use of these (b) Cox V. Dolman, 2 De G. M. & G. o92. (c) Fisher, Mtg., p. 365, ed. 3. 24G RIGHTS OF MORTGAGOR AND MORTGAGEE. iucumbrauces to protect his own mortgage, for that he had both law and equity on his side. He had law for that he had a precedent mortgage in 1649, and also the statute in 1G55 ; so that, while these remained in force Marsh could not come in. He had equity, for he having a subsequent mortgage, yet it being without notice, he ought to be relieved in this Court. Principle The doctrine of tacking rests upon and illustrates two "^' familiar maxims of equity — (1.) He who seeks equity must do equity : (2.) Where equities are equal the law shall prevail. It is equity that a debtor who has received a loan on the security of an estate shall, when he seeks to redeem his estate, pay all the debts which he owes to his creditor. If in the meantime the debtor has borrowed money from other persons on the same security, and the first creditor having the legal estate therein has subsequently without notice made further advances to the debtor, he has law and equity on his side, and may tack his subsequent advance to his original debt, notwithstanding that it may happen to prejudice an intermediate incumbrancer who has only an equitable security. Further, if a person lends his money only upon an equitable security, but without notice of any prior charge, he may, after receiving notice of such a charge, protect his security by purchasing the legal estate from a first incumbrancer ; his loan without notice giving him an equal equity, and his securing the legal estate giving him a preference at law. The subject naturally resolves itself into two inquiries : first, as to the principles of tacking as against the mortgagor and his representatives; secondly, as to the principles of tacking as against mesne or inter- mediate incumbrancers. Mortgagor 1 . Tcickhig CIS cigcdnst the mortgagor and his represen- oii redemp- , , • tion must '^<^tlVeS. pay prin- A mortgagor must, before redemption, pay not merely interest, the principal and interest of the mortgage debt, but also and costs. ^Y[ the proper costs incurred by the mortgagee. And these included, costs include not only his costs of suits for redemption or TACKING OF MORTGAGES. 247 foreclosure, but all costs necessarily incurred by the mort- gagee in maintaining the title to the estate (c), and generally those costs to which we have above seen that he is entitled in his accounts. A mortgagee may, however, not only be refused his Mortgagee costs, but may even have to pay the costs of the mortgagor have to if he has necessitated a suit by refusing a tender of the full P^y ^°^^^- amount due (d), or by setting up a groundless defence (c), or has otherwise been guilty of vexatious conduct (/). Again, the mortgagee cannot be deprived of his pledge Mortgcagor without payment of all sums of money due to him from ^^jj J^.{|tf his debtor which form a general or specific lien on the forming a SDGcific land ; if, therefore, the mortgagee advance money by way iien on of further charge or on a judgment, neither the mortgagor, ^^^'^' nor, as a rule, any one claiming under him, though for valuable consideration and without notice, can redeem without payment of the full amount (ri whether prior or subsequent to the mortgage, tatives. the heir and beneficial devisee of the debtor having been them^'ali ^^^^"^^^ by 3 & 4 Will. & M. c. 14, jointly liable for its pay- debts may ment, in order to avoid circuity and multiplicity of actions the bond debt was allowed to be tacked to the mortgage as against them (m). And on the same principle twenty years' arrears of interest may be tacked as against the heir or devisee of the mortgagor, if secured by a covenant in the mortgage deed binding the heirs {n), though only six years' arrears could be tacked as against the mortgagor himself. Again, since 3 & 4 Will. IV. c. 104, which made real estate liable to simple contract debts, such debts may be tacked by any mortgagee of freehold or copyhold against the heir or devisee, in any cases in which there is not a devise for payment of debts (o). And similarly a mort- gagee of a lease may tack a simple contract debt against the executor (^y). But in neither case can a simple contract debt be tacked as against a creditor coming to redeem (q). 2. Tacking as against mesne incumbrancers. In this branch of the subject perhaps the most important authority that can be cited is the well-known case of BilA.CE V. THE DUCHESS OF MARLBOROUGH [2 P. Wins. 491], Rules ia in which Sir Joseph Jekyll, M.R., laid down the following Duchess of series of rules in exposition of the whole doctrine : — Marl- n\ "jf a third mortgagee buys in the first morto-ao-e, borov///i. . , o o > 1. Third though it be pendente lite, pending a bill brought by the (m) Heams v. Bance, 3 Atk. 630 ; (p) Coleman\. Winch, 1 P. Wms. Shuttlewwth V. Laycoch, 1 Vera. 77 Q ; In re Haselfoot's £state, 13 ISiq. 245. 327. (h) Elvy V. Nm'wood, 5 De G. & [q) Adams v. Claxton, 6 Ves. 226 ; S. 240. Talbot v. Frere, 9 Ch. D. 568. (o) Holfe V. Chester, 20 Beav. 610. TACKING OF MORTGAGES. 249 second mortgagee to redeem the first, yet the third mort- mortgagee gagee having obtained the first mortgage and got the law first mort-^' on his side and equal equity, lie shall thereby squeeze out p°^ ^^^ the second mortgagee ; and this Lord Chief Justice Hale called a plank gained by the third mortgagee, or a tabida in naufragio, which construction is in favour of a pur- chaser, every mortgagee being such pro tanto." This rule is that established by the earlier case of A fortiori Marsh v. Lee (r), and includes the stronger case of a first !!a^*ee"*^'*' and legal mortgagor making a further advance without making notice of a second mortgage. There are certain limita- advance tions of the rule which require attention. Thus there without notice may can be no tacking unless both the securities are held by tack ; the creditor in the same right. He cannot tack a mort- ^"* ^''^<^^' gage which he holds for his own benefit to one assigned hold both to him as trustee for another person (s). Similarly the f*^'^""*^^^ executor of a first mortgagee who had the legal estate in same right. his own right, was not suffered as against a mesne incum- brancer to tack a mortgage of the equity of redemption which had vested in his testator as executor of another. No priority can be gained by the transfer of the legal Convey- estate by a person who holds it on an express trust for the ^^^^^ g^^^^j.^ first incumbrancer. The purchaser, in such a case, himself hy express becomes a trustee (t). Similarly an incumbrancer getting does not in the legal estate from a person who is trustee for all B'^y*' . the incumbrancers, with notice of their rights, gains no priority. The trustee is not to alter the priorities by preferring one of his cestui que trusts and conveying the legal estate to him (^lo). On the same principle it has Nor does been held that no priority is gained by the transfer, with ^ satisfied notice of other incumbrances, of a satisfied mortgage, the mortgage, legal mortgagee becoming on payment of his debt a mere trustee without any pecuniary interest (x) ; but in some ()•) 2 Ventr. 337. 563. (s) Morret v. Paske, 2 Atk. 52; («) Sharpies v. Adams, 32 Beav. Shaw V. Neale, 6 H. L. 581. 213; Maxfidd v. Burton, 17 Eq. 15. (t) Allen V. KnvjU, 5 Ha. 272; (x) Carter v. C, 3 K. & J. 617; Mmnford v. Stohwasser, 18 Eq. 556, Prosser v. Rice, 28 Beav. 68, 74. 250 EIGHTS OF MORTGAGOR AND MORTGAGEE. circumstances the Court has refused to interfere to Notice by take awaj the privilege of the legal estate {y). It is mort'f-ao-ee clearly settled that notice given to the first niortgagee by to first the second, w^ill not prevent the third mortgagee from prevent tackiug tliB third mortgage to the first if he purchases tacking by U /^\ the third ^M-A mortgagee. (2.) The second rule is, "If a judgment creditor, or cre- 2. Judg- ditor by statute or recognizance, buys in the first mortgage, creditor he shall not tack or unite the mortgage to his judgment, &c., tack if ^^^ thereby gain a preference ; for such a creditor cannot mortgage be Called a purchaser, nor has he any right to the land ; judgment; ^^ ^^s neither a jus in re nor a, jus ad rem. All that he the first has by the judgment is a lien upon the land, but non beincrTent co7istat whether he will ever make use thereof, &c. on the Besides which the judgment creditor does not lend his security of , . , . . i • p i the land, money on the immediate view or contemplation ot the land, nor is he deceived or defrauded though his debtor had before made twenty mortgages of his estate ; whereas a mortgagee is defrauded or deceived if the mortgagor before that time mortgaged his land to another." The distinction here drawn between the specific lien of a mortgagee and the general lien of a judgment creditor, as regards tacking, seems to be sound in principle, and is well established (a) ; it has not been affected by 1 & 2 Vict. c. 110 (6). Since 27 & 28 Vict. c. 112, the land is not affected by a judgment, and no right to tack could be supposed to arise, until the land is delivered in execution by writ of elegit or otherwise ; and when there has been actual delivery, even a prior viortgctgee, though without notice of the elegit, could not tack a subsequent charge to his first mortgage (c). The rule would seem to apply equally to prevent a prior judgment creditor from ta^cking a subsequent incumbrance, [y) Pllcher v. Rawlins, 7 Ch. 259, (b) Wkitworth v. Gaayain, 3 Ha 274; and seep. 288. 416. {z) Peacock v. Burt, 4 L. J. N. S. (c) Champneys v. Burland, 19 Ch. 33. W. E. 148 («) Exx). Knott, 11 Ves. 617. TACKING OF MORTGAGES. ^51 and to prevent a subsequent judgment creditor from tack- ing a prior incumbrance (c). (3.) The third rule is that if the first mortgagee lends 3. Amort- (without notice) a further sum to the mortgagor upon a lack a statute or iudgment, he shall retain a'^ainst a mesne ju^lgment Mill- • • ^ n -i t" l^i^ mortgagee until both his securities are satisfied. mortgage. This is the converse of the last rule, and is supported by the converse of the reasoning there employed, for in this case the mortgagee does originally lend his money espe- cially upon the security of the laud, and may be considered to rely thereupon for all his debt (d). If, however, the Unless the mortgage is paid off before the judgment is recovered, h^i^^b^eerT although no reconveyance may have been made, the judg- satisfied. ment cannot be tacked (e). It will be observed that in all these cases there is no In these right to tack if at the time of advancing his money the tacldno' mortgagee had notice of an existing incumbrance. It is prevented the same in the case of a third mortgagee purchasing the first legal mortgage, and in the case of a first mortgagee seeking to tack a further advance, even if the first mort- gage was expressly made to secure a sum and further advances (/). Thus a first mortgagee cannot tack a subse- quent debt incurred 'pendente lite (the lis joendens being duly registered), because the suit would affect him with notice of the mesne incumbrance {g). The fact is that if there is notice at the time of the advance the equities are not equal ; and then the possession of the legal estate will not prevail. (4.) The last rule in Brace v. The Duchess of Marl- 4. Where borough is: "When a puisne incumbrancer buys in a prior estate'^is mortofacje in order to unite the same to the puisne incum- «"*- , , . . . standing brance, but it is proved that there was a mortgage prior thepriority to that, the Court clearly holds that the puisne incum- f»iJov/s the ' "^ -^ order of time, ((•) Coote, 820. 26 Beav. 548. (cZ) See also Shepherd v. Titlcy, (/) Slum v. Neale, 20 Beav. 157 ; 2 Atk. 348, 352 ; Lloyd v. Atwood, 6 H. L. 581. 3 De G. & J. 614. (g) Morret v. Paske, 2 Atk. 53. (e) Marquis of Brecon v. Seymour, 252 RIGHTS OF MORTGAGOR AND MORTGAGEE. brancer where he had not got the legal estate, or where the legal estate was vested in a trustee, could there make no advantage of his mortgage ; but in all cases where the lesfal estate is standing out, the several incumbrancers must be paid according to their priority in point of time." In other words, where, owing to the outstanding of the legal estate, the maxim " where there is equal equity the law must prevail " does not apply, then the maxim " qui iwior est tempore potior est jure " applies, unless one There is, however, a modification of this rule when one incum- q£ ^Y\e incumbrancers, though he has not the legal estate, brancei'has . . a better lias from the circumstances of the case a better right to calHor*it ^^^^ ^°^' ^^ than another ; for instance, if a declaration of trust has been made in his favour, or if he has secured possession of the title deeds {h). If this is the case, equity will place him in the same situation as if he had an actual assignment (i). And the result is the same where an incumbrancer obtains the legal estate after advancing his money in pursuance of a contract for a legal mortgage entered into at the time of the advance {¥). Bond and We have seen that bond and simple contract debts, not simple being specific liens on the land, cannot be tacked as contract o a • t a r • • ^ debts not against the mortgagor himself. A fortiori, whether prior a^/ainst a ^^' subsequent to the mortgage, they cannot be tacked as mesne against any intervening incumbrancer, whether a mortgagee brancer. 01' judgment or bond creditor (I). 37 & 38 The whole doctrine of tacking was displaced for a short Vict. c. 78. ^-^^^g i^y ^l^g Vendor and Purchaser Act, 1874 (m), which enacted that from the 7th of August, 1874, no priority should be given or allowed to any interest in land by reason of such interest being protected by or tacked to the legal estate in such land. This enactment was, however, only {/() Wyndlmmv. Richards(»i,2Ch. [h) Cooker. WiZtow, 29Beav. 100. Ca. 213. {I) Windham v. Jenniwjs, 2 Ch. (i) Pomfret v. Windsor, 2 Ves. sr. Rep. 247 ; Loivthian v. Hasel, 3 Bro. 472, 486; Wilmot v. Pike, 5 Ha. 14, C. C. 162. 22. («i) 37 & 38 Vict. c. 78. CONSOLIDATION OF MORTGAGES. 253 in operation until the 31st of December, 1875, from which ^^ ^^ ^^ . Vict c 87 time it was repealed by the Land Transfer Act, 1875 (n). V. Consolidation of Mortgages. 1. The doctrine of the consolidation of mortgages must be Consoiida- carefully distinguished from that of tacking. The principle tin^'ished of tacking applies as between successive incumbrances on from one estate. The term consolidation of mortgages is applied to the general rule that where a mortgagor has mortgaged more than one estate to his mortgagee, he cannot claim to redeem one mortgage without redeeming all. This rule, which apj)lies equally to redemption and foreclosure suits, to legal and equitable mortgages, and to real and personal property, may be thus concretely illustrated : A. mortgages Illustra- Blackacre to B. for £1C00, Blackacre being worth say £1500. Then A. further mortgages Whiteacre to B. for ii500, and Whiteacre is found to be worth only £100. A. cannot then claim to redeem Blackacre, where the security is ample, alone. If he seeks to do so, he must also be pre- pared to redeem Whiteacre, which is an insufficient security for the money originally charged upon it (o). 2. And this doctrine of consolidation has been carried far Effect of beyond the simple case of a mortgage of two estates by one person to another. Thus if A. sells Blackacre, or mortgages the equity of redemption of it to C, whether with or with- out notice of the existence of the other mortgage, the pur- chaser is just as much as A. himself bound by B.'s right to consolidate (p). Even where the mortgage of Whiteacre was effected after the sale or second mortgage to C, B. was held entitled to consolidate (q). That this may work great hardship on a second mortgagee or purchaser is very (n) 38 & 39 Vict. c. 87. Tltki/ v. Baries, 2 Y. & C. Ch. (o) Selhy v. Pomfret, 1 J. & H. 399, n. 336 ; 3 De G. F. & J. 595 ; Phillips (q) Vint v. Padt/et, 1 Giff. 446 ; V. Gutterklrje, 4 De G. & J. 531. 2 De G. & J. 611. (p) Beevor v. Lucl; 4 Eq. 537 ; 254 RIGHTS OF MORTGAGOR AND MORTGAGEE, evident. Thus, referring again to the figures above employed in iUustration, C, not having any notice of the improvident mortgage of Whiteacre, may imagine that he is perfectly secure in giving £400 for, or lending it on a second mort- gage of Black acre. He would clearly be so if that estate could be redeemed alone. But he finds on seeking to do this, that B. can consolidate with the mortgage of Blackacre the mortgage of Whiteacre, which is worth £400 less than what was lent thereupon ; and the result is that C.'s pur- chase or security is worth him nothing at all. First mort- Again, the principle applies although the first mortgages made to ^^ ^^^® Several estates were originally made to different mort- diflEerent gagecs, but have by transfer come into the hands of one mortgagee ; for instance, if A. mortgages Blackacre to B., and Whiteacre to C, and C. afterwards assigns his mort- gage to B (r), or, vice versa, B. assigns his mortgage to C. (s). But it has been held that consolidation cannot be insisted on if the equity of redemption of the one estate has been sold or mortgaged previous to the transfer which brings the two mortgages to the same hand (t) : a fortiori, if such sale or mortgage takes place previous to the creation of the mortgage of the other estate (u). In this case the knowledge of the possibility of the mortgages coalescing cannot be imputed to the second mortgagee or purchaser of the first estate. The case is yet stronger if at the time of the assignment the assignee had notice of the puisne mortgage (cc). These cases in effect overrule the decision in Tassel v. Smith {]/), and to a certain extent that in Beevor v. Luch (z), cases which for a long time bore very hardly upon purchasers and mortgagees of equities of redemption. ConsoHda- 3. A mortgagee may on the bankruptcy of the mortgagor, bank" if bis trustee does not at once redeem, take a transfer of a mptcy. (r) TitrnfaZe V. r., 23 Beav. 341. Exch. 597; Mills v. Jennings, 13 (s) Titley V. Davies, 2 Y. & C. Ch. Ch. D. 639, 646. 399, n. ix) Baker v. Gray, 1 Ch. D. 491. (0 Willie V. Lugg, 2 Ed. 78. {y) 2 De G. & J. 713. {v) White V. Hillacre, 3 Y. & C. [z) 4 Eq. .^)37. CONSOLIDATION OF MORTGAGES. 255 morto^aofe on another of his estates and consoHdatc it with a debt due on his own mortgage, and may thus hold the two estates as a security for both debts (a). He could not, however, take an original mortgage after notice of in- solvency, as that would amount to a fraudulent prefer- ence (b). 4. There can be no consolidation where the transactions ^'f^^f i" wbuh con- m question are not between the same parties or persons solidation claiming through them (c) ; so there can be no consolida- ™^^ "j*^^ tion where one mortgage is by a firm, and the other by one of the partners thereof (c?). This case also decides that there can be no consolidation where there has been no default in respect of one of the mortgages, for until default the estate is not at law forfeited. 5. The recent Conveyancing and Law of Property Act 44 & 45 in effect abrogates the principle of Consolidation as far as g. 17". " concerns mortgages executed after Dec. 31st, 1881. It enacts that a mortgagor seeking to redeem any one mort- gage shall be entitled to do so without paying any money due under any separate mortgage made by him, or by auy person through whom he claims, on property other than that comprised in the mortgage which he seeks to redeem, provided that no contrary intention is expressed in the mortgage deeds or one of them. But the Act only applies where the mortgages are or one of them is made after the above-mentioned date (e). (a) Selby v. Pomfret, 1 J. & H. 329 ; 10 Jur. 328. 336; 3 De G. F. & J. 595. (d) Cummins v. Fletcher, 14 Ch. (b) Exp. HotchUn, 20 Eq. 746. D. 699. (c) Jones V. Smith, 2 Ves. jr. 376 ; (e) 44 & 45 Vict. c. 41, s. 17. Higyins v. Frankis, 15 L. J. Ch. 256 EQUITABLE MORTGAGES. Section III. — Equitable Mortgages. I. By Agreevient. II. By Deposit of Title Deeds. Russel V. Russel. III. Remedies. Classifica- There are two species of equitable mortgages, which, *^""' though in many respects similar, are sufficiently distinct to require separate consideration. The first class comprises those transactions viewed and treated in equity as mortgages, in which a person by agreement or mandate creates a charge uj)on his property. The second and more peculiar class comprises equitable mortgages arising from the deposit of title deeds. I. Equitable Mortgages by Agreement or Mandate. Informal 1. Any agreement in writing, however informal, by which agree- ^^^ property, real or personal, is to be a security for a mortgages, sum of money, is a charge, and amounts to an equitable mortgage. Thus an agreement that a creditor shall hold land at a fair rent to be retained in satisfaction of the debt, is in the nature of a mortgage, and will be sup- ported as such (e). On the principle that what is agreed to be done is considered in equity as done, an express written agree- ment to effect a mortgage is treated as a mortgage (/). So a written instrument promising to pay a sum of money with interest " out of the estate of the deceased W. H.," and signed by all the persons interested in his estate has been held (the personalty being exhausted) (e) Morony v. 0' Dea, 1 Ba. & Be. (/) Hankey v. Vernon, 2 Cox, 12, 109 ; Coote, 305. 14, BY AGREEMENT. '2') t to amount to an equitable mortgage of the real estate (g). And an agreement by a married woman to charge her expectancy under the will, or as one of the next of kin of a living person, was on similar grounds enforced after that person's death (/i). A covenant also that, if payment of a certain debt be not made, the creditor may by entry, foreclosure, sale, or mortgage, levy the amount from the lands of the debtor, is an equitable mortgage (i). 2. Another species of equitable mortgage is seen in Mortgages mortgages of the equity of redemption of an estate which e(iuity of has been already legally mortgaged. But it is not redemp- necessary to enter into a separate discussion of such equitable mortgages, inasmuch as any particulars in which they differ from legal mortgages are fully explained under the heads of Notice and Tacking (k). II. Equitable Mortgages by Dei:>osit of Title Deeds. It is a well-known provision of the Statute of Frauds {I) Statute of that no action shall be brought upon any contract or sale ^^"' "' of lands, tenements, or hereditaments, or any interest in or concerning them, unless the agi'eement upon which such action shall be brought, or some memorandum or note thereof, be in writing and signed by the party to be charged therewith, or his duly authorised agent (m). In the case of RUSSEIi V. RUSSEL Rassd v. [1 Bro. C. C. 269 ; 1 W. & T. L. C. 726] ^'"•'''■'''• this was relied on as an answer to an action which sought to establish a charge on the mere fact of the deposit of a deed. But the objection did not avail ; and it has long (cj) Suart V. Toulmine, 2 Pow. (i) Eyre v. McDowell, 9 H. L. Mtg. 1049 a, ed. 6. 620. [h) Flower v. Buller, 15 Ch. D. (Ic) See pp. 245 et scq., 278 ct scq. 665. But see also Pike v. Fitzgibbon, (I) 29 Car. If. e. 3. 14 Ch. D.'837 ; 17 Ch. D. 454. (m) s. 4. S 2o8 EQUITABLE MORTGAGES. Deposit sufficient evidence of an agree- ment. What deposits sufficient. Deposit of part of deeds. Of receipt for pur- been established that if the title deeds of an estate are, without even verbal communication, deposited by a debtor in the hands of his creditor, such deposit is of itself evidence of an agreement executed for a mortgage of the estate; and the creditor may avail himself of it as of an agreement in writing for that purpose, and may bring an action for the completion of his security by a legal conveyance (%). These bold decisions have given rise to transactions which now form a conspicuous feature in equitable jurisprudence, and which require attentive consideration. (1.) What constitutes such a mortgage. (i.) It has already been stated that a deposit of title deeds, unaccompanied by any verbal agreement, is evi- dence of an agreement for a mortgage which may be enforced ; and this proposition may be abundantly illus- trated. Thus a deposit of a copy of Court rolls (o), of an a,greement for a lease (/:»), of a policy of insurance {q), of a registered mortgage of a ship (?■), or of a certificate of shares in a public company (.s), may constitute an equitable mortgage. (ii.) An equitable mortgage may be created by a deposit of part of the title deeds only, and it is not necessary that the deeds deposited should show a good title in the depositor {t). But a deposit of deeds relat- ing to part of an estate, with a representation that they relate to the whole, will only effect a mortgage of the part actually comprised in the deeds {%i). If the deeds are deposited, some with one creditor, some with another, each may have a valid charge (x). Moreover, if there are no title deeds or conveyances in the depositor's [n) Exp. Wright, 19 Ves. 258. (o) Exp. Warner, 1 Rose, 286. (%>) Unity ti-c. Co. v. King, 25 Beav. 72. (5) Ferris v. MuUins, 2 Sm. & G. 878. (r) Lnccn v. Liffen, 4 Giff. 75. (s) Exp. Mos.% 3 De G. & Sm. 599. (t) Exp. Wetherall, 11 Ves. 398 ; Roberts v. Croft, 24 Beav. 223 ; 2 DeG. & J. 1. (m) Jones V. Williams, 24 Beav. 47. (x) Roberts v. Croft, sup. I DEPOSIT OF TITLH: DEEDS. SoO possession, an equitable mortoaoe may be created by the ct»ase- . p , • n 1 • • 1 money. deposit of the receipt tor purchase-money, contaming the terms of the agreement for sale Q/). (iii.) Where land had to be registered under the Land Registered Registry Act (z), an equitable mortgage might be created by a deposit of the land certificate (a), but not by that of the title deeds (b). The same provision is continued under the Land Transfer Act (c). (iv.) A deposit of the deeds with a third person for Deposit the benefit of the creditor will be sufficient to create a ^' person. security ; and the possession of the agent of the debtor may suffice, if there is a memorandum of deposit showing an intention to make him a trustee (d). But a deposit with the wife of the debtor, to be kept by her for the creditor, was held insufficient (e) ; and where the deeds remain in the hands of the debtor, accompanied by a memorandum of deposit, there is no valid mortgage (/) unless indeed the debtor in fact holds them as the servant of the creditor (g). (v.) But though a dej)osit of title deeds or their equiva- Depositor lent is evidence of an agreement for a mortgage which ^^^^ ^j^^^ may suffice to establish a claim for relief in equity, it does was no , „ . mi 1 • 1 agreement, not itseii constitute an agreement, i he depositor may show and that that the deposit was not made with the view and intent *^^® P"""' ■^ , . . pose was to effect a security, but with some other intent or for some not to other purpose. The mere possession of the title deeds is, gg^f^^ri^y therefore, not enough to create an equitable security (h). For instance, deeds may be deposited merely for the pur- pose of safe custody ; or on some definite condition (i) ; or there may be attendant circumstances showing that there Avas no intention to create a mortgage, as, for instance, where deeds have been left with a banker after he has (y) Goodwin v. Waghorn, 4 L. J. J. 614, 619. N. S. Ch. 172. (e) Exp. Coming, 9 Ves. 115. (z) 25 & 26 Vict. c. 53. (/) Aclams v. Claxton, 6 Ves, (a) s. 73. 226, 230. [h] s. 63. [g] Ferris v. Mullins, sup. (r) 38 & 39 Vict. c. 87, s. 81. (h) Chapman v. C, 13 Beav. 308, (d) Lloyd V. Attwood, 3 De G. & (/) Burton v. Gray, 8 Ch. 932. S2 2G() EQUITAISLE MORTGAGES. Deposit for purpose of creating a legal mortirasfe. Written memoran- dum suffi- cient with- out de25osit. What pro- refused to advance money on them (k) ; or the deposit may be accompanied by a memorandum showing that there was not an intention to create a security (l). In none of these cases will an equitable mortgage be created ; but where the possession of the deeds cannot be accounted for save on the supposition that a mortgage was intended, it amounts to a presumption of such intention so strong that it may be acted upon (m). (vi.) Where deeds are deposited for the purpose of pre- paring a legal mortgage, a presumption arises of an inten- tion to create an equitable mortgage. At one time it was sought to distinguish between the case where the inten- tion was to secure an antecedent debt, and where it was with a view to secure only a future advance, it having been held that in the latter case no equitable mortgage arose from the deposit (n). But it seems that this distinction cannot be sustained, and that now in all cases an equitable mortgage will result from the deposit (o). This will clearly be the case if an agreement to give a mortgage accom- panies the deposit ('p). (vii.) A valid equitable mortgage may, as we have seen, be created by a written agreement apart from any deposit; and a written memorandum of deposit is a sufficient agree- ment {q), especially if the deeds be already in the posses- sion of a third party (?•). But in no case can a mere oral agreement without an actual deposit create an equitable security (s). (2.) The effects of an equitable mortgage by deposit. i. As to the property affected. Prima facie, the deposit of deeds by a debtor constitutes [k) Lucas V. Borricn, 7 Taunt. 278. (I) Shaw V. Foster, 5 L. R. H. L. 340 ; Spoile v. Whayman, 20 Beav. 607. (m) Featherstone v. Fenwich, Har- ford V. Carpenter, 1 Bro. C. C. 270, n ; Dixon V. Mucldeston, 8 Ch. 155. (n) Norris v. W{lk-inso7i, 12 Ves. 192. (o) Edffe V. Worthhi/jton, 1 Cox, 211 ; Exp. Bruce, 1 Eose, 374. (p) HocMey v. Bantock, 1 Russ. 141 ; Keys v. WilUams, 3 Y. & C. Ex. 55. (q) Exp. Orrctt, 3 Mont. & A. 153. (r) Daw V. Terrcl, 33 Beav. 218. (s) Exp. Coomhe, 4 Madd. 349. DEPOSIT OF TITLE DEEDS. 2G1 a mortg-acye of all the property comprised in them (t). But P^^y ^^ ^, '^ ? 1 1- • 1 1 • T deemed to the security may be Imiited by a written memorandum to be mort- that effect (u). If, on the contrary, the memorandum re- ^■'^sed. fers to deeds which are not deposited, it does not effect a mortgage of the property comprised in them (x). Thus Memoran- the memorandum may limit but may not extend the effect liniTt the" of the deposit, unless, of course, the memorandum is in <^ff*^ct of such a form as in itself to constitute an equitable mort- gage. A. deposit of title deeds will comprehend any interest After ac- which the depositor may afterwards acquire in the pro- perty! ^^'' perty (y), and will include not only fixtures existing at the Fixtures, time, but also those subsequently erected thereon, whether the fixtures are mentioned or not (z). And the result is the same whether the deposit is made by the owner in fee who is also owner of the fixtures, or by a lessee who is owner of the fixtures, although as between landlord and tenant they are removable (a). On the bankruptcy of the i" bank- depositor of a lease, the fixtures will not be considered as ™^' ^^' being in his order and disposition, but will belong to the mortgagee (b) ; but a doubtful distinction has been drawn in the case of the deposit of an assignment of a lease, no mention being made of fixtures (c). The same case also intimated that such a. mortgage, in order to pass the fix- tures, would require registration under the Bills of Sale Act, 1854 (d), but see Meux v, Jacobs {e). Registration will, under the Act of 1878 (/), be clearly necessary {g). A deposit of title deeds can only affect the interest of Interest uf the depositor. Thus if the deposit be by a trustee, and ^^^p*"**^^" there is no consent or acquiescence of the cestui que trust, affected. (t) Ashton V. Dalton, 2 Coll. 566. 12-3 ; Meux v. Jacobs, 7 L. R. H. L. (m) Exp. Glyn, 1 M. D. & De G. 481. 29. [h) Exp. Bardau, 5 De G. M. & (x) Exp. Powell, 6 Jur. 490. G. 403. (y) Pryce v. Bury, 16 Eq. 153. (c) In re Trctlwwan, 5 Ch. D. 559. (2) Exp. Price, 2 M. D. & De G. (d) 17 & 18 Vict. c. 36. 518 ; Exp. Astbury, 4 Ch. t 30. (e) Sup. (a) Exp. Loyd, 3 D. & C. 765 ; (/) 41 & 42 Vict. c. 31. Longbottom v. Berry, 5 L. R. Q. B. (ij) ss. 4, 5 ; sup. p. 233. 2G2 EQUITABLE MOirfGAGES. Prima deposit secured. Circum- stances or evidence may ex- tend this. the security extends only to any beneficial interest whicli the trustee may have Qi) ; and a deposit by a tenant for life cannot aifect the interest of remainder-men (i). ii. What debts it may secure. It is a matter of evidence what debts are to be deemed debtsTd^ to be comprised in the security of an equitable mortgage, vanced at Prima fade only the sum advanced at the time of the deposit is considered to be secured thereby (k) ; but the circumstances of the case may suffice to show an inten- tion to secure antecedent advances, and if so it will be carried into effect {I) ; and either written or parol evidence of intention may suffice to extend the security to subse- quent advances (m) ; and generally a verbal agi'eement to make a subsequent advance, on a deposit of deeds already made for another purpose, is sufficient to constitute an equitable mortgage as to the subsequent advance (7?.). A debt secured by an equitable mortgage, although originating in a simple contract, bears interest from the date of the deposit, even without an express agreement to that effect (0). iii. Against whom the security prevails. A deposit of title deeds creates a security valid as against the against the Crown, if made before the depositor became a Crown. Crown debtor by record or specialty {■p). The security is also good against the debtor's trustee in bankruptcy, unless being made so near the bankruptcy as to amount to a fraudulent preference {q). It also prevails against the interest of a subsequent judgment creditor, although he may have acquired legal seisin under an elegit and without notice (r). An equitable mortgagee being a purchaser for value, his Interest. Security I'alid Trustee in bank- ruptcy. Judgment creditor. Prior volunteers. (h) Manningford v. Toleman, 1 Coll. 670 ; Exj). Smith, 2 M. D. & De G. 587. (?) Turner v. Letts, 20 Beav. 185. (k) Exp. Martin, 4 D. & C. 457 ; 2 M. & A. 243. (l) Exp. Farley, 1 M. D. & De G. 683, 689. (m) Exp. Laiigston, 17 Ves. 230 ; Shepherd v. Titlei/, 2 Atk. 348. (n) Exp. Kensington, 2 V. & B. 79 ; Exp. Whit bread, 19 Ves. 209. (o) Re Kerr's Policy, 8 Eq. 331. (p) Casberd v. Ward, 6 Pri. 411. (q) Exp. Ainstvorth, 3 M. & A. 457. ()•) Whitvorth v. Gavgain, 3 Ha. 416, 1 Ph. 728. DEPOSIT OF TITLE DEEDS. 2(Jo charge will, by 27 Eliz. c. 4, be effectual against a prior voluntary settlement (s). But he is liable to all prior equities affecting the de- Subject to positor ; for instance, as we have seen, a deposit of title eq!lities deeds given in breach of trust, though without notice, does not affect the claim of the beneficiaries ; and where a mortgage was obtained without consideration, and then transferred with notice to a person who deposited it to secure a debt, it was held that the depositee could not be in a better situation than the depositor, and his security was therefore useless (t). iv. Generally, The benefit of an equitable mortgage by deposit may be Benefit subsequently extended to persons who were not originally "'^^■^g. '^ depositees. If a deposit of deeds is made to a firm, the quently general supposition is that it is not intended to enure for the benefit of future members of that firm ; but if an intention that it should so operate is expressed on the memorandum of deposit, or is proved by parol evidence or is evidenced by continued dealings with the new firm, the new firm may gain the benefit of the security (it). The special features of the liens of bankers, &c., are stated elsewhere (x). The rules as to priority, as between equitable mort- gagees and others, are fully discussed under the headings of notice, and tacking of mortgages (i/). It was formerly supposed that a cestui que trust or Equitaiile depository of a lease was liable for the rent and covenants ^lea^elfot in a suit by the lessor ; but the contrary is now clearly I'^ble to established ; and the landlord cannot compel him to take or the mortgagor to execute an assignment so as to bring him within the liability of the covenants, even if he has been in possession and paid rent (z). (s) Ede V. Knoides, 2 Y. & C. Ch. (x) p. 266. 172. {!/) See pp. 245 ct seq., 278 et seq. (t) Parker v. Clarke, 30 Beav. 5i. (z) Moores v. Choat, 8 Sim. 508 ; (u) Exp. Kensington, 2 V. & ['>. 79, Moore v. Greg, 2 De G. & Sm. 304 ; 8.3; Exp. (Jakes, 2 M. D. & De G. 2-34. 2 Ph. 717. 2G4 EQUITABLE MORTGAGES. Fore- closui'e the ])roper remedy. The remedy is sale ia case of a charge or pledge of chattels. Receiver. Under Bank- ruptcy Act. III. Remedies of an EquitaNe Mortgagee. (1.) It has been much discussed whether the proper remedy of an equitable mortgagee is foreclosure (after the analogy of a legal mortgage) or sale (after the analogy of a charge). It is now settled that in the case of a mortgage of lands the proper remedy is foreclosure {a), whether the mortgage arises from an agreement for a legal mortgage (h), or from a deposit of title deeds with or without a written memorandum (f ), or is a mortgage of an equity of redemp- tion {d). If there is a deposit of title deeds, accompanied by a written agreement for a mortgage, the mortgagee is entitled to either sale or foreclosure (e). Where there is a mere charge or lien, the remedy is sale, and not foreclosure (/) ; sale is also the proper remedy in the case of a pledge of personal chattels {g). An equitable mortgagee is entitled to a receiver, and one may be appointed on motion before defence, and even before appearance in cases where a risk of loss is shown {h). (2.) The remedies of mortgagees (including equitable mortgagees) in bankruptcy, and also in the administration of insolvent estates, and in the wanding-up of companies, are now regulated by s. 40 of the Bankruptcy Act, 1869 (i). The general principle is that the mortgagee may either give up his security and prove for his whole debt, or retain his security and prove for whatever deficiency there may be. The jurisdiction of Chancery is, however, not taken away by the Bankruptcy Act, so that the mortgagee may still proceed in Chancery against the trustee in bank- ruptcy for the realisation of his security {!{). (a) Pryce v. Bury, 2 Di-ew 41 ; 18 Jur. 967 ; James v. /., 16 Eq. 153. (h) Frail v. Ellis, 16 Beav. 350. (c) Carter v. ^yake, 4 Ch. D. 605, 606, per M. R. ; Backhouse v. Charl- ton. 8 Ch. D. 444. (d) Richards v. Cooper, 5 Beav. 304. (e) Yorkd:c. Co. v. Artkii, 11 Ch. D. 205. (/) Tennant v. Trenchard, 4 Ch. 537. (g) Carter v. WaJce, sup. (h) Aberdeen v. Chitty, 3 Y. & C. Ex. 379 ; Meaden v. Sealey, 6 Ha. 620. (i) 32 & 33 Vict. c. 71 ; Jud. Act, 1875, 38 & 39 Vict. c. 77, s. 10. (k) White V. Sivi7nmis, 6 Ch. 555. GENERALLY. 265 Section IV. — Liens. Oenerally. I. Liens at Laiv. II. Equitable Liens. 1. Charges. 2. Vendors lAcn. Mackreth v. Symmons. 3. Vendee's Lien. Analogous in many respects to mortgages are those Definition, charges of various kinds which are designated by the general term " liens." A lien is not, however, like a mort- gage, a jus in re, or a jus ad rem, but is simply a right to possess and retain the property subject thereto, until some charge attaching to it is paid or discharged (I). Liens are either legal or equitable ; that is to say, some Liens legal liens have always been recognised by the common law ; abit^"^*' others, apart from recent legislation, could be enforced only in Courts of Equity. I. Of liens recognised at law some are specific, others Specific general. It will not be necessary here to do more than ^^®"^' briefly indicate some examples of such liens. Familiar illustrations of specific liens are, the right which an artisan Artisan. has to retain an article delivered to him to work on until he is paid for the labour expended thereon {'tn), the lien of an accountant upon books entrusted to him for examination Accoimt- and arrangement {n), the lien of a ship-owner who has paid ^° ' a sum for salvage, ujDon the goods on board for the amount owner. {I) Story, 506. (n) Exp. Southall, 17 L. J. Bk. [m) Scarf e v. Morgan, 4 M. & W. 21. 270. 2(30 LIENS. Partner. General liens, when maintain- able. Liens by usage : Bankers. Brokers. Inn- kee[iers. Factors. Wljarfin- ger-s. of contribution to which the owner of the goods is liable (o), and the lien of a partner on the partnership property for what may be found due to him on taking the partnership account (27). A general lien differs from one that is specific in that it entitles the creditor to retain the property in question as a security, not merely for a particular charge, but for the general balance due to him. It has been held that a general lien can only be maintained in particular trades where its existence has been judicially declared (q). Lord Mansfield stated that a general lien would be upheld in four cases : (1) where it is an express contract; (2) where it is implied from the usage of trade ; (3) where it is implied from the manner of dealing between the parties on the particular case ; (4) where the party has acted as a factor (r). An important instance of a lien by usage is the lien of a banker over all the bills, papers, and securities of a customer in his hands, which right subsists unless there be an express contract or circumstances showing an implied contract inconsistent with the lien (s). An instance of a circumstance showing such an implied contract is the case of a lease being accidentally left with the banker after he had refused to lend money upon it (t). A broker has a similar lien(u), and an innkeeper has a general lien on articles belonging to his guests, which come into his possession as innkeeper (x). A factor has a general lien on goods consigned to him for sale, and on the pvu'chase-money thereof (y), as well as a specific lien on goods bought for the purchase-money and freight paid in respect thereof (s). A wharfinger has also (o) Briqgs v. Merchant dr. Assoc, 18 L. J. Q. B. 178. (p) Skip V. Harirood, 2 Swanst. 586. iq) Bock V. Gopisson, 6 Jur. N. S. 547 ; 7 ih. 8L (r) Green v. Fdrmer, 4 Burr. 2221. (s) Dalies v. Bowshcr, 5 T. K. 488 ; London Chartered. Bank v. White, 4 App. C. 41:J. (t) Lucas V. Doi'rien, 7 Taunt. 278. (m) Hewison v. Guthrie, 2 Bing. N. C. 755. (.r) Thrcfall v. Borvick, 7 L. R. Q. B. 711; 10 ib. 210. (i/) Godin V. London Ass. Co., 1 Bur. 490 ; Robson v. Kemp, 4 Esp. 236. (:) E.rp. Einrrij, 2 Ves. sr. 674 : Exp Good, 3 M. & A. 246. LIENS AT LAW. 267 the same general lien as a factor for the balance of his wharfage dues and freight (a). The lien of a solicitor is of such a nature as to require Solicitors' especial consideration. A solicitor has a general lien on f^^^^ the papers of his client in his hands for his costs, charges, and expenses {&) ; and in consequence thereof every client is entitled to have his costs taxed, though there may be no item in the account relating to an action at law or in equity (c). This lien is merely a right to retain, and cannot be actively enforced (d). It appears not to be waived by an order for payment, or by an attachment for non-payment of costs, nor by any proceeding against the person of the debtor (e). It is not confined to deeds and papers, but What it extends to other articles delivered to the solicitor for the ^^^^ '^^' purposes of the action ; for instance, to books, shares in a company, &;c. (/). A solicitor has also a specific lien on the fund recovered Specific by him in an action for the costs of the action (g), and funds similarly, also, upon money of the client in his hands to '■^''"^^^■'^<^ ' abide the result of the action (h). The lien is limited to the bow interest in the fund of the party who retained the solicitor(i), ''' and is subject to any equity between the parties, so that if there is a set-off of costs of suit payable by the defendant against the sum found due from the plaintiff, the lien of the defendant's solicitor only extends to the amount of the ultimate balance due from the plaintiff (k). The lien upon how a judgment is merely a claim to the equitable interference of the Court to have the judgment held as a security for the costs. It is not equivalent to an equitable assignment or charge on the judgment, nor does it constitute the client a trustee for the solicitor so as to prevent a set-off by a (a) Naylor v. Mangles, 1 Es25. 109 ; (/) Frlsvell v. King, 15 Sim. 191 ; 25 & 26 Vict. c. 63, s. 76. General Share Trust Co. v. Chapman, (b) Stevenson v. BlaMock, 1 M. & 1 C. P. D. 771. S. 535. (,'/) Bozon v. BoUond, sup. (c) Re Barker, 6 Sim. 476. (h) Ifaiison v. Reece, 3 Jur. N. S. (d) Bozon V. BoUond, 4 My. & C. 1204. 357. (i) ffedl V. Laver, 1 Ha. 571. (e) Lloyd v. Mason, 4 Ha. 132 ; (k) Bantree v. Watson, 2 Keen, Exp. Bryant, 1 Mad. 19. 713. LIENS. defendant of another judgment against the cHent (I). But see also Exj). Cleland (m). The solicitor of a trustee has no lien upon the trust fund for the general costs of the trust, though the trustee upon paying those costs might take them out of the fund(u). The solicitor for an executor, however, has a lien on the deeds of the estate if the executor or his estate is not indebted to the estate of the testator (o) . Previous to 23 & 24 Vict. c. 127, a solicitor had no lien for his costs against real estate either at law or in equity. By s. 28 of that Act it is enacted that it shall be lawful for the Court or judge, before whom any suit or matter has been heard, to declare that the solicitor employed therein is entitled to a charge upon the property recovered or pre- served by his instrumentality in such suit or matter ; and that all conveyances and acts done to defeat such charge shall, unless made to a bond fide purchaser without notice, be absolutely void and of no effect as against such charge or right. This Act applies to property of all kinds (2')), and a liberal construction is placed upon the word " preserved." The appointment of a receiver of the real estate of an infant has been held to bring the property within the section (q). A solicitor who takes a security is considered to have abandoned his lien (7-), but for this purpose a charging order under the Act is not deemed a security so as to interfere with the lien which he enjoys apart from the Act (s). II. Equitable Liens. 1. The most conspicuous and important among equitable liens are those arising from charges of legacies and portions (I) Barker v. St. Quentin, 12 M. & W. 451 ; Mercer v. Graves, 7 L. K g. B. 499, 505-6. (m) 2 Ch. 813. (n) Hall V. Larer, 1 Ha. 571. (o) Turner v. Letts, 7 Be G. M. & G. 243. (^5) Birchall \. Pwjin, 10 L. E. C. P. 399. (q) Baile v. B., 13 Eq. 497. (r) Balsh v. Symes, T. & R. 92. (s) De Bay v. Griffiyr, 10 Ch. 294 n. EQUITABLE LIENS. 209 upon real estate. Such liens create a trust which equity will enforce against the person creating the lien, and persons claiming as volunteers or with notice under him. The effect of such charges is more fully considered else- where {t). 2. The lien of a vendor for unpaid purchase-money and Lien of that of a vendee for prematurely paid purchase- money are also characteristic instances of equitable liens, and therefore require detailed investigation. In discussing the application of the well-known equit- able principle known as the vendor's lien, it is necessary to distinguish between its operation as between the vendor and purchaser, and as between the vendor and third per- sons claiming through or under the purchaser. As, how- ever, persons claiming under the purchaser as volunteers are in the same position as himself, the most convenient distribution of the subject is to include volunteers in the first inquiry, and then to consider the extent of the ven- dor's lien as against those whose title is derived from the purchaser for valuable consideration. (1.) Vendor s lien against a purchaser, his heirs, and voluntary assignees. The general principle as to the lien of the vendor of an General estate is fully expressed in the judgment of Lord Eldon in MACKRETH v. SYMMONS, [15 Ves. 329 ; 1 W. & T. L. C. 324,] which is to the following effect : Where a vendor, in com- pliance with a contract for the sale of an estate, executes a conveyance thereof, but the purchase-money is wholly or partially unpaid, then, notwithstanding that on the face of the conveyance it is expressed to be paid, or that a receipt for it is endorsed thereon, the vendor has a lien on the estate for the money remaining due to him The same case further shows that the mere circumstance of taking an additional security is not inconsistent with (t) pp. 298, et seq., 497—9. 270 LIKNS. Applies to copyholds and lease- holds, not to per- sonal chattels, when con- sideration is an annuity. Lien doubtful where there is other security. Lien ex- tends to moneys advanced. the continuance of the lion. The circumstances which are considered to amount to a waiver or abandonment of the lien are hereafter separately discussed. It suffices now to say that the taking of a bond, or bill, or promissor}^ note, is not of itself evidence of an intention to waive the lien (u). The lien applies to copyholds and leaseholds as well as to freeholds (x), and attaches when possession of the estate has been delivered to the purchaser, though there has been no conveyance to him (y). It does not, however, apply to personal property other than chattels real. As soon as a purchaser has possession (actual or constructive) of such property, the lien is gone (z). The question of stoppage in transitu depends on a different principle, not relevant to the present inquiry. Where the consideration for the sale of an estate is in the form of an annuity, the lien attaches to secure the annuity, at least if no other security for that purpose is taken. Where the annuity has been secured by a bond or covenant, the cases have been somewhat conflicting. In the principal case, Lord Eldon held that there was no lien for the annuities ; but he did so rather in consideration of the special circumstances of the case, than as a general principle of law. In Tardiffe v. Scrughan (a) the lien was allowed, and this case has never been overruled, though in somewhat similar circumstances some judges have been slow to follow it (b). See also in favour of the lien Matthew V. Bowler (c), Sugden V. & P. 676, ed. 14. If a vendor agrees to lend money to the purchaser for improving the estate, his lien extends to the advances so made, as well as to the purchase (d). Special consideration is required of those cases in which (u) Collins V. C, 31 Beav. 346 ; Iluf/hes V. Kearney, 1 S. & L. 134. (ic) Winter v. Ansson, 3 Russ. 492 ; Mattheic V. Bowler. 6 Ha. 110. (y) Smith v. Hihhard, 2 Dick 730. (2) 15 Ves. 344 ; Exp. Gwynne, 12 Ves. 383. (rt) 1 Bro. C. C. 423. (6) Clarke v. Boyle, 3 Sim. 502 ; Bucklarid v. PockneU, 13 Sim. 412. (c) Sup. \d) Exp. Linden, 1 M. D. & De G. 435. vendor's lien. 271 a vendor asserts his lien with respect to a sale to a railway or other company. As a general rule, the lien attaches to lands purchased Lien &?> by such companies, whether by agreement or in the exer- ^fiiway cise of compulsory powers (e) ; and it includes unpaid a"*^ ft;her ,. companies compensation as well as purchase-money, unless such com- generally, pensation is the subject of a separate agreement. Although a railway may have been made over the land, the lien may be enforced by sale(/); but not by an injunction restrain- ing the use of the railway (g). Where, however, the consideration for the purchase is a Where the rent-charge on the lands, there is no lien for securing its tion\s^a* payment (h), but the owner of the rent-charge is entitled ^^^^- to a receiver of the tolls and net earnings of the under- taking, and may distrain on the lands (i). A vendor's lien is so far regarded as an interest in land Lien as to be within the Mortmain Act (k), and a bequest of Mortmain money due thereupon is therefore void (/) ; and it seems ^^^' that a mere parol assignment of it would be ineffectual, as and within the Statute of Frauds, unless accompanied by a Frauds, deposit of title deeds (m). The lien, however, is not such but not an an interest in land as to come within sect. 23 of the Sa^d^^fthhi Wills' Act (n). So, if, after devising an estate, the devisor Wills Act. contracts to sell it, the purchase-money will belong to the personal representatives and not to the devisee (o). A vendor's lien not being an express trust, the right to Lien enforce it may be barred by the Statute of Limitations at statute of the end of twelve years (p), unless the case is taken out of Limita- • p 1 1 rti • tions. the operation ot the statute by a sumcient acknowledg- ment (q). (e) Walker v. Ware d:c. Co., 1 Eq. (1) Harrison v. H., 1 R. & M. 71. 195. \m) Dryden v. Frost, 3 My. & Cr. (/) Cosens v. Bognor cSsc. Co., 1 Ch. 670 : Meux v. Smith, 11 Sim. 421. 594 ; Munns v. /. of Wight R. Co., (n) 1 Vict. c. 26. 5 Ch. 414. (o) Farrar v. E. of Winterton, 5 (g) Pell V. Northampton &c. R. Co., Beav. 1. But see Drant v. Vause 2 Ch. 100. 1 Y. & C. Ch. 580. (A) E. of Jersey v. Briton dx. Dock {p) 3 k 4 Will. IV. c. 27 ; 37 & Co., 7 Eq. 409. 38 Vict. c. 57. {i) Eytonv. Denbighd-c. Co., 6Eq.li. (q) Toft v. Stephenson, 1 De G. M. (k) 9 Geo. II. c. 36. & G. 28 ; 5 ih. 735. Whom the lien binds. 272 LIENS. Not within A vendor's lien was held not to be a mortgaoje within 1 7 & 18 o <=> Vict. c. Locke King's Act (>•), so that the personal estate of a '^' deceased purchaser was primarily liable for the payment cimled in ^^ ^^® purchase-money (s) ; but, by 30 & 31 Vict. c. G9, the amending word " mortgage " was declared to include any lien for un- paid purchase-money upon any lands purchased by a testator ; and by 40 & 41 Vict. c. 34, the same construction was applied in case the purchaser died intestate. (2.) Vendor's lien as against purchasers for value. The equitable lien for unpaid purchase-money binds the estate, as well in the hands of persons claiming for valuable consideration under the purchaser with notice, as in the hands of the purchaser himself, his heirs, and voluntary assignees (t) ; but the lien will not prevail against a bond fide purchaser who buys without notice that the purchase- money remains unpaid, and acquires the legal estate (w). If, however, the legal estate is outstanding, then, as the second purchaser has only an equitable interest subsequent in time to the equitable lien, the equitable lien will have precedence, conformably to the maxim " Qui prior est tem- pore potior est jure {x). But this again is subject to modi- fication, since priority in time will not avail unless the Lien may equities are equal. If, therefore, the vendor has been negUo-ence. S'^^^^J ^f negligence, he may lose his lien. Thus in Rice V. Rice (y), certain leaseholds were assigned to a purchaser by a deed which recited the payment of the whole of the purchase-money, and had the usual receipt endorsed on it ; the title deeds were delivered up to the purchaser, but the whole of the purchase-money was, in fact, not paid. The purchaser forthwith deposited the assignment and title deeds to secure an advance. It was held that the equity arising from the deposit ought to prevail against the lien, on the ground that the vendor had, by his negligence, (r) 17 & 18 Vict. c. 113. (u) Cator v. E. of Pemhroke, 1 Bro. (s) Hood V. H., 3 Jur. N. S. 684. C. C. 302. {t) Walker v. Presivick, 2 Ves. {x) Frere v. Moore, 8 Pri. 475. 622 ; Winter v. Anson, 3 Pai.sf. 488 ; (?/) 2 Drew, 73. 1 S. & S. 434. vendor's lien. ~ 273 placed it in the power of the purchaser to deal with the estate as absolute owner at law and in equity. The results are : — i. That the lien prevails against a second purchaser with notice, even though he acquires the legal estate ; and as against a purchaser without notice, if the legal estate is outstanding, and the vendor has not been guilty of negligence. ii. That the lien does not prevail against a bond fide purchaser, who acquires the legal estate without notice ; nor against a purchaser of an equitable interest, where the first vendor has been guilty of negligence. Or perhaps it may be said still more generally that the lien will not prevail against a subsequent equitable mortgagee who strengthens his equity by acquiring possession of the title deeds. The force of the lien being thus in a great measure What dependent upon the question of notice, we may here add ^^ notice, some illustrations, especially touching this class of cases, of what does and does not constitute notice, though this subject is more fully considered elsewhere (0). Where a subsequent purchaser or mortgagee omits to Omission make inquiries for the title deeds of the property in ques- for"i*ti'e'^^ tion, or accepts an insufhcient excuse for their absence, the deeds. Court will impute to hira notice of a prior claim, and will enforce it against him, although he may acquire the legal estate (a). Not so, however, if he has made inquiry, and a reasonable excuse has been given for the non-appearance of the deeds (b). Where the vendor has acknowledged the receipt of the Effect of purchase-money in the body of the deed and by endorse- pj^^gg* ment, the fact of his remaining in possession of the estate as lessee will not amount to notice of the purchase-money remaining unpaid (c). (z) See p. 280 et seq. (b) Allen v. Knight, 5 Ha. 272 ; (a) Worthington v. Morgan, 16 Hewitt v. Loosemore, 9 Ha. 449. Sim. 547; J'eto v. Hammond, 30 (f) Wliite v. WaJceficld, 7 i^im. 401. Beav. 495. 274 LIENS. Recitals. A recital showing that the title is deduced from the first vendor, but not showing that the purchase-money has not been paid, is not sufficient to afiect a purchaser with notice (d). Trustee in The trustee in bankruptcy of a purchaser will be ruptcy affected by the lien of a vendor, though he may have had bound. j-^Q notice, since he takes subject to all equities attach- ing to the bankrupt (e). (3.) What amounts to waiver or ahandonmient of the lien. Lien not We have seen that the mere fact of the vendor taking takhio- a^ ^^ additional security for his money is not per se a waiver security gf his lien. Lien depends on an implied contract, and the ipso facto. • • 1 1 /• 1 • o ^ J.-L question is, whether trom the circumstances oi the case the Court will infer that the lien was intended to be reserved, or that the intention was to give credit exclusively to the person from whom the security was taken. It is a The general rule is that although the mere taking of a mttntion" ^ond, bill, promissory note, or covenant for the purchase- money will not destroy the lien, yet where it appears that the bond, note, or covenant was substituted for the consi- deration money, and was in fact the thing bargained for, the lien ceases to exist. In other words, if the considera- tion for which the estate is sold is the bond, note, or covenant, then on the giving of this security, the vendor gets all that he bargained for, the transaction is complete, and he cannot thereafter assert a lien. It is evident that as a rule the intention of the vendor is not by taking one security to lose another. It requires, therefore, clear evidence to show that a lien was not intended (/ ). An express agreement is, however, not required, and a few illustrations will serve to indicate what acts short of that will be considered sufficient for the purpose. What Where there was a stipulation that payment of the pur- tosuffi-^ chase-money should be deferred until a certain time after cient indi- q, resale of the property, the vendor was considered to have cation of , , , , . , . . intention abandoned his lien {g). (d) Cator v. K of Pembroke, 1 Bro. (/) 15 Ves. 341 ; Frail v. Ellis, C. C. 302. 16 Beav. 350. (e) Exp. Hanson, 12 Ves. 349. [g) Exp. P • T • n 1 nn f ^^*^ Same atiect each company with notice of the affairs of the solicitor or other (e). ? '^"'^^*«'' ^ ■' in com- (3.) Matters analogous to constructive notice. mon. Knowledge is sometimes, by presumption of law, imputed Analogous to parties after a manner analogous to the principle of"^^"'^''^' constructive notice. (i.) Everyone is presumed to know the law. Ignorantia public legis neminem excusat. And this is as applicable to public statutes, statutes as to the general principles of law, civil and criminal. But a private Act of Parliament is not pre- sumed to be known. In order to bind there must be actual notice thereof (/). (ii.) The registration of an action as a lis pendens is Lis binding on subsequent purchasers, taking its effect from ^^" ^"*"' the service of the writ (g). The -statement of a special case amounts to a lis pendens, and is binding wdien regis- {z) Wyllie v. Pollen, sup. (e) In re Marseilles d-c. Co., 7 (a) Sharpe v. Foy, 4 Ch. 35. Ch. 161. (b) Kennedyv.Green,SMy.SiK.699. (/) E. of Pomfret v. Lord Wind- (c) Wcddy V. Gray, 20 Eq. 238. sor, 2 Ves. sr. 480 ; sup. pp. 178 et (d) Atterbury v. WaUis, 8 De G-. seq. M. & G. 4.54 ; Boursot v. Savage, 2 {g) R. S. C, O. II., r. 1 ; P. of Eq. 134. Winchester v. Paine, 11 Ves. 1C7. 286 MORTGAGES AND SALES. effect of. Registra tion of deeds. tered (A). The principle applies as well to dealings of the plaintiff as to those of the defendant. Neither party may- alien the property in dispute to the prejudice of the other (i). It is necessary, however, that some specific claim should have been made in the suit to the particular property in question (/<;). Thus an action for a general account does not bind all the real and personal estate to which it relates {I). A lis pendens, again, does not create a charge or lien upon the property ; it merely puts a purchaser upon an inquiry as to the validity of the plaintiff's claim (m). (iii.) It has been seen that the registration of deeds is not constructive notice so as to affect a purchaser taking the legal estate (n) ; but if a purchaser search the register he will be presumed to have notice thereof, unless he can show that the search did not extend to the time of the actual registration (o). Similarl}^ under the former law, judgments were not notice unless a search had actually been made (p). By 23 & 24 Vict. c. 38, it was enacted Vict.c.^38; that no judgment, statute, or recognisance should affect any land as to a bond fide purchaser for value, although with actual notice, unless a writ of execution was issued within three months of the registration; and now, by 27 & 28 Vict. c. 112, no judgment, statute, or recognisance affects any land until such land shall have been actually delivered in execu- tion by virtue of a writ of elegit or other lawful authority. Judg- ments. 23 & 24 27 &28 Vict. c. 112. General rule. II, Defence of Purchase for Value without Notice. A general rule laid down in the important case of BASSET V. NOSWORTHY [Rep. t. Finch, 102 ; 2 W. & T. L. C. 1] is that equity will give no assistance to the legal title [h) R S. C, O. XXXIV. {i) Bellamy v. Sabine, 1 De G. & J. 566, 580. [k) Holt V. Dewdl, 4 Ha. 446. {l) Walker v. Flanutead, 2 Ld. Ken., pt. 2, 57, 59 ; Exp. Thwiiton, 2 Ch. 176. (m) Bull V. Hutckens, 32 Beav. 615. {n) See Bushell v. B., 1 S. & L. 103. (o) Hodgson v. Dean, 1 S. & S. 221. (p) Lane V. Jackson, 26 Beav. 535. PURCHASE FOR VALUE WITHOUT NOTICE. 287 against a bond Jide purchaser without notice of an adverse title. Three cases may arise in which a defendant may plead that he is a purchaser for valuable consideration without notice. Either the plaintiff in equity may have an equit- able title, and may seek the assistance of the Court to establish it against a defendant who has secured the legal estate ; or the legal estate may be outstanding, and the parties before the Court set up conflicting equitable in- terests ; or the plaintiff may himself have the legal estate, and may be seeking to add to it the equitable interest as well. 1. Where the defendant has the legal estate. No maxim is better known than that where the equities Where are equal the law shall prevail. Acting in conformity j^as legal with this rule, Courts of equity will uniformly acknowledge estate the defence of a defendant who has the legal estate, and not relieve, who pleads that he is a purchaser for value without notice. It will in such a case refuse to assist the plaintiff, but will leave the parties to the position in which the law places them (r). This may be thus illustrated : — A., the owner of an estate, contracts to sell it to B., and B. pays a part of the purchase-money before the estate is legally conveyed to him. A. then sells the estate to C, who has no know- ledge of the transaction with B. ; C. pays his purchase- money, and the estate is legally conveyed to him. If, then, B. comes into equity to seek to enforce against the estate the lien to which as a purchaser equity would under other circumstances have held him entitled, the relief will be refused to him. It will be held that C. has as good a right in conscience to the full enjoyment of his estate as B. has to security for his prematurely paid purchase-money ; equity, therefore, will refuse to interfere with the advan- tage which he derives from his legal position. If the defendant who pleads his bond fide purchase for Legal value without notice has not secured the legal estate at sequently (r) Pitcher v. Ravlins, 7 Ch. 259. acquired. 288 MORTGAGES AND SALES. the time of his purchase, but has subsequently acquired it, his plea is equally good ; and this notwithstanding that in the interval between his purchase and his acquiring the legal title he may have had notice of the prior transaction of the plaintiff (s). His own equity being equal to the plaintiff's, he will not be deprived of the advantage which he gains through his superior activity and diligence. In- deed, where his original position in equity has been secured in good faith, the Courts have been little scrupulous to inquire how he has come by the legal estate. Where it was acquired by fraud (t), and where it depended on a forged will(u), it was still considered sufficient to strengthen the equity against a plaintiff. Moreover, a purchaser will not be deemed to have notice of a prior equity merely because he gets the legal estate through an instrument which discloses that equity, if he had no knowledge of such instrument at the time of his purchase (x). Sir W. M. James, L. J., there said : " When once you have arrived at the conclusion that the purchaser is a purchaser for valuable consideration without notice, the Court has no right to ask him how he is going to defend himself, or what he is going to rely on." Legal There is, however, this limitation upon the power of a estate no , i • i p i i • • i protection purchaser to secure himself by subsequently acquirmg the if acquired jg^al estate : he cannot do so by becoming a party to a by a breach " .... of trust, breach of trust. Thus it will not avail him to take a con- veyance from a trustee when he has knowledge of the trust. If he does so, he himself becomes a trustee, and the legal estate will be no assistance to him (y). Thus a trustee for successive incumbrancers cannot, by conveying the legal estate to one of them, confer on him priority over the others (z). (s) Goleborn v. Alcock, 2 Sim. 552; (x) Pilcher v. Emolins, 7 Ch. 259. Blackwood V. London, dr., Bank, 5 (y) Saunders v. Dehew, 2 Vern. ].. E. P. C. C. 111. 271 ; Allen v. Kniglit, 5 Ha. 272 ; (t) Harcourt v. Knoxvel, cited 2 11 Jur. 527. Vern. 159. (2) Collyer v. Finch, 19 Beav. 500 ; (w) Jones V. Poivles, 3 My. & K. 581. 5 H. L. 905. PURCHASE FOR VALUE WITHOUT NOTICE, 289 Not only where the defendant purchaser has the legal Where estate, but where he has the best right to call for it, equity has best will not grant relief against him. This will be the case "^!^* *° where one of two or more persons who are interested in legal equity has, in addition to the interest which he holds in ®^*^*^- common with the others, a special equity peculiar to him- self — for instance, a particular declaration of trust in his favour (a). Where, moreover, there are circumstances which give ^^™^ "^® ... •11/. -11 where the rise to a mere equity as distinguished from an equitable plaintiff estate — as, for example, to set aside a deed for fraud, or to ^^^^^'^^ ^ > IT ' ' mere correct a mistake — and the purchaser under the instrument equity. maintains the plea of purchase for valuable consideration without notice, the Court will not interfere against him (h). 2. Where the legal estate is outstanding. Where the legal estate is outstanding, another maxim is wtere 1- 11 ^ • . • • rrn legal estate applicable — Qui prior est tempore i^ot^or est jure. Thus is out- the defence of a purchase for value without notice will not *^*^^"'^}i"g' ^ priority avail against a prior equitable incumbrancer. It is a well deter- known principle, elsewhere fully expounded (c), that a third ^^"g_ ^ mortgagee Avho lent his money without notice of the second mortgage may gain priority over that incumbrance by buying in the first mortgage with the legal estate. But no such priority would be gained if the first was a merely equitable mortgage (fZ). Where, however, a fund is in Court, or the legal estate is l^und in outstanding in a trustee, and the estate is claimed by legai estate several adverse but innocent purchasers for value without "^ trustee, notice, the Court will declare the right to the fund, will make a decree against some one or more of the purchasers for value, and will then, to give effect to its decree, order the delivery up of the title deeds to the person held to have the best title (e). («) WiUourjhhy V. W., 1 T. R. (d) Phillips v. P., sup.; Brace v. 763 ; Wilmot v. Pike, 5 Ha. 14. D. of MarJhorough, 2 P. Wins. 491. {h) Phillips V. P., 4 De G. F. & J. (c) Slackhouse v. C. of Jersey, 1 208 ; Sturge v. Starr, 2 My. & K. J. & H. 721 ; Newton v. N., 4 Ch. 195. 144. (r) Svp. pp. 245, et seq, U 290 MORTGAGES AND SALES. Trustee making good one breach of trust by another. Where th( plaintiff had legal estate, and ap- pealed to auxiliary jurisdic- tion, Court would not assist hina. Secus where he appealed Where a trustee has committed a breach of trust, and has afterwards made that default good by applying another trust fund for that purpose, the Court will not deprive the first cestuis que trusts of the fund thus placed at their disposal at the expense of the cestuis que trusts of the second fund. The former are considered as purchasers for value without notice, and so entitled to protection (/). 8. Where the idaintiff has the legal estate. Previous to the Judicature Act {g), when a plaintiff who had the legal estate sought the assistance of equity to perfect his interest, and the defendant pleaded a bond fide purchase for value without notice, a distinction was taken according to the nature of the relief which he asked. It might be that, as in Basset v. Nosworthy (h), he desired to obtain from the defendant discovery of some instrument relating to the title, or some similar assistance which could not be aiforded to him by a Court of law. In other words, his application might be to the auxiliar 7/ jurisdiction of the Court. Or, on the other hand, the plaintiff might sue in equity in a matter in which the Court of Chancery exercised a legal jurisdiction concurrently with the Courts of law. In the former case it was well established that if the defendant successfully maintained a plea of purchase for value without notice, equity would not assist the plaintiff against him (i). It mattered not that the plaintiff was actually in possession of the property under a legal title (k), or whether the property in question was legal or personal estate (l). The reasoning was that the defendant had an equal claim with the plaintiff in equity, and that equity would therefore not interfere with his rights. In the latter case, however, it was held that the same plea would not avail. Where a widow filed a bill claiming (/) Thorndijke v. Hunt, 3 De G. J. 563. { o o ^ and the depositary or holder of the fund (y) ; nor is notice assignee, necessary as against a person standing in the same position as the assignor, such as a judgment creditor (z), or a creditor under a garnishee order (a). Such a creditor will there- fore be postponed to an equitable assignee, notwithstanding that he may have, after the assignment, but before notice to the depositary, obtained an order charging the fund (h). (2.) But to complete the security of the assignee, it is But is P PI- J.1 J. • required to lor many purposes necessary tor nim promptly to give cmpiete notice of the assignment to the holder of the fund. security ; First, in the absence of such notice the holder of the otherwise fund may effectually discharge himself by paying the may safely assignor, and if he does so the charge of the assignee will, P^J' ° '^ c> assignor, of course, be lost (c). Secondly, if the assignor make a subsequent assignment ^^ ^"^' ^ ° _ . . sequent of the debt, and the second assignee gives notice before the incum- first does so, the second thereby gains priority (d), whether jjj^ay'^<^ain the interest of the assignor be present or future, vested or priority, contingent. The principle is the same as that which requires the assignee of a personal chattel to take every step in his power to reduce it into possession, and in case of his neglect postpones him to a subsequent assignee for value, who takes without notice. Of the two parties one must suffer ; and equity will not assist the one prior in time if by his negligence the possessor has been enabled to deceive the second assignee. If, however, the former has done all he could to secure possession, he will not lose his priority (e). If the notices of the assignments are {>/) Jones V. Gibbons, 9 Ves. 410 ; J. 633. Cook V. Black, 1 Ha. 390. (c) Norrish v. Marshall, 5 Madd. (z) Beavan v. Ld. Oxfm-d, 6 De G. 475. M. & G. 492. (d) Dearie v. Hall, Loveridge v. [o) Pickering v. /. R. Co., 3 L. R. Coo^jer, 3 Russ. 1, 30, 48. C. P. 235. (c) Feltham v. Clark, 1 De G. & (6) Scott V. Ld. Hastings, 4 K. & Sm. 307. 310 MORTGAGES AND SALES. simultaneous they will take priority accoi'ding to their dates (/). Reputed Again, notice is often requisite to protect an assignee in bank- against the effect of the reputed ownership clause of ruptcy. the Bankruptcy Act. Under the present Act {g) all goods and chattels being at the commencement of the bankruptcy in the possession, order or disposition of the bankrupt, being a trader, by the consent and permis- sion of the true owner, of which goods and chattels the bankrupt is reputed owner, or of which he has taken upon himself the sale or disposition as owner, are treated as the property of the bankrupt divisible among his creditors; and debts due to him in the course of his trade or business are deemed goods and chattels (k). An assignee of chattels is only protected against this clause by taking every step he can to secure possession. Similarly, an assignee of a chose in action is only secured by giving notice to the debtor of the assignment. Such was the decision in the leading case of RYALL V. ROWLES [1 Ves. sr. 348; 2 W. & T. L C. 729], which is still applicable, mutatis mutandis, to cases under the present Bankruptcy Act ; and the principle thereof has been held to extend to a bankrupt's reversionary interest not falling into possession till after his bankruptcy (i). It has been held that it is sufficient protection for the assignee if he gives notice between the act of banlo-uptcy and the petition for adjudication, bond fide dealings with the bankrupt during that time being especially pro- tected (/v). Equitable The distinction must be observed between such cases as land dis- these, in which priority is determined by the time of notice, tinguished. ^^^ ^he case of equitable interests in land, priority as to (/) Calishcr V. Forhes, 7 Ch. 109. 127. {son v. Lacic, 3 C. B. CONTINUING SURETYSHIP OR GUARANTEE. 327 knowledge of the creditors to whom the guarantee was liability . . . 1 / ^ incurred. given, to have given notice to determine the same {'jj). A person, however, who by a continuing guarantee be- Seats comes surety for the honesty of a servant, cannot ordinarily, for honesty during the continuance of the service, discharge himself °^ servant, by merely giving notice that he will be no longer liable (q). But if the guarantor discovers acts of dishonesty in the person for whom he has made himself answerable, he can at once revoke his guarantee (?'). Where a master, who has in his employ a servant whose Master conduct has been guaranteed, discovers that the servant benrfit of has been guilty of dishonesty, but nevertheless without p^rautee the knowledge or consent, express or implied, of the ceaiment. guarantor, continues such servant in his employ, he cannot claim anything from the guarantor in respect of subsequent acts of dishonesty (s). But it seems that if in such a case the person suing the guarantor is not in a position which gives him power to dismiss the employee, the guarantee remains in force (t). V. Contribution between Go- sureties. In the important case of BERING V. THE EARL OF WINCHELSEA [1 Cox, 318; 1 W. & T. L. C. 106] it was laid down that the right of contribution between Principle co-sureties depended on the general principles of equity, 1^^^"^^''"" and not on the form or nature of the contract between equity, the parties. In that case, Thomas Dering, having been ap- pointed collector of Customs duties, entered into bonds to the Crown with three sureties for the due performance of his office. His brother, Sir Edward Dering, together {p) Hamss v. Fmocett, 8 Ch. 866. (s) Phillips v. Foxhall, 7 L. R. Q. Iq) Calvert v. Gwdon, 7 B. & C. B. &m. 809 ; Gordon v. Calvert, 4 Russ. 581. {t) Laialer v. Z., 7 I. R. C. L. 57 (r) Burgess v. Eve, 13 Eq. 457. 328 SURETYSHIP. with the Earl of Winchelsea and Sir John Rous, became sureties for him accordingly. Thomas Dering and Sir E. Bering executed one joint and several bond in a penalty of £4000, Thomas Dering and the Earl of Winchelsea executed another similar bond, and Thomas Dering and Sir Jolm Kous a third; all conditioned alike upon the due performance by Thomas Dering of his duty as collector. Thomas Dering being in arrear to the Crown to the amount of £8883 14s. Od., the Crown put the first bond in suit against Sir E. Dering, and obtained judgment thereon for that sum. Thereupon Sir E. Dering filed this bill against the Earl of Winchelsea and Sir John Rous, claiming from them contribution towards the sum so re- covered against him. It was held by Lord Chief Baron Eyre that there must be equal contribution by the de- fendants. Notwithstanding that the parties were bound in different instruments, they were co-sureties for the same principal, and in the same engagement, and were bound in conscience to contribute proportionally to the penalties of the bonds. In that case the penalties were equal, but the principle would have been the same if they were bound in different sums, except that contribution in that case could not be required beyond the sum for which they had become bound. In Stirling v. Forrester (u), Lord Redesdale again held that the right and duty of contribution was founded in doctrines of equity ; that the principle was the same as in cases of average, and that it would be against equity for a creditor to exact or receive payment from one, and to permit, or by his conduct to cause, the other debtors to be exempt from payment ; he was bound, seldom by con- tract, but always in conscience, as far as he was able, to put the party paying the debt upon the same footing with those who were equally bound. The principle may now, therefore, be considered as firmly established. It seems, even, that the right of a surety to enforce contribution ((/) .3 Bligh. 590. CONTRIBUTION BETWEEN CO-SUBETIES. 329 will not be affected by his ignorance at the time he became surety that there were co-sureties (x). Such transactions as that in Bering v. E. WineJielsea must, Principle however, be distinguished from those in which sureties are cable^^' bound by different instruments for distinct portions of a where debt due from a principal. If the suretyship of each is a bound by separate and distinct transaction, the doctrine does not ^Serent . . . . mstru- apply, and there will be no right of contribution among ments. the sureties (y). A surety is not entitled to call upon his co-surety for contribution until he has paid more than his proportion of the debt due by the creditor, even though the co-surety has not been required to pay anything, unless, indeed, the co-surety has been released by the creditor (z). Although the principle of contribution is not founded Principle upon contract, still a person may by contract qualify or ^u^ggd qj. take himself out of the reach of the principle : for instance, excluded where three co-sureties agreed among themselves that in tract, case of the failure of the principal debtor to pay they would each contribute his respective part, one of them having paid the debt and another become insolvent, it was held that the remaining one could only be required to contribute one-third, not one half, which, in the absence of such an agreement, would have been his liability (a). Similarly a person may contract himself entirely out of the princij^le, and become a merely collateral surety by limiting his liability to payment in case of the default of the princij^al and other sureties (6). Parol evidence is admissible to show what the real con- Parol e^-i- tract was, so as to avoid the application of the doctrine of ad^fssible, contribution (c). Sureties who have paid the debt are not only entitled Sureties to contribution from the other sureties, but also to the securities (x) Crai/thorne v. Swinburne, li W. 153; Exj). Snowdon, 17 Ch. D. Ves. 160, 163. U. {y) Coope V. Twynam, 1 T. & K. (a) Swain v. WaU, 1 Ch. Rep. 80. 426; Arcedeckne v. Howard, 20 W. (b) Craifthrjrne \. Sioinburne, sup. R 879. (<•) Ibid. {z) Davies v. Uuriipihreys, 6 M. & 330 SURETYSHIP. benefit of any security whicli any of them may have taken from the principal debtor by way of indemnity {d), unless, at least, there was originally a contract for the special indemnity to one of the number (e). The principle is the same as that more fully expounded in the next section. VI. The Right of Surety to Securities. A surety is entitled, on the payment of the debt, to all the securities which the creditor has against the principal debtor, whether given at the time of the contract or sub- sequently, and whether given with or without the know- ledge of the surety or of the principal (/). Loss of Consequently, if a creditor who has had, or ought to securities \^q^q hdA, such Securities, loses them, or suffers them to get by creditor ' ' ' _ ° diacharges back into the possession of the debtor, or fails through sure y. neglect to make them effectual, as by failing to give proper notice, the surety will, to the extent of such security, be discharged {g). If the security has become worthless otherwise than by the act or neglect of the creditor, its loss, of course, effects no discharge (/t). Surety A Surety who pays off a debt is entitled not only to all au'^ecuities ^^^® equities which the creditor could have enforced against against the principal debtor, but also to those available against claiming pcrsous claiming under him. Thus where A. mortgaged under the a,n estate to C, and B. became A.'s surety for the debt, debtor ; ' . and afterwards A. mortgaged the estate again to D., who had notice of the first mortgage, the first mortgage being paid off partly by B., he was held to have priority over D. for the amount so paid, notwithstanding that D. got a transfer of the legal estate {i). (d) Swain v. Wall, 1 Ch. Rep. 81. Pledcje v. Buss, Johns. 663, 668. (e) Cooper v. Jenkins, 32 Beav. (y) Capd v. Butler, 2 S. & S. 457 ; 337 ; Steel v. Dixon, 17 Ch. D. 825. La^o v. E. I. Co., 4 Ves. 824; Strange (/) Mayheiv v. CricJcett, 2 Swanst. v. Fooks, 4 Giff. 408. 185; Pearl v. Beacon, 24 Beav. 186; (h) JIardvnck v. Wri(/ht, 35 Beav. 1 De G. & J. 461 ; Lake v. Brutton, 133. 18 Beav. 34 ; 8 De G. M. & G. 440 ; (i) Drew v. Lockett, 32 Beav. 499. THE RIGHT OF SURETY TO SECURITIES. 331 On the other hand, if a surety discharges an oblisfation can only . ' -^ ^ . ® claim what at less than its full amount, he cannot, as against tlie he actually principal debtor, claim the whole amount, but only what P^^^^- he has actually paid in discharge (j). If a surety obtains from the principal debtor a counter- security for the liability which he has undertaken, he must bring into hotch-pot for the benefit of the co- sureties whatever he receives from that source, even though he consented to be surety only upon the terms of having the security, and the co-sureties were at the time of the contract ignorant of the security having been given (/v). The principle has been applied to almost every kind Principle of security. Where the creditor obtained a judgment afmnds'of against the principal debtor, and the surety paid the debt, securities. it was held that he was entitled to an assignment of^"^|g the judgment (l). But it was questioned whether such assignment was of any effect, since the payment had been considered to discharge the judgment, and so make it valueless (m). Similarly where a debt was secured by a bond, it was Bonds, one time considered that a surety who paid it was entitled to an assignment of the debt and bond. But in Copis v. Middleton (n), and Hodgson v. Shatu (o), it was decided that on payment of the debt the bond ceased to exist, and was no longer available as a security. By the Mercantile Law Amendment Act, 1856 (p), how- 19 & 20 ever, the law both as to judgments and bonds was estab- lished in favour of sureties, it being, by sect. 5 thereof, enacted that a surety who pays off a debt so secured shall be entitled to have assigned to him every judgment, specialty, or security which shall be held by the creditor (i) Reed v. Nor7'is, 2 My. & Cr. 278 ; Hodgson v. SJmiv, 3 My. & K. 361, 375. 183, 191. (k) Steel V. Dixon, sup. (n) 1 T. & R. 229. {1} Parsons v. BriddocTc, 2 Vern. (o) Sup. 608. {p) 19 & 20 Vict. c. 97. (m) Armitage v. Baldwin, 5 Beav. 332 SURETYSHIP. in respect of such debt, whether such judgment, &c., shall or shall not at law be deemed to have been satisfied by the payment of the debt. This Act is applicable to a contract made before it was passed, where payment has been made by a surety since that time {q). A creditor who takes out execution against the debtor is a trustee of it for all parties interested. If, therefore, he withdraws it without the knowledge of the sureties, he thereby discharges them (?'). So, also, if he loses the benefit of it by neglect (s). Further Where a creditor advances a further sum upon a security, security, a Surety cannot compel him to assign it, unless he pays off the further sum as well as the sum for which he became Distinct Surety (t). And where separate debts are due upon dis- for^se^^lT-^ tinct securities from the principal debtor to the creditor, rate debts, the latter will not lose his right to tack from the fact that a third party who has become surety for one of the debts has paid off that debt (u), unless, at any rate, the mort- gagee has been guilty of some concealment or misrepre- sentation (v). Tacking. VII. Rights of Sureties in Bankruptcy. Sureties Under the old bankrupt law, unless a surety had actually rupicy. ' P^^^ *^® creditor before the bankruptcy of the principal debtor, he could not himself prove under the bank- ruptcy (x). But if the surety paid the debt after the creditor had proved against the principal's estate, the creditor, on receiving dividends, was held to be trustee thereof for the surety {y) ; and a surety might compel the creditor to go in and prove the debt under the bank- (q) In re Cochran's Estate, 5 Eq. 597. 209. (u) Farebrother v. Wodchouse, 23 (r) Mayhcw v. C'rickett, 2 Swanst. Beav. 18. 185, 190. (v) Boickcr v. Bull, 1 Sim. N. S. (s) Watson V. Allcoi-k, 1 S. & G. 29. 319 ; 4 l)e G. M. & G. 242. (x) Taylor v. Mills, Cowp. 525. (t) William v. Owen, 13 Siui. (//) Exp. Rushforth, 10 Ves. 409. EIGHTS OF SURETIES IN BANKRUPTCY. 333 ruptcy {z). By various Bankruptcy Acts subsequent to these cases, the surety was enabled to prove in his own right for a debt which he had paid after the bankruptcy. Neither the Act of 1869 nor the general rules made there- under contain express provision for such proof; but by sect. 78 thereof it is provided that in so far as the rules made thereunder do not extend, the principles, practice, and rules previously in force shall be observed. By sect. 31, also, provision is made for the proof of future and contingent liabilities of the bankrupt, through the making of an estimate of their value at the time of the bank- ruptcy. By virtue of one or other of these sections, it is submitted that the right of sureties to prove still exists ; and it seems to have been assumed in Breslauer v. Broivn that such was the case {a). (s) Ibid. 414. (a) 2 C. P. D. 314 ; 3 App. C. 672. 334 CHAPTER VII. MARRIED WOMEN. Sect. I. — Separate Estate. General Comparison of Law and Equity. Hulme V. Tenant. I. TJie Creation of Separate Estate. II, TJie Characteristics of Separate Estate. (1.) Voluntary Dispositions. (2.) Involimtary Dispositions. (3.) Permissive Dispositions. III. Restraint on Anticipation, IV. Statutory Separate Estate. Married Women's Property Acts. V. Pin-Money. VI. Paraphernalia. General Comparison of Law and Equity. 1. Position of a married woman at common lavj. Husband's (1.) By the common law, a husband on his marriage hi wife's became entitled absolutely to all his wife's chattels per- property. soual in possession. If he reduced her choses in action ^erson- ^^^^ possession during the coverture, he similarly became entitled to them ; if he survived his wife without having reduced them into possession, he was entitled to recover them as her administrator on taking out administration. POSITION OF MARRIED WOMAN AT COMMON LAW, 335 But if he died before his wife without having reduced them into possession, the wife was entitled. He also acquired full power over her legal chattels real, in posses- sion and reversion ; but if he died before his wife without having aliened them, they survived to her. He was like- Realty, wise entitled to receive the rents and profits of the wife's real estate during their joint lives. Such were the extensive rights with which a husband was by law invested in consideration of the obligation which he incurred by the marriage of maintaining his wife. Yet at the same time the wife had no legal remedy in case of his refusing or neglecting to perform the duties in consideration of which he acquired these rights, nor could she claim any relief in the case of his insolvency or bank- ruptcy. The property which had been hers, however large, was as much at the mercy of his creditors as of himself. (2.) On the other hand, the wife could not be sued in Wife could p . ^ not be any way, even tor necessaries. In certain cases her con- sued. tracts for necessaries might bind her husband, but never herself or the property which had been hers. Her separate existence was not contemplated ; it was merged by the coverture in that of her husband, and she was no more recognised in Courts of law than a cestui que trust or a mortgagor (a), 2. The position of the married woman in equity. Such being the rigid rules of law as to the status of a married woman, it is not surprising that Courts of equity should have found ample ground for interference, and should have established a system of doctrines more con- sonant with reason and justice. These doctrines are reducible to two leading principles — first, the recognition by equity of the separate estate of a married woman, with reference to which she is regarded and treated as if she were a feme sole ; secondly, the prin- (a) Blackstone, II., 433, 435 Coke upon Littleton, 300ff, 3516 Betts V. Kimpton, 2 B. & Ad. 277 Murray v. Barlee, 2 My. & K. 220, 222 ; In the goods of- Harding, 2 P. & D. 394. 336 MARRIED WOMEN. ciple which requires a husband who receives property in the right of his wife to make a proper settlement thereout on his wife and children. The doctrines respecting sepa- rate estate form the subject of the present section. Equity differing therein from the ancient common law, considers a married woman capable of owning property, whether real or personal, in possession or reversion, to her own use independently of her husband, and holds her entitled to enjoy such property with all its privileges and incidents, including the jus disponendi (h). The leading case of HULME V. TENANT [1 Bro. C. C. 16 ; 1 W. & T. L. C. 521] is usually referred to as most fully establishing and illus- trating this principle. In this case a bill was filed by the obligee of a bond to secure £180 entered into by the defendants, husband and wife, against the husband, wife, and her surviving trustee, to recover the sums secured out of the wife's separate estate. Upon the marriage the estates of the wife had been conveyed to trustees, one part consisting of freehold and leasehold lands, in trust to receive and pay the rents and profits to the wife for her separate use, and to convey the estate itself to such use as she should by will or deed appoint, and, in default of appointment, to the use of her heirs and assigns ; other parts to be sold, and out of the produce £1000 to be laid out according to the directions of the wife, the interest and profits to be paid to her, and the principal to her or her order by note or writing under her hand ; and for want of such appointment, to her execu- tors, administrators, and assigns. This £1000 had been raised, and the whole or the greatest part applied, so that the question in the cause was with respect to the remedy against the other estate. In 17G9 the husband borrowed of the plaintiff, Mrs. Hulme, £50 upon his and his wife's (b) Fettiplace v. Gorrjes, 1 Ves. jr. 46. SEPAKATE ESTATE. 337 bond. In 1770, having occasion for a further sum, the wife herself applied to the plaintiff and borrowed £130, paid the interest due upon the former sum of £50, and gave a new bond for the £180. Lord Chancellor Thurlow said that the rule had been laid down in Peacock v. Monk (c) that a feme covert, acting with respect to her separate j)roperty, was competent to act in all respects as if she were a feme sole, and that this rule was necessary to support the decisions on the subject. The question here went a little beyond that : it was not only how far she might act upon her separate property, but how far her general personal engagement should be executed out of her separate property. If she had by instrument contracted that this or that portion of her separate estate should be disposed of in this or that way, she and her trustees might have been decreed to make that disposition. But if she entered into an engagement which would have made a fe^ne sole liable to the whole extent of the contract as to her person, &c., in every respect, such an engagement would not bind a feme covert as such ; but determined cases seemed to show that her general engagement should operate upon her personal property, should apply to the rents and profits of her real estate, and that her trustees should be obliged to apply personal estate, and rents and profits when they arose, to the satisfaction of such general engagement. The Court had not used any direct process against the separate estate of the wife ; the manner of coming at such proj)erty had been by decree to bind the trustees as to personal estate in their hands, or rents and profits according to the exigency of justice, or of the engagement of the wife to be carried into execution. Beyond this the Court had not gone. It had never ordered a conveyance, or sale, or mortgage of real estate to satisfy such an engagement, nor would he order the execution of the power, so as to reach the real estate. (c) 2 Ves. sr. ] 90. z 338 MARRIED WOMEN. The result, therefore, was that the personalty, including leaseholds, and the rents and profits of the realty in the hands of the trustees, were hold to be liable. Our first inquiry will be as to the manner of creating separate estate ; then as to the characteristics of separate estate. Gifts to separate lose. Trustees not needed. Form of words im- material. lllustra- tions. I. The Creation of SeiDcirate Eddie. (1.) The separate estate of a married woman most usually arises from property being settled upon or devised or bequeathed to her, expressly limited to her separate use. Notwithstanding former doubts, it is now clear that the interposition of trustees is not necessary to the creation of separate estate (cZ). As a matter of convenience it is of course desirable, and the practice of appointing trustees of property limited to the separate use is accordingly all but invariable. But if no such appointment is made, equity will still effectuate the intention, and will hold the husband, who acquires the legal estate, trustee for his wife (e). No particular form of words is required to vest property in a married woman to her separate use, as long as the intention to give her such an interest in opposition to the legal rights of her husband is clear and unequivocal (/ ). The followdug expressions have been held to be sufficient to exclude the marital rights of the husband — a gift or settlement to the wife, or to trustees for her, for her " sole and separate use " (g) ; " for her separate use " Qi) ; " for her own use, and at her own disposal " {i) ; " for her own use, independent of her husband " (h) ; " for her own use [d) Neivlands v. Paynter, 4 IMy. & Cr. 408. (e) Farker v. Brool:e, 9 Ves. 583 ; Rich V. Cockell, 9 Ves. 375. (/) Stanton v. Hall, 2 R. & My. 180. {(/) Parker v. Brooke, sup. [h) Massy v. Rowen, 4 L. R. H. L. 288, 294. (i) Inglefield v. CofjliJav, 2 Coll. 247. (k) Wagstafe v. Smith. 9 Ve.«. 520. CREATION OF SEPARATE ESTATE. 389 and benefit, independent of any other person " (l) ; " that she should receive and enjoy the issue and profits" (m) ; or where there is a direction that the "interests and profits he paid to her, and the principal to her, or to her order by note in writing under her hand " (n) ; or " her receipt to be a sufficient discharge " (o) ; or that the husband " is to have no control " (p). On the other hand, since an unequivocal intention to Intention exclude the husband's rights must be shown, it has been ^{^^l '^*^ held that no separate use is created by a direction " to pay to a married woman and her assigns " (q) ; or to pay a fund " into her own proper hands to and for her own use and benefit" (/); or where property is given "to her own use and benefit" (s) ; "to her absolute use" (t) ; or " to her own proper use and benefit " (a) ; or " to be under her sole control " (x). A distinction must be observed between the effect of Distiuc- certain words used in a gift to a woman already married, tween gifts and the same words in a gift to a feme sole or widow. The t^o /''"'«■ «o^e expression " separate use has a technical meaning, and is covert. sufficient, whether the gift be to a married or to an unmar- ried woman, with or without the intervention of trustees, to impress the property given with the character of sepa- rate estate (y). But the expression " sole use " has no such technical meaning, and its interpretation depends on circumstances. The result of the cases is that if the words " sole use and benefit " are apphed to a gift to a woman already married, they will suffice to exclude the husband's marital right, and to create a separate estate (z). Also if (I) Margetts v. Barringer, 16 Sim. & K. 184. 568. (t) Exp. Abbot, 1 Dea. 3-38. (m) Tyrrell v. Hope, 2 Atk. 558. (u) BlacHoiv v. Laws, 2 Ha. 49. (n) Hulme v. Tenant, 1 Bro. C. (x) Massey w. Parlcer, 2 My. &K C. 16. 174. (o) Leex.Prieaux, 3 Bro. C. C. 381. {y) See Massy v. Roiven, sup. \-p) Edward v. Jones, 14 W. E, (2) Inglefield v. Coghlan, 2 Coll. 815. 247 ; Green v. Britten, 1 De G. J. & {q) Lumb V. Milnes, 5 Ves. 517. S. 649 ; Hartford v. Pmver, 2 I. R. (r) Tyler v. Lake, 2 R. & My. 183. Eq. 212 ; Bland v. Bawes, 17 Ch. D. (s) Kensington v. Bollond, 2 My. 794. z2 340 MARRIED WOMEN. the intended beneficiary be a woman about to marry, or there are other expressions in the instrument from which it can be gathered that a future marriage was contem- plated by the settlor or donor, these v/ords will import exclu- sion of the husband, and will create a separate estate (a). Further, if in any case these words are used, and the property is at the same time vested in trustees, it seems that they will be considered sufficient to create a separate estate (6). But if the gift is to a woman unmarried, and not in con- templation of marriage, or to a widow, and without the interposition of trustees, the words " sole use and benefit " will not import exclusion of a future husband, and will not suffice to impress on the property the character of separate estate (c). Agree- ^2.) Where, apart from the Married Women's Property tween hiis- Act (d), a husband and wife agreed to live separate, and wife ^'^^ ^^ interfere with property which each might subse- quently acquire, the wife's subsequently acquired property was considered as her separate estate (e). Apart also from Desertion. 20 & 21 Vict. c. 85 (/), where a husband deserted his wife, equity considered property acquired by her as sepa- rate estate (r/). Presents (3.) Presents from a husband to his wife will be deemed to wife. separate estate where they are made absolutely, and not merely to be worn as personal ornaments (Ji). So a husband may make himself trustee for his wife of property to be held as her separate estate (i). It seems, also, that a gift from a stranger to a married woman, though not expressed to be for her separate use, would be considered separate estate (/>;). (a) Exp. Ray, 1 Madd. 199, 207; {d) Infra, p. 354. In re Tarsey's Trust, 1 Eq. 561 ; (c) Haddon v. Fladgatc, 1 Sw. & Exp. KiUick, 3 M. D. & De G. 480. Tr. 48. (6) Adamson v. Armitage, 19 Ves. (/) Infra, p. 354. 416. {rj) Cecil V. Juxon, 1 Atk. 278. (c) Gilbert v. Leivis, 1 De G. J. & {h) Graham v. Lrmdonderri/, 3 S. 38; Lcuis v. Matthev-s, 2 Eq. Atk. 393; Grant v. G., 34 Beav. 177 ; Massy v. Roiven, 4 L. R. H. L. 623. 288 ; Ilarifc/rd v. Pmcer, 2 I. R. Eq. (i) Mevs v. 7>/., 15 Beav. 529. 212. [h] Graham v. Londonderry, sup. CREATION OF SEPARATE ESTATE. 341 (4.) The savings which a married woman may make Savings out 01 separate property are considered as separate separate estate (I). She has the same power with respect to them, P^'operty. and they are subject to the same liabiUties (rri). Similarly, arrears of separate estate in the hands of trustees will be considered as retaining their original character (n). Where, also, a husband living separate from his wife remits money to her for her support and maintenance, such money, and any savings which the wife may make out of it, will be considered separate estate (o). (5.) A married woman is entitled as to separate estate Outlay on to any outlay made by her husband on real property property settled to her separate use — for instance, to houses which he builds thereon, or improvements made (p). As to separate estate under 20 & 21 Vict. c. 85, and 33 &L 34 Vict. c. 93, see infra, pp. 354 et seq. II. The Characteristics of Separate Estate. In considering the question of the alienation or disposi- tion of her separate estate by a married woman, it is con- venient to distinguish first between voluntary disposi- tions and involuntary dispositions which dej)end ujjon the liability of the property to debts. (1.) Voluntary dispositions. (i.) Where the married woman has an absolute interest. As to personalty settled upon a married woman for her Personalty separate use, it is well established that she may enjoy it ^^■'^^^^ with all its incidents, and may dispose of it either by acts alienable. inter vivos or by will {q) ; and this whether the property be in possession or reversion (r). (0 Goj-e V. Knif/kt, 2 Vern. 535 ; 623. Askew V. Rooth, 17 Eq. 426. (q) Fettiplace v. Gorges, 1 Ves. jr. (m) Butler v. Cumpston, 7 Eq. 16. 46 ; 3 Bro. C. C. 8 ; Rich v. CockeU, 9 (n.) Asliton v. McDougcdl, 5 Beav. Ves. 369 ; WUlock v. Noble, 7 L. R. 56. H. L. 580. (o) Brooke V. B., 25 Beav. 342. (r) Sturgis v. Coi-p, 13 Ves. 190 ; \p) Barrack v. McGulloch, 3 K. & Stamford d-c. Bank v. Ball, 4 De J. 110, 124; Grant v. G., 34 Beav. G. E. & J. 310, infra, p. 374. 342 MARRIED WOMEN. Life interest in realty. Realty alienalile by will, and by deed. Intestacy as to personal estate. As to real estate, it has always been admitted that a married woman has the same power over her life interest in real estate settled to her separate use as if she had been a feme sole. She may without restriction give or sell or mortgage it (s). It was, however, long doubtfvil whether real estate could be disposed of by will, unless an express power of appoint- ment was given, or by act inter vivos otherwise than by fine and recovery, or (since 3 & 4 Will. IV. c. 74) by deed acknowledged. But it was clearly decided in the im- portant case of Taylor v. Meads (t) that it is not now necessary to the devise of such estate that there should be any express power to that end, nor is it necessary to an alienation by act inter vivos that there should be a deed acknowledged under the statute. This case, which may be referred to for a full discussion of the whole subject now under view, confirmed the previous decisions of Pea- cock V. MonJc (u), Tvbllet v. Armstrong (x), Adams v. Gamble (y), and others. The married woman has this power equally when trus- tees are interposed and when they are not (z). If there are trustees, their assent to the disposition is not necessary, unless expressly made so by the instrument creating the trust (a). She may transfer her interest also as well to her hus- band as to anyone else (b), though a husband so receiving property must be prepared to show that it was clearly in- tended as a gift (c). On the death of a married woman without having dis- posed of her separate estate, the old rules of common law still apply. Thus personalty in possession will belong to (s) Stead V. Nelson, 2 Beav. 245 ; Majw V. Lansley, 2 R. & M. 357. (t) 34 L. J. Ch. 203 ; 4 De G. J. & S. 597. (u) 2 Ves. sr. 190. (a;) 1 Beav. 1 ; 4 My. & C. 377. (y) 12 Ir. Ch. R. 102. {z) Hall V. Watei'Jiousc, 13 W. R. 633. (a) Essex v. Atkins, 14 Ves. 542 ; Hodgson v. H., 2 Keen, 704. {h) Griyhy v. Cox, 1 Ves. sr. 518. (c) Rich V. Cockell, 9 Ves. 375. CHARACTERISTICS OF SEPARATE ESTATE, 343 her husband jure mariti {d) ; personalty not reduced into possession will belong to him on his taking out administra- tion (e) ; real estate will descend to her heir, subject to the husband's curtesy (/). It may be here conveniently mentioned that if a hus- -^ssign- , , . . . ." . , . . ment by band, in exercise of his legal right, assigns his wife's sepa- husband, rate property to a purchaser for value without notice, she has no remedy against the purchaser ((/). (ii.) Where the married woman has a partial interest. It is scarcely necessary to say that where there is a gift absolutely to a married woman, but only the life interest is limited to her separate use, the corpus of the estate, being unaffected by the separate use, is not in her power, and an attempted devise thereof would be invalid (Ji). There is more difficult}^ with respect to the cases in Life which there is an express estate for life given to the sepa- with power rate use of a wife, with a power of appointment over the "^ appoint- 1 1 r« • • ment. corpus alter her death, formerly the opinion seems to have been that the capital could then only be disposed of by an execution of the power strictly in compliance with the provisions of tlie instrument conferring the estate (i). Modern decisions, however, have continually been bringing such cases nearer to the principle of Taylor v. Meads (k) ; and now, where there is a gift to a wife to her separate use for life, remainder as she shall, notwithstanding her cover- ture, by deed or will appoint, high authority shows that it will be treated as an absolute gift to her sole and sepa- rate use, so as to fully vest in her the entire coiyas for all purposes {I). (2.) Involuntary dispositions. The law as to the liability of separate estate to the debts Liability (d) Molony v. Kennedy, 10 Sim. (h) Troutbeckv.Boughe!/,2'Eq.o'3'i. •254. (t) Bradly v. Westcoit, 1-3 Vts. (e) Proudlei/ v. Fieldes, 2 My. & 445, 451 ; Sockett v. Wray, 4 Bro. K. 57. ■ C. C. 483. (/) RoheHs V. Bixwell, 1 Atk. 607 ; (A) Sup. Appleton V. Rowley, 8 TLq. I'i9 ; Stcii:- (I) London Cltartered Bank of ard V. Blakeway, 4 Ch. 603. Australia v. Lemprlerc, 4 L. R. P. C. (y) Dawson v. Prince, 4 De G. & 572 ; Bishop v. Wall, 3 Ch. D. 194. J. 41. 344 MARRIED WOMEN. of separate and engagements of married women has steadily and debts. continually developed in the direction of favouring creditors, and treating the separate estate just as the absolute pro- perty of a man would be treated. Fraud. (i.) The strongest case for attaching liability to separate estate is where a married woman has been giiilty of fraud. Long before the capability of a married woman to bind her separate estate by contracts was recognised, it was settled that she was capable of committing fraud, and was liable to the usual consequences of such an act. Thus in Savage V. Foster (m), where a married woman knowing her own title to property, suffered a purchaser to acquire it for valuable consideration by concealing her title, she was not allowed afterwards to set up her title against the pur- chaser. In cases of fraud, moreover, property settled on her for life with a general power of appointment which she exercises, is, equally with property settled on her absolutely, liable to supply any deficiency {n). Breach of (ii.) A married woman will render her separate estate liable by concurring with her trustees in a breach of trust io), and she cannot call upon the trustees to rejDlace it {p). So by herself committing a breach of trust in respect of other property under the trust {q) she renders her separate estate liable, unless she is restrained from anticipation (as to which generally, see infro,, p. 348 et seq.) ; and, notwithstanding such restraint, arrears of income under the trust are also liable (r), but not future income (s). (iii.) It was long after the recognition for many pur- poses of separate estate, that a married woman was first deemed capable of contracting debts in resj)ect of such estate ;. and it is only quite recently that her capacity to do so has been fully accepted with all its consequences. specialty ^g might havo been expected, the first step was to hold debts. (m) 9 Mod. 35. (p) Crosbijv. ChurcJi, 3 Beav. 485. (n) Vavffhan v. Vanderstegen, 2 (q) Clive v. Careiv, 1 J. & H. 199. Drew, 165. (?■) Femlej-ton v. M'Gill, 1 Dr. & (o) Breioer v. Swlrlcs, 2 Sin. & G. Sm. 266. 219 ; Jones v. Higrjins, 2 £q. 538. (s) Ibid.; Clive v. Carcw, supra. CHARACTERISTICS OF SEPARATE ESTATE. 345 that specialty debts, such as those secured by a bond under her hand and seal, should be binding on her to the extent of her separate property. As to this the principal case of Hulme v. Teiutnt is a leading authority. There she had joined with her husband in the bond ; but cases are numerous, from Lillia v. Airey (t) down to Mayd v- Field (lb), in which the same has been held under various circumstances. (iv.) Then the principle was extended to instruments of a Negotiable less formal character, such as a bill of exchange accepted {x) cents' or endorsed {y), and to a promissory note [z). (v.) The next step was its application to general written Written agreements — for instance, an agreement to pay additional ^g^^g rent for a house {a) ; also to the payment of the costs of a generally, solicitor whom she had instructed (b). (vi.) Up to this point the principle on which the sepa- Verbal rate estate was held to be liable was often represented to ^'^^ ^^'^ ^' be that the written engagements in question ojDerated as appointments of the settled property, and acquired their validity as such, rather than as contracts ; and as long as it rested on this ground it is clear that no liability could arise from merely verbal contracts. But by many authoritative decisions this view of the question has been com23letely exploded (c), and it is now well established that separate estate will be bound by general verbal engagements, whether in the form of express contract or of the nature of an assumpsit {d) ; though of course the fact of the party being a married woman will not dispense with the neces- sity of a written contract, where it is otherwise required (e). (vii.) It yet remained to be decided whether a married Life estate [t) 1 Ves. jr. 277. (6) Murray v. Barlee, 3 My. & K. (m) 3 Ch. D. 387. 210. {x) Stuart V. Kirkwall, 3 Madd. (c) Murray v. Barlee, 3 My. & K. 387; Owetiv. Homan, 4 H. L. 997. 210, 223; Owens v. Dickenson, Cr. ((/) M'Uem-y v. Davies, 6 Eq. 462 ; & Ph. 53. 10 Eq. 88. (rf) Vaughan v. Vandersteyen, (z) jBidlpin V. Clarke, 17 Ves. 365 ; sup. ; Johnson v. Gcdlarjher, 3 De Field V. Sowle, 4 Russ. 112. G. F. & J. 494 ; Mattheinnan's (a) Master v. Fidler, 4 Bro. C. C. Case, 3 Eq. 787. 19 ; 1 Ves. 513. (c) Re Sykes' Trust, 2 J. & H. 415. 34G MARRIED WOMEN. with general power of appoint- iiU'iit by deed or will. By will only. Extent of the lia- bility. Liability of husband to maiu- womau's general engagements would bind property settled on lier for life with a general power of appointment which .she has exercised. At length, in an important case already referred to (/), it was held that where such general power of appointment was exerciseable by deed or %vill, the property might be charged by her act. There the charge liad a special reference to the separate property ; but reading that case along with Vaughan v. Vanderstegen and others above cited, we should be led to the conclusion that property so settled would be subject to general en- yao-ements. We are not, however, now left to such an inferential conclusion, for it has recently been decided, where property was settled on a married woman for her separate use for life, with remainder to such persons as she should by her ivill appoint, she having made a testa- mentary appointment, that the property was liable to the payment of her debts, as if it had been settled on her absolutely (g). It will be observed tliat here the power of appointment could only be exercised by luill. A foHiori, therefore, would property be liable which was subject to appointment by will or deed. Of course it will also be noted that such liability only arises in cases where the power has been exercised ; it cannot affect persons entitled under a gift over in default of appointment. (viii.) The extent of the liability was by Hulme v. 'Tenant shown to reach to the whole of any personal pro- perty settled, and to the rents and profits of the realty. But since the case of Taylor v. Mead.s (Ji) it will be con- sistent that it should be extended to the corpus of the realty as well as to that of personalty. In no case can a personal decree in respect of debts be made against a married woman (i). The fact of a married woman having separate estate does not affect the legal liability of her husband to provide for (/) London Chartered Bank tCr. v. Letnpriere, 4 L. R. P. C. 572. (7) /« re Harvey'' s Estate ; Godfrey V. i/a»-6ew, 13Ch."D. 216. [h) -i De G. J. & S. 597. (i) Francis v. Wiyzell, 1 Madd. 264. CHARACTERISTICS OF SEPARATE ESTATE. 347 and maintain her and the family (k). She may, if neces- tain wife sary — for instance, in case of her husband's lunacy — pledge f^iniiy his credit for her own maintenance, and his estate will be liable (I). And though she is now liable to the parish for the maintenance of her husband and children, this does not relieve him from his primary liability (m). In special circumstances, however — for instance, where a Allowance married woman was lunatic, and the husband was in poor separate circumstances — an allowance has been made out of the estate for separate estate to meet extraordinary expenses incurred in purpose. maintenance (n). And it would not, it seems, be necessary to show extreme poverty on the part of the husband to justify such an allowance (o). After the death of Sbfeme covert having separate estate, Adminis- creditors may proceed against her separate estate for the married" payment of their debts (p). If she has left a will, her woman's estate will be administered according to the ordinary rules in creditors' suits. (3.) Fcrmissive dispositions. Intermediate in character between those cases in which a married woman by her own direct conveyance or transfer alienates her separate estate, and those in which the law lays its hand upon it as satisfaction for her debts and en- gagements, there is a class of dispositions, which if not exactly correlative with the others named, is yet of a sufficiently distinctive character to justify a separate consideration. (i.) It often happens that, without any formal disposition Authority of the corpus of her property, a married woman expressly f u^^band to authorises monies arising therefrom to be paid to her receive husband ; perhaps it is still more frequent that there is a tacit permission of such payments. A leading authority in such circumstances is the case of Caton v. Rideout (^q), (k) Hodgms v. H., 4 CI. & F. 323, In re Baker's Trusts, 13 Eq. 168. 373. (o) Brodie v. Barry, 2 V. & B. 39. {I) Davidsoiiv. Wood, 11 W. R. 561. (p) Owens v. Dickenson, Cr. & Ph. (Mi) 33 & 34 Vict. c. 93, ss. 13, 14. 48. [n) Edivards v. Aubrey, 2 Ph. 37 ; (q) 1 Mac. & (J. 601. 34-8 MAIUIIED WOMEN. which establishes the general rule that whether there has been express authurity or tacit permission for the husband to receive the income of the separate estate, he cannot after receiving it be called upon to account for it, and the wife cannot claim any reimbursement out of his estate. Especially would this be the case where the husband had been in the habit for a considerable time of receiving the monies, and applying them without question for the benefit of the family (r). Even if the circumstances of the case are not sufficiently strong to warrant absolute immunity from account, such account will not be extended beyond one year's receipts (s). If, however, the wife has not expressly authorised payment to the husband, nor tacitly acquiesced therein, or if the circumstances are such that her consent cannot be presumed, she will be entitled to be reimbursed out of his estate any payments that may have been im- properly made to him (t). No pre- It has already been stated that as regards the corpus of of o-ift to ^^16 separate estate, no presumption arises upon its transfer husband as ^g the husband that a gift was intended. The onus of to corpus. .. . . proving it so is on the husband, and m the absence of proof he will be deemed a trustee for the wife (u). Suffi- cient proof may be deduced from acts of the wife evidencing intention, without showing an express gift {x). Loan to (ii.) If a married woman makes a loan to her husband of by wife, t)^' *^^^t of her separate propety, she can recover the same as a creditor by proof in an administration suit (_y). III. — Restraint on Anticipation. Origin of It is not surprising that the fact of its being held, as in on antici- Hulwic V. Tenant, that the sejoarate property of a married pation. woman should be enjoyed by her with as much freedom of (»•) See also Powell v. Uankey, 2 («) Rich v. Cockell, 9 Ves. 369. P. Wms. 82 ; Rowle^J v. Unwin, 2 (x) Gardner v. G., 1 Giff. 126. K. & J. 138. [y) Woodward v. W., 3 De G. J. (.b) Roidcy V. Unicin, niipra. & S. 672. [t) Parker v. Brooke, 9 Ves. 583. RESTRAINT ON ANTICIPATION. 34 9 disposition, and subject to the same liabilities as if she were St, feme sole, should have exercised the ingenuity of con- veyancers to devise means for preventing such results, and to preserve the settled property at once from voluntary alienation, in which the husband's influence might be exercised prejudicially to the wife's interest, and from liability to destruction through the wife's improvidence. To this end a clause was framed to the effect that the wife should not have power to alienate the property, or to anticipate the enjoyment of the income thereof {z). The only question was whether this direction would be sustained in equity. Such a clause would certainly have no effect in a limitation of property to a man or to an unmarried woman (a), from whom the jus disponendi cannot be taken away by a mere prohibition ; but when the matter came before the Courts, the case of a married woman's separate estate was held to be distinguishable, and re- straint on anticipation was deemed just and reasonable, inasmuch as it tended to further the object for which separate estate was first created (6). The clause is accord- ingly valid and efficacious in a settlement or a devise to a married woman, whether the property in question be real or personal estate, whether limited in fee or absolutely, or for life only (c). 1. What ivords will restrain alienation. How As in the case of separate use, no particular form of ^^^''''^"• 1 . • T • -p 1 • ■ ^ No par- words IS necessary to restrain alienation it the intention be ticular clear. In addition to the common forms of expression, ""^t 1 ' words which are equivalent, with the addition of more or less needed. conventional verbiage, to the clear words " without power of anticipation," it has been held that effectual restraint is imposed by a direction that a trustee shall during the lady's life receive the income " when and as often as the (,-) Pylus V. Smith, 3 Bro. C. C. 22. 3.39. [c) Baggett v. Menx, 1 Coll. 138 ; 1 (rt) Brandon v. Rohiason, IS Ves. Ph. 627 ; Be Si/kes' Trusts, 2 J. & 429. H. 415. (6) Tullett V. Armstrong, 1 Beav. 350 MARRIED WOMEN. same shall become due," and pay it as she shall appoint, or permit her to receive it to her separate use, and that her receipts, or the receipts of any person to whom she may appoint the same after it shall become due, shall be valid discharges for it (d). So, also, if the property is " not to be sold or mortgaged (e), or if it is declared that the wife shall "not sell, charge, mortgage, or encumber it," though this may be followed by a declaration that she should take it to her own sole and separate use and benefit and disposal, and have the sole management thereof (/). It is not necessary that negative words should be intro- duced in the receipt clause ; this must be construed to relate to the income, subject to such restraints as are im- posed in the words of limitation (g). Expres- On the other hand, the following expressions have been sufficient Considered insufficient to show a clear intention to restrain anticipation : Where there has been a bequest of stock for the separate use of a wife for life, with a direction that it should " remain during her life and be under the orders of the trustees made a duly administered provision for her, and the interest given to her on heo' iwrsonal appearance and receipt " (h) ; and Avhere the wife is to receive separate property "with her own hands from time to time," or " so that her receipts alone for what shall be actually paid into her own proper hands shall be good discharges " (i). In short, words which amount only to an amplification of the sense embodied in the expression " separate use " will not add to the force of that expression by effecting a re- straint on anticipation (k). Hovey v. Blaheman {I), which seems contrary to this principle, has been virtually over- ruled by the other cases referred to. Where, again, it was provided in a gift to a wife for her separate use for life, and {d) Field V. Evans, 15 Sim. 375 ; {Ji) In re Ross's Trust, 1 Sim. N. Baker v. Bradley, 7 De G. M. & G. S. 196. 597. (1) Paries v. White, 11 Ves. 222 ; (e) Stccdman v. Poole, 6 Ha. 193. Acton v. White, 1 S. & S. 429. (/) Ba'jgett v. Meux, 1 Coll. 138 ; (Ic) Pyhvs v. Smith, 1 Ves. jr. 189 ; 1 Ph. 627. 3 Bro. C. C. 340. {g) ffarrop v. Howard, 3 Ha. 624. (/) Cited, 9 Ves. 524. RESTRAINT ON ANTICIPATION. 351 after her decease to her appointees, that " in case any appointment should be made by deed, the same should not come into operation until after her death," it was held that there Avas no restraint on anticipation, and that she might appoint the fund by an irrevocable deed (m). It must be carefully observed that a clause restraining Must anticipation will be invalid if its effect would be to trans- j-^ig gross the rule as to perpetuities (n). against _ ° . . p perpetvii- It was also held that in a bequest to persons in esse for ties, life with remainder to their unborn children, with a general direction that the females should take for their separate and inalienable use, the restriction was void on the ground of its remoteness (o). 2. The effects of restraint upon anticipation. It has already been observed tliat property in the hands Restraint of a feme sole cannot be made inalienable. The question, on second therefore, has arisen whether, Avhen on the death of the mamage. husband of a married woman so restrained the restraint was discharged, it attached again on the occasion of a second marriage. This was decided in the affirmative in Tullett v. Armstrong (p). From that case the state of the law may be deduced as follows : If the gift be made for her sole and separate use, without more, she has, during the cover- ture, an alienable estate, independent of her husband. If, in addition to the limitation to her separate use, there is a restraint on anticipation, she has during the coverture the present enjoyment of an inalienable estate independent of her husband. In either case, she has when discovert a power of alienation, since the restraint on anticipation is incident only to separate estate, and there can be no such thing as separate estate apart from coverture. But the restriction being a modification of the separate estate is inseparable from it, and it accordingly again comes into (m) Alexander V. Foim^/, 6 Ha. 393. In re Ridley, 11 Ch. D. 6i5 ; Cooper (n) Fry v. Capper, Kay, 163 ; In re v. Laroche, 16 Ch. D. 368. Teaf/ue's Settlement, 10 Eq. 564; {ii)Arinitaffev.Coafes,'35Jiea,v.l, which wex-e I'eUictantly followed in (p) 1 Beav. 1. 352 MARRIED WOMEN. Substitu- tion of other property. When sub- stituted property under restraint, and when not. Separate use, &c., may be confined to one cover- ture. operation when, on a second .coverture, the property again becomes separate estate (q). This being the case, the question often arises, in cases where the woman has while discovert aliened the property, and replaced it by other property, or otherwise dealt with it so as to alter its condition, whether such acts do not effectually discharge the property from all con- ditions, so that she in future holds it, whether sole or covert, discharged from all trust or restraint. The answer to this inquiry depends on circumstances. If the property remains during the time of the discover- ture, and until a second coverture, in the hands of trustees in statu quo, no question arises. If even there be no trustees, and the property has not in the interim been dealt with, upon her subsequent marriage the separate use and the restriction attached revive {r). If, on the other hand, property vested in trustees has been sold during the discoverture at the woman's request, and the proceeds handed to her, the identity of the settled estate or fund is clearly gone, and accordingly the separate use, with all its incidents, completely ceases (s). Or if even the property is converted by means other than sale into pro- perty of a different kind, the trust ceases, and with it all the conditions thereof (^). The test question as to the continuance of the separate use and restraint on anticipa- tion is whether the property can be identified, or whether it has lost its individuality in the meanwhile by the woman's dealing with it. It is, of course, quite possible to confine the trust for the separate use of a married woman to a particular cover- ture {u), but this will not be presumed when the words employed indicate an intention that it should continue during her life {x). (q) See also Woodmestonv. Walker, 2 E. & My. 197 ; Ilmckes v. Hub- back, 11 Eq. 5. (r) Neidands v. Payntcr, 4 My. & Cr. 408. (s) WrUjld V. W., 2 J. & H. 655. {t) Ibid. BiittansJiaw v. Martin, Johns. 89. (v) Moore v. Morris, 4 Drew, 33. (x) G<(ffce's Settlement, 1 Mac. & G. 541 ; JlawkeH v. Bvbback, srtp. RESTRAINT ON ANTICIPATION. oOd A clause restraiuiiig anticipation will effectually prevent ^j.®"';'^'^^ a married woman from alienating or charging any part' of restraint, the corpus of the settled estate or fund during the cover- ture. So if the fund be in Court she cannot call for a transfer of it to herself (y). She can only deal with the interest after it has become payable, not having power even to assign an apportioned part of unpaid interest up to the date of the assignment (-). The clause is equally efficacious to prevent an involun- tary alienation by operation of law of the corpus or the future income of a fund, during the coverture. Thus not even for her fraud is such property chargeable («). A fortiori it will not be liable for her debts or general engagements (h). The only cli?a-ge which can affect a fund so restricted is the costs properly incurred by the trustees in the administration of the trust (c). But see iufra, p. 358, as to the effect of o3 & 34 Vict. c. 93, s. 12, in these cases. So strictly was the restraint on anticipation regarded that Restraint it could not until recently be dispensed with by a Court of until re- eqnity, even where it was manifestly for the benefit of the f.^^^y ^^ I- ^ ' J dispensed married woman to do so, as where she Avas put to her elec- with even tion between her settled property and a bequest of much (J^y^^^^^ greater value (cZ). But now, by 4-]< & 45 Vict. c. 41, s. 89, the Court is empowered, with her consent, to bind her interest, where it appears to be for her benefit, notwith- standing the restraint. It appears that the clause restraining anticipation does Acquies- . , r .^ f cence and not exempt a married woman from the consequences oi com- lapse of time and acquiescence (e), nor prevent her from promise, binding herself by a compromise with her trustees (/). (y) In re Ellis's Trust, 17 11(1. i09; (c) I)' OecJmier v. Scott, 24 Beav. but see also Be Crovjjldons Tr., 239; In 7'c Keanc, 12 Hq. 115. 8 th. D. 460. (d) Robinson v. Whcdicright, 21 (2) In re Brcite, 2 De G. J. & S. Beav. 214 ; 6 De G. M. & G. 535 ; 79. GaskcU's Trusts, 11 Jur. N. S. 780. (a) Olive v. Careiv, 1 J. & H. 199 ; (c) Derbishire v. Home, 3 De G. Arnold v. Woodhanis, 16 Ecj. 29. M. & G. 80. {b) Fitzjibbon V. Blalc, 3 Ir. Ch. ( f) Wilton v. Uill, 25 L. J. (Ch.) Rep. 528. 156. A A 354 3IARRIED ^YOMEN. IV. Statutory Separate Estate. 20 & 21 1. 20 & 21 Vict. c. 85 ; 21 & 22 Vict. c. 108. 21 & 22^^' By sect. 21 of 20 & 21 Vict. c. 85, amended by sect. 8 Vict. c. of 21 & 22 Vict. c. 108, a wife deserted by her husband 108. ,. . T • "^ . . . may, on application to a ponce magistrate or to justices m petty sessions, or to the Court, obtain an order for the protection of any money or property she may earn or become possessed of after such desertion against her husband or any person ckximing under him ; and such earnings and property will belong to the woman as if she were a /erne sole (g). Again, by 20 & 21 Vict. c. 8.5, s. 25, after a judicial separation is decreed between husband and wife, she is to be considered as a feme sole with respect to property of every description which she may acquire, or which may come to or devolve upon her ; and if she shall die intestate the property shall go as if her husband had been then dead : if, moreover, she should again cohabit with her husband, all such property as she may be entitled to when such cohabitation shall take place, shall be held to her separate use, subject, however, to any agreement in writing made by her husband and herself while separate. 2. The Married Woniens Property Acts (h). ]M. w. These statutes have very greatly extended the principle I'T- ^ ^- Qf ii^Q separate use of her property by a married woman, and at the same time have considerably changed the legal relation of a husband and wife to each other and to third parties. It will be convenient to consider separately those clauses which relate to the creation of new classes of separate property and its investment, and those clauses which extend the legal remedies available between and asainst a husband and wife. ([/) See also 21 & 22 Vict. c. 108, (/,) 33 & 34 Vict. c. 93, and 3/ & ss, 6—10. 38 Vict. c. 50. STATUTORY SEPARATE ESTATE. 355 (1.) SejKcrate projjerti/ under the Statutes. ^.^^ ^^^^ By sect. 1 of 33 & 34 Vict. c. 93: "The wages and earn- ^.V iugs of any married woman acquired or gained by lier after the passing of this Act in any employment, occupa- tion, or trade in which she is engaged, or which she carries on separately from her husband, and also any money or property so acquired by her through the exercise of any literary, artistic, or scientific skill, and all investments of such wages, earnings, money, or property shall be deemed and taken to be property held and settled to her separate use, independent of any husband to whom she may bo married, and her receipts alone shall be a good discharge for such wages, earnings, money, and j^roperty." By sect. 7: "Where any woman married after the pass- s. 7. ing of this Act shall, during her marriage, become entitled to any personal property as next of kin or one of the next of kin of an intestate, or to any sum of money not exceed- ing £200 under any deed or will, such property shall, subject and without prejudice to the trusts of any settle- ment affecting the same, belong to the woman for her separate use, and her receipts alone shall be a good dis- charge for the same." It will be observed that this section, while it gives a wife the separate use of property to any extent coming to her through an intestacy, does not affect any gift by deed or will other than sums of money not exceeding £200 (/). But this enactment will not in the least affect her equity to a settlement out of funds coming to her or to her husband in her right by deed or will : as to which see infra, pp. 3G2 et seq. By sect. 8: " Where any freehold, copyhold, or customary- s. 8. hold property shall descend upon any woman married after the passing of this Act, as heiress or co-heiress of an intestate, the rents and profits of such jDroperty shall, subject and without prejudice to the trusts of any settle- ment affecting the same, belong to such woman for her (i) Kbuj V. Voss, 13 Ch. D. 504. A A 2 s. 10. 3oG MARRIED WOMEN. separate use, and her receipts alone shall be a good dis- charge for the same." From the fact that the rents and jjrofits here mentioned arc not limited to those arising during the life of the married woman, it has been questioned whether this sec- tion does not apply to the corpus of descended estates {k). ss. 2—5. Sects. 2 to 5 of the same statute relate to the invest- ment of separate estate by married women. Their effect is to admit of such separate property being invested in the name of the married wom.an in savings banks (post- office or otherwise), and government annuities (?); in the public stocks and funds {m) ; in shares and debentures to which no liability is attached, of any incorporated or joint- stock company {n) ; or in similar shares or debentures of any duly registered friendly or benefit society (o). Ey sect. 10, a married woman is empowered to effect an insurance on her own or her husband's life to her separate use ; and similarly a married man may effect an insurance on his own life on trust for the benefit of his wife for her separate use, and of his children, as may be expressed on the policy ; and such insurance will then be free from the control of himself or his creditors, and will not form part of his estate. It has been held that a policy on his own life effected by a trader under this section for the benefit of his wife, or his wife and children, will be valid, notwithstanding s. 91 of the Bankruptcy Act {p), but will be subject to the liability of repaying any premiums thereon which may have been paid out of the husband's estate, in fraud of his creditors (r/). s. 0. And by sect. 6 of the Act under consideration, tlie rights of a husband's creditors are expressly protected against any of his property which may be invested by him in his wife's name under the above sections, in fraud of (A) Klnrj V. Toss, 13 Ch. D. 504. (o) s. 5. (/) s. 2. (j>) 32 & 33 Vict. c. 71. (m) s. 3. (q) Holt V. Everall, 2 Ch. D. 266, (n) s. i. 276. STATUTORY SEPARATE ESTATE. 357 his creditors, and any monies so deposited or invested may be followed as if the Act had not been passed. (2.) Extension of legal renfiedies by the Statutes. (i.) Between husband and wife. Sect. 9 of 33 & 34 Vict. c. 93, provides that in any s. 9. question between husband and wife as to any property declared by the Act to be the separate property of the wife, either j)arty may apply by motion or summons in a summary way to the Court of Chancery or to a County Court (irrespective of the value of the property), and that thereupon the judge may make such order, direct such inquiry, and award such costs as he shall think fit, subject to appeal as in the case of a suit or equitable plaint. (ii.) Between husband and wife, and third person. Sect. 11 enacts that "A married woman may maintain ?. n. an action in her own name for the recovery of any wages, earnings, money, and property by this Act declared to be her separate property, or of any property belonging to her before marriage, and which her husband shall, by writing under his hand, have agreed with her shall belong to her after marriage as her separate property, and she shall have in her own name the same remedies, both civil and criminal, against all persons whomsoever for the protection and security of such wages, earnings, money and property, and of any chattels or other property purchased or obtained by means thereof for her own use, as if such wages, earn- ings, money, chattels, and property belonged to her as an unmarried woman ; and in any indictment or other pro- ceeding, it shall be sufficient to allege such wages, earnings, money, chattels, and property to be her property." By sect. 12: "A husband shall not by reason of any s. 12. marriage which shall take place after this Act has come into operation, be liable for the debts of his wife con- tracted before marriage, but the wife shall be liable to be sued for, and any property belonging to her for her separate use shall be liable to satisfy such debts as if she had continued unmarried." 358 MAimiED WOMEN. This section, under which it has been hekl that a restraint upon anticipation was no bar to a creditor's rights (r), required and has received legislative amend- ment. For if any property which the wife may have possessed before her marriage was not reserved on the marriage to her separate use, there remained no remedy for debts contracted by her before marriage. The husband was not liable, because the section expressly exempted him. The wife's property was not liable, because, not being reserved to her separate use, it did not come within 37 & 38 the latter clause of the section. It was, therefore, enacted Vict c 50 . 8. 1.' ' ' by 37 & 38 Vict. c. 50, that as to persons married after the 30th of July, 1874, the husband and wife shall be liable to be jointly sued for her ante-nuptial debts (s). s. 2. Again, by sect. 2 of the same statute, " The husband shall, in such action, and in any action brought for damages sustained by reason of any tort committed by the wife before marriage, or by reason of the breach of any contract made by the wife before marriage, be liable for the debt or damages respectively to the extent only of the assets hereinafter sj^ecified." s. 5. Sect. 5 specifies the assets so liable as follows : — (1.) " The value of the personal estate in possession of the wife which shall have vested in the husband, (2.) "The value of the choses in action of the wife which the husband shall have reduced into possession, or with reasonable diligence might have reduced into posses- ' sion. (3.) " The value of the chattels real of the wife which shall have vested in the husband and wife. (4.) "The value of the rents and profits of the real estate of the wife which the husband shall have received, or with reasonable diligence might have received. (5.) " The value of the husband's estate or interest in any property, real or personal, which the wife in contem- (r) Sanrjer v. S., 11 Eq. 470. (s) s. L PIN-MONEY. 359 plation of lier marriage with him shall have transferred to him, or to any other person. (6.) " The value of any property, real or personal, which the wife in contemiDlation of her marriage with the hus- band shall, with his consent, have transferred to any person with the view of defeating or delaying her existing creditors." V. Pin-Money. Analogous to separate estate, but in some respects requiring separate consideration, is what is termed the pin-money of the wife. It has, indeed, been said to be impossible precisely to express the distinction been pin- money and separate estate {t). Pin-money may, however, be sufficiently described as an Definition, allowance settled upon a wife before marriage for the pur- pose of her separate personal expenditure. It is designed to defray her personal expenses, and to purchase dress and ornaments suitable to her husband's rank, so that it shall not be necessary for these purposes that she should be continually aj)plying to her husband for money. Gifts and payments of money made for the same purposes by the husband during the coverture, are also considered as pin-money. Almost the only questions respecting pin-money which come under judicial notice are those connected with claims for payment of arrears after a husband's death. The rules respecting such claims sufficiently distinguish pin-money from ordinary separate estate. As a rule, when a wife permits her pin-money to run Arrears, considerably in arrear, she cannot on the death of her y-^J^^^l, husband claim payment for more than one year prior to able. his death (u). The income of her sej^arate estate she may {t) Hoicard v. Dlghy, 8 Bli. N. R. Tojmshcml v. Windham, 2 Ves. 259. sr. 7. {u) Aston V. A., 1 Ves. si-. 267 ; :3G0 MARRIED WOMEN. Norightto save or spend as she pleases; but the purpose for which late. pin-money is provided is lor expenditure as may be neces- sary ; and if not required, if, for instance, the husband chooses to defray the expenses which would fairly come within it, the wife has no right to accumulate it. If, indeed, the husband has actually paid for all the wife's apparel, and provided for all her private expenses, it has been held that her pin-money is thereby satisfied, and that she cannot claim any arrears at all at his death (y). Again, pin-money being required only for the wife per- sonally, her executors have no right to claim any arrears (x). The only case in which more than one year's arrears has been allowed was where it appeared that the wife had complained of short payments of the money, and her husband had promised that she should have it at last. There she was held entitled to all the arrears due at her husband's death (?/). VI. ParapJiernal la . Defined. Such apparel and ornaments of a wife as are suitable to her condition in life, such as jewels, &c., given to her to be worn on her person, are called her paraphernalia (z). The family jewels of the husband, though worn by the wife, are not included, unless she acquires them as such by gift or bequest (a). As to gifts of jewels by a husband to his wife after marriage, it apparently depends on the intention whether they shall be deemed paraphernalia or separate estate. If given only for the express purpose of her wearing them, they are paraphernalia (6) ; if given to her absolutely, they become separate property (c). Such (v) Thomas v. Bennett, 2 P. Wins. 394. 341 ; Hoimrd v. DUjly, 8 Bli. N. R. («) Jrrrohe v. /., 17 Beav. 570. 269. (b) Ibid. {x) Ibid. (c) Graham \. Londonderry, su}!.; ly) Rideout v. Lewis, 1 Atk. 269. Grant v. G., 13 W. R. 1057. (z) Graham v. Londmulemj, 3 Atk. PARAPHERNALIA. 3G1 articles given by a person other than the husband, are usuall}' deemed to constitute separate property (d). During the life of the husband and wife, the husband Husband's may disjiose of the wife's paraphernalia either by sale or pa^^pher-*^' gift inter vivos ; but he cannot dispose of them by will (e). ^^^i^- ]f, however, he purports to do so, and by the same will confers other benefits upon his wife, she will be put to her election between her paraphernalia and such benefits (/). The wife has no power to dispose of her paraphernalia, either by gift or will, during the husband's lifetime (//). The parapliernalia are liable to the debts of the hus- Liability band (A), but in the administration of the assets of a band's deceased husband, his widow's claim to paraphernalia is tl^bts. preferred to the general legacies (i). She is, therefore, entitled to marshal the assets in lier favour in all cases in which a general legatee can do so (h). Where, more- over, the husband in his lifetime has not alienated but has merely pledged his wife's paraphernalia, on his death she is entitled to have them redeemed, if the estate be sufficient, even to the prejudice of his legatees ; her claim being higher than that of pure volunteers (/). (d) Lucas V. L., 1 Atk. 270. (h) Campion v. Cotton, 17 Ve?, (e) ijcymore v. Trcsilian, 3 Atk. 273. 358. (0 Tippiny v. T., 1 P. Wms. 729. (/) Churchill V. Small, 2 Kenyon, (/(■) See infra, pp. 501, 510. pt. 2, p. 6. [I) Graham v. Londotuhrri/, Siqx (/d v. Mason, 5 Ha. (m) Hod'jens v. //., 11 Bli. N. S. 149. 104 ; Lloyd v. Williams, 1 Madd. {z) Wallace v. Auldjo, 2 Dr. & S. 450, 467. 216, 222. {x) Roioe V. Jackson, Dick. 604 ; {a) Lloyd v. Williams, sup. Grovesv. Perkins,Q 8im.58i; 1 Kee, (b) Fenncr v. Taylor, 2 Kuss. & 132. M. 190. {y) De la Garde v. Lcmpriere, 6 (c) Barker v. Lea, 6 Madd. 330. 'SGS wife's equity to a settlement. her husband and his assignees whether in bankruptcy or for valuable consideration, the next consideration is as to Avhat proj^erty is affected by her right. 2. Out of what lyroiJcrty a settlement can he claimed. In the consideration of the different species of property affected by a wife's equity to a settlement, we shall be assisted by first observing two general principles respecting the doctrine. The equity (1.) The equity to a settlement does not attach on what attaches ^ "^^'^^^ takes in her own right, but upon what the husband t.. wliat takes in right of the wife. Thus if property descends upon takes iu a married woman as tenant in tail, whatever her right to a Avife's provision out of the income, which her husband would at law right. ■•• 1-11 • 1 be entitled to receive, she would have no equity to a settle- ment out of the covims, to which the law gave him no claim in right of his wife (a). It only (2.) The equity to a settlement attaches not on the pro- the^ri'^ht*^^ pei'ty itself, but on the right to receive it; that is to say, it to receive only ai'ises on the husband's legal right to present possession. l)erty!^° Thus a wifo caiiiiot claim a settlement out of a rever- sionary interest in property as long as it continues rever- sionary (e). Bearing in mind these general principles w^e shall the more easily follow the classification of those species of property subject to the obligation of a settlement. Generally From the nature of the case it is evident that we have ableesHtes ^^ ^ ^'^^^*^ ^^^^^ ^^ ^'^^ with equitable estates and interests, considered, Such property as the husband could recover at law without the assistance of a Court of equity is unaffected by a doctrine which took its rise merely in the form of a condi- tion imposed by equity on the granting of its assistance (/). And though by the Judicature Act {g) equitable estates and interests are now recognisable in Courts of law, this (d) Life Assoc, of Scotland v. Sid- {f)'BntseeEuffles v. Ahton, 19 Er. did, 3 De G. F. & J. 271 ; Be Cum- 539, 546. mint/, 2 ibid. 376. (y) 36 & 37 Vict. c. 66. (e) Osborn v. Morgan, 9 Ha. 434. CHAKACTElilSTlCS OF THE PRINCIPLE. 369 makes no difference, inasmuch as, by the same authority, the wife's equity would likewise be enforceable there. If, though however, the property, though in its nature legal, becomes pi'rty,^\T' from collateral circumstances the subject of a suit in equity, subject to 11,.,. r a • rn " ^^it, is it was held m the important case oi oturgis v. ijlicnn'p- liable. neys (It) that the wife's equity attached, Lord Cottenham considering that whatever cause brought the parties before the Court brought them within the operation of the maxim, " That he who seeks equity must do equity " {I). Thus, also, wliere a married woman was legal tenant in tail in possession of an estate which was subject to an equitable term of 3'ears to secure a jointure, the existence of the term was considered sufficient to entitle the wife to claim a settlement, the title to the rents being equitable as long as the term lasted {]). The equity to a settlement, then, clearly attaches upon Ecjuitable equitable choses in action to which the husband becomes action and entitled in the ridit of his Avife (A). Though in some estates fee circumstances a settlement for life may be made out of an equitable estate of inheritance, equity wall not interfere with the possible estate by curtesy of the husband (/). The fact, moreover, of a legacy being charged upon land, with a power of entry and receipt of the rents and profits, does not so deprive it of its equitable character as to in- terfere with the wife's right {in). Where a husband in the right of his wife becomes Leaseholds entitled to a legal interest in leaseholds, the wife cannot ^^^ ' claim a settlement thereout, and the husband can effectually dispose of them by sale or mortgage {n). But if the legal equitable, estate of leaseholds is in a trustee for the wife, it is now clearly decided that any disposition the husband may make is subject to his wife's equity (0). [h) 5 My. & Cr. it7 ; and see & J. 139. Gleaves v. Paine, 1 De G. J. & S. 87. (/) t^'mith v. Mattheus, sup. {(') See also Ostrell v. Probert, 2 (m) Dunccmle v. Greenacre, 28 Ves. jr. 680. Eeav. 472 ; 2 De G. F. & J. 509. (j) Wortham v. Pcmlcrton, 1 De (») JlatcJiell v. Eqqlcss, 1 Ir. Cb. G. & Sm. 644. 21.^ ; Hill v. Edmonds, 5 De G. & S. (k) Burdon v. Dean, 2 Ves. jr. 603. 607 ; Smithv. Matthens, 3 De G. F. {o) Hanson v. Keating, 4 Ha. \. B 15 370 wife's equity to a settlement. Life There are some important observations to be made interests , ^ '- when sub- with rcspect to a wife's right to a settlement out of property settlement ^^ ^vliich she has Only a life interest. It is clear that if a husband fails to maintain his wife, whether by desertion or through becoming bankrupt, she will then be entitled to a settlement out of an equitable life interest as against him, and also against any one claiming under him by virtue of an assignment for value made previously to the desertion or bankruptcy (p), and, therefore, a fortiori against his general assignees in bankruptcy (q). It is also clear that if the husband is living with and maintaining his wife, she can- not claim a settlement out of a life interest against a jDar- ticular assignee for value of her husband (/') ; and if such an assignment has been made it cannot be disturbed by any subsequent misconduct of the husband in not maintaining her (s). The right of a general assignee in bankruptcy only arises in case of the husband's incapacity to maintain his wife, and that incapacity at the same time raises the wife's 'equity, so that her claim is good against such general assignee {t). The only case which remains to be considered is whether a wife can claim her equity out of a life interest as against the husband himself as long as he continues to live with and maintain her. It is for two reasons submitted that she cannot. In the first place, the equity to a settle- ment is as a rule exerciseable by a wife only on behalf of herself and her children together, so much so that out of a fund in which she has an absolute interest she cannot claim a settlement on herself alone, to the exclusion of her children (w). But her children can have no provision made out of an interest which ceases with her life ; so that her equity does not in this case stand on the sp.me ground as in the other. Secondly, in consideration of maintaining (p) Stun/is V. Cliampneijs, 5 My. (.v) Ihkl. 870 ; In re Carr's Tr., & Cr. 97 ; Wright v. Morley, 11 Ves. VI Eq. 609. 12 ; Elliott V. Cor.!ell, 5 Mad. 149. (t) Elliott v. Cordell, svp. (q) Lumb V. Milnes, 5 Ves. 517. («) De la Garde v, Lcmprierc, 6 (r) Tidd V. Lister, 3 De G. M. & Beav. 344. G. 857, 869. TO WHAT PROPEIxTY IT ATTACHES. 371 his wife, the law vests the income of a legal interest entirely in the husband, and equity so far follows the law that in the absence of some special circumstance, such as desertion or insolvency, the practice is, even in the settlement of an absolute interest, to direct payment of the entire income to the husband. It would follow, therefore, that if there is no interest beyond an income for life, the wife cannot, as long as her husband maintains her, claim payment of any portion of it to herself It was, moreover, so decided in Yanglian v. Buck (x), even though the wife there alleged that her maintenance was inadequate, and that her husband was in embarrassed circumstances. If this be correct, the head-note to the recent case of Taunton v. Morris (y) is misleading. The question did not in that case strictly arise, as the dispute there was between the wife and the husband's general assignee, he being insolvent, and turned exclusively on the amount which was proper to be settled. It decides that as to the amount of the settlement there is in a case of a husband's insolvency no difference to be regarded between corpus and income, or between an absolute and a life interest ; but it does not purport to, nor does it in fact, overrule the case of Vaughan v. Buch (s), already referred to. It is true that this case was dissented from in Wilkin- son V. CharlcsworfJt and Marsack v. Lyster (a) ; but those cases W'Cre decided on other grounds, and are, as far as the present question is concerned, more than counteracted by the subsequent and higher authority of Tidd v. Lister (h). It is clear, moreover, that a wife is not entitled to any Arrears of settlement out of arrears of income accruing due before she has set up any claim thereto. Such income will be paid to her husband or his assignees (c). 3. Waiver of settlement. We have seen that as a general rule it is within the (x) 13 Sim. 404. (b) 10 Ha. 140; 3 De G. M. & (,y) 11 Ch. D. 779. G. 857, 869, 870. {z) Sup. {c) Neivman v. Wilson, 31 Beav. (ft) Reported together, 10 Beav. 34 ; In re Carrs Tr., sup. 324, 327. B B 2 •372 wife's equity to a settlement. option of a married woman to bar lier own equity and tliat of licr children by waiving ber right to a settlement. It is, therefore, material in the next place to inquire by what means the waiver maybe exercised, and to what limitations it is subject. Consent to n\ Generally her consent to her husband receiving her waive ^ ' "^ ... settlement property must be formally taken by her examination in "iken by ^^ourt ((?), or before a commission issuing from the Court (e). Court or Neither her husband nor any person connected with him si(,n^ * should be present at the examination (/). imless The consent of the wife is not requisite where the fund less than ^^ Under £200, though in these, as indeed in all cases (g), £200. before payment, it must be shown that it is not already in settlement (h). \\Len /2.) It is not in all cases and at all times open to a there , . , ■"■ cannot be married woman to Vv'aive her right. Thus she cannot do ^^'^^^^^' so during infancy (/). A female ward of Court married Infant. . Y i • ■^y.,j.j of Without its authority cannot consent {/i), except, perhaps, Court. where the marriage has been with the consent of her guardian (I). When, moreover, a ward of Court is domiciled in a country where the principle of an equity to a settlement is not recognised, the Court will not part Avith her funds unless satisfied that a proper provision has been made fur her (r^i). Fund must Further, consent will not be taken until the amount of be ascer- -i n t ■ ■ ■ • -ti • -i i • ^ tained. the luiid in question is ascertained {7}) ; nor will it be bind- ing if it has been made under the influence of mistake (o). Consent to Notwithstanding that consent has been o-iven, it may be waive o > J may be retracted at any time before the payment to the husband is made, or the transfer completed (y^) ; and ajmrt from {d) Beaumont v. Cartel', 32 Beav. (/,) Stackpoole v. Beaumont, 3 Ves. 586, 590 ; zn/m, p. 374. 89. (r) Tasburr/h's Case, 1 V. & B. (?) Bennett v. Biddies, 10 Jur. 534. 507. (m) In re Ticeedales Settlement, (f) In re Bendijshe, 3 Jur. N. S. Johns. 109. 727. [n) Edmunds v. Tow nshcnd,! Anst. iff) Britten v. B., 9 Beav. 143. 93. *(A) Ehrortliy v. Wickstead, 1 J. & (o) Watson v. Marshall, 17 Beav. W. 69. 363. (0 Stulbs V. Sarjon, 2 Beav. 496. { p) Pcnfold v. Mould, 4 Eq. 562. waive may 1: retracted. WHEN BARRED. .'5/'^ that, the Court has power to postpone in its discretion tlie payment or transfer (g). 4. What circumstances ivill bar the equity to a settle me tit. Not merely may a married woman deprive herself of her equity to a settlement by a voluntary waiver, but there are many circumstances apart from such consent which will effectually^ prevent her assertion of the right. Thus, — (1.) Where the property, whether corpus or income, has Reduction once come to the hands of the husband, the wife can no "'*"• ^^^^' ' session. longer claim her equity. And no transfer or payment so made by a trustee before action brought can be afterwards disturbed (r). (2.) When a woman, at the time of her marriage, owes Wife in- more than the whole amount of her property, she has no ^" ^'"*" equity to a settlement out of it {s). But the mere fact of her having been indebted at that time would not prevent her claiming a settlement out of so much of the fund as remained after making provision for the jDayment of the debts {t). Her equity is also lost when her husband is indebted to the estate to an amount exceeding the wife's interest {u). (3.) If an adequate settlement has already been made Atlequate upon her, the wife's equity to a settlement is thereby barred lireaX''"*^ for the future (v). It may also be barred by an express ^^''e- stipulation to that effect made before marriage, even thouo-h the settlement were inadequate {x). If the original settle- ment is adequate, it is not essential that it should have been made by the husband (?/). (4.) The equity to a settlement may be lost by the Alienation alienation by the wife of the propert}'- concerned. It is ^J.^^^^ necessary, therefore, here to consider by what means such alienation may be effected. (q) Wrigid v. Ruttcr, 2 Ves. 673, (m) KnigU v. K, 18 Eq. 487. 677. {'■) In re ErsUnc's Tr., 1 K. & J. [r) Milner v. Calmer, 2 P. Wnis. 302. 639, 641 ; Allday v. Fletcher, 1 De [x) Sahvay v. S., Amb. 692 ; Gar- G. & J. 82. ' forth v. Bradley, 2 Ves. .sr. 675. (s) Bonner v. B., 17 Beav. 86. (y) Giacometti v. Prodjers, 8 Ch {t) Barnard v. Ford, 4 Ch. 247- 338. 0/4 WIFES K()UITY TO A SETTLEMENT. ^^*° (i.) As to realty. By virtue of the Fines and Recoveries realty. ^ ' j j 3 & 4 Act (c), and the Real Property Amendment Act (a), a mar- p l^, ' ried woman may now dispose of her estates of freehold, and 8 & 9 Vict, may also release or assign any sum of money charged on lands, or the produce of land directed to be sold, whether her interest be in possession or reversion, by a deed duly acknowledged by her, after separate examination before a judge or two commissioners, and made with the concur- rence of her husband. She may also dispose of her copyholds by surrender, jointly with her husband, on being separately examined by the steward or his deputy, (ii.) As to personalty. I'er- A married woman's personal estate, as we have seen, sonaltj. > • T 1 1 1 1 • 1^ • 1 vests m her husband on the marriage. Durmg tlie marriage, therefore, she has no power of disposition over it, except in case of property or powers falling within 20 & 21 Vict. c. -57, presently mentioned. If her husband reduces her choses in action into possession they become his. If not, and his wife survives him, she will be entitled to them. ^,°."-^^^_. By 20 & 21 Vict. c. 57 (commonly known as Malins' Act), it IS enacted that, after the 31st of December, 1857, it shall be lawful for a married woman to release or ex- tinguish any power which may be vested in or limited to or reserved to her in regard to any personal estate, as fully and effectually as she could do if she were a feme sole, and also to release or extinguish her right or equity to a settlement out of any personal estate to which she, or her husband in her right, may be entitled in possession, under any instrument made after the 31st of December, 1857 (h). Her husband must, however, concur in the deed effecting this purpose, and the deed must be acknowledged in the manner prescribed by the Fines and Recoveries Act above quoted. Kever- j^ ^las already been stated that a wife has no equity to (2) 3 & 4 Will. IV. c. 74. {h) s. 1. («) 8& 9 Vict. c. 106. ALIENATION BY MARRIED WOMEN. 375 a settlement out of reversionary interests, the equity swnary '' 1 • 1 interests, attaching not to the pro2oerty itself, but to the right to receive it. Nevertheless, this is a convenient place in which to consider her jDOwer of disposition over such in- terests. Previous to the year 1858 a married woman had no how power to part with her reversionary interests in personal ' property. Not even with the assistance of the Court could she dispose of them (c). But by 20 & 21 Vict. c. 57, above quoted, it was further enacted that, "After the 31st of December, 1857, it shall be lawful for every married woman by deed to dispose of every future or reversionary interest, whether vested or contingent, of such married woman, or her husband in her right, in any personal estate whatsoever, to which she shall be entitled under any instrument made after the said 31st day of December (except such a settlement as after mentioned), and also to release or extinguish any power which may be vested in or limited or reserved to her in regard to any such personal estate as fully and effectually as she could do if she were a feme sole . . . provided always that nothing herein contained shall extend to any reversionary interest to which she shall become entitled by virtue of any deed, will, or instrument by which she shall be restrained from alienating or affecting the same " (cZ), " Every deed to be executed in England or Wales by a married woman for any of the j^urposes of this Act shall be acknowledged by her in the manner prescribed by 3 & 4 Will. IV. c. 74 . . . and all and singular the clauses and provisions in the said Act concerning the disposition of lands by married women, including the provisions for dispensing with the concurrence of the husbands of married women . . . shall extend and be applicable to such (c) PicJcard v. Roberts, 3 Mad. 5G. 384 r Purdeiv v. Jaclson, 1 Russ. 1, (cZ) s. 1. 376 wife's equity to a settlement. Fraud. interests in personal estate as maybe disposed of by virtue of this Act " (e). " The powers of disposition hereby given to a married woman shall not enable her to dispose of any interest in personal estate settled upon her by any settlement or agreement for a settlement made on the occasion of her marriage " (/). These provisions precisely define the extent of a married woman's power over her reversionary interests in personalty, and require to be strictly complied w4th in any assign- ment thereof. (5.) A married woman's equity to a settlement may be barred by her fraud ; for instance, by her concealing the fact of her marriage from a purchaser (g). Adultery. ((J.) If a wife is living in adultery apart from her husband, her right is generally barred (h) ; but if the husband also is living in adultery, it is not so (/) ; nor if, being a ward of Court, she marries without its consent (k). Moreover, it seems that even in the absence of such cir- cumstances, the husband will not be allowed to receive the whole of the property of a wife who is living in adultery, if he does not maintain her (I). 5. Amount of the settlement. Where a wife has established her equity to a settlement, and the amount to be settled is not agreed upon between the husband and wife, the Court, in determining this, is guided by a consideration of the circumstances of the whole case (?)i). We shall consider separately the settle- ment of income and the settlement of corpus. (1.) As to income. As a general rule, where the husband is solvent and has been guilty of no misconduct, the Court will not interfere Husband usually 62. (e) s. 2. (/) s- 4. ((j) In re Lash's Tr., 4 Ch. 591. (h) Carrv. Eastah'oal; 4 Ve^. 14G. (i) Greedy v. Lavender, 13 Beav. (/.•) Ball V. Coidts, 1 V. & B. 292, 302, 304. {1.) Ball V. iVon'i/omcri/, 2 Ves. jr. 191. (m) Carter v. Taj(/arl, 1 De G. M. & G. 289. AMOUNT OF THE SETTLEMENT. 377 with his legal right, but will allow him to receive the ^^^^^ whole income of the property. Tt is satisfied with retain- ing the capital, so as to give the wife a chance of taking it by survivorship (n). But if the husband deserts his wife and leaves her un- •^<'ci"< if lie provided for, she is entitled to the payment of the income her. of her property to herself [o]. We have already seen that with respect to a life in- terest, a wife is entitled, in the case of desertion by, or the bankruptcy of, the husband, to a settlement on herself as against the husband, or his trustee in bankruptcy, or against an assignee for value, if the assignment has been made subsequent to the desertion. And it has been decided that such settlement may extend to the whole of the income (p). As long as the husband supports her, she cannot claim a settlement as against him, or against his assignee for value (q). Even in the case of a husband's insolvency, a settlement of income was refused where the wife had already an adequate provision for her separate use (r). A woman cannot represent herself as deserted when she refuses to accompany her husband on his removing to another residence in the course of his business (s). If, moreover, a husband having separated from his wife, a decree has been made alloAving her a separate maintenance out of income, on his subsequently consenting to cohabit with and maintain her, the Court has refused to continue the separate maintenance (t). The Court will, in short, always encourage reconciliation and cohabitation between husband and wufe, and is thus indisposed to allow a sepa- rate maintenance to the wdfe unless the husband's neglect (n) Sleechy.Thori)iyton,2Vesi.sir. (7) Supra, pY>. S70—1. 561 ; Atcheson v. A., 11 Beav. 48.5. (?•) Agu'dar v. A., 5 Madd. 414. (0) Gilchrist V. Catoi; 1 De (jr. (s) Bullock \. Menzies, 4 Ves. Sm. 188 ; Dunkley v. I)., 4 De G. 798. & S. 570 ; 2 De G. M. & G. 390. {t) Head v. //., 3 Atk. 296 ; Gil {p) Taunton v. Mwrist, 11 Cb. D. clo-iat v. Color, sup 779. 378 WIFES EQUITY TO A SETTLEMENT. One half of capital the rule, l)ut subject to discre- tion. Clrcum- stanf'es of infiueiice. Usual limitr- tions. ov cruelty, or other improper conduct, is such as to render his wife's leaving him necessary or justifiable (ii). (2.) As to capital. The general rule, in the absence of special circum- stances, is that one half of the wife's property shall be settled upon her, and the other half go to the husband or his assignees [x). This is, however, quite a matter for the discretion of the Court, which will take into consideration the amount of the wife's fortune already received by the husband ; any previous settlement which may have been made {y) ; whether the wife has received any benefit out of the husband's property {z); the conduct and circumstances of the husband (a) ; and the conduct of the wife (6). Circumstances may appear under these considerations which will induce the Court to go so far as to settle the whole fund on the wife. Where the husband has already received a considerable fortune from her (c), where he has become insolvent and no settlement hras been made {d), and where he has deserted or behaved cruelly to his wife (e), the whole fund has been settled ; and the same was done where, in the absence of such circumstances, the fund was small and barely sufficient for a provision for the wife and children (/). G. Form of the settlement. The design of the settlement being to provide for the wife and children, the Court will, as far as possible, accom- plish this, but will not interfere with the marital legal right farther than is necessary for this purpose. The usual limitations will be, therefore, as to personalty, to give the ((f) See Oxenden v. 0., 2 Vern. (i) Giacometti \. Prod[/ers, 14 'Eci. 493 ; Eedes v. £., 11 Sim. 569. 253 ; 8 Ch. 338. {x) Jeivson v. Moidson, 2 Atk. (c) Gardner v. Marshall, 11 Sim. 417, 423 ; Spirett v. Willoxvs, 1 Ch. 575. 520. (d) Francis v. Brooding, 19 Beav. {y\ Green v. Otte, 1 S. & S. 250 ; 347. Napier v. N., 1 D. & W. 407. \e) Dunklcy v. D., 2 De G. M. & (z) In re Ershines Tr., 1 K. & J. G. 390. 302. (/) In re Kincaid's Tr.. 1 Drew, (a) Coster v. C, 9 Sim. 597. 326; 17 Jur. 106. FORM OF THE SKTTLE.MENT. 379 incomo either to the husband, or his assignee, or to the wife for life for her separate use without power of anticipa- tion, according to the circumstances above discussed, and the corpus to her chikh-en after her death (7) ; if there should be no issue the ultimate remainder will, it seems, be to the husband absolutely, whether he survives the wife or not {h). See, also, for a full discussion of the subject, Spirett v. Willoios (Q. The fact of the husband's insolvency, or his having assigned his interest, or of the wife's relations being in humble circumstances, is not sufficient reason for deviating from this rule in favour of the wife, or her next of kin (/.;). In the case of a small fund the expense of a settlement Settle- has sometimes been avoided by ordering the fund to be sometimes brought into Court, and directing payment of the dividends dispensed to the wife during her life, and either declaring the trusts at her death, or giving liberty to the persons entitled to apply (/). 7. How far the settlement binds creditors. Where the Court decrees a settlement upon a wife, it Settlement will be supported as a good settlement for valuable con- ^^^^ coq. sideration (m). sideration. Further, if after marriage property accrues to the hus- band in right of the wife, which the husband cannot reach without the aid of the Court, and by agreement he consents to such a settlement as the Court would have ordered, this settlement will be maintained against creditors (n). Even if trustees in possession of the property of a married woman should, on the mere request of her hus- band, transfer it to new trustees upon trust for her sepa- rate use, such trust will be good as against his creditors (o). (.7) Gent V. Harris, 10 Ha. 383. 220. (h) Carter v. Taggart, 1 De G. M. [vi) Wheeler v. Caryl, Amb. & G. 286 ; Croxton v. Matj, 9 Eq. 121 ; Simson v. Jones, 2 R & M. 404 ; Walsh v. Wason, 8 Ch. 482. 365. {i) 4 Ch. 407. (n) Wheeler v. Caryl, sup.; Lire (k) Carter v. Taggart, 1 De G. M. Wray's Tr., 16 Jur. 1126. & G. 286. (n) RyJnnd v. Smith, 1 My. & Cr. (I) Bagshaw v. Winter, 5 De G. & 53. Sm. 468 ; In re Cutler, 14 Beav. 380 WIFK's KQriTY TO A SETTLEMENT. But if the husband has once reduced into possession the equitable choses in action of his wife, any subsequent settlement of them must conform to 13 Eliz. c. 5, or it will be void as against creditors (p). Payment to hus- band. Transfer into his name. Suit by husband and wife. III. licduiilov Into Possession hy Hndxriid of Wifes Proiievty. Havinef seen that a husband's right to his wife's choses in action depends upon his reducing them into possession, we are led by this case to inquire what acts amount to a reduction into possession. 1. The clearest case is of course where the husband actually receives payment of the sum in question — for instance, a sum due to her on a mortgage {q). If, however, he so receives money in the character of trustee, this will not amount to a reduction into possession (r). 2. The transfer of a wife's stock into her husband's solo name, or even a transfer by his direction into the names of trustees, upon trusts inconsistent with his wife's equity amounts to a reduction into possession (s). But if such transfer, or the investment of stock belonging to the wife, be effected in a manner consistent with her equities, the case will be otherwise, and her right by survivorship will remain (f). 3. If a husband and wife together sue to recover choses in action which belonged to the wife before marriage, judgment in the action amounts to reduction into posses- sion by the husband {u) ; though if he dies after judgment, but before execution, the judgment will survive to the wife (.r). But if the husband sues in his OAvn name for a chose in action accruing to his wife during the marriage, [p) llkl. Goldsmith v. Russell, 5 De G. M. & G. 547. (q) Rees V. Keith, 11 Sim. 388. (?•) Baler V. ffvM, 12 Ves. 497 ; Wall V. Tomlinsoir, 16 Ves. 413. (s) Havsen v. Miller, 14 Sim. 22. (0 Rylaml v. Smith, 1 My. & C. 53. (ii) Shervirt'jton v. Yeites, 12 M. & W. 855. (.r) Bond v. Simmons, 3 Atk. 21. KEDUCTION INTO POSSESSION. 381 and dies after judgment, his representatives, and not the wife, will be entitled {ij). 4. Where the income of a married woman's life estate Receiver, had been ordered to be received and applied by a receiver in a suit in payment of her husband's incumbrances, it Avas held that arrears of income in the receiver's hands which had not been paid as directed Avere by the effect of the order reduced into possession {z). 5. A sale by a husband of his wife's choses in action, Sale by followed by the purchaser's taking possession, will amount to a reduction into possession («). The general result is that any act which has the effect Geneial of changing the property in the choses in action will P""^*^^!' *^- amount to a reduction thereof into possession (&). But acts which do not amount to this will not suffice. Thus there has been held to be no reduction into possession where there was a fund set apart for payment to the husband (c), where interest only had been paid to the husband (J), where the husband proved against the estate of a bankrupt indebted to his wife, but died before the declaration of a dividend {e). On the same principle, payment of a part of a fund only amounts to reduction, into possession 'pro tanto (/). As to a reversionary interest, an assignment, whether particular or general, could not suffice to bar the wife's right by survivorship (g). If a husband fail actually to reduce his wife's choses in action into possession during her lifetime, he wdll, upon her death before him, be entitled to them as her administrator, provided that he has not already made an assignment of them, which though ineffective against her if she survived him, would be valid as against himself. If he dies with- (y) Otjhuuler v. Baston, 1 Vern. (c) Blunt v. Bestlnnd, 5 Ves. 515. 396. ((/) IhicL; Iloicman v. Cone, 2 (z) Tidd V. Lister, 2 W. R. Vern. 190. 18-i ; 3 De G. M. & G. 857. (e) Avon, 2 Vern. 706. (fl) Widjery v. Tepper, 5 Ch. D. (/) Nash v. N., 2 Madd. 133, 516. 139 ; Scrutton v. Patcllo, ly Ec^. 369, (b) Aitchesoii v. Dixon, 10 Eq. 373. 5S9. iy) Hornsby v. Lee, 2 Madd. 16. 382 wife's equity to a settlement. out taking out letters of administration, his personal repre- sentative may become entitled by doing so (h). Assifrn- ''p}^Q 1-^1^3 is now well established that a husband by ment by ..,..„,, . . . i. ax ' husband, assignmg his wiie s choses m action can give no better right to another than he has himself. If the wife survives the husband the assignee of a reversionary interest can take nothing. If the husband survives the wife the assignee is entitled to the property (i). Keversion- ^g to reversionary interests in particular, whether the terests. liusband after the assignment dies in the lifetime of the tenant for life, so that the chose in action cannot be re- duced into possession, or whether he survives her without having actually reduced it into possession, the result is the same — the chose in action will survive to the wife (/i;). Moreover, a release by a husband of a reversionary chose in action of his wife is as inoperative against his wife as his assignment would be (/). IV, Fraud on Marital Rights. In the principles we have discussed respecting the separate estate of a married woman and her equity to a settlement, we have found the interference of equity directed to the design of granting relief in favour of the wife against the operation of the strict rules of ancient common law. From the case of STRATHMORE v. BOWES [1 Ves. sr. 22 ; 1 W. & T. L. C. 446] we learn that on the other hand ecpiity will sometimes assist a husband to the assertion of a right in circumstances in which he would have been without any remedy at law. In this case, Lady Strathmore, being possessed of con- siderable property, real and personal, pending a treaty of (A) In the rjoods of Ilardnig, 2 P. (/,) imison v. Elwin, 13 Sim. 309. & D. 394. (/) lio'jers v. Acaster, 14 Beav. ((■) P'urdew V. JacJo'oii, 1 Riiss, 1, 445, FRAUD ON MARITAL RIGHTS. 383 marriage with Mr. Grey, conveyed, and assigned, with the approbation of Mr. Grey, all her estate to trustees for her sole and separate use, notwithstanding any future cover- ture. A few days after, hearing that Mr. Bowes had fought a duel on her account, she determined to marry him, and did so on the next day. Bowes had no notice of the settlement. There were two bills — an original bill by Lady Strathmore to set aside a deed revoking the settlement, as having been obtained by duress, and a cross-bill by Bowes to set aside the settlement as against the rights of marriage, and to establish the deed of revocation. An issue having been directed to try whether the deed of revocation had been obtained by duress, the venlict was against the deed. The cause coming on upon the equity reserved, there was a decree in favour of Lady Strathmore dismissing the cross-bill with costs. It came on again for a rehearing and reversal of that decree so far as it dismissed the cross-bill. It was held under the circumstances that the settle- ment should be established, there being insufficient evidence of fraud ; the principle was, however, fully recognised that a husband may in a proper case come into equity, and claim its assistance against a settlement of the wife's pro- perty which is concealed from him. 1. Statement of the 2'>nnclple. This case, though under the circumstances there was General held to be no fraud on marital rights, is usually referred P^'^'^'^^P ^~- to as a leading authority on the subject, because of the lucid statement therein contained of the principle con- cerned. The chief ground on which the decree rested was that there the settlement was not made in the course of the treaty of marriage with Bowes. There was, there- fore, no fraud upon him, and the deed being prinid facie good, remained so, he having no equity to set it aside. The first corollary from that case, therefore, is that it 384 FRAUD ON MAIUTAL RIGHTS. is necessary for a person impeaching a settlement to prove that at the time of its execution he was the then intended husband. He must to show tliat the settlement was made during the course of the treaty for marriage with him (in). If this is so, and the woman during the treaty for marriage holds herself out as entitled to property, and then convej's or settles it witliout the knowledge or con- currence of the intended husband, actual fraud Avill be imputed to her, and the deed will be set aside in equity (riV The principle has been can led in some cases farther than this. In Goddard v. Sauiu (o) there was no active deception of the intended husband, Avho was, it seems, not aware of the existence of her j^roperty. Yet a settlement of which he had not been informed was set aside after an interval of ten }'ears, as being a Iraud upon his marital right (p). It has been (piestioned whether a meritorious considera- tion will suffice to support a settlement, notwithstanding concealment from an intended husband — for instance, the fact that the settlement has been made in favour of children of a former marriage. If such a settlement is made pre- vious to a treaty for a second marriage it is doubtless good (q), but it seems that if made during the treaty for marriage, the fact of there being a provision for children will not render valid a settlement which would on other grounds be fraudulent (r). 2. What circumstances vjill render the settlement valid. Valuable 1. A transfer for valuable consideration to a purchaser tion^^ ^^' ^^'ithout notice of any intended derogation of the marital right will be held g(jod (s), and probably the purchaser's right would be sustained even if he acted with notice (t). (ill) Enfjlaml v. Downs, 2 Beav. (7) Klny v. Cotton, 2 P. Wins. 622. 674. [u) Ibid.; Lance v. Norman, 2 Ch. (/•) Taylor v. Pwjh, sup. Rep. 79. (.s) BJanchct v. Foster, 2 Ve,s. .«r. (0) 1 Russ. 485. 264 ; Llewellyn v. Cobbold, 1 Sm. & (p) Doicncs V. Jenninr/s, 32 Beav. G. 376. 290 ; Taylor v. Pwjh, 1 Ha. 608. (t) Ibid. FRAUD ON MARITAL RIGHTS. 385 2. If the husband knew of the gift or settlement during Know- the treaty for marriage, although he may not have been husband, informed of it by the intended wife, he will not be able to set it aside (ii) ; much less if he concurs in it (x). If, moreover, after marriage he acquiesces in or confirms the settlement, he will not be allowed to dispute it (?/). Mere delay in seeking relief, however, will not necessarily amount to acquiescence (z). 3. If the husband has before marriage seduced his in- Seduction, tended wife, and so deprived her of her liberty of action, any settlement she may have made will be sustained against him (a). 4. In the absence of any representation made as to Limits of specific proj^erty, tliere is no implied contract of the lady ^ipi^"'^" that her property shall be in no way diminished during the treaty for marriage. It is for the Court to determine Avhcthcr, having regard to the position of the parties and the circumstances of tlie case, the transaction should be treated as fraudulent or not (h). {u) St. Gcm-f/ev. Wale, 1 My. & 317. K. 610 ; Ashton v. McDowjall, 5 (:.) Downcs v. Jenninys, sup. Beav. 56. {a) Tat/lor v. Pugh, sup. {x) Slocombe v. Gluhb, 2 Bro. C. C. (b) De MandevlUe v. Crompton, 1 545. V. & B. 354 ; Taylor v. Pwjh, [y) Maber v. Hohhs, 2 Y. & C. Ex. sup. C C 386 CHAPTER VIII. INFANTS. I. Guardianshii'). Eyre v. Countess of Shaftesbury. 1. Obsolete species of Guardianship. 2. Guardianship of Parents. 3. Testamentary Guardians. 4. Guardians appointed hy a Stranger. 5. Guardians appointed by the Court. II. Maintenance. 1, Out of what Property directed. 2. In ivhat circur)istances. III. Advancement, 1. Under a Poiver. 2. In absence of a Poiver. Note. — Jurisdiction as to Lunatics. Guardian- I. APARTfrom statutory enactments, the Court of Chancery ^^^' from the earliest times exercised a very beneficial juris- diction over infants ; and that jurisdiction has now been conferred upon the Chancery Division of the High Court of Justice (a). The greater part of the law respecting this subject relates to the incidents and characteristics of guardianship ; the first and most important duty before us, therefore, is to enumerate the different species of ('0 36 & 37 Vict. c. 66, s. 34, GUARDIANSHIP. 387 guardians which are recognised in equity, and to ascer- tain the powers and responsibilities of each. The fullest discussion of the subject is found in the leading case of EYRE V. THE COUNTESS OF SHAFTESBURY [2 P. Wms. 103; 2 W. & T. L. C. 633], in which the whole jurisdiction of the Court in matters of guardianship was passed under elaborate review. We shall presently have to advert to the precise points raised and settled in this case; but before doing so there are some matters requiring consideration which were only in- cidentally referred to therein. 1. Obsolete species of giiardiansldp. At different periods of the history of equity, several Obsolete species of guardianship were recognised which have now o^,a*i^dfaQ. little more than an antiquarian interest. Some having ship, been expressly abolished by statute, and others having fallen into desuetude, it is only necessary here to enumerate them : we refer to guardianship in chivalry, guardianship in socage, guardianship by the appointment of the Eccle- siastical Courts, guardianship by election and by custom, and guardianship under 4 & 5 Ph. & Mary, c. 8. 2. Tlte guardiansJiij} of imrents. By nature and nurture the father is indisputably the Guardian- guardian of his children (6), and he may exercise the rights r 'P ^ of guardianship even in oj)position to their mother (c). Until quite recently the Courts so respected this natural right as to refuse, save under very exceptional circumstances, to enforce a contract entered into by a father to give up to his wife the custody and education of their children (d), on the ground that it was opposed to public policy. But by 36 Vict. c. 12, it has been enacted that no agreement con- 36 vict. tained in a separation deed made between the father and ^' ■^^• [h] Exp. Hopkins, 3 P. Wms. (d) Hope v. H, 8 De G. M. & G. Ia2. 731 ; Sioift v. S., Zi Beav. 266. (c) Exp. M'Cldlan, 1 Dowl. 81. cc2 388 INFANTS. mother of an iufimt shall bo held to be invalid by reason only of its providing that the father shall give I'.p the custody or control of such infant to the mother, provided that no Court shall enforce such agreement if it shall be of opinion that it will not be for the benefit of the infant to do so. But an agreement by a husband before man-iage that his children shall be brought up in a particular religion is not binding on him, and will not be enforced (e), unless, indeed, he has abandoned his right to educate his children in his own religion (/). Of mother. jj-^ case of the death of a father without his having ap- pointed a testamentary guardian, the mother, if surviving, becomes the natural guardian of the children (g). Though no Court has power actually to deprive a father of Ids legal right as guardian, his exercise of his natural guardianship is subject to the superintendence of the Court, which will, if necessary, interfere between him and his children by appointing a person to act as guardian. This part of its jurisdiction was well established in the case of Wellesley v. Beaufort (h) ; but in order to justify such interference there must be strong circumstances show- ing that it will be for the benefit of the children. Thus, prior to 36 Vict. c. 12, the mere fact of the father's poverty, or even insolvency, would not sutfice (i) ; nor would acts amounting to severity or harshness, unless extreme, or of such a nature as to corrupt the morals of his children (IS). Even where a father was living in adultery, but did not bring his children into contact with his paramour, the Court refused to deprive him of their custody (l). But where, coupled with insolvency, the character of the father is bad (rii), or he has deserted his children (n), or Court Hviper- iij tends guardian ship. When giiardian- ghip of father interfered with. Insol- vency, desertion, (c) Be Broicne, 2 Ir. Ch. E. 151. (/) Andrews v. Salt, 8 Ch. 622, 637. (rj) ViUarccd v. Mdlish, 2 Swanst. 533. (/() 2 Russ. 1, 2 Bli. N. S. 124. (i) Kilpntrk/i V. A'., Macph. 143; In re Fipin, 2 De G. & Sm. 457. (A-) (JurUs V. C, 5 Jur. N. S. 1147 ; Re Spenrc, 2 Ph. 252. (/) Ban V. B., 2 Sim. 35. (m) Exp. Mountfort, 15 Ves. 445. (n) Creuze v Hunter, 2 Cox, 242. GUARDIANSHIP. 389 is endangering their property or neglecting their educa- tion (o), there is sufficient ground for interference. Even in the absence of any pecuniary difficulties of the immo- father, if his habits are notoriously immoral, and such as are likely to corrupt his children, or imbue them with irre- liofious notions, the Court has not hesitated to remove them from his control (j;). Habits of habitual drunken- ness and profanity have led to the same result {rf). The power of the Court in this direction has been con- 2 & 3 Vict. siderably and advantageously extended by statute. First, by 2 & 3 Vict. c. 54 (z-), the Court was enabled to give to a mother access to her children, and even custody of them, up to the age of seven years, in case of ill-treatment by her husband. More recently this Act has been replaced by 86 Vict. c. 12, which empowers the Court upon petition of 30 Vict. a mother by her next friend, to give her a right of access to any infant under sixteen years of age at such times and subject to such regulations as may seem proper, or to order that any such infant shall be delivered to the mother and remain under her custody and control until it shall attain that age, subject to such regulations as may seem proper. The principles upon which the Court administers this Act are expounded in B.e Taylor (s). Since by the Judicature Act the rules of equity as to the custody of infants now prevail in ali divisions of the High Court, a father can no longer, as formerly, obtain at common law a writ of habeas covpus for the possession of a child, where there are equitable reasons against it (t). 3. Testamentary guardians. By 12 Car. II. c. 24, power was conferred upon a father. Testa- ••111 •!! naentary even though a mmor, oi appomtmg by deed or will guardians. guardians for his legitimate children during minority, ■^"^„^'^^- ■'■■'■• c. 24. (o) Re England, 1 K. & M. 499 ; Ves. 62. Thomas v. Roberts, 3 De G. & Sm. (»•) Commonly known as Tal- 758. fourd's Act. {p) Shelley v. TTesfirooi-e, Jac. 266 ; (s) 4 Ch. D. 157. WeUesley v. Beaufort, sup. (t) Re Goldsivortliy, 2 Q. B. D. 75. (2) De MannevUle v. De M., 10 390 INFANTS. How appointed. Passes by survivor- ship. Dis- claimer. Testa- mentary Now, hy 1 Vict. c. 26, a minor can no longer make an efFectual will for any purpose ; but the power of a minor to appoint a guardian by deed still remains. Under the earlier statute Roman Catholics could not be appointed guardians, but this disability, with others, has long been removed («). The statute conferred no corresponding power on a mother, and her natural guardianship is superseded by the father's testamentary ajjpointment : the mother, how- ever, may of course be appointed herself to the office. No particular form of words is required for the appoint- ment of a testamentary guardian. Such expressions as " my son and daughter to be under the care and direc- tion of A. and B." (x), and a direction to C. to " take the care and management of my children " (y), have been held sufficient. But where the words used refer only to the property of the children — e.g., " to be guardian of the estate " of the children — they will not constitute a person a guardian (z). A person is not disqualified from being appointed guardian by being a witness to the will appoint- ing him (r/). The leading case of Ei/re v. Sliafteshvbry (h) decides that where more than one guardian is appointed by will the office passes to the survivor. A testator may, under the statute, give to the survivor the power of nominating a successor to one who has died (c) ; but guardianship is not assignable. Delegatus non potest delegare (d). It is open to a testamentary guardian to disclaim the office before acting therein (e) ; but after acting in the office he cannot renounce it (/). A testamentary guardian is a trustee ; so that the Statute {u) 33 Geo. III. c. 21 ; 34 & 35 Vict. c. 48. (x) Bridges v. Hales, Mos. 108. ly) Miller v. Harris, 14 Sim. 540. (z) He Norhury, 9 I. R. Eq. 134. (a) Morgan v. Ratchell, 19 Beav. 86. (b) Supra, p. 387. (f) In the goods of Parncll, 2 L. R. P. & D. 379. [d) MeUish v. De Costa, 2 Atk. 14. (e) O'A'cf/e V. Casey, 1 S. & L. 106. (/) Spencer v. Chesterfield, Amb. 146. GUARDIANSHIP. 391 of Limitations does uot rim in his favour in an account ffuardiau between him and his ward {g). The claim of the ward ' may, however, be lost by a long acquiescence in the acts of the guardian (h). Testamentary guardianship is clearly not determined by Office not the marriage of a male ward ( /), nor, it would seem, by the mined by marriage of a female ward {h). "f^ward^ The powers of a testamentary guardian are extensive. Powers of He is generally entitled to the custody of the persons of S^^^*^^^"* his wards Q) ; and unless some contrary wish is expressed by the father {m), he may regulate and superintend their education, and compel their obedience {n). Parental guardianship being subject to the superintend- Sup^rin- ence of the Court, a fortiori so also is a testamentary of the guardian. It seems that there is no jurisdiction to remove ^°^^*'- such a guardian from his office ; but under certain cir- cumstances he may be susj^ended from exercising the powers thereof, and a proper person appointed to act in his place (o). And it requires less stringent circumstances to induce interference in this case than in that of a father. Thus bankruptcy or insolvency will justify the appoint- Bank- ment of a person to take the place of a testamentary guardian {p) ; but the mere fact of a guardian having a pecuniary interest in the death of his ward, will not, as in Roman law, disqualify him for his office, or be a ground for superseding him [q). In the superintendence of testamentary guardians by the Court there is an element to be considered which is wanting in the case of parental guardianship, namely, that the wishes of the father, both expressed and implied, are regarded with respect ; but since in cases where ques- (r/) Matheio V. Brise, 14 Beav. 341. («) Hall v. //., 3 Atk. 721 ; Trc- (k) Sleeman v. Wilson, 13 Eq. 36. viain's C'a., 1 Stra. 173. (i) Eyre v. Shaftesbury, siq). (o) Foster v. Denny, 2 Ch. Ca. (k) Roach V. Garmn, 1 Ves. sr. 327 ; 1 Eq. Ca. Ab. 260, pi. 3. 160. (p) Smith v. Bate, 2 Dick. 631; {I) Exp. E. of Ilchester, 7 Ves. Ileysham v. //., 1 Cox, 179. 381. i'j) Morgan v. Dillon, 9 Mod. 135. (m) Knott V. Cottee, 2 Ph. 192. 392 INFANTS. tions as to these arise the principles ap|)lied are identical with those which regulate the conduct of guardians appointed by the Court itself, we shall, to avoid repetition, postpone their discussion until dealing with this last species of guardianshij). 4. Guardians appointcl hy a stranger. Guardians The power of a stranger to appoint guardians of an appoin e j^fv^^^^ during his father's life can only be derived through strangers, the waivcr of his right by the father. One of the cases fathe^'^ ^ ™*^^* frequently cited with reference to this is Powel v. Cleaver (r), where a testator gave considerable legacies to his sister, her husband, and their infant children, upon the express condition that his executor should be guardian of the children during minority. The father acquiesced in the arrangement, accepted the benefits conferred upon him, and received the maintenance provided for the cliildren. Afterwards he wished to resume the guardianship himself. This was refused, as not being consistent with the interests of the children (s). It is necessary in such cases that there should have been a voluntary waiver of his rights by the father. The Court will not interfere to compel him to do this simply because a stranger offers to maintain the children (t) ; and it is open to a father to rescind and abandon an agreement of this nature at any time before it has been acted upon so as to alter the status of the child (it,). Guardianship created in this manner is of course subject to the supervision of the Court, on the same principles as testamentary guardianship. 5. Guardians appointed hy the Court. Guardians Whatever may have been its origin, as to which there by^the ^^^^ been much learned dispute, it was a well established Court. part of the jurisdiction of the Court of Chancery to appoint guardians of infants when necessary ; and this (r) 2 Bro. C. C. 499. {t) Lyons v. Blcnlin, Jac. 245, (s) See also Colston v. Morrii, Jan. 264 ; A'e F>/nn, 2 De G. & S. 457. 257, n.; Andrews v. Salt, 8 Ch. 022, (u) Hill v. Gonme, 1 Beav. 540; 640. 5 My. & Cr. 680. GUAEDIANSHIP. 393 jurisdiction is now, as we have seen, vested in the Chan- cery Division of the High Court of Justice. The jurisdiction arises whenever an action is commenced When the in Chancery relative to the estate or person of an infant, til^i^'.^'i^i^i «, and none the less because the father or a testamentary guardian is alive (.t) ; or if without suit an order for main- tenance is made on summons in Chambers (y), or on a petition respecting money belonging to an infant paid into Court under the Trustee Relief Act (;::). In all these cases an infant is said to become a ward of Court. But in order to the exercise of the jurisdiction there must be some property of the infant in its power («) ; and thus when it is desired to make an infant a ward of Court it is usual to settle a sum of money or other property on him for the purpose (h). Without any suit pending, and although the infant has Um.ier no property, the Court may upon petition aj^point a ^ 7^ ' guardian under 4 Geo. IV. c. 70, s. 17, to give consent to a marriage (c), or make an order for the delivery of an infant to a person who has a right to its custody (c7) ; or it may appoint a guardian of the person and estate of an infant ; but an infant does not in any of these cases become a ward of Court. The Court will not ordinarily appoint a married woman Married , -, T / \ -v-iTi i 1 • Avoman not to be a sole guardian (c). When two or more guardians appointed are appointed by the Court, the office does not upon the ^'^l"'^^- death of one survive, as in the case of testamentary Office guardianship ; there must be a new appointment (/). survive. In the appointment of a guardian the wishes of the Father's father of tlie infant, if alive, are regarded, even in the case followed, of natural children (g) ; and in their education, his wishes, whether expressed or implied, are usually followed. In (x) Butler v. Freeman, Amb. 303. (J) Re Lyons, 22 L. T. N. S. 770. (?/) Re Graham, 10 Eq. 530. (c) Re Woolscomhe, 1 Madd. 313. (.:) 1 J & 11 Vict. 0. 96 ; Re (d) Re Spence, 2 Ph. 247. llodyes Sett., 3 K. & J. 213. (c) Re Kaye, 1 Ch. 387. («') Wellesley v. Beaufort, 2 Russ. (/) Bradshaw v. B., 1 Russ. 528. 21. (u) Peclcham v. P., 2 Cox, 46. 394 INFANTS. the absence of a direction to the contrary, the Court pre- sumes that he desires liis children to be educated in his own religion (h). And it is immaterial that his religion is not that of the Established Church (i). No pecuniary benefit to the child will induce the Court to depart from the course of religious instruction pointed out by the fether (k). Change of Where, however, children have been brought up in a discounte- particular religion until they have reached such an age as to nanced. have formed definite religious opinions, even though in oppo- sition to the wishes of the father, the Court is very reluctant to interfere, because of the peril of unsettling the founda- tions of all faith by a compulsory change ; and the Court has sometimes conversed with the infant to ascertain the extent of its knowledge and the character of such opinions as it has formed (/). Wards not In general the Court will not allow its wards to be taken to be taken ..,.. ,. i • r n • t • (lufc of out 01 its jurisdiction {m) ; and it trom special circum- jurisdic- stances the removal is allowed, security will be required for tion, save "^ . -^ under their retum (?i), and the Court must be kept informed as cinnnn- ^^ their whereabouts and treatment (o). The health of a stances. ward (jj), the desirability of children living with their parents (q), and the enlistment of a ward in the army (r), have been deemed sufficient grounds for permitting a temporary residence beyond the jurisdiction. To remove a ward from the jurisdiction without leave of the Court is a contempt which will be severely visited on the offender (s). Guardians The Court will appoint guardians of a foreign infant (It) Re Newbn-y, 1 Eq. 431 ; 1 (n) Jeffrys v. Vantesivarstwarth, Ch. 263 ; Hawkswm-th v. //., 6 Ch. Barn. Ch. 'R. 141 ; Bir/gs v. Tei-ry, 539. 1 My. & Cr. 675. (/) Talbot V. ^hrevshvry, 4 My. & (o) Anon, Jac. 26.^), n. ; Logan v. Cr. 672. Fairlie, Jac. 193. (k) Ibid., 686. (p) Wyndliam v. W., 1 Kee. 467. (?) Witty V. MarsliaU, 1 Y. & C. [q) Lethemv. Hall, 7 Sim. 141. Ch. 68 ; Stourton v. S., 8 De G. M. {?•) Rochford v. Hodman, Kay, & G. 760. 308. (m) Be Mannevilh v. De M., 10 (s) Ibid. Yes. 52. GUARDIANSHIP. 395 resident within its iurisdiction, and this notwithstandinsf of foreign 1 1,1 • 1 • 1 infant. that guardians may have been already apponited m the child's own country (t) ; and though foreign guardians are eligible to be appointed, the Court usually prefers a person within its jurisdiction and control (u). The Court will give effect to the orders of foreign Courts with respect to such children, unless they conflict with our own jurisprudence. The Court reasonably acts with great circumspection and Marriage strictness respecting the marriage of its wards. Whether they be male or female, and whether or not they have parents or guardians living, it is necessary to apply to the Court for j)ermission before their marriage can take |)lace(a;). To marry a female ward Avithout such permission is a gross contempt of Court, and the husband, together with all persons aiding and abetting the marriage, are liable to imprisonment (y) ; ignorance of the fact that the infant is a ward does not excuse the contempt (z). Where there is reason to suspect an unauthorised marriage, the Court will, by injunction, restrain it, and interdict any communication between the ward and her suitor (a). A guardian appointed by the Court is commonly Guardian required to give security that the ward under his care shall security, not marry without leave of the Court; and if he is suspected of any connivance at an unsanctioned intimacy, the ward will be removed from his care and custody and committed to the care of others (Jj). AVhen the Court grants leave for a marriage to take Marriage place, it is careful to see that a proper settlement of the ments. ward's property is made ; and to this end it will direct an inquiry in Chambers as to what settlement is proj)er (c). (t) Stuart V. M. of Bute, 9 H. L. Atk. 173. 440, 464 ; Nugent v. Vetzera. 2 Eq. (z) More v. M., 2 Atk. 157 ; 704. Herbert's Ca., 3 P. Wms. 116. (m) Johnstone v. Beattie, 10 CI. & [a) Pearce v. Crutchfield, 14 Ves. F. 42. 206. {x) Smith V. ,S'., 3 Atk. 305. (b) Tombes v. Elers, Dick. 88. [y] Wortham v. Pemberton, 1 De (c) Smith v. S., sup. ; Leeds v. G. & Sm. 644 ; Exp. Mitchell, 2 Barnardiston, 4 Sim. 538. 396 INFANTS. The nature of the settlement depends upon many circum- stances, such as the fortune, station, and conduct of the husband, and the extent of the property of the ward {d). Where a marriage has taken place without the permis- sion of the Court, the husband will be compelled to execute a proper settlement, and can only purge his con- tempt by doing so. Such a case will of course be treated more strictly against the husband than where he has acted openly ; usually the settlement will entirely exclude the marital right and interest (e); but this rule has been relaxed where there has been no great difference in fortune between the parties (/) and where the husband has acted in ignorance {g). Settlement When a female ward of Court comes of age, she may by female generally settle her property as she pleases ; but the majority. Court will SO far retain her property as to see that her action is free (Ji). An improper settlement, though made after her attaining majority, may be rectified at her request (i), and this has been done after a considerable lapse of time {h). Where the Court has approved a settlement it will not allow its purpose to be defeated by i]\Q parties delaying the marriage until the lady is of age (/). 18 & 19 Previous to 18 & 19 Vict. c. 43, infants could not make Vict. c. 43. binding settlements on their marriage, nor could the Court give validity to their settlements by adding its sanction {if)i). By that statute (explained by 23 & 24 Vict. c. S3), infants not being under 20 if male, or 17 if female, can now, with the approbation of the Court, make binding settlements of their real and personal estate in possession or otherwise on their marriage. This statute, however, does not empower the Court to make a settlement of an infant's property after marriage {n). (d) BaU V. Coutts, 1 V. & B. 303; (/<) Austen v. Uahey, 2 S. & S. Field V. Mom-e, 7 De G. M. & G. G91. 123, n. ■e) Wade v. Ilopkinson, 19 Beav. {i) Lcmg v. L., 2 S. & S. 119. 613. (/■) Care v. C, 15 Beav. 227. (/) Ball V. Coutts, sup. {I) If Olson v. Ferrahy. 2 Coll. 412. g) Richardson v. Mcrrlfield, 4 De (m) Savill v. S., 2 Coll. 72. G & S. 161. (n) Fc Potter, 7 Eq. 484. MAINTENANCE. 397 II. Maintenance. Another prominent feature in the jurisdiction of the Chancery Division of the High Court of Justice respecting infants is its power in certain cases to make provision for their maintenance out of the income of their property (o). The first question is out of what property maintenance Mainte- can be directed ; the second, in what circumstances it will ^ " ^' be directed. 1. Out of u'hat property maintenance can he directed. ""* of (1.) The clearest case is where a fund is expressly given directed, to a person for the maintenance of children. This may or Express may not be so done as to create a trust for the children : in the former case the person so receiving the fund is accountable for its proper application ; in the latter he is not {y). It is a matter of course depending upon the language of each particular instrument whether there is a trust or not ; but where the gift is made to a person who is already legally bound to maintain the cliildren^for instance, to their father — it requires a strong case to establish it as a trust ; the presumption is that it is in- tended to confer a beneficial interest {q). (2.) More commonly the income only of a fund is left Income <.f for the maintenance of children : and in tliis case the fund!^** person to whom it is so given is entitled to receive it as long as he continues properly to maintain them (r), and even though the language be such as to create a trust for maintenance, no account will be directed unless a special case is made out showing that some of the children have not been provided for (s). When some of the children originally comprised in such a gift have come of age, the whole fund remains applicable, if necessary, to the main- (o) Wdlcdey v. W., 2 Bli. N. S. {q) Bijncy.BIacl:burn,2QBea,vA\. 133. (r) Hadoiv v. H., 9 Sim. 438. (p) Andreicsv, Partington, 2 Cox, (s) Hora v. //., 33 Beav. 88 223. Raikes v. Ward, 1 Ha. 450. 398 INFANTS. tenance of those who are still infants ; but if this is not necessary, the shares of the adults may be paid them (t). Under (3.) It is iisual in wills and settlements which confer property on infants, to insert powers for their maintenance ; and under such powers trustees can safely apply either income or capital for that purpose, provided, of course, that their exercise of the power is hondfide and reasonable {u). 23 & 24 It having been found that hardship was often occasioned Vict. c. . . 145. ' by the omission of such powers, a general power of aj)plying an infant's property for his maintenance and education was 44 & 45 given by Lord Cranworth's Act {x). And by 44 k, 45 Vict. Vict, c 41 s. 43'. ' ' c. 41, s. 43, it is enacted, that where any property is held by trustees in trust for an infant, either for life or for any greater interest, and whether absolutely or contingently on his attaining the age of twenty-one years, or on the occurrence of any event previous to his attaining that age, the trustees may, at their sole discretion, pay to the infant's parent or guardian (if any), or otherwise apply for or towards the infant's maintenance and education the income of that property, or any part thereof, whether there is any other fund applicable to the same purpose, or any other person bound by law to provide for the infant's mainten- ance or education, or not. This power may be excluded by the expression of a contrary intention in the instrument conferring the infant's interest, but the section apj)lies whether the instrument comes into operation before or after the commencement of the Act. Effects of The power of maintenance given by the similar section torypower. J^^ Lord Cranworth's Act has been held to extend only up to the age of twenty-one years (s) ; and that Act conferred no power to allow maintenance where the infant would not in any event become entitled to the income. Thus where a legacy was given to a child contingently on his attaining twenty-one, but the income was meanwhile to be (0 Berry v. Bryant, 2 Dr. & Sm. 1. (x) 23 & 24 Vict. c. 145, s. 26. \xi) Talbot V. Marshman, 3 Ch,622. [z] Re Breed's Will, 1 Ch. D. 228. MAINTENANCE. 399 accumulated as jDart of the residuary personal estate, main- tenance could not be allowed thereout, since the child was not even contingently entitled to the income (a). The wording of the present Act is, however, apparently wide enough to cover such a case, as the power is not, as before, restricted to income to which the infant may be entitled. (4.) In the absence of any such power directory or Mainte- statutory, the Court has been wont to allow as maintenance directed the rents, profits, or income of real or personal property ^ ^^^ which is vested in possession in an infant (6) ; and if it be Out of so vested, maintenance may be allowed, notwithstanding ^^^^ ^™«^- that it is liable to be divested by a condition subsequent (c). Maintenance cannot usually be given out of a vested legacy payable at a future day, since it does not carry interest until that time (d) ; still less out of the income of a contingent legacy (e). But to these rules there is this important exception, namely, that if a parent or person in loco iKirentis leaves to a child or to children as a class a vested legacy payable in futuro, or a contingent legacy, and the child or children is or are otherwise unprovided for, the interest will be allowed as maintenance, from the death of the testator (/). But maintenance will not be so allowed if the testator has made an independent provision for it {g). When there are equal legacies to a class of children, to be paid at 21, with survivorship to the others in case of the death of any under that age, the Court will, notwithstand- ing a direction to accumulate the interest, apply the interest for the maintenance of the whole class, if neces- sary Qi) ; but it cannot do so if there is a gift over in certain events to a stranger (i), nor if the class comjjrises (a) Re George, 5 Ch. D. 837. (e) Butkr v. Freeman, 3 Atk. 58. (6) Dormer v. D., Rep. t. Finch, (/) Indedon v. Northcote, 3 Atk. 432 ; Re Ilowarth, 8 Ch. 415. 438 ; £rown v. Temperky, 3 Russ. (c) Taylor v. Johyison, 2 P. Wms. 263. 504. _ (a) Ibid. {d) Bescrampesv.Tomjikms, iHro. [h) Marshall v. IloUoivay, 2 C. C. 149, n. ; CrickeU v. Dolby, 3 Ves. Swanst. 436. 10. (i) Exp. Keble, 11 Ves. 604, 400 INFANTS. unborn cbildrenj who may thus become entitled to the whole (k). The Court will only in extreme cases resort to or autho- rise the employment of an infant's capital for his main- tenance (on). 2. In what circum stances maintenance will he directed. When In both Lord Cranworth's Act (n) and 44 & 45 Vict. c. 41, under the the grantiijg or withholding of maintenance is expressed .statute, iq \yQ " g^^ i\^Q gQJg discretion " of the trustees ; and it was discretion -, . t . , . ^ . -i • n t n i i of trustees, decided that they might pay it to the mlant s lather, who as natural guardian was held to come within the words of the Act (o). The present Act expressly provides for such a case. Apartfrom In cases uot within the Act, the Court has acted on the mainten- pi'iiiciple that the father is bound to maintain his children, auce not ^ud lias accordingly refused to allow maintenance out of father. their property, except in cases where the father has been unable to provide for them in a manner suited to their fortune and position (p). Exception; ]3ut if the property in question is the subject of a fuad*^ marriage settlement, the trusts of which are a matter of contract, then if the settlement contains a trust for main- tenance, a father is entitled to receive a proper sum for the purpose, without reference to his ability (q). A mere ^.ower so to apply the income is not, however, sufficient to entitle the father to this (r). A married woman having separate estate is now legally liable for the maintenance of her children, and might therefore, perhaps, be considered to fall within the same Widow rules (.s); but a widow has been held entitled to mainte- nance for her children without reference to her ability, whether remaining unmarried [t), or marrying again (»), {k) Ibid.; Lomax v. Z., 11 Ves. 48. (q) Mundy v. Howe, sup.; Eansome [m) Dav'ies v. Austin, 1 Ves. jr. v. ^wr^ress, 3 Eq. 773. 247 ; Walker v. WethereU, 6 Ves. (r) Ibid. 473 ; Barloiv v. Grant, 1 Vern. 255. (s) 33 & 34 Viet. c. 93, s. 14. (n) Sujyra, p. 398. (<) Lanoy v. I), of Athol, 2 Atk. (o) Re Cotton, 1 Ch. D. 232. 447. (p) Faiokner v. Watts,l Atk. 408 ; (a) Grccimcll v. G., 5 Ves. 194 ; Mvndy v. IIoxcc, 4 Bro. C. C. 224 ; Dovylas v. Andreivs, 12 Beav. 310. Thompson v. Griffin, Cr. & Ph. 317. is entitled. ADVANCEMENT. 401 In deciding as to the necessity for maintenance, and its Condition amount, the Court will consider the state and condition of family con- the whole family {x), as well as the circumstances of the ^^'^®^'6^- parents {y), so as to enable an elder son to provide for his brothers and sisters, or a child to administer to the com- forts and necessities of its father and mother. In questions of future maintenance, of course the principal Distinc- considerations are the extent of the fund and the position in tween^past life of the infant ; but whatever these may be, in allowing »°<^ future c • 11 1 • 1 1 1 11 ™ainte- tor past mamtenance, only that which has been actually nance, and properly expended will be repaid {z). III. AdvanceTYient. For maintenance, as we have seen, the capital of an Advance- infant can rarely be resorted to. But in many cases it is ^®"*^.*^is- _ '' _ _ _ -^ tmgiushed evidently to his interest that his capital should to some from extent, or even entirely, be laid out for the purpose of jjance^' providing an occupation for him in the world. Such an application of capital is termed advancement, and is subject to rules quite different from those regulating payments for maintenance and education. 1. Where there is an express power of advancement. Very frequently the instrument conferring property on Under an infant contains a power expressly authorising advance- ^''P'"^^'^ . ° power. ment. Where this is the case the terms of the power must be strictly complied with {a), and if it prescribes the amount which may be so disposed of, that amount cannot Power to be exceeded, unless, at least, the person to be advanced is fon^ji^^^g^ absolutely entitled to the fund, or the persons entitled in default consent to the application (h). If the power is discretionary, the Court will not usually interfere in its (x) Pierrepont v. Cheney, 1 P. Wms. (a) Palmer v. Wakefield 3 Beav. 493. 227. (y) Roach V. Garvan, 1 Ves. by. 160. (h) Therry v. Henclersor., 15 L. T. (z) Bruin v. Knott, 1 Ph. 572. 452. ' D D 402 INFANTS. exercise (c), unless, indeed, the trustees wholly refuse to act or to exercise their discretion (d). What com- ^ wide Construction is put upon the words "advancement prised in ^ ^ advance- or preferment." They have been held to warrant the ment. purchase of a commission in the army (g), apprenticing in the mercantile navy (/), the making of marriage settle- ments ((/), and payment of the expenses of emigration (h). Limited But if a power of advancement is given for a limited power. purpose — e.g., to buy a commission in the army — and that purpose becomes impossible of execution, the power (differ- ing in this from a bequest for a special purpose) cannot be exercised in any other way (i). 2. Where there is no express power. Authority jj^ \\^q absence of an express power, trustees can only of Court . . „ , . ^ . ^ . , ... .^ required in advance an miant at their own risk, since they will not be absence of allowed the sum paid unless the Court approves (k). It is a power. ^ ^^ ^ ' always, therefore, desirable in the first place to seek the authority of the Court. The purposes for which the Court will authorise ad- vancement are similar to those mentioned in the last sec- tion (Z), and need no further illustration. Out of ^g jj^ xvXq, advancement can only be made out of a fund to what funds , . , . - . . aihwed, which the infant is absolutely entitled, but it has been sanctioned in the case of equal legacies to a class with an equal chance of survivorship, after the analogy of main- tenance under similar circumstances {m). Where, however, there is a limitation over to third parties, trustees can never safely, nor will the Court, break in upon the capital for any purpose, without the consent of those parties (-n,). Advance- It being a father's duty to advance as well as to main- tain his children, he will not be allowed to repay himself (c) Lwesey v. Harding, Taml. 460 ; (i) Re Ward's Tr., 7 Ch. 727. French v. Davidson, 396. (k) Lee v. Broivn, 4 Ves. 362, 368. {d) Lewis v. L., 1 Cox, 162. (0 Evans v. 3Iasse2j, 1 Y. & J. 196 ; (c) Cope V. Wilmot, 1 Coll. 396, n. Franklin v. Green, 2 Vern. 137 ; (/) Warr v. W., Free. Ch. 12, 13. Walsh v. W., 1 Drew, 64. iy) Lloyd v. Cocker, 27 Beav. 645 ; {m) Franklin v. Green, sup. Roper-Curzon v. R., 11 Eq. 452. (n) Lee v. Brown, sup. ; Evans v. [h] Re Long, 38 L. J. Ch. 125. Massey, sup. LUNATICS. 403 what he has advanced, out of the property of his child (o) ; f^^^^^f *« and it is doubtful whether the same would not apply to a mother (p) ; but an advancement will clearly be made for the child if the father is unable to do it {q). NOTE. Jurisdiction as to Lunatics. This is a convenient place in which to mention a matter which does not, strictly speaking, fall within the limits of this work — namely, the jurisdiction exercised by the Lord Chancellor and Lords Justices over the persons and pro- perty of lunatics or persons of unsound mind. The student cannot be too strongly reminded that this Jurisdic- subject formed no part of the jurisdiction of the High ly^atics ° Court of Chancery, nor is it now exercised by the Chancery ^^ ^^ Division of the High Court of Justice. The Crown, by but dele- ' virtue of its prerogative, has the right to assume the care f^^Q ^^ and custody of the persons and estates of those who are of to the unsound mind. For the purpose of its exercise, the Crown chancel- by sign manual delegated its authority usually to the Lord ^°^- Chancellor, as its highest judicial officer, not, however, ex officio as president of the High Court of Chancery. In Lords 1851 the Lords Justices were appointed to constitute a Court of Appeal in Chancery, with all the original and other jurisdiction of the Lord Chancellor in the Court of Chancery (r) ; and shortly afterwards they were entrusted by a warrant under the Queen's sign manual with the care and custody of lunatics. On the passing of the Lunacy 16 & 17 Regulation Act (s) in 1853 this jurisdiction was confirmed ^° • °- ' • and continued concurrently with that of the Lord Chan- (o) Barley v. D., 3 Atk. 397. 48,5 ; Re Lane, 17 Jur. 219. (p) Smee v. Martin, Bunb. 136, (r) 14 & 15 Vict. c. 83, s. 5. (q) Exp. Hays, 3 De G. J. & S. (») 16 & 17 Vict. c. 70. D D 2 404 NOTE. cellor. By the Judicature Act, 1875 (t), s. 7, it is enacted that " Any jurisdiction usually vested in the Lords Justices of Appeal in Chancery, or either of them, in relation to the persons and estates of idiots, lunatics, and persons of unsound mind, shall be exercised by such judge or judges of the High Court of Justice or Court of Appeal as may be entrusted by the sign manual of Her Majesty or her suc- cessors, with the care and commitment of the custody of such persons and estates." Thus from the earliest times down to the present, the jurisdiction in lunacy of certain judges appointed for that purpose by the Crown, has been and is something perfectly distinct from the jurisdiction of the Courts of Chancery or of the Chancery Division, and this distinction is illustrated by the fact that in matters of lunacy the appeal from the Lords Justices lies, not to the House of Lords, but to Her Majesty in Council, or, in other words, to the Judicial Committee of the Privy Council (u). If further illustration is required it is well afforded by the case of Beall v. Smith (x), where after the institution of a Chancery suit for the purpose of winding up the business of a person of unsound mind not so found by inquisition, an inquisition was granted on petition in lunacy, a verdict of lunacy obtained thereon, and a committee appointed. Further proceedings having been taken in the Chancery suit after this, it was held by the Lords Justices that all such pro- ceedings should be set aside as a contempt upon the jurisdiction in lunacy. Unsound- The fact, then, that a person is of unsound mind has no mind does ©ffect whatever on the jurisdiction of the Chancery not affect Division. In itself it neither creates nor destroys any tion of power to deal with such a person or his property. It ancery. fQJ^Q^g ^j^^^t, ^f q^^- object is simply to inquire into the dis- tinctive principles or procedure of the Court of Chancery as heretofore existing, or as now represented in the High (0 38 & 39 Vict. c. 77. {x) 9 Ch. 85. (u) Jnd. Act 1873, s. 18. I LUNATICS. 405 Court of Justice, the question of lunacy or unsoundness of mind suggests nothing for our consideration. There is, however, this point to be observed, that when, on inquisition held at the direction of the Court in Lunacy, a verdict has been found, and a committee appointed, such committee becomes an officer of the Court, and as such a delegate of the prerogative of the Crown. From that time forward the affairs of the lunatic are under the direction of the Court of Lunacy ; in it all proceedings respecting the lunatic's person or estate must be taken ; and, as we have seen, the Courts of Chancery have then no longer power to interfere therewith, except under the direction of the judges in lunacy. If inquiry be made as to the principles which guide the Court of jurisdiction of the Court in cases of lunacy, the answer is adminis- very brief. The function of the Court is purely administra- *^'^*"'^- tive, and the sole and constant aim and object of attention in the administration is the interest of the lunatic him- self (?/). In dealing with the lunatic's property, the Court will not suffer itself to be hampered by considering the interests of the real or personal representatives claiming through him ; and if, as is elsewhere seen, a conversion is necessary for his interest, there is no equity as between the representatives giving a right on either side to claim a reconversion {z). It would be inappropriate here to enter into any examination of the practice of the administration in lunacy, such a subject being foreign to the scope and purpose of this work. Reference, however, may be made to the Act already mentioned («) as being the foundation of the pro- cedure as at present followed. iy) Oxcnden v. Compton, 2 Ves. (2) p. 428. jr. 72 ; Exp. Phillips, 19 Ves. 118. {a) 16 & 17 Vict. c. 70. 400 CHAPTER IX. ELECTION, CONVERSION, SATISFACTION, AND PERFORMANCE. It is a matter of some difficulty to determine the proper place to assign to the subject-matter of this chapter in our classification. In some respects the doctrines of election, conversion, satisfaction, and performance might be conveni- ently treated under the heading of Administration; since it is almost exclusively in the working out of the adminis- tration of estates that the questions which they involve arise. With almost equal propriety they might have found a place under the heading of Trusts, since effect is gene- rally given to them by the application of the theory of Trusts. But it would have greatly encumbered those subjects, already sufficiently comprehensive, to have added so much matter as is necessary for the proper elucidation of the doctrines now in view. On the whole, therefore, it has been thought best, though it may, perhaps, involve some sacrifice of logical precision, to assign a separate chapter to these peculiarly equitable principles. Their relation to the other branches of the subject which we have mentioned will be sufficiently manifest to prevent any confusion resulting from their isolated treatment ; while the near relation of these matters inter se affords an additional warrant for presenting them to the reader in as close a connexion as possible. ELECTION. 407 Section I. — Election. I. General Principle. Noys V. Mordaimt. II. Conditions of Election. III. Election under exercise of Powers. IV. Election as to Dower. V. Miscellaneous matters. VI. Mode of effecting Election. VII. Effects of Election. One of the most important cases by which the doctrine of election has been established is that of NOYS V. MORDAUNT [2 Vera. 581 ; 1 W. & T. L. C. 367], in which the facts were as follows : — John Everard, havins two daughters, made his will, devising to Margaret, his eldest daughter, his lands in Beeston and £800 in money ; to Mary, his second daughter, his lands in Stanborn and £1300 in money, provided and on condition that she released, con- veyed, and assured Beeston lands to her sister Margaret. Provided, if he should have another daughter, then he gave the £800 devised to Margaret to such after-born daughter; and the lands at Stanborn and the £1300 devised to Mary to the said Mary and such after-born daughter equally between them. Another daughter, Elizabeth, was born shortly after his death. Mary married Higgs, and died without issue, without having given any release to Margaret, as required by the will. Elizabeth claimed not only the lands devised to her by the will, and a moiety of what was devised to Mary, but ELECTION. also a moiety of the Beeston lands devised to Margaret, these having been, on the testator's marriage, settled on himself for life, and his wife for her jointure, and to the first and other sons, and in default of issue to the heirs of his body. The question was whether she should be at liberty so to do, or ought not either to acquiesce in the will, or renounce any benefit thereby. Lord Keeper Cowper said that in all eases of this kind, where a man is disposing of his estate amongst his children, and gives to one fee simple lands, and to another lands entailed or under settlement, it is upon an implied condi- tion that each party quit and release the other. I. General Principle. lUustia- 1- The simplest illustration of the well-known equitable tion. principle of election may be given in the following form : — If A. gives to B. by will or deed property belonging to C, and by the same instrument gives to C. property belong- ing to himself, then a Court of equity will allow C. to take the gift made to him by A. only upon the condition of his conforming to the instrument by giving up his own property to B. He must choose or elect whether he will keep his own property and forego the gift, or will accept the gift and give effect to the benefit intended for B. by giving up his property. Contrast 2. This doctrine rests on the gi'ound that it is inequitable of English ^^^ ^ beneficiary at the same time to receive a benefit from and -^ Eoman a donor and refuse to give effect as far as possible to the oc nne. (-j^j^^j-'g rnanifest intention. The limitations to which it is subject in application will presently be seen. In two important particulars the English doctrine of election differs from the corresponding principle in Roman law from which it is probably derived. First, whereas the Roman prsetors only applied it in the case of testamentary GENEEAL PRINCIPLE. 409 dispositions, in English Courts of equity it affects equally dispositions by will and dispositions by deed inter vivos (a). Secondly, no case of election arose in Roman law where a testator made a bequest of the property of a person under the erroneous supposition that it belonged to himself. Such a bequest was considered void, and the property so referred to might be retained by the person whose it was, while at the same time he received a benefit under the same will. In English equity, however, it is immaterial whether a donor intentionally or under a misapprehen- sion affects to give away property belonging to another person. In either case the person whose property is thus dealt with must conform to the instrument if he would receive a benefit under it (6). This may perhaps be less logically consistent than the Roman rule, but it has the manifest advantage of avoiding the necessity of an inquiry, which is often likely to be exceedingly difficult, as to the degree of knowledge existing in the mind of the donor. 3. If in circumstances which give rise to the doctrine of Compensa- o tion, not election, the beneficiary elects to conform to the instrument forfeiture, and part with his own property, no question arises. But it is of course quite open to him to elect against an instru- ment which can have no intrinsic power to deprive him of what is his own. It was for some time a question what was the consequence of such an election. In many cases it has been held that by refusing to comply with the donor's expressed intention, a person entirely forfeits the benefit which the donor conditionally bestowed upon him (c). On the contrary, the well-known case of Streat- field V. Streatjield (d), followed by a long line of authorities, may be taken now to have established that forfeiture does not result from such non-compliance, and that all that is required from the beneficiary is to make or allow compen- [a) Llewellyn v. MacJcworth, Barn. (c) Coivper v. Scott, 3 P. Wms. Ch. 445 ; Green v. G., 2 Mer. 86. 124 ; Cookes v. Hellier, 1 Ves. sr. (b) Whistler v. Webster, 2 Ves. 235. 370. (d) Ca. t. Talb. 176. ELECTION. sation to the person who is disappointed by his election (e). Illustration will, perhaps, make this clearer. If, then, A. gives to B. an estate which belongs to C. and is worth £10,000, and at the same time gives to C. a legacy of £20,000, C. by refusing to part with his estate will not forfeit the whole of his legacy, but may receive £10,000 thereof, the remaining £10,000 being paid to B. as a com- pensation for his disappointment in not receiving the estate which was intended for him. The result of the cases has been thus summed up : — " Firstly : In the event of election to take against the instrument, Courts of equity assume jurisdiction to sequester the benefit intended for the refractory donee, in order to secure compensation for those whom his election disappoints." " Secondly : The surplus after compensation does not devolve as undisposed of, but is restored to the donee, the purpose being satisfied for which alone the Court controlled his legal right" (/). II. Conditions of Election. Such being the general character of the doctrine, it is now necessary to examine more minutely what circum- stances are necessary in order to call it into operation, or to justify its application. 1, There must appear in the instrument itself a clear intention on the part of the donor to dispose of what is not his own (g) ; and, as has been mentioned, if there is such a clear intention, it is immaterial whether he knew the property not to be his own, or erroneously conceived it to be so (h). (e) Gretton v. Haward, 1 Swanst. 531 ; Dillon v. Parker, 1 Swanst. 433 ; Padbury v. Clarke, 2 Mac. & 359; Jac. 505. G. 298 ; Rogers v. Jones, 3 Ch. D. (h) Thelluson v. Woodford, 13 688. Ves. 221 ; Coutts v. Achoorth, 9 Eq. (/) Gretton v. Haward, sup. 519. {y) Forrester v. Cotton, 1 Eden, CONDITIONS OF ELECTION. 411 There is often, liowever, considerable difficulty in ascer- Where . . testator taming precisely what the intention of the instrument is. has a Thus if a testator has a partial interest in the property f^^lf^^ dealt with, it will often be doubtful whether his language is designed to refer to the whole property, and so to affect the interest of another person, or whether it is to be con- fined to his own partial interest only. In these circum- stances the general tendency of the Court is to consider the words as applying only to his own actual interest, and, therefore, against the supposition of an intended elec- tion (i) ; but if there is shown a clear intention to pass the entirety, effect will be given to it ; and if the owner of the other part takes other benefits by the will, he will be put to his election (k). Again, a mere general devise or bequest will only com- General o > o . . J devise not prehend property of which the devisor is owner, and extended extrinsic evidence is not admissible to show that a testator ^J^^^'^ considered property to be his own which was not so, and evidence ; thus intended to comprise it in his general devise or bequest (l). But the will itself may show such an inten- but may _ tion to include in a general expression property not his evMence!^° own as to give rise to a case of election. Thus an heir in tail has been put to his election by a devise which included an estate tail (m), the words used being " all my real estates " and " all the lands occupied by me." " If," said Sir John Romilly, in that case, " a testator says, ' I give all the property I have in the world to A. B.,' and he leaves a large legacy to his heir in tail, that will not raise a case of election against such heir, because that testator only gives what he has;" but it is otherwise when " there is an intention shown on the face of the will to dispose of the entailed estate away from the heir in tail." (i) Maddison v. Chapman, 1 J. & (l) Blake v. Bunbury, 1 Ves. 523 ; H. 470 ; Re Bidwell's SettmL 11 W. Stratton v. Best, 1 Ves. jr. 285 ; R. 161. Clcmentson v. Gandij, 1 Kee. 309. {k) Padhury v. Clark, sup. ; Wil- (m) Honywood v. Forster, 30 klnson v. Bent, 6 Ch. 339. Beav. 14. 412 ELECTION. There must be a fund avail- able for compensa- tion. Appoint- ments under powers. No elec- tion be- tween two claims arising under the same in- strument. 2. As the doctrine of election depends upon compensa- tion, it will not be applicable unless there be an available fund from which compensation can be made. In other words, there will be no ground for election unless the testator or settlor bestows some property actually and absolutely his own on the person who is required to elect. This limitation of the principle is most frequently illus- trated by cases in which benefits are conferred by the exercise of powers of appointment. A fund over which a person has a mere power of appointment, there being a gift over on default of the exercise of the power, is not the absolute property of the donee of the power. There- fore where a person under a power to appoint among children made an appointment contrary to the terms of the power, a child entitled in default of appointment was allowed to set it aside, notwithstanding that a share had been by the same instrument appointed to him (n). He was not required to elect, because there was no free disposable property of the appointor given to him w^hich could be laid hold of to compensate the person dis- appointed. So where a testator had an exclusive power of appointment over an estate to his children and grand- children, and an exclusive power to appoint a fund to his children only, and he appointed the estate to some of his children, and the fund to his children and a grandchild, the children were not called upon to elect in favour of the grandchild, the appointment to whom was ult7'a vires ; no property of the testator's own having been given to them by the will (o). 3. There is no case for election between two or more separate dispositions contained in one instrument. In other words, election only applies between a gift given by some instrument, and a claim dehors that instrument. Thus a testatrix who had a power to appoint a fund in (n) Bristowe v. Ward, 2 Ves. (o) la re Fowler's Trust, 27 Beav. 336. 362. CONDITIONS OF ELECTION, 413 favour of her children, appointed by her will a portion thereof to her son for life, with remainder as he should by will appoint; and there followed a general residuary ap- pointment of the settled fund, subject to all other appoint- ments, to her daughters, to whom benefits out of the testatrix's own property were at the same time given. It was held that the appointment in favour of the ap- pointees of the son was void for remoteness. That portion, therefore, passed under the residuary appointment to the daughters. It was then argued that as the daughters received independent gifts from the testatrix, the appointees of the son could put them to their elec- tion between such gifts and the fund accruing to them in consequence of the previous decision ; but it was decided that there was no case for election, both claims arising from the same instrument {p). On a similar principle, a person to whom by the same Beneficial will a beneficial and an onerous bequest or devise are rous be- made, is not required to elect whether he will accept ^^®^*^- both or neither. He may, if he pleases, accept the benefit and reject the burden {q), unless, indeed, the will shows a clear intention that the acceptance of the burden should be a condition of receiving the benefit (7"). 4. Election only applies to cases of bounty, not to cases Election of debt. If, therefore, there is a devise to creditors for the able to^ ^°* payment of their debts, they can accept the benefit of it debts, without any prejudice to their legal rights against other funds disposed of by the will (s). Such was the law be- fore real property was liable to all debts. Since 3 & 4 Will. IV. c. 104, general creditors having a right to proceed against all the property of the deceased, such questions can rarely arise. The principle of election is in itself sufficiently simple and clear, but its application in the ever varying circum- (p) Wollastonx. King, 8 Eq. 165; (r) Warren v. Rudall, 1 J. & H Wallinger v. W., 9 Eq. 301. 13. (q) Andrews. Trinity Hall, 9Ves. (s) Kidney v. Cortssmaker, 12 Ves. 525. 136 ; Ley v. D., 2 P. Wnis. 412. 414 ELECTION. stances of practice often involves questions of considerable difficulty. It is only possible here to add as a further illustration some notice of the leading classes of cases on which discussion has taken place. III. Election arising from the exercise of Powers. Appoint- 1. We have already seen that no election is necessitated ment ultra , , • , . ^ ^ c vires and by an improper appointment under a power, wnere no tree gift to disposable property of the donor of the power is at the person r i. t. >j a ^ entitled in same time bestowed. If, however, an appointment is made ® ^^ '■ to a person who is not an object of the power, and at the same time a gift of the donor's property is made to a person entitled in default of appointment, the principle of election applies. Here, the appointment itself being in- valid, the property would naturally pass as if there had been no appointment, to the person entitled in default. But since an independent benefit has been conferred upon him by the same instrument, the conditions upon which the principle of election rests are precisely complied with; and he must either conform to the instrument by giving up his title to the appointed property, or if he insists on that, he will not be suffered to receive the gift conferred upon him {t). Appoint- 2. But it will not suffice to raise a case of election, if direction ^ after appointing to persons who are objects of the power, to transfer and at the same time giving them propert}^ of his own, to mo^dify.^ the appointor directs them to settle the property on per- sons who are not objects of the power (u). In short, where there is an absolute appointment to an object of the power, followed by attempts to modify the interest so appointed in a manner which the law will not allow, the Court reads the instrument just as if such attempts had it) Whistler v. Wcbsto', 2 Ves. jr. (u) Carver v. Bowles, 2 R. & M. 367. 304 ; Churchill v. C, 5 Eq. 44. J ARISING FROM THE EXERCISE OF POWERS. 415 not been made (x). A fortiori merely precatory words, requesting appointees, objects of the power, to leave the fund appointed to others not objects of the power, will not put them to their election (y). A clause of forfeiture on non-compliance may, however, suffice to necessitate elec- tion (z). 3. If the donee of a power by the same instrument Appoint- appoints to a stranger, and confers benefits out of his own ™,^°*a,nd''" property upon an object of the power, the position is gift to different from that in which the appointment is made to power, the person entitled in default of appointment. The ap- pointment being invalid, the property passes to the person entitled in default of appointment. He cannot be required to elect, because no gift of the appointor's property is made to him. Nor, it seems, can the object of the power be required to elect, because no part of the property subject to the appointment comes to him. It is, indeed, laid down in Blacket v. Lamb (a) that such an appointment would give rise to election ; but it is submitted that this cannot be so, since the two funds in question never come to the same hand at all. Of course, if the same person is both object of the power and entitled in default of appoint- ment, the case falls within the principle of Whistler v. Webster (b), already discussed, and he must elect between the gift and the fund which comes to him in consequence of the invalidity of the appointment. 4. If the donee of a non-exclusive power of appoint- ment among a class (to whom the property was limited in default of appointment) appointed exclusively to one object, and by the same instrument conferred benefits on the others out of his own property, the latter were formerly put to their election (c). Now, by 37 & 38 Vict. c. 37, however, such an appointment is valid, and the question cannot arise (d). (x) Woolndge v. W., John. 63. (a) Sup. (y) Blacket \. Lamb, WSieiiv. i%2; [h) Sup. Langslow v. L., 21 Beav. 552. (o) Sugd. Pow. 579 ; Wollen v. (2) Kinrjy. K., 15 Ir. Ch. R. 479; Tanner, 5 Ves. 218. Boughton v. B., 2 Ves. sr. 12. (d) See p. 175. ELECTION. 5. Where there is an attempt by the instrumentality of a power to transgress the policy of the law — for instance, to evade the rule against perpetuities — the Court will not aid such an attempt by applying the doctrine of election (e). IV, Election with reference to Dower. 1. At law a widow might by express words be put to her election between her dower and a gift conferred upon her by will (/). In equity she may be put to her election by manifest implication, showing an intention of the donor to exclude her from dower (g). The principal questions which have arisen in this subject have been as to what amounts to a sufficient indication of intention to bar the lesral right to dower, 2. It has been decided, where the widow was married before 1834, that a devise to a widow of part of the lands of which she is dowable was not inconsistent to her claim to dower in the remainder (h). Nor is a devise upon trust for sale of lands subject to dower sufficient to show an intention against her right, even though the interest of a part of the proceeds of sale is given to her (?) ; and it is immaterial that in such a case there is a direction that the rents and profits are in the meantime to be applied in the same way as the income to arise from the produce of the sale (k). Nor is a gift by the husband to the widow of an annuity or rent-charge charged upon such lands so inconsistent with her claim to dower as to put her to her election (I). On the other hand, where wills have contained pro- visions which prescribed a mode of enjoyment incon- sistent with the exercise of dower rights, these have (c) Wollaston v. King, 8 Eq. 165. (/) Gosling v. Warburton, Cro. Eliz. 128 ; Nottley v. Palmer, 2 Drew, 93. (g) Birmingham v. Kirwan, 2 S. & L. 452; Hall v. Hill, 1 Dr. & W. 94, 103. (h) Lawrence v. L., 2 Vern. 365. (?) Ellis V. Lewis, 3 Ha. 310. (1-) Gibson V. G., 1 Drew, 42, 57. (I) Holdich V. H.,2 Y. & C. C. C. 19; Harrison v. H., 1 Keen, 765. MISCELLANEOUS CASES. 417 been held sufficient to show an intention that the widow incon- should forego her dower, and thus to put her to her elec- with tion. For instance, a power of leasing given to persons *^°^''^''' other than the widow sufficed to necessitate election (wi). The same effect was ascribed to a devise of a farm to trustees with a direction for them to carry on the busi- ness, or let it on lease (n) : so where the widow has been directed to pay rent for and not to aliene lands legally sub- ject to dower (o), and where occupation by persons other than the widow has been directed (p), and where there was a direction to cut down timber on the estate (q). This last case refers, indeed, to freebench, which is, how- ever, in this respect subject to the same principles as dower. 3. Since the Dower Act, 1834 {>•), came into operation. Dower cases as to election respecting dower have naturally become " ' of less frequent occurrence, dower being now much more easily barred than previously. Thus by sect. 9 thereof a devise of the land is, in the absence of indication of con- trary intention, sufficient to bar dower (s). A gift of per- sonalty, however, made to the widow, or of any land not subject to dower, will not prejudice her right unless a contrary intention is declared (t). V. Miscellaneous Cases. 1. Although under the old law a devise to the heir was Devise in a sense inoperative, inasmuch as he was held still to take by descent, and not by purchase as devisee, the leading case of Noys V. Mordaunt (u) decided that such a devise was a sufficient gift to raise a case of election between such (to) O'Hara v. Chaine, 1 J. & H. (). Upon the death of a person entitled without heirs, it will not escheat to the Crown (q), nor was it formerly forfeited to the Crown for felony (r). All such forfeiture is now abolished (s). 2. Of land into money. Following the analogy of the converse case, land Land notionally converted into money will pass to the personal money, representatives of a deceased person it), or will be included under a general residuary bequest (u), and will not be affected by a devise of land [x). An alien, even previous to 33 Vict. c. 14, was entitled to the proceeds of sale of land devised to be sold for his benefit (y). The proceeds of sale of a real estate directed to be sold are liable to legacy duty(0); but not to probate duty («). There are exceptions also in this case : thus monies to How far arise from sales of land are within the provisions of the [^^amv^of Mortmain Act (6). It, however, does not escheat to the land. Crown upon a failure of heirs, nor has the Crown any right to come into equity to ask that the land shall be converted (h) p. 430. (s) 33 & 34 Vict. c. 23, s. 1. \l) Greenhill v. G., 2 Vern. 679. (t) Ashby v. Palmer, 1 Mer. 296. {m) Edwards v. C. of Warivick, 2 (u) Stead v. Newdigate, 2 Mer. P. Wms. 171. 521. {n) Siveetapple v. Bindon, 2 Vern. (x) Elliott v. Fisher, 12 Sim. 505. 586. (y) Du Hourmielin v. Sheldon, 1 (o) Cunningham v. Moody, 1 Ves. Beav. 79 ; 4 My. & Cr. 525. sr. 174, 176. [z) 55 Geo. III. c. 184 ; Att.-Gen. [j)) ReDeLancy,6'L. E. Ex. 102. v. Holford, I Pri. 426. (?) Walker v. Denne, 2 Ves. jr. {«) Watson v. Sidft, 8 Beav. 368. 170, 185. {h) 9 Geo. II. c. 36; Att.-Gen. v. (?•) Re ffarrop's Estate, 3 Drew, WeymouthfAmh. 2Q; Brookv. Badley 726. 4 Eq. 106 ; 3 Ch. 672. 430 CONVERSION. in order that it may take as bo7ia vacantia. Even if it has been actually converted, but unnecessarily so, the Crown cannot make good its claim ; the money will belong to the trustees (c). 3. Character of converted i^roperty. Nature of We have seen that money dii^ected to be laid out in property. ^^^^^ acquircs the descendible property of land, so as to pass in case of intestacy to the heir. The question then often arises as to the character in which the heir receives it — that is, whether it becomes his real or his personal property. This is evidently an all-important inquiry as between his representatives, when the heir thus receiving the converted money dies without having made any dis- Depends position thereof. The nature of the property in the hands on manner ^ , , . , , i i t i i i of con- 01 the heir has been held to depend upon the manner m version. which the conversion has taken place. First, if the converted money was bequeathed to be invested in land for the use of A. and his heirs, or on his marriage money has been paid by him, or paid or cove- nanted to be paid by a stranger to trustees, to be laid out in land and settled in strict settlement, with remainder to the heirs of A., then A. will hold the converted money as land, and on his decease his heir will be preferred to his personal representative {d). Secondly, if A. has covenanted to lay out a sum of money in land to be settled on himself for life, remainder to his wife for life, remainder to the issue of the marriage, and he dies leaving his wife or any issue of the marriage surviving him, then also the conversion continues to operate ; and on the death of the wife and issue, the heir of A. will be entitled to it (e). But if, in such a case as the last, A. does not leave any wife or issue him surviving, then on his decease his personal representative will be entitled ; the distinction (c) Taylor v. Hayrjartli, 14 Sim. 543 ; Dklicr v. D., 1 P. Wms. 204. 8 ; Oradoch v. Owen, 2 Sm. & G. (e) Kettleby v. Atwood, 1 Vern. 241. 298, 471. (d) Scudamoix v. '). In a case in which the conversion is not absolutely directed, but is made to depend upon the option of another person, the same general rule applies. Thus where a farm was leased to A. for seven years, and on the lease was endorsed an agreement that A. should have an option within a given time of purchasing the inheritance for £3000, it was held that the conversion took place as from the execution of the lease ; and the lessor having- died before the option of purchase was exercised, the money was treated as part of his personal estate (s). Nevertheless, until the option in such a case is exercised, the rents and profits go to the person entitled to the real estate (t). The result therefore is that the ultimate desti- nation of the property depends entirely upon the choice of the person who has the option of purchase. If he elects (I) Banks v. Scott, 3 Madd. 493. (m) Haynes v. H., 1 Dr. & Sm. 426 ; Exp. Arnold, 32 Beav. 591 ; Richmond v. N. L. R. Co., 5 Eq. 352. (n) Exp. Hcmhins, 13 Sim. 569. (o) Harding v, Met, Ry. Co., 7 Ch. 154. (p) Watts V. W., 17 Eq. 217. (q) I/aynes v. //., sup. (r) See also Re Di/l'es' Estate, 7 Eq. 337 ; Re M. & S. R. Co., 19 Beav. 365. (s) Lawes v. Bennett, 1 Cox, 167. {t) Toicnley v. Bedwell, 14 Ves. 591 ; Exp. Hardy, 30 Beav. 206. EFFECTS OF FAILURE OF PURPOSES OF CONVERSION. 433 not to purchase, it remains real estate ; if he elects to purchase, it is deemed converted into personal estate, and the conversion is deemed to relate back to the time when the option was given. Such is the case where there is nothing to indicate a Intention contrary intention on the part of the original owner ; but jf ascer- like all secondary rules respecting the construction of ^^i'^^^^'-'- instruments, it is subject to the primary rule that the intention of the owner, Avhere it can be ascertained, is to prevail. If, therefore, in the instrument by which the option is given, there is an express direction that the purchase-money shall be paid to the person who is then the owner of the estate, he alone will be entitled to it (a). And if, after having given an option of purchasing certain real estate, a testator specifically devises the same estate, this amounts to a sufficiently clear indication of intention respecting it to entitle the devisee to the purchase-money when the option has been exercised {x). No such intention would be inferred from a mere general devise, after the agreement {y) ; nor if the agreement for the optional pur- chase is made subsequently to the will containing a specific devise of the property {z). IV. Effects of failure of the purposes for tvhich Conversion is directed. 1. Where conversion is voluntary. The general rule is that when a conversion is directed bywill, and the purpose for which the conversion was intended totally fails before the will comes into opera- Total fail- tion, that is in the testator's lifetime, no conversion will take place, and the property so directed to be con- sion. verted will result to the testator in its orioinal form («) Ee Graves Minoi; 1.5 Ir. Ch. 722. Rep. .3.57. (y) CoIIingwood v. Row, 5 W. R. (x) Drant v. Vause, 1 Y. & C. Ch. 484. 580 ; Emuss v. Smith, 2 De G, & S. (-') Weediny v. TT'., 1 J. & H. 424. F F conver- 4o4 CONVERSION. unchanged («). "Every conversion, however absolute in its terms, will be deemed to be a conversion for the purposes of the will only, unless the testator distinctly indicates an intention that it is, on the failure of those purposes, to prevail as between the persons on whom the law casts the real and personal property of an intestate, namely, the heir and next of kin " (h). Partial jf ^[jg failure is but partial, conversion will take place failure; . rv j xi r conversion Only to such extent as IS necessary to etiect the purpose ot *^^®^ , the will And, in as far as it is not required for that place only ' _ -^ so far as purposc, it will result unchanged. Thus in necessary. ACKROYD V. SMITHSON [1 Bro. C. C. 503 ; 1 W. & T. L. C. 949] a testator gave several legacies, and ordered his real and personal estate to be sold, and his debts and legacies to be paid out of the proceeds of the sale : he gave the residue thereof to certain legatees in the proportion of their legacies. Two of these residuary legatees died in the life- time of the testator. It was held that these lapsed shares, « so far as they were constituted of personal estate, should go to the testator's next of kin, and so far as they were constituted of real estate to his heir, notwithstanding the directed sale. Even where there was a direction that the proceeds of real estate should be deemed personalty, and it was expressly declared that it should not lapse for the benefit of the heir-at-law, the heir-at-law was held not to be excluded. It was considered that the declaration was only intended to apply as far as conversion was required for the purposes of the will, and that it did not prevent the law from dealing with a surplus in accordance with its usual rules (c). The heir will only be excluded by a gift over, in case of a lapse (d). The same result follows where money arising from land («) Hillv. Cod; 1 V. & B. J7'>; {<■) Fltrh v. Wehci; sup.; Collins Pitch V. Weber, 6 Ha. 145. v. Wakeman, 2 Ves. jr. 683. (b) 1 Jarni. Wills. 530, 2nd ed. ( j^ (p) 1 S. & S. 290. 553. ^^- ' ■'• ^'^" ' '^--^^ ,. /*^*-< /^^t. (5) Steed V. Prtece, 18 Eti. 192. (m) Kelland v. Fulford, 6 Ch. D. ('/•) 31 & 32 Vict. c. 40. 491. («) Foster V. P., 1 Ch. D. 588. 438 CONVERSIOX. V. In ivkat Character Unconverted Property results. The next inquiry is, whether an heir who takes land directed to be sold, on failure of the purposes of conversion, takes it as real or as personal property ; and a similar inquiry follows respecting the next of kin taking under analogous circumstances. The questions often arise be- tween the real and personal representatives of the persons thus benefitting by the resulting trust. 1. First as to an heir taking land directed to be sold on a lapse. Heir takes Where conversion is directed by will, and there is a land there failure of the purposes for which it is directed, the quality conversion ^^ which it results to the heir depends upon the question, by wiU ; whether an actual sale is required for the purposes of the if sale is ^^^q_ jf g^^j-^ ^ g^^jg jg necessary, then, whether it has necessary, i p i i p i i • as person- actually taken place or not before the death oi the heir, *^*^' the property results in a converted form as personalty ; and will, on the death of the heir intestate, pass to his next of kin (x). If sale not On the contrary, if there is no necessity for any sale in aslancr^' Order to carry out the trusts of the will — if, for instance, there is a total failure of the purposes of conversion — then the property results to the heir as realty, and will on his death intestate descend to his heir (,?/). And if a sale has unnecessarily been effected, this will not vary the rights of the parties (z). Under in- In the case of a conversion arising under an instrument huer^viros '^''>^^^^' 'VIVOS, the questioii takes a somewhat different form. if purpose In tliis casc, if there be an entire failure of the purposes fails « ^^ conversion ah initio, no conversion is deemed to have t^xxvio^ no conversion taken place at all, and the property results to the settlor (x) Smith V. Claxton, 4 Madd. H. 673. 492 ; Wright v. W., 16 Ves. 188. (:) Davenport v. Coltman, 12 Sim. (ij) Vhitty V. Parker, 2 Ves. jr. 610. 27i ; BvcJuDKin v. Harrison, 1 J. <.V I IX WHAT CHARACTER UNCONVERTED PROPERTY RESULTS. 439 or grantor in its original form (a). If there is only a partial *^^®s failure, then the conversion operates, in accordance with j£ faiuire the usual rule, from the execution and delivery of the deed, i« only _ and having once taken place, whatever results, results in results in its converted form (b). It will be observed that the ^*^^ ^°^' . . . verted underlying principle is just the same as in the case of a fonn. will. In each case the quality of the resulting property depends upon the question of the necessity for actual conversion. 2. When money is directed to be laid out in land, and Money the purposes for which conversion was directed fail wholly ^|, ^^ jj^j^j or partially, the money in so far as not required results as out in to the personal representative (c). But whereas, as we have seen in the case of a resulting trust of realty, the question as to the quality in which it results depends upon Whatever whether a conversion has been necessary or not ; in the £^11"^ ^^ case of a resulting trust of personalty there is no similar results as condition. In all cases, whether a partial conversion has been necessary or not, whatever results, results as per- sonalty {d). The reason of the distinction is, that in the case of lapsed realty the law carries it to the heir, who is entitled to it whether it remains in its original condition or not. But in the case of laj)sed personalty it comes to hand not of the next of kin, but of the executor ; and whatever he gets in qua executor, he must hold as personalty. Reconversion. Although land directed or agreed to be converted into Election money, or money directed or agreed to be converted into uncon^ ^^ land, are, as we have seen, at once impressed in equity verted with a new character, still it is open to a person receiving the converted property, if not under disability, to elect to (a) Hewitt v. Wri'jld, 1 Bro. C. C. (c) Cogan v. Stevens, 1 Beav. 482, 86 ; Clarke v. FrankUii, 4 K. & J. n. 257. (d) Reynolds v. Oodlce, 1 Johns. (b) Griffith v. Micketts, 7 Ha. 299 ; 536. WMdale v. Partridge, 8 Ves. 236. 440 RECONVERSION. Presump- tion against recon- version. Person electing nrnst be sui juris. Lunatic. Married woman. take it in its original state. It has been said that " equity, like nature, will do nothing in vain " (e) ; and it would evi- dently be vain and useless to insist that a person should take a fund in the quality of land, when he prefers it in the form of money, and can at any moment reduce it to that form by a sale. It is necessary to consider certain rules which regulate this power of electing against an instrument which directs conversion. The right of electing to reconvert is simple enough when the person claiming to do so has an absolute interest in the property in question. It is to be observed, how- ever, that the presumption is against reconversion. In case of any dispute as to the fact, the onus of proof is on those who allege that the owner has elected to take in the original form rather than in that directed by the instrument which effected the conversion (/). Further : — 1. The person aj^ecting to elect must he sui juris. Tims a lunatic cannot elect ("tted . ^ "^ . than m the will precedes the settlement. Thus in a well-known ademption, case it has been said : — " The rule against double portions is but a rule of presumption, and there is much less difficulty in supposing that it was not intended to prevail where the person to whose dispositions it is to be applied had not the power to enforce it without the consent of others, than in a case where the whole was under his absolute control. When the will precedes the settlement, it is only necessary to read the settlement as if the person making the provision had said, ' I mean this to be in lieu of what I have given by my will.' But if the settlement precedes the will, the testator must be understood as saying, ' I give this in lieu of what I am already bound to give, if those to whom I am so bound will accept it.' It requires much less to rebut the latter presumption than the former " {x). [x) Per Lord Cran worth, in Chichester v. Coventry, 2 L. R. H. L. 71. G G 2 452 SATISFACTION. Principle resemblea ademp- tion, rather than sati'!' faction of debts. Partial satisfac- tion. The.se expressions indicate the principal difference between these cases of the satisfaction of a portion by a legacy, and the ademption of a legacy by a portion. Where the settlement comes first, the persons entitled under it are purchaser-s, and no presumed intention of the testator can deprive them of their rights thus acquired. At least they have a right to elect between the benefit which by the settlement is already theirs, and that conferred by the will. If the beneficiary elects to take under the will, then, unless something rebuts the presumption against double portions, the settlement is superseded, and is not to be performed at all. If he elects to claim his rights under the settlement, then, in the same circumstances, he must to that extent give up his rights under the will to com- pensate those whom his election disappoints {y). It might, perhaps, be supposed that the recipient of a portion under a settlement being a purchaser, this species of satisfaction would be more analogous to the satisfaction of a debt by a legacy than to the ademption of a legacy by a portion. This, however, is not the case. For though a portion is in its legal aspect a debt, equity still regards it as a benefit conferred ; and thus it falls within the pre- sumption against double portions, which has of course no application in the case of an ordinary debt. The con- sequence is that the leaning of equity is strongly in favour of the satisfaction of a portion by a legacy; while, as we shall presently observe, it is equally decided against the satisfaction of a debt by a legacy. This distinction is in itself abundantly sufficient to bring the cases we are now considering nearer to the doctrine of ademption than to that of satisfaction, as applied to ordinary debts. A provision made by a will may satisfy one part of a covenant without satisfying the whole. Thus if the cove- nant gives a life interest to a daughter, with remainder to children, a legacy to the daughter may satisfy her life (y) Chichester v. CoveiUry, 2 L. R. H. L. 71 ; M'Caror/Jiei- v. WMeldon, 3 Eq. 236. PORTIONS SATISFIED BY LEGACIES. 453 interest, but cannot satisfy the claim of the children (z). And similarly, there may be a satisfaction of the children's portion, not touching that of the parent (a). Where a settlement contained a declaration that an Gift by advancement by the parent in his lifetime should be con- Jquivrient sidered as satisfaction of a portion covenanted to be to advance- bestowed, a legacy given by will was cunsidered not to be lifetime. equivalent to an advancement in the lifetime so as to come within the declaration ; and there was held to be no satisfaction (6). Save as here excepted, it may be generally understood that the limitations and conditions of the principle above stated as applicable to ademption, are applicable also in the case of satisfaction of a portion by a legacy (c). There has been a great deal of learned argument touch- Rules as ing the admissibility of extrinsic evidence (that is, evidence gj^ evi""^' of facts not contained in the instruments themselves) in dence. order to decide for or against the application of the doc- trine of satisfaction ; but the results of the cases are reducible to a few simple principles. (1.) Parol evidence of extrinsic circumstances is not l. Not admitted to alter, add to, or vary a written instrument, or l^ ^^^^ to prove with what intention it was executed. In Hall v. written Hill (d) the question was whether a portion had been ments. satisfied by a legacy. It was clear that in the absence of extrinsic evidence of the testator's intention when he made his will there would be no satisfaction. Evidence was tendered which clearly showed that the testator in fact intended the legacy to satisfy the portion. The evidence was rejected on the ground that it had nothing to do with the debt, but applied to the will only, and, in fact, amounted to the insertion in the will of a declaration which was not there. (z) BetheU v. Abraham, 3 Ch. D. (c) Bellasis v. Utlnmtt, 1 Atk. 590. 427 ; Lcthbridgc v. Thurlow, 15 (a) Chichester v. Coventry, 2 L. R. Beav. 334 ; Sparkes v. Cator, 3 Ves. H. L. 71, 92 ; Mayd v. Field, 3 Ch. 530. D. 587. (d) 1 D. & War. 94. (b) Cooper v. C, 8 Ch. 813. 454 SATISFACTION. 2. Ad- (2.) But where tl 10 laAV presumes a certain intention from rebut pre- Collateral circumstances, such as a certain relationship siimption bg^Yveen the parties, then extrinsic evidence is admissible to rebut this presumption. It was said in Kirk v. Eddoiues (e), that where " the law raises a presumption that the second instrument was an ademption of the gift by the instrument of earlier date, evidence may be gone into to show that such presumption is not in accordance with the intention of the author of the gift " (/). 3. When (3.) Where evidence is admissible to rebut such pre- mitted sumption, counter-evidence is admissible (g). counter- jj^ Kirk V. Eddoiues (h) the question was whether a admissible, legacy was 2?''0 tanto adeemed by a subsequent gift of a promissory note made without any writing. Evidence was tendered which related to this gift, not to the written instrument; and it was held that evidence of such a na,ture being admissible to rebut the presumption of law, counter-evidence was admissible in support of the presumption (i). 3. Repetition of legacies. Repetition In many respects similar to the ademption of legacies ° 'by portions, and the satisfaction of portions by legacies, are the cases which arise when two legacies are given by the same will, or by a will and codicil, and it is doubtful whether the second legacy is intended to be additional to the first, or to be merely a repetition. The case most usually referred to on this subject is HOOLEY V. HATTON [1 Bro. C. C. 390, n. ; 2 W. & T. L. C. 321]. In this case Lady Finch gave to Lydia Hooley, the plaintiff, £500 by her will. She made a codicil in these words : " I add this codicil to my will : I give Lydia Hooley £1000." The plaintiff filed a bill claiming these legacies, (e) 3 Ha. 509. (/,) Supra. if) See, also, Debeze v. Mann, (/) See Palmer v. Neicell, 20 Be&v. 2 Bro. C. C. 165, 519. 32, 39. {g) Ibkl REPETITION OF LEGACIES. 455 and the question was whether she was entitled to them both, or only to the £1000. There being no internal evidence touching the question, it was decided on the general rule of law that the legacies were cumulative, and the plaintiff was declared entitled to them both. The judgment of Aston, J., in this case classified double Classifica- legacies under four heads: (1) where the same specific j^oo^pw y, thing is given twice ; (2) where the like quantity is given J^a-tto^. twice ; (3) where a greater sum is given first, and a less sum afterwards ; (4) where a smaller sum is given first, and a greater sum afterwards. The first case presents no difficulty, since where the Specific same specific thing or corpus is twice expressed to be ^^^^' given, whether in the same or in different instruments, it must clearly be regarded as a repetition (h). The remaining three classes may be most conveniently Legacies considered together, distinguishing, however, those cases in quantity. which the two gifts are contained in the same instrument from those in which they are given by two instruments. (1.) Where two pecuniary legacies are given by the same i- In same instru- mstrument. ment. The general rule is that when two legacies of the same If equal, amount are given by the same instrument there will be considered to be a repetition, and one only will be good {I). And the same rule applies to annuities {m). But where the two legacies are of unequal amount, Ifnnequal, 111 ^^^ ^°- whether the greater precedes the less, or the less the greater, they are priiiid facie cumulative (n). (2.) Where two pecuniary legacies are given by different instruments. The rules regulating these cases cannot be so simj^ly In dififer- , 1 ent instru- Statecl. ments. Prima facie, if the legacies are given simpliciter, no Primd (^•) Z>. of St. Albans v. Beau- (m) Holford v. Wood, 4 Ves. 76. derh, 2 Atk. 636 ; Suisse v. Lowtlier, (n) Windham v. W., Rep. t. Fincli, 2 Ha. 432. 267 ; Hartley v. Ostler, 22 Beav. {I) Garth v. Meyrick, 1 Bro. C. C. 449. 30. 4.3G SATISFACTION. fni-ic cumu- lativt'. If equal anil on same motive, repetition. Not other- ^\'ise. Intrinsic evidence. motive for tlie gift being expressed, they are regarded as cumulative ; and it is immaterial whether they are of equal or unequal amount (o). A fortiori they will be cumulative when there is any difference in their nature or time of payment {p), or they are given upon or for different trusts or purposes {q). If, however, the same motive is expressed for both gifts, and the same sum is given, then, though the gifts are con- tained in two instruments, there will be deemed to be a re])etition, and only one will be payable (r). But if the same sums are given and different motives are expressed (s), or if the same motive is expressed and different sums are given (t), then the two gifts will be considered cumulative. (3.) Such are the general rules, but they are subject to modification according to the evidence which may be forth- coming as to the testator's intention. As to intrinsic evidence there is no difficulty ; it is always available to explain the intention. Thus the fact that the second instrument expressly refers to the first, or seems to be merely a copy of it, may, even where the sums given are unequal, lead to the conclusion that the second was intended to substitute, and not to be added to, the first (u). And similarly, where two precisely similar codicils were executed at the same time, it was considered that the intention was to execute them in duplicate, and not to give double legacies {x). And the same conclusion was reached where two precisely similar instruments were executed, though at different times {y). (o) Roch V. Callen, 6 Ha. 531 ; Rvssdl V. JJkkson, 4 H. L. 293 ; Wilson V. O'Leary, 12 Eq. 525 ; 7 Ch. 448. (p) Ilodgcs V. Peacocl; 3 Ves. 735 ; Masters v. 1/., 1 P. Wms. 421. (q) Saurey v. Rumney, 5 De G. & S. 698 ; Spire v. Smith, 1 Beav. 419. (?•) Hin-st V. Beach, 5 Madd. 351, 358 ; Roch v. Callen, sup. (s) Ridges v. Morrison, 1 Bro. C. C. 388. (i) Hurst V. Beach, sup. (u) Martin v. Drinkwater, 2 Beav. 215; Coote v. Boyd, 2 Bro. C. C. 521. [x) Whyte V. ir., 17 Eq. 50. (y) Hubbard v. Alexander, 3 Ch. D. 738. REPETITION OF LEGACIES. 457 The rules as to extrinsic evidence are similar to those Extrinsic . ,. evideiice. above stated as ordinarily applicable in a case of satisfac- tion or ademption. Where the Court raises the presump- tion against double legacies {e.g., where two equal legacies are given by one instrument, or in different instruments with the same motive expressed), then such evidence is admissible to show that the testator intended both to be paid. But where the Court does not raise this presumption {e.g., where legacies of different amounts are given by the same will, or legacies of the same amount siinpliciter by different instruments), then extrinsic evidence is not ad- missible to show that the testator intended only the latter to be paid (z). In short, extrinsic evidence is admissible in favour of, but not against, a legatee claiming the legacies as cumula- tive. As a general rule, where one legacy is given merely in Substi- substitution for another, it will, m the absence of any it.oacy expression of a contrary intention on the part of the testa- subject to 1T11 • • ^ o ^ • ^ Condition tor, be liable to the same incidents as the legacy lor which of first. it is substituted (a) ; but this is, of course, not so where the second legacy is a distinct and substantive bequest (&). An additional legacy, though not so expressed, will in general be held subject to the same incidents and condi- tions as the first legacy. Thus if a legacy be given by will to a married woman to her separate use, an additional legacy given by the codicil will also be lield for her separate use (c). In no case, however, has it been held that the latter gift is to go to the parties entitled under the subse- c[ueiit limitations of the former gift (c?). (2) Hurst V. Beach, stq). ; Guy v. 183. Sharp, 1 My. & K. 589. (c) Day v Cruft, 4 Beav. 561. {a) Cooper v. Lay, 3 Mer. 154. {d) Mann v. Fuller, Kay, 624. (h) Chatteris v. Youn(j, 2 Russ. 458 SATISFACTION. Satisfac- tion de- pends on presumed intention. Slight circum- stances rebut the presump- tion. TI. Where the Claim alleged to he satisfied is of a Legal Nature. I . Satisfaction of debts by legacies. The leading authoiity on this branch of the subject is TALBOT V, THE DUKE OF SHREWSBURY [Free. Ch. 394 ; 2 W. & T. L. C. 352], where the principle is laid down that if a debtor, without taking notice of the debt, bequeaths a sum as great as, or greater than the debt, to his creditor, this is to be deemed a satisfaction of the debt ; but that a legacy of less amount than the debt is not regarded as a satisfaction p/'O tanto, nor will a contingent legacy ever operate as a satisfaction. These cases rest, as do all cases of satisfaction, on the presumed intention of the donor, and they illustrate the maxim. Debitor non jyi'&suTnitur donare. But the reason- ing upon which the principle here rests has been often pronounced to be artificial and unsatisfactory, and the in- clination of the Court is decidedly against its application, so that slight circumstances will be laid hold of to rebut the presumption. That this is so is well shown by CHANCEY S CASE [1 P. Wms. 408 ; 2 W. & T. L. C. 353], in which a testator being indebted to his servant for wages, had given her a bond for £100 as due on that account, and afterwards by his will gave her £500 for her long and faithful services, and directed that all his debts and legacies should be paid. This last direction was considered sufficient to rebut the presumption of satisfaction, and the servant was held entitled to be paid both the bond and the legacy in full. (1.) An examination of the cases will show that the prin- ciple of satisfaction as applied to debts is subject to many limitations. In the following cases the presumption of SATISFACTION OF DEBTS. 459 satisfaction has been held to be lebuttetl by the nature of Presump- tion re- the legacy : — butted by (i.) Where the legacy is of less amount than the debt, of^^^e*"^^ In such cases there is no satisfaction, even pro tanto (e). legacy. (ii.) Where the legacy is given upon a contingency (/). Where (iii.) Where the legacy is of an uncertain or fluctuating jelf t^an amount ; such as a gift of the whole or part of the testa- debt, , . , oi 1 T -11, , , • p o^ legacy is tors residue, buch a legacy will not operate as satisiac- contingent tion, even though in the event it may happen to equal or °^' ^^V exceed the amount of the debt (g). such as (iv.) Where the time fixed for payment of the legacy is ^^'^^'^ "®' T«. p 1 1 . , 1 1 n ■ 1 1 Where the ditterent irom that at which the debt is due, so as to be time of not equally advantageous to the debtor, there will be no ^^^g"*^ satisfaction (h) : in this case the debt being due at the death, the legacy was directed to be paid one month after the death. Where the legacy has been payable before the debt has become due, it has been held to operate as satis- faction (i). (v.) There will be no satisfaction where the testamentary ^j" ^^^ gift differs from the debt in character. Thus a gift of land of the will not satisfy a pecuniary debt (/;;) ; a legacy will not ^^^^ differs, satisfy an annuity (l) ; nor will an absolute gift satisfy a debt held on trust for the donee for life with remainder to his children {in). (2.) Sometimes the presumption of satisfaction is re- Presump- butted by the nature of the debt : Thus :— buttedb (i.) A contingent or uncertain debt, such as a debt th« nature upon an open account, cannot be satisfied by a legacy (n). debt. But the mere fact that a debt is under certain circum- Where stances liable to be varied in amount will not always contim>-ent prevent the j)resumption of satisfaction. Thus there was ^^ "i^; held to be satisfaction where a sum of money had been (c) Talbot V. Shreioshiiry, sup. {i) Wathen v. Sinith, 4 Mad. 325. (/) Ibid. ; Crompton v. Sale, 2 P. (^•) Eastivood v. Vinke, 2 P. Wms. Wms. 553. 614. (cj) Bevese v. Pontet, 1 Cox, 188 ; (I) Cole v. Willard, 25 Beav. 568. Thynne v. E. of Glengall, 2 H. L. (»i) Fairer v. Park, 3 Ch. D. 309.' 154. (n) Rawlins v. Poxoell, 1 P. Wms. (A) Clark v. Seiocll, 3 Atk. 96. 297. 460 SATISFACTION. or 18 contracted sub- sequently to the will. Presump- tion re- butted by expressions in the will. Where a particular motive is expressed, or there is a direction for pay- ment of debts and legacies. Relation- ship of parent and child im- material. Satisfac- tion of debt by portion. depo-sited with the testator, against which the creditor had drawn on him from time to time (o). (ii.) A debt contracted subsequently to the making of the will cannot be satisfied by a legacy conferred by the will, since in such a case no intention to satisfy the debt can be reasonably presumed (p). (o.) In other cases it is gathered from expressions in the will that satisfaction was not intended. Thus : — (i.) The fact that the testator has assigned a particular motive for the gift has been considered to rebut the pre- sumption (q). (ii.) In Chanceys Case (r) an express direction for the payment of debts and legacies was taken as an indication that the testator intended both the debt and legacy to be paid (s). A direction to pay debts alone has been con- sidered not to have the same effect {t) ; though it is un- doubtedly of great weight in that direction when taken in connexion with other circumstances tending to rebut the presumption {u). The relationship of parent and child or husband and wife does not, it seems, affect the principle regulating these cases of satisfaction. Where there is an actual debt due to the child, as distinguished from a portion, it will only be satisfied by a legacy of equal or gTeater amount, and, as in other cases, the presumption will be easily re- butted {x). 2. Analogous to the above instances of satisfaction, and subject to similar rules, is the case in which a father, being indebted to a child, makes an advance to him in his life- time. The portion so advanced will irriind facie effect a satisfaction if it equals orexceeds the amount of the debt(3/). (o) Edmunds v. Loiv, 3 K. & J. 318. (p) Cranmef's Case, 2 Salk. 508. (ry) Mathews V. M., 2 Ves. sr. 635 ; Charlton v. West, 30 Beav. 124. {r) Sup., p. 458. (s) RichoA-deon v. Gi'eese, 3 Atk. 65. {t) Ed/nmnds v. Low, sup. (u) Roioe V. R., 2 De G. & S. 297 ; Pinchin v. Simms, 30 Beav. 119. (x) Tolson V. Collins, 4 Ves. 483 ; Foiole7- V. P., 3 P. Wms. 353 ; At- kimon v. Littleivood, 18 Eq. 595. (y) Wood V. Briant, 2 Atk. 521 ; Plunkett V. Leiois, 3 Ha. 316. PERFORMANCE. 461 It is a common and well-known principle that extrinsic Q""^l'^ ^ ^ . whether evidence is admissible to rebut a presumption of law (z), extrinsic and on this principle extrinsic evidence should be ad- adm^^s*ible. missible when the presumption arises that a debt is satis- fied by a legacy to rebut this presumption (a). But such evidence has nevertheless been sometimes refused (6). Performance. The equitable doctrine of Performance is similar to, and yet to be carefully distinguished from, that of satisfaction, as applied to the cases we have been considering. Satisfaction, as we have seen, wholly rests upon an Distinc- implied intention of the testator ; and several rules of between presumption have been adopted Avhich do not apply to cases satisfac- mi • Ml ^ ^ 1 • o 1 -c t ion and ot performance. The presumption will not hold it the gilt perform- is less beneficial in any way than the debt. There is no ^^''®- such thing as satisfaction 'pvo tanto. The doctrine of performance rather arises from a con- Perform- struction which equity, in its regard for natural justice, puts on the " upon certain circumstances, than from the implied intention ground of . iiatural of the part}^ It is not therefore subject to any of those rules justice, which originate in the design of correctly ascertaining a testator's intention. And it conspicuously differs from satisfaction as applied to debts, in that performance is commonly deemed to have been effected pro tanto. 1. The t}^ical case of performance is where a person Perfoi-m- covenants to do a certain act, and this covenant is considered ^^ imputed as performed by some subsecpient act which wholly or from the approximately effects the same purpose, though it does coven- not expressly refer or precisely conform to the covenant. ^^*^'"" {z) Kirk V. Eddowes, 3 Ha. 509 ; lace v. Pomfret, 11 Ves. 542. Hall V. IJill, 1 D. & W. 94. (b) Fou-la- v. F., sup. ; Hall v. Hill (rt) Plviikctt V. Lewis, sirp. ; Wal- (sup.) 4(i2 PERFORMANCE. One of the most familiar cases on this point is WILCOCKS V. WILCOCKS [2 Yern. 558 ; 2 W. & T. L. C. 389]. There a person covenanted on his maniage to purchase lands of the value of £200 a year, and to settle them for the jointure of his wife and to tlie first and other sons of the marriage in tail. He purchased lands of that value, but made no settlement, so that on his death the lands descended to his eldest son. The eldest son nevertheless filed a bill for a specific performance of the covenant ; but it was held that the lands descended should be deemed a performance of the covenant. Another similar case which further illustrates the doc- trine is LECHMERE v. EARL OF CARLISLE [3 P. Wms. 227 ; Ca. t. Talb. 88]. Here Lord Lechmere on his marriage covenanted to lay out within one year of the marriage £6000 (his wife's portion) and £24,000, amounting in all to £30,000, in the purchase of freehold lands in possession in the south part of Great Britain, with the consent of the Earl of Carlisle and Lord Morpeth, to be settled on Lord Lechmere for life, remainder for so much as would amount to £800 a year to Lady Lechmere for her jointure, remainder to first and other sons in tail male, remainder to Lord Lechmere his heirs and assigns for ever. Lord Lechmere was seised of some lands in fee at the time of his marriage, and after his marriage purchased some estates in fee of about £500 a year, some estates for lives, and some reversionary estates in fee expectant on lives ; and he contracted for the purchase of some estates in fee in possession. These purchases were not effected with the consent of the trustees, there was no settlement made of any of the lands, and shortly afterwards Lord Lechmere died intestate. Thereupon a bill was filed by his heir for a sj)ecific performance of the covenant, and PERFORMANCE. 463 to have the £30,000 laid out in accordance therewith out of the personal estate. It was held by Lord Talbot, on appeal, reversing the decision of Sir J. Jekyll, M. R, that the freehold lands purchased in fee simple in possession after the covenant ought to be considered as purchased in part performance of the covenant. The heir was therefore only entitled to a decree for the laying out of so much money as together with the sum already so laid out would amount to £30,000. It will be observed that the lands possessed by the Conclu- covenantor before the covenant, and lands purchased ^^^ ^.^^^gg afterwards but of a different nature from what was cove- nanted to be purchased, were not included in the perform- ance ; and further, that the consent of the trustees was deemed not to be an essential. The doctrine has also been applied to a case in which the covenant was to pay money to trustees to be laid out by them in a purchase of land, and the covenantor himself purchased the land, and died intestate without having effected a settlement (c). The same principle is applicable where the obliga- tion arises from an Act of Parliament instead of from a covenant (d). It must be observed that a covenant to purchase lands Covenant amounts to no more than a specialty debt — it does not doern'ot^^^ create a specific lien upon lands purchased ; and conse- create a quently notice of such a covenant will not affect a pur- chaser or mortgagee of the lands (e). The equity of redemption was, however, held liable to the covenant in a case in which the mortgagee had no notice (/). Where trustees having trust money in their hands are Purchase under an obligation to lay it out in lands, any purchase by standTor^ them will more readily than in other cases be deemed a higher ground. (c) Sowden v. S., 1 Bro. C. C. 582. Mornington v. Kcene, 2 De G. & J. (d) Tuhls V. Broadwood, 2 R. & M. 292. 487. (/) Exp. Poole, 11 Jur. 1005; 1 Do (e) Deacon v. Smith, 3 Atk. 323 ; G. 581. 464 PERFORMANCE. performance of their obligation {y) ; though such cases usually fall under the still stronger rule that a cestui que tmist is entitled to follow trust money, however it may have been converted (h). Perform- 2. Another illustration of the doctrine of performance is rSt"rom where a person covenants to do an act and the covenant is the opera- [n effect wholly or partially performed by the operation tion of law. 01 law. On this the leading authority is BLANDY V. WIDMORE [1 P. Wins. 323 ; 2 W. & T. L. C. 39]. There a man covenanted, previous to his maiTiage, to leave to his Avife £620. He married, and died intestate, his wife's share under the intestacy being more than £620. The covenant was hereby deemed to be performed, so that the widow could not claim her share under the intestacy and £620 over and above as a debt under the covenant. In this case the covenant was wholly satisfied, but it is equally clear that if the distributive share had been less than the sum covenanted to be paid it would be considered a performance p9'o tanto (?'). The same principle has, moreover, been applied where the covenant has been that the executors should pay a sum of money, or that the money should be paid to trustees for the wife (k). There are, however, three classes of cases which must be carefully distinguished from those which fall under this principle. (1.) Where the covenantor has made a will, and thereby conferred a gift either by way of general legacy or as a residue, such a gift will not generally be deemed a per- formance of a covenant to leave a certain sum (I). (2.) Where the covenant is not to pay a gross sum, but to give a life annuity, or the interest of a sum of money for A general legacy or gift of residue is not generally perform- ance. Share in (g) Mathias v. 31., 3 Sm. & G. 552. {h) Taylor v. Plume); 3 M. & S. 562 ; Lench v. L., 10 Ves. 511. (i) Garthslicn-e v. Chalk, 10 Ves, 14, 16. {k) Lee V. D'Arandu, 3 Atk. 419. (?) Hai/tie.^ V. 3Iico, 1 Bro. C. C. 129 ; Devese v. Poiitet, 1 Cox, 188, PERFOEMA^■CE. 465 life, such a covenant will not be performed by the devolu- intestacy . , . , ncit per- tion of a share under an intestacy {tti). fonnance (3.) Where the covenant is to pay a sum in the covenan- °^^).' f^'j. tor's lifetime, and there is a breach of the covenant before annuity, the death, then the devolution of a share in intestacy will P^rform- ' -^ ance does not amount to a performance (n). Here the covenant not <>i)ply having been to pay the settlor's wife a sum of money two <^]",e j'^^* years after marriage, and not having been complied with, testator's there was an actual debt due when the intestate died, between which and her claim as widow in the intestacy, the covenantee could not be put to her election. (m) Couch V. Stratton, 4 Ves. 391. 1, cited ; 3 Atk. 420. (n) Oliver v. BricMand, 1 Ves. sr. H H PART II. WHERE THE JURISDICTION RESTS ON THE DISTINC- TIVE PROCEDURE OF EQUITY. INTRODUCTION. It has been already pointed out, and cannot be too strongly urged, that it is impossible to draw any strictly defined line between those matters in which the jurisdic- tion of equity has arisen from the distinctive character of its principles, and those in which it is to be ascribed to the superiority or peculiarity of its procedure. In many of the subjects which have been treated in the preceding part, it has been necessary to anticipate much that would appropriately present itself now for considera- tion, but which could not without serious inconvenience have been severed from the connexion in which it there stands. For instance, the subject of mortgages could not be examined without investigation of the method of accounting between mortgagor and mortgagee : no more was it possible to take a comprehensive view of the doc- trine of trusts without trespassing on many questions which most usually present themselves in the course of the administration of assets. On the other hand, in those matters in which the juris- diction of equity is essentially administrative, or is other- wise due to its peculiar procedure, it of course recognises and applies as occasion requires all the principles already expounded. Thus actions arising out of partnerships II H 2 408 INTRODUCTION. continiially raise questions of trust and of fraud ; and as has been observed, the jurisdiction to relieve against the consequences of mistake is nowhere more frequently con- cerned than in actions for specific performance. As it was necessary as an introduction to the first part of the work to inquire generally what the substantive prin- ciples were which distinguished equity from law, so it behoves us now to make a corresponding inquiry as to the distinctive procedure of Courts of equity. This must necessarily be here treated in a very general way, for other- wise we should be involved in an exposition of Chancery practice, which is beyond the province of this work. Account. Perhaps the most extensively useful of the features of equitable procedure is the facility which it affords Procedure for the taking and adjusting of accounts. In actions at law. law, it was under the old practice necessary that the plaintiff should estimate his claim in a definite sum of money. Supposing the claim to be good in law, it was for the jury to determine on the facts whether the claim was reasonable or excessive, and to give their verdict accord- ingly. Of course, it was open to the defendant to adduce evidence generally and particularly to show that the plaintiff's claim ought to be reduced ; and simple cases of account might well be considered and adjusted by the Inapplic- jury. But it is evident that many cases arise in which the i^^^ '^ determination of what is justly due to a plaintiff neces- accounts. garily involves long and difficult inquiries — for instance, it may be necessary to review a series of transactions extend- ing over many years. For such an investigation a jury is clearly incompetent. Action of This difficulty was very long ago recognised, and a faw'*^"^* ^* remedy for it attempted apart from the assistance of equity. Indeed, one of the most ancient actions at law was the Restric- action of account. But the inadequacy of the remedy tions as to thus afforded is sufficiently shown by mentioning only a few parties. „, . it. d^ ot the conditions attached to it. Thus the action of account originally lay only when there was either privity in deed INTRODUCTION. 469 by the consent of the party, as against a bailiff or receiver appointeil by the party ; or a privity in law, as against a guardian in socage. By the law merchant it was so far extended that a merchant might have an account against another, chargmg him as a receiver. Beyond these limits the action did not apply, until by successive statutes it was further extended to the executors of merchants, to admi- nistrators, aad finally, so as to lie against executors and administrators of guardians, bailiffs, and receivers (a). Nor were these restrictions as to the parties the only Defects as disadvantages. Even when the action was sustainable, the cedure procedure under it was cumbrous in the extreme. The auditors appointed to take the account could not until 4< &L 5 Anne, c. 16, examine the parties before them on oath. Whenever a disputed item was in question the parties might join issue thereon or demur and bring their dispute before the Court, and thus the inquiry might be almost interminably protracted. Moreover, no equitable claims, such as those arising from trusts, liens, frauds, &c., were recognised ; so that after all the discussion at law, a suit in equity might still have been requisite to determine the full rights of the case (6). It is not surprising that the legal action of account Displaced should under these circumstances have fallen into desue- J^-l^, i equitable tude, and have been displaced by the remedy in equity to remedy, which its imperfections gave birth. We shall presently consider in greater detail some of the leading principles by which Courts of equity have been guided in the taking of accounts. It suffices now to illu.strate the superiority of Supe- the equitable over the legal remedy, by stating that the jUyg. master who acted as auditor in equity had abundant power trated. to examine the parties on oath, to make inquiries from all proper parties by testimony on oath, and to require the production of all necessary documents ; and that his deci- sion was open to be re-examined by the Court whether in point of fact or of law, by a simple and expeditious process. (a) 4 & 5 Anne, c. 16 ; Story, 415. (h) Story, 448-9. 47<> iNii; Ha. 627. INTRODUCTION. 471 Courts and Chambers being still conspicuous in their superior ability to enter into complicated accounts. It is obvious that the jurisdiction of equity in matters Extent of of account brings a great variety of business within its diction purview. This is a natural consequence of the fact that bounded on ... . . , . account. an almost infinite variety of transactions involve questions of account ; and, in addition to this, it is a well-established rule that when equity acquires jurisdiction on this ground, it extends its authority to other matters naturally, if not necessarily, attaching to such a jurisdiction. As incident to accounts, therefore, Courts of equity take " cognizance of the administration of personal assets, consequently of debts, legacies, the distribution of the residue, and the conduct of executors and administrators. As incident to accounts, they also take the concurrent jurisdiction of tithes, and all questions relating thereto ; of all dealings in partnership, and many other mercantile transactions ; and so of bailiffs, factors, and receivers " (h). In dealing with the matters thus suggested, our course will be first to examine the most conspicuous of the prin- ciples by which equity is guided in the taking of accounts generally. Then we shall inquire with more particularity into the matters generally enumerated in the last para- graph, whose place in equitable jurisprudence is especially due to their involving matters of account. Though we shall thus find that the heading of account is answerable for the greater part of the business which falls within the second division of our subject, there are other peculiar remedies or features of procedure scarcely less fertile, but which do not call for particular comment in this place. Somewhat analogous in principle to the taking of Partition, accounts is the partition of lands, involving, as it does, minute inquiries and valuations. And very similar to this Bound- is the settlement of doubtful and confused boundaries. (/i) IMackstone, Com. III. 437. 472 INTRODUCTION. Specific Anotlicr remedy of high importance, which has hxrgely ance. Contributed to the excellence of equity, is that of Specific Injiinc- Performance. In some respects analogous to this is the remedy of Injunction. The discussion of these remedies and the matters con- nected therewith is before us as constituting the second division of our subject. 473 CHAPTEE I. THE GENERAL PRINCIPLES OF ACCOUNT. I. Appropi'lation of Payments. Clayton's Case. II. ^et-off. 1. At Law. 2. In Equity. III. A'pportioninent. IV. Cuntribution. V. Defences to an Action for Account. It has already been stated, aud is very natural, that in Legal and taking an account, Courts of equity pay equal regard to the ckini^ legal and equitable claims. Wherever any fraudulent deal- regarded, ing has given rise to a constructive trust, or to an equitable ' claim in any way, or by the dealings of the parties an equitable lien has been created, or indeed any doctrine of equity intervenes to modify the legal position of the parties, full effect is given thereto, and the result of the inquiry is therefore, when confirmed by the Court, final, needing no supplemental proceedings to complete the determination of the parties' rights. I. Appropriation of Payments. The accounts which come before Courts of equity are Appropria- frequently of such a nature as to call for decision as to the payments, appropriation of payments appearing on one side thereof, to the debits appearing on the other. In other words, it •i74 GENERAL PlilNClPLES (JF ACCOUNT. often becomes material to ascertain to what debt a parti- cular payment made by a debtor is to be applied. This question most commonly arises where there have been running accounts between debtor and creditor, various payments having been made and various credits given at different times. The leading authority on this point is CLAYTON'S CASE [1 Mer. 572, 585], Rules as from wliich we learn that the following rules, which are priation° ii^ainly derived from the Roman law, are applicable in equity. Debtor has ] . A debtor making a payment has a right to appropriate first option. ., , ,. , n i ^ , i • ,.^^ it to the discharge ot any debt due to his creditor. The debtor may appropriate the payment by so stipulat- ing in express terms (a), or his intention so to do may be inferred from the circumstances of the transaction ; thus where one of the debts owing was secured and another unsecured, an intention first to discharge the secured debt was presumed (h). Compared In the Koman law this case would have come under Roman another rule — viz., tliat in the absence of an express appro- law, priation by either debtor or creditor, the law would appro- priate the payment to the most burdensome debt. This rule does not, however, appear to be recognised in English law (c), and it therefore seemingly requires something more than the mere fact that one of the debts is secured, to lead the Court to appropriate a payment to its extinction in priority to an unsecured debt of earlier date. In the case quoted it appears that the payment was made out of the proceeds of the security itself See also Att.-G. of Jamaica V. Manderson (d), City Discount Co. v. McLean (e). Debtor can This right of appropriation by the debtor is, however, (a) Exj). Imhcrt, 1 De G. & J. (c) Mills v. Fowkes, 5 Bing. N. S. 1.52. 4.55, 461. {')) Toimri V. Enqlii^h. 7 Beav. (d) 6 Moo. P. C. 10. (f) 9L. R. C. r. 692. ArrKOl'RlATlON OF PAYMENTS. 475 lost unless exercised at the time of payment. If he does only exer- ;: ••11 ^^^^ "1^ not then declare on what account the money is paid, he right at cannot afterwards do so (f). p™meiit. 2. If at the time of payment there is no express or ^j^^ ^j.^^. implied appropriation thereof by the debtor, then the tar then creditor has a right to make the appropriation. option. In Roman law this right of the creditor, like the corre- sponding one of the debtor, was lost unless exercised at the time of payment ((/). But in English Jaw this is not so ; ^^^f "'^• and the creditor may, it seems, make the appropriation at any time any time after payment and before action brought or ^^[?J® account settled between him and his debtor (k). brought. The creditor's right to make such appropriation is, how- May not ever, subject to some limitations. He may not indirectly p^iate to secure payment of an illegal debt by appropriating a ^^/^^^^^^ general payment to its discharge (i). But a debt barred by the Statute of Limitations is not illegal, the statute being merely a bar to the remedy, not to the right : and if, therefore, a general payment is made, without but may to appropriation by the debtor, it may be appropriated by statute- the creditor to the discharge of a statute-barred debt {k). barred. It must, nevertheless, be observed that it will not have Effect of the effect of reviving the debt (/) ; or, in other words, though by the appropriation the creditor may secure pay- ment of a portion of a statute-barred debt, he does not by that means acquire a right of action for the remainder of it. But if a debt is not barred, a general payment on account appropriated towards its liquidation will take it out of the operation of the statute ; that is to say, the statutory period will again commence to run from the time of such payment and appropriation (m). 3. In the absence of any appropriation by either debtor Appro- (/) Wilkinsou v. Sterne, 9 Mod. 165. 427. 1^) Mills V. Fowkes, sup.; Xash v. (g) Dig. 46, 3. Hodgson, 1 Jur. N. S. 946 ; 4 De (h) Philpot V. Jones, 2 A. & D. 41, G. M. & G. 474. 44; Siinson v. Inyhnm, 2 B. & C. (/) Ibid. 65. (>n) Ibid. (i) Wri(jJd V. /Ming, 3 B. & C. 476 GENERAL PRINCIPLES OF ACCOUNT. priation by or ci'oditur, all appropriation is made by presumption of tkuronaw law, according to the order of the items of account, the accoixiing ^^-gj^ [^^q-^ q^ i\^q debit side beino- the item discharged or to priuntv. . • 1 / \ mi • reduced by the first item on the credit side (n). ihis is the express j)oint decided in Clayton's Case (o), and is abundantly confirmed by subsequent authority (p). Presump- This presumption may, however, be rebutted by evidence tion may ~. . . ._,... be re- 01 a diuerent intention (q) ; and thus, though the ii•) Adey v. Arnold, 2 De G. M. & Vict. c. 110 ; 2 & 3 Vict. c. 11 ; 23 G. 432. & 24 Vict. c. 38. (s) Bryan v. Clay, 1 E. & B. 38. (x) Brooking v. Jennings, 1 Mod. (t) Fletcher v. F., 4 Ha. 74. 175. (m) Garrard v. Dinorhcn, 5 Ha. {y) Lyttleton v. Cross, 3 B. & C. 213. 317, 322. (r) 4 & 5 Will, k M. c. 20 ; 1 & 2 ADMINISTRATION GENERALLY. Effect of 32 & 33 Vict. c. 46, in priority to other creditors of equal degree (z). An exe- cutor of an executor or administrator might similarly retain for a debt due to the executor or administrator (a). And a husband who was executor might retain for a debt due to his wife, or, if his wife was executrix, might retain for a debt due to himself or his wife (6). No such rights of retainer existed with respect to equit- able assets ; but though the Judicature Act has, as far as regards the order of distribution, in some respects put equit- able and legal assets upon the same footing, it has been held that it does not interfere with the well-established right of retainer out of legal assets (c). There are two ways in which a legal personal representa- tive may secure himself from his primary liability for the debts of the deceased. First, by throwing the administra- tion into the hands of the Court. As long as the estate is being administered, the creditor's remedy is of course to prove his debt therein. When the administration is com- plete, his only resource is to follow the assets into the hands of the residuary legatee or next of kin (d). Secondly, the legal personal representative may obtain a statutory pro- tection under 22 & 23 Vict. c. 35, s. 29, by issuing regular notices, and distributing the estate in accordance therewith. If, however, he administers out of Court on his own respon- sibility, he remains prirnd facie liable to the claim of any unjjaid creditor, though if required to pay a debt of which at the time of distribution he had no notice, he would be entitled to call upon the residuary legatee or next of kin to refund (e). 3. Priority of debts under 32 & 33 Vid. c. 4G. We have seen that this Act places specialty debts on the same level and footing as debts by simple contract. And [z] Cockcroft V. Black, 2 P. Wnis. 298. (a) Hopton v. Dryden, Free. Ch. 180 ; Weeks v. Gore, 3 P. Wms. 184, n. (b) Atkinson v. Rmrson, 1 Mod. 208. ((•) Lee V. Nuttall, 12 Ch. D. 61 ; Richmond v. White, ih. 361. (d) Thomas v. Griifitks, 2 Giff. 504 ; 2 De G. F. & J. 555. (e) Jerris v. Wolfcstan, 18 Eq. 18. PRIORITY OF DEBTS. 498 it includes in its operation those other debts which we have mentioned as previously ranking with specialty debts — viz., debts due from contributories in the winding-up of companies and arrears of rent (/). With this exception, however, the order remains as before. Debts to the Crown, judgments, and other debts of record retain their former position. And this being so, a creditor in an administration under this Act who secures a judgment against an executor for a simple contract debt, thereby actually gains priority over a creditor by special contract (g). The executor's right of retainer was not aftected by this Act (A). 4. Priority under the Judicature Act, 1875 (i). The above quoted section of this Act has in some Effect of respects completely changed the method of administration '^^^ ,.' 10. as regards the debts of persons dying since the 1st of November, 1875 ; but nevertheless the effect of this enact- ment does not appear to be so extensive as at first sight one might suppose. In the first place, its application is confined to cases of Applies to the administration by the Court of imaolvent estates, estates Thus where the assets of a person are sufficient to meet *'"^>'- his liabilities, the order of payment remains as before ; a matter which is in this case of course of very little moment. And again, where no recourse is had to the Court for the administration of insolvent estates, the priorities of creditors are determined by the old law. Further, the law of bankruptcy is by this section, even How far when it operates, only to be applied in three respects : bank-° (1) As to respective rights of secured and unsecured ruptcy creditors ; (2) As to the debts and liabilities proveable ; ' (3) As to the valuation of annuities and future and con- tingent liabilities. It is only the first of these heads which can affect the rules as to priorities now under view. (/) Shirreff v. Hastings, 6 Ch. D. (h) Croioder v. Steimrt, 16 Cli. D. 610. 368. {g) Hanson v. Stubbs, 8 Ch D. (/) 38 & 39 Vict. c. 77. 154. ADMINISTRATKIX GENERALLY. The question is, to what extent it modifies the previous law. In one respect the change introduced is obvious. In ec|uity a mortgagee has always been allowed to pursue all his remedies concurrently ; his enforcement of one does not prejudice him in the prosecution of another ; he may at the same time sue personally for his debt, and proceed to enforce his specific security by foreclosure or sale. It was held in an important case (k) that the death of the mortgagor made no diflPerence to this right, and that thus in the administration of his estate the mortgagee might share rateably with other creditors by proving for the full amount of his debt against the estate ; and having received his dividend, might proceed to realise his security, and retain thereout the whole balance due to him. He might thus receive twenty shillings in the pound, while the un- secured creditors had to be satisfied with a small dividend. Under the Bankruptcy Act, 1869, the position of a mortgagee or other secured creditor is, however, much less advantageous. By s. 40 of that Act, he is required to elect whether he will prove for his whole debt, and at the same time give up his security for the benefit of the estate ; or whether he will retain his security, and after valuation, or sale of it, prove only for the balance of his debt. The effect of his security is thus not prejudiced, but as regards the balance of his debt he is in no better position than any other creditor ; and if not fully secured, he cannot receive twenty shillings in the pound unless the unsecured creditors do so also. Judicature The effect of the Judicature Act, then, is clearly to sub- stitute this rule for the rule established by Mason v. Bogg (l) in the administration by the Court of insolvent estates. But the language of the Act might lead to the supposition that the assimilation to the bankruptcy law would extend further than this. Certain priorities among debts are definitely laid down in the Bankruptcy Act. By s. 32, (k) Mason v. Borjg, 2 My. & Cr. 443. (/) Sup. Act PRIORITY OF DEBTS. 495 certain rates and taxes and certain wages and salaries are to be paid before general debts, and with these exceptions all debts proveable under the bankruptcy are to be paid Ijari passu. Now these preferential debts are quite diffe- rent from those to which priority was given in adminis- tration. The difference is two-fold ; there is a conflict on both sides. On the one hand, bankruptcy gives no priority to judgments registered or unregistered, or to recognizances, over simple contract debts ; on the other hand, in adminis- tration no preference was shown for wages and salaries. Have, then, the words of the Judicature Act the effect of abolishing the old rules of priorities in cases of adminis- tration by the Court, and substituting for them the pre- ferences provided for by the Bankruptcy Act ? It seems that this question must be answered in the negative. In Lee v. Niittall (ni), James, L. J. said : " The sole object of the 10th section, as it appears to me, was to get rid of the rule in Chancery under which a secured creditor could prove for the full amount of his debt and realise his security afterwards, and to put him on the same footing as in bankruptcy." Again, the executor's right of re- tainer, which has nothing corresponding to it in bankruj)tcy, has been held to remain as it was before the Act (n). It has further been decided that in the winding-up of companies to which the same w^ords in the same section apply, the preferences recognised in bankruptcy do not operate (o), from which it seems almost a corollary that the old priorities are not displaced. More recently still it has been expressly decided that in administration a judg- ment creditor has still the same priority as he had before the Act (p). We conclude, then, that the Judicature Act, 1875, has (m) 12 Ch. D. 61. 337. See also /« re Printing ferred upon a specific devisee, and to increase that of the residuary legatee, whereas the law of administration dis- tinctly prefers the former to the latter. This tendency is counteracted by the application of the Principle principle known as marshalling. The principle, as laid g^a^g. down in the leading case of AliDRICH V. COOPER [8 Ves. 382 ; 2 W. & T. L. C. 80], is that if one person has two funds to which he may resort for the satisfaction of his demands, he shall not by his (c) Nelson v. Page, 7 Eq 25 ; v. Smyth, 17 Eq. 153. Lewis V. L., 13 Eq. 219 ; SackviUe 510 ADMINISTRATION GENERALLY. Marshal- ling for parapher- nalia. For specific legatees election disappoint another person who has only one fund. If, therefore, he chooses to resort to the only fund upon which the other has a claim, that othei- is allowed to stand in his place pro tanio against the fund to which otherwise he could not have resorted. In the case we have put the creditor has an option of two, or it may be several different funds, out of either or any of which he may recover his debt. The beneficiaries have each only his own particular fund available to him, the heir the descended land, a specific legatee the property specifically bequeathed, and so on. To restore, then, the order of administration which the creditor's election has disturbed, the law permits any beneficiary who is disap- pointed by the creditor's actions to stand in the creditor's place as against any fund which is in the order of adminis- tration liable before his own. It is not necessary, even if it be possible, to illustrate from cases all the possible forms of marshalling between beneficiaries which this broad principle would authorise. A few instances will serve as well as more. We have seen that one of the last funds resorted to for the payment of debts in the order of administration is the paraphernalia of the widow. If the place ascribed to it in the last section be correct, it would follow that, with the exception of an appointee under a general power, the widow might marshal the assets as against all the other beneficiaries ; in other words, if a creditor deprived her of her paraphernalia, she could claim to stand in his place to the extent of its value as against all the specific devisees and legatees, and d fortiori against others of earlier liability, such as the heir. We find instances in which she has successfully claimed to marshal against general pecu- niary and even specific legatees {cl). Again, specific legatees and devisees, who stand on an equal footing at the head of all the beneficiaries claiming (d) Tippinri V. T., 1 P. Wms. 730; Boynton v. Parkhurst, 1 Bro. C. C. .^76 ; Tynt v. Snell, 289. T., 2 P. Wms. 542 MARSHALLING OF ASSETS. 511 out of the testator's property, are entitled to marshal all and the assets real or personal not specifically bequeathed or devised. If the creditor enforces a remedy at their ex- pense, they can stand in his place as against every fund antecedently liable. The cases above cited to establish their position in the order of administration, apply equally here. As between themselves specific legatees ana devisees (including, as we have shown, residuary devisees) have no right to marshal, their liabilities being equal (e). Pecuniary legatees, again, may marshal against lands For pecu- devised subject to debts (/) ; d fortiori against lands de- {|,g^tgeg_ scended to the heir {g). Similarly a devisee of lands charged with debts may For marshal against lands descended (/<-), lands devised on jands trust for sale for payment of debts, and the general personal charged, estate (^); while the heir can only marshal as against the two last named funds (k), and devisee of lands devised on trust for sale to pay debts only against the general per- sonalty. The operation of the principle as between beneficiaries may thus be completely shown in tabular form. The beneficiary named in the left hand column may marshal against the one named opposite to him in the right hand column and all beneath that one. It does not, indeed, seem to have been decided that an appointee can mar.shal against the paraphernalia, and it may be considered doubtful whether they should not be placed on an equal footing, neither having a right to call upon the other. They have been inserted here rather for the sake of completing the illustration than as an expression of opinion on a point which will so rarely arise. (e) Haslewood v. Pope, 3 P. Wms. Gallon v. Hancock, 2 Atk. 424. 324 ; Emuss v. Smith, 2 De G. & (h) Harmood v. Oglander, 8 Ves. Sm. 722. 106. (/) Richard v. Barrett, 3 K. & J. {i) Ihkl. 289. {k) llanhy v. Roberts, Amb. 128. {g) Sproide v. Prior, 8 Sim. 189 512 ADMINISTRATION GENERALLY. Marshal- ling as between bene- ficiaries them- selves. An appointee under a general power the widow a specific legatee or devisee a pecuniary legatee When not applied. a devisee of charged the heir lands a devisee of lands de- vised to pay debts may marshal against the widow's parapher- nalia against specific legatees and de- visees „ a pecuniary legatee „ adevisee of lands charged with debts „ the heir „ a devisee of lands de- vised to pay debts „ the general personalty. Not only is the doctrine of marshalling applied as be- tween beneficiaries when one or more of them has or have been disappointed by the election of a creditor ; it is also utilised as between the beneficiaries themselves. Thus if a testator charges some legacies on real estate, but not others, and the personal estate proves insufficient to pay' them all, the legacies charged on the real estate will be thrown thereon in order to leave the personalty for the payment of the other legacies. Or if the privileged legatees choose to exhaust the personalty, the others may pro tanto stand in their place as against the real estate charged (I). The principle is clearly the same as in the previous case, the legatees whose legacies are charged on land having two funds at their disposal, the other legatees only one. The doctrine of marshalling, however, will not be em- ployed so as to alter the effect of the rules for the construc- tion of legacies. Thus we shall see when classifying and describing the different species of legacies, that legacies charged on land are interpretated by the rules of common [1] Hanhy v. Roberts, Amb. 127 ; Bonner v. R, 13 Ves. 379. MARSHALLING ASSETS. 513 law, and accordingly they fail altogether if the legatee dies before they are actually paid, while legacies not so charged are interpreted on the principles of ecclesiastical law which considers them to vest on the death of the tes- tator, and so to be transmissible to the legatee's repre- sentatives if he dies before payment. If, then, the legatee of a legacy charged on land dies before payment, the Court will not by means of the doctrine of marshalling throw this legacy on the personal estate so as to cause it to vest for the benefit of the legatee's representatives (m). 2. Alarshalling between creditors. Questions of marshalling formerly arose very frequently As be- between creditors. As long as simple contract creditors creditors had no claim upon real assets unless charged with debts, °"^y- equity compelled specialty creditors, who could resort to these assets, to seek their remedy thereout, so as to leave the personal assets for the creditors by simple contract ; or if the specialty creditors exhausted the personalty the simple contract creditors were suffered to stand in their place against the real assets (n) ; but only to the extent to which the personalty had been applied in payment of the specialty debts. They were not entitled to have a larger fund than they had originally (o). These forms of mar- shalling are, however, no longer necessary. Neither can any question now arise as to marshalling between secured and unsecured creditors of any class, the rules of adminis- tration being now, as we have seen, regulated by those of bankruptcy. 3. Marshalling generally. It is necessary before dismissing the subject of marshal- Limits of ling to guard against a too comprehensive interpretation cipii'^"^' of the principle. Thus it does not apply as between creditors of different persons. If a person has a demand against A. and B. jointly and severally, a creditor of B. alone cannot compel the former creditor to apply to A. {m) Prowse v. Ahinrjdon, 1 Atk. (w) Sagitary v. Hijcle, 1 Vern. 45.5. 482 ; Pearce v. Loman, 3 Ves. 1.35. (o) Cradock v. Piper, 15 Sim. 301. L L 5J4 ADMINISTRATION GENERALLY. alone so as to leave the property of B. free for his sepa- rate debts, unless at least there is some equity between A. and B. themselves which would entitle B. himself to a remedy against A. {p). Again, there must be not only two claimants from the same person, but one of them must have two funds belong- ing to the same person to which he can resort. Thus a legatee in a will of a tenant in tail of lo.nd could not throw judgment creditors exclusively on those lands in exonera- tion of the general assets {q). Marshal- Again, we have elsewhere seen that the Court will not applied for marshal assets in favour of charities. Thus if real and chanties, personal estate, including chattels real, are given on trust to sell for the payment of debts and legacies, and the residue is bequeathed to a charity, the debts and ordinary legacies will not be thrown on the proceeds of land so as to leave the pure personalty for the charity (s). The same rule applies in the case of a simple pecuniary legacy {t). But this rule does not in the least prevent the testator from himself producing the effect of marshalling by direct- ing the payment of his charitable legacies to he made out of pure personalty (u), and such a direction will be carried into effect by allowing, if necessary, the charities to stand against realty in the place of creditors who have exhausted the pure personalty (x). VI. Marshalling Securities. Marshal- _ The doctrine of marshalling is not confined to the ad- ties. ^°^" ' ministration of assets, and though not strictly d propos to the present subject, this is a convenient place in which to refer to its application as between the creditors of living ip) Exp. Kendall, 17 Ves. 520. Chm-y v. 3Iott, 1 My. & Cr. 123. (q) Dovcjlas V. Cooksey, 2 I. R.. Eq. (u) Robinson v. Geldard, 3 Mac. & 311 ; see also In re International &c. G. 735. Sac, 2 Ch. D. 476. (x) Att.-Gen. v. Mountmorris, 1 (s) Mogg V. Hodrjes, 2 Ves. sr. 52. Dick. 379. (t) Ridges v. Morrison, 1 Cox, 180; MARSHALLING SECURITIES. 515 persons. UiDon the same principle that where one person has two funds to resort to, aud another has only one, the former shall not disappoint the latter by depriving him of his only i-esonrce, it has been laid down that if a person who has two real estates mortrao^es both to one mort- gagee, and afterwards only one estate to a second mort- gagee, the Court will direct the first to take his satisfac- tion in the first place out of that estate which is not in mortg'aofe to the second morty;aojee, so as to leave the second estate, or as much of it as is not required to complete the satisfaction of the first, for the second mortgagee (?/) ; and it is immaterial whether the second mortgagee has or has not notice of the first mortgage {2). So if one of the estates is subject to a portion, the person entitled to the portion may require the mortgagee to resort to the other estate, or if he does not, may stand in his place against it (c/,) ; and the principle has been applied even in favour of a voluntary settlement (b). Securities will not, however, be marshalled to the pre- Not to the judice of third parties. For instance, if there is first a of*^third'^ mortgage of A. and B., and then a mortgage of B. only, persons, and then another mortgage of A. and B. to a third mortgagee without notice of the second mortgage, the securities will not be marshalled against the last mortgagee (c). Secue, if he had notice at the time of his advance (d). The principle is applied also in Admiralty cases — for in- stance, where one person has a bond on the ship, freight, and cargo, and another only on the ship and freight, the former will be required to resort primarily to the cargo, or else the latter will be allowed to stand in his place ■against it (e). (//) Lanoy v. Athol, 2 Atk. 446. {h) Hales v. Cox, 32 Beav. 118. (r.) Hughes v. Williams, 3 Mac. & (c) Barnes v. Racster, 1 Y. & C. G. 690 ; ^Tidd v. Lister, 10 Ha. 157 ; Ch. 401. 3 De G. M. & G. 857. (d) Re Moicers Trust, 8 Eq. 110. (a) Ranclifc v. Parkyns, 6 Dow. (c) The Trident, 1 W. Rob. 29 ; 216. " The Aral,, 5 Jur. N. S. 417. LL 2 516 MATTERS RELATIVE TO ADMINISTRATION. Section II. — Matters relative to Administration. I. Legacies. 1. Specific Legacies. (1.) Effect of Wills' Act (1 Vict. 26). (2.) What constitutes a Specific Legacy. (3.) Generally. (4.) Ademption. 2. Deimonstrative Legacies. 3. Time of Payment and Interest. II. Donationes Mortis Causa. 1. Conditions of. 2. Place in Adrifiinistration. I. Legacies. Under the head of Administration of Assets, it was necessary to classify the different species of beneficial interests which might be bestowed by a testator. From this classification, we are led to a further inquiry respect- ing the different modes in which legacies may be bestowed , in order to ascertain the particular characteristics of the several species. Questions of this nature continually arise on the construction of wills for the purposes of adminis- tration, and it is therefore advisable to review the con- sequences of the leading distinctions between the various forms of legacies, notwithstanding that it is a matter which would strictly come under the head of conveyancing rather than that of equitable jurisprudence. Legacies Legracies are either general, demonstrative, or specific. classified, ° . ° . ■> r defined, -^ general legacy is one which does not relate to any individual thing, or sum of money, as distinct from other things of the same kind or other monies : for instance, a bequest of "a horse," of one thousand pounds, or one thousand pounds stock. Such legacies are referred to in - LEGACIES. 517 the Wills' Act (/) as "bequests of personal property described in a general manner." A demonstrative legacy is one in which together with words of general description, such as would create a general legacy, are used additional words pointing out a particular fund out of which it is to be satisfied : for instance, a bequest of " one thousand pounds out of my East India Stock." A specific legacy is a bequest of a particular thing or sum of money as distinguished from all others of its kind — for instance, a bequest of " my horse Dobbin/' " the five hundred pounds contained in my safe/' or " the debt owing to me by B." These distinctions are of areat importance. As we have ^^^ com- . pared. seen, in the administration of assets the order of the appli- cation of a legacy depends upon whether it is considered to be general or specific ; so that upon the construction put upon it in this respect, the question as to whether the legatee shall enjoy it or not may wholly rest. In this instance the position of a specific legatee is more advantageous than that of a person whose legacy is general. But in another respect the contrary is the case. Thus if after a testator has given a specific legacy, the thing specifically given ceases to exist, or ceases to belong to the testator, the legacy is considered to be adeemed ; the legatee entirely loses the benefit of it, and cannot claim compensation out of the general estate. We shall presently inquire more precisely what will suffice to effect an ademption. A general legacy, on the contrary, is not liable to ademption. It is payable out of any and every part of the assets not required for payment of debts, and not specifically disposed of. 1. Specific legacies. (1.) Before proceeding to consider in detail the different Before the . . . Wills' Act kinds of legacies, it is necessary to point out that the character of specific legacies has to some extent been modified by the Wills' Act {(j). Previously to that enact- (/) s. 27. {o) 1 Vict. c. 26. 518 MATTERS RELATIVE TO ADMINISTRATION. merit, a will was deemed to speak as far as concerned the property to which it related as from the time at which it was made. When, therefore, a testator made use of such an expression as " my stock," or " my horses at B.," there could be little doubt as to what his words referred to, and such legacies were then always considered as specific (h). ■^v5"^A* °* S^t ^y section 24 of the above statute every will is to be construed " with reference to the real and personal estate comprised in it, to speak and take effect as if it had been executed immediately before the death of the testator." Now, therefore, when the same expressions are used, in order to treat them as specific we must consider the tes- tator's intention to have referred to a future state of things. On the ground that this was not an admissible supposi- tion, it was held by some judges that some stronger indi- cation than the mere use of a personal pronoun was re- quired under the new law to impress the legacy with a specific character (i). On the contrary, however, it has been pointed out that previous to the Wills' Act, it was open to a testator to make his legacy act specifically as from his death by means of such an expression as " all the furniture which I shall be possessed of at my death," and that the effect of the Act has been to import such a clause into all wills. It has been held by high authority that there is nothing unreasonable in this, and it may be con- sidered as established that the same same words will suffice now as did formerly, to effect a specific legacy (k). It is true that these decisions confer upon the term specific legacy a somewhat broader meaning than it formerly had. Formerly a legacy was, in the absence of express words postponing its application until the time of death, only specific when it necessarily operated, if at all, upon some definite and certain object, and it was liable to be adeemed by any alienation of that object, or any substitution of another for it, subsequent to the date of the will. Now (//) Kirii/ V. Potter, 4 Ves. 748. {k) Lamjdale v. Briggs, 8 De G. (i) Goodiad v. Burnet, 1 K. «& J. M. & G. 391 ; Bothamky v. Sherson, 341. 20 Eq. 304. LEGACIES. 510 the general rule is the other way. Unless there is some indication of intention that the legacy shall apply only to an object belonging to the testator at the time of the will, the legacy becomes, in fact, rather generic than specific. When it comes to be carried into effect, it may happen to apply to some object which was not at all within the con- templation of the testator at the time that he made his will, but which was subsequently acquired by him, either in addition to or in substitution for objects of the same genus which he had at the time of the will. Though such a legacy may, of course, fail owing to there being no property answering to it at the time of the death, it is not liable to ademption in the same manner in which specific legacies formerly were, since from the time at which it is applied, there can be no dealing with the property which will affect it. The cases cited, however, show that this alteration of the character of the legacies does not prevent legacies which were formerly considered specific from being still treated as such. But there is a distinction to be observed between such generic legacies and a legacy which was manifestly in- tended to refer to a distinct and particular object. If a testator uses such words as " my stock," or " my shares," or " my horses at B.," he may well be supposed to have meant such stock, shares, or horses as he should be possessed of at his death. But if he bequeaths a distinct object, such as his " horse Dobbin," or his " shares in the A. Company," his intention clearly refers not to a genus, but to a certain particular thing ; and, if after making such a bequest, he parts with that thing, the mere fact that before his death he acquires another of the same kind which happens to be called by the same name will not prevent the legacy from being adeemed by the alienation. In such a case there is considered to be a sufficient indication of contrary inten- tion to prevent section 24 of the Wills' Act from saving the legacy {I). (1) Re Gibson, 2 E(i. 669. 520 MATTERS RELATIVE TO ADMINISTRATION. (2.) What constitutes a specific legacy. In considering what expressions are considered to give rise to a specijEic legacy, it will be convenient to distinguish between the different classes of objects which may be comprised in a specific bequest. Articles of Specific legacies of valuable articles (in which money is value. ^^^ -^^^^ included) require but little exposition. There can be rarely any question about a clause which bequeaths a horse, or a piece of furniture, or jewellery definitely to a given person. Such a bequest may evidently be for life only or absolutely. It will, however, be construed as absolute, unless expressly limited to a life interest. In the case of things qum usu consumuntur, the nature of the gift generally prevents a gift over from following a life interest, and even if it be expressed to be for life, or for a limited period, it will be construed as absolute (w). When such articles constitute the testator's stock in trade, the case is different ; here there is no inconsistency in direct- ing successive interests, and such a direction will be carried into effect (n). The distinction must also be observed between a specific and a residuary bequest of such things. In the latter case, if there are successive interests, they will be protected by a sale of the articles and pay- ment of the interest of the proceeds to the persons suc- cessively entitled (o). It has, moreover, been held that where the same clause includes a bequest of particular articles, and a gift of the residue, the whole clause will be considered as residuary, and not as specific. Thus a gift of " all my horses and other personal estate " is deemed residuary (p) ; and so, also, where the particular expression came last ; e. g., a gift of " all my personal property together with all my furniture, &c." (q). Money. A bequest of a sum of money in a certain bag (r), or (m) Randall v. Russell, 3 Mer. (p) Fielding v. Preston, 1 De G. 195. & J. 438. (n) Phillips V. Beal, 32 Beav. 25. (q) Fairer v. Park, 3 Ch. D. 309. (o) Hoioe V. Ld. Dartmouth, 7 (r) Lawson v. Stitch, 1 Atk. 508. Ves. 137, sup., p. 103. LEGACIES. 521 in the hands of a certain person (s), is specific. A bequest even of " all my monies " has been so considered (t). But a bequest of a sum of money followed by a direction as to its application, e. g., " to purchase a ring," or " an annuity," or " government securities," is general (u) ; as is also a bequest of money " to be paid in cash " {x). A debt due to the testator may be specifically be- Debts, queathed ; and this may be effected either by a descrip- tion of the sum owing ; e. g., a bequest of " the money due on A.'s bond " (?/), or " the money now owing to me from A." (z), or by a specific gift of the security itself, as of " my note of £500 " (a). And the bequest may be specifically made for life only, as well as absolutely (6). In the case, again, of a bequest of part of a debt to one person, and the " remainder,'' or " residue " to another, both legacies are specific (c). A bequest of stock, or government securities described Stock. as " my stock," or " my securities " is specific, or (since the Wills' Act), perhaps, more strictly speaking, generic in character, but specific in effect {d). A legacy, also, of so much, " part of my stock," has been considered as specific (e). A bequest of a sum of money out of stock is, on the contrary, demonstrative (/). If a legacy is expressed in general terms to be of so much stock, &c., instead of as so much money, it will not be deemed specific merely because the testator happens to have stock, &c., of a corresponding description, since his intention might have been that his executor should pur- (s) Hinton v. Priske, 1 P. Wms. (a) Drinkwater v. Falccmer, 2 Ves. 540. sr. 623. {t) Manning v. Purcell, 2 Sm. (b) Ashburner v. Macguire, 2 Bro. & G. 284 ; 7 De G. M. & G. C. C. 108. 55. (c) Ford v. Fleming, 2 P. Wms. (m) Apreece v. A., 1 V. & B. 364 ; 469. Hume V. Edioards, 3 Atk. 693 ; Gib- {d) Barton v. Cooke, 5 Ves. 461 ; bons V. Hills, 1 Dick. 324. Bothamley v. Skersan, 20 Eq. 304. (x) Richards v. R, 9 Pri. 226. (e) Kirby v. Potter, 4 Ves. 750. (y) Davies v. Morgan, 1 Beav. (/) Ibid., Deaney. Teste, 6 Ves. 405. 146, 152. (z) Ellis V. Walker, Amb. 309. •?•> MATTERS RELATIVE TO ADMINISTRATION. Chattels real. chase such stocks out of his general personalty (g) ; but where there was a bequest of named stock in general terms, and coupled with it a direction for a sale of it, and the testator possessed some of the stock named, it was held that a specific bequest must have been intended (h). A bequest of a lease, or of a rent out of a term of years is specific (i). On the contrary, a gift not of an annual, but of a gross sum, payable out of a term, or out of real estate, is demonstrative (k). And, again, this must be distinguished from a mere direction to pay a legacy out of a particular fund or estate ; in this case the fund or land alone is liable (/). There may, also, be a specific gift of the proceeds of sale of land, whether freehold or lease- hold (m). (3.) General characteristics, A gift of a specific legacy carries with it everything in- cident to the subject-matter of the gift ; such, for instance everything as bonuses declared after the testator's death upon shares specifically bequeathed (7;-). Bonuses declared in his life- time, but payable after his death, do not, however, go to the legatee (o). Dividends, also, declared after his death, are considered as income and go to the legatee, notwith- standing that they may have been earned in the testator's lifetime {p). Conversely, liabilities attaching to the subject-matter of the gift, if arising after the testator's death, are payable by the specific legatee (q). But payments necessary to complete the testator's interest in the subject-matter of the u'ift must be distinguished from such Uabilities. Such Specific legacy carries it, benefits and lialjilities, {(j) Partridge v. P., ca. t. Talb. 463 ; Walker v. Laxton, 1 Y. & J. 226 ; Purse v. Snaplin, 1 Atk. 557. 4] 5. (m) Maclareii v. Stainton, 3 De G. (h) Asliton V. A., 3 P. Wms. F. & J. 202. 384. (0) Lock V. Vcnahles, 27 Beav. (i) Long v. ShoH, 1 P. Wms. 598 ; De Gcndre v. Kent, 4 E([. 403. 283. (k) Savile v. Blacket, 1 P. Wms. (p) Bates v. Mackinley, 31 Beav. 778. 280. (I) Spvrimy v. Ghpin, 9 Ve.*. 483. (q) Adams v. Fennck, 26 Beav. (/ii) Poije V. LcapingwtU, 18 Ves. 384. LEGACIES. 523 payments are payable out of the general personal estate (r). Sometimes a legacy which at first sight appears to be Legacies residuary or general, may be shown to be really specific, general. An instance of this is where a testator devises land upon trust to sell for a certain sum, and after giving legacies thereout, bequeaths the remainder of the money to another legatee. In this case, a total definite sum being named, the remainder is just as specific as any of the specified parts which are first mentioned (s). It is otherwise if the trust for sale is general, no definite sum being named. Then, if certain sums are first given and the residue afterwards bequeathed, the certain sums are specific and the residue general (t). The distinction be- tween the two classes of cases is, however, often very fine (u). When there is an apparently specific bequest, parol evidence is admissible to show what property there is answering to the description of it (x) ; and generally to determine whether a legacy is general or specific (y). (4.) Ademption of specific legacies. In speaking of the ademption of specific legacies it is Two uses necessary to distinguish between this matter and the ^ord^ ademption of general legacies to children, &c., by portions " ademp- or subsequent gifts given in satisfaction thereof during the testator's lifetime. The term ademption is indeed applied in both cases ; but that there is a marked dis- tinction between the two is sufficiently obvious. In the latter sense many general legacies are liable to ademption, and the principle rests on the presumed intention of the testator {z). In the case of the ademption of specific legacies, on the contrary, the intention or animus adi- mendi is immaterial («). (r) Armstrong v. Burnet, 20 Beav. Re Jeffertfs Tr., 2 Eq. 68. 424. {x) Hurwood v. Griffith, 4 De G. (s) P«//e V. Leajiingwell, sup. M. & G. (t) Read v. Straiujnvaijs, 14 Beav. (//) Att-G. v. Grote, 2 R. & M. 690 139. (z) See Exp. Pye, 18 Ves. 140. («) See Pdre v. P., 14 Beav. 197 ; («) Stanfcy v. Potta; 2 Cox, 182. 524 MATTERS RELATIVE TO ADMINISTRATION. Non- The most conclusive form of the ademption of a specific of subject legacy is where the tiling expressed to be specifically be- matter. queathed ceases to be in existence before the testator's death ; if, for instance a house specifically bequeathed has been destroyed by fire, or a policy of assurance has been suffered to lapse (6). In the former case, notwithstanding that the house may have been insured, the specific bequest will not operate upon the insurance money, which will fall into the residuary estate (c). Similarly if a debt is spe- cifically bequeathed, and is afterwards received by the testator in his lifetime, the bequest is adeemed (d), and this notwithstanding that the money when received is again laid out in a similar manner, as for instance, when a mortgage debt is paid off, and the money again invested on mortgage (e). And it makes no difference whether the debt is paid voluntarily or compulsorily (/). Removal Ademption may, moreover, be occasioned by less con- matter, elusive changes in the property than these. Thus a specific legacy of goods described as being in a particular place, will be adeemed by their removal to another place (g), unless the removal is only temporary or accidental, as for instance for purposes of repair, or by reason of a fire (h). Removal is of no effect unless the words of the bequest have evident reference to a given locality (i). Change of Again, where stock which has been specifically be- queathed has been subsequently sold out by the testator, the bequest is thereby adeemed (k), and this will be the case even if the money realised is again laid out in similar stock (/). A mere change in the name or form of the stock, for instance by a parliamentary conversion, will not, (6) Stanley v. Pottei; 2 Cox, 182. (.7) Green v. Symonds, 1 Bro. C. C. (c) Durham v. Friend, 5 De G. & 129, n. Sm. 343. {/() Brooke v. Warwick, 2 De G. (d) Rider v. Wager, 2 P. Wms. & Sm. 425 ; Chapman v. Bart, 1 329 ; Barker v. Rayner, 5 Madd. Ves. sr. 271 ; Raidinson v. R., 3 Ch. 208 ; 2 Russ, 122. D. 302. (c) Gardner v. llatton, 6 Sim. 93. {i) Norris v. N., 2 Coll. 719. (/) Ashhurnerw. Maajuire, 2 Bro. (k) Lee v. L., 27 L. J. Ch. 824. C. C. 108 ; Staidey v. Potter, sup. (!) In re Gibson, 2 Eq. 669. LEGACIES. 525 however, cause an ademption (tii), nor will a transfer thereof from trustees to the testator (n). Ademption, moreover, will not be effected by any dealing with the stock unknown to the testator or without his authority (o). So if he becomes insane, the dealings of others with his property will not as a rule be suffered to affect bequests which he may have made (p). But a sale of personalty by order of the Court in Lunacy without any reservation of the rights of legatees, has been held to effect an ademption of a specific bequest (q). In considering all questions concerning ademption the provisions of the Wills' Act already quoted must be re- membered. In the instances here given the intention of the testator to refer only to the property as it existed at the time of the will, was sufficiently clear to prevent the operation of the Act. When no such intention is expressed or can be gathered from the circumstances of the case, the will will, as we have seen, speak as from the death, and then no ademption can take place. 2. Demonstrative legacies. A demonstrative legacy so far resembles a specific legacy Charac- that it will not abate with the general legacies until the *^^'^^*^<^^- fimd out of which it is payable is exhausted ; it so far resembles a general legacy that it will not be liable to ademption by the alienation or non-existence of the pro- perty indicated for its payment. It is considered that the primary object is the gift of the legacy, the indication of the particular fund being a matter subsidiary or directory, and not of the essence of the gift {r). The testator may, nevertheless, show such an intention that a legacy shall be paid out of one fund only, as to effectually make its pay- ment conditional upon the existence of that fund (s). (hi) Partrid'je v. P., ca. t. Talb. {p) Taylor v. T., 10 Ha. 475. 226. (q) Jones v. Green, 5 Eq. 555. (n) Dingwell v. Asl-eio, 1 Cox, 427. (r) Savile v. Placket, 1 P. Wms. (o) Shaftesbury v. >S'., 2 Vern. 747, 777 ; Viclcers v. Pound, 6 H. L. 885. 748, n. 2 ; Basan v. Brandon, 8 Sim. (s) Coard v. Iloldamess, 22 Beav. 171. 391. 526 MATTERS RELATIVE TO ADMINISTRATION. Legacies Attention mnst be called to some cases in which a legacy apiLently apparently demonstrative is in effect specific. A beqnest demon- ^f money out of stock, as of " £1000 out of my Three per Cents." is demonstrative; but, as we have seen, a bequest of " £1000 stock, part of my Three per Cent, stock '' is deemed to be specific (t), and similarly a bequest of one article or more out of a number of the same kind is specific, and gives the legatee a right to select (u). 3. Time of 'payment of legacies, and interest. There are also important distinctions between the dif- ferent kinds of legacies as regards the time at which they are payable, from which time interest runs thereon. Specific Specific legacies are payable and interest runs thereon egacies. f^^Q^a the death of the testator, from which time also, as we have seen, dividends accrue to the legatee {x). The case of a specific bequest of a reversionary interest is evidently an exception, there being no claim then until the reversion falls into possession. General General legacies, on the contrary, are not, unless the egacies. -^gf^^r^^^Qj. expressly fixes a time for their payment, payable until the expiration of twelve months after his decease, and accordingly as a rule they only carry interest from that time {y) But the testator may by expressed intention accelerate or postpone their payment {z\ and in th&se cases interest is payable from the directed time of payment («). Excep- There are some exceptions to this rule. Thus where a cases. legacy is given in satisfaction for a debt, it is payable at and carries interest from the death (6). And where a parent, or person in loco parentis, bestows a legacy upon an infant, the Court will generally give interest from the death by way of maintenance (c). But where a separate (t) Kirh) V. Potter, i Ves. 748. (z) Re Tinkler'' s Estate, 20 Eq. 456; (m) Richards v. R., 9 Pri. 219 ; Loi-d v. L., 2 Ch. 782. Jacques V. Chambers, 2 C'oll. 435. («) Lrmdesborough v. Romerville, (x) Barrinqton v. Tristram, 6 Ves. 19 Beav. 295. 345 ; Bristow v. B., 5 Beav. 289. (b) Clark v. Seioell, 3 Atk. 99. iy) Child V. Elsworth, 2 De G. M. (c) Beckford v. Tobin, 1 Ves. sr. & G. 679 ; Wood v. Penoyre, 13 Ves. 310 ; Wilson v. Maddison, 2 Y. & C. 333. ' Ch. 372. LEGACIES. o27 fund for maintenance is provided the case is taken out of the exception, and falls within the general rule (d), and so where the child is adult (e). A legacy charged upon real property is also payable at the testator's death, and from that time interest runs (/); but not so where real property is devised upon trust for conversion and payment of legacies out of the proceeds ; in this case the general rule applies(fjf). The distinction seems to be based on the general principle elsewhere observed (p. 514), that whereas purely personal legacies follow the rules of civil law, as expounded by the ecclesiastical courts, legacies charged on land are treated according to the doctrines of the common law. A demonstrative legacy, as regards the time of payment Demon- and the accrual of interest, resembles a general and not leo-ades. a specific legacy (7i). The rate of interest usually charged is four per cent. (?'), Rate of and compound interest will not be paid unless directed by the will (k), or there is a breach of trust by the executor (J). II. Donationes Mortis Causa. English equity has derived from the Roman law a mode Definition, of disposition intermediate in character between a specific legacy and a gift inter vivos, namely the donatio mortis causa, and in doing so it has in the main also adopted the principles by which these gifts were regulated by Roman law. The purpose of a definition of the donatio mortis causa is best served by stating the necessary conditions of such a gift. In doing so we shall indicate its character fully, by pointing out in what respects it resembles, and in what it differs from a legacy on the one hand, and a gift inter vivos on the other. (d) Re Rouse's Estate, 9 Ha. 649. 210. (e) Raven v. Waite, 1 Swanst. 553. (i) Wood v. Briant, 2 Atk. 523. (/) Maxwell v. Wettenhatl, 2 P. {k) Arnold v. A., 2 My. & K. 365. Wms. 26. {I) Rajihael v. Boehin, 11 Ves. 92 ; (r/) Turner v. Buck, 18 Eq. 301. 13 ib. 590. (/() Mullins V. Smith, 1 Dr. & S. 528 MATTERS RELATIVE TO ADMINISTRATION. Must be made in view of death. Must be complete only at death. Contrast in Roman law. Delivery necessary. 1. Conditions of donatio mortis causa. (1.) As in Roman law so in English, a donatio Tnortis causa is only valid when made in near contemplation of death {ni). It is not, it seems, necessary for the donor absolutely to express the gift to be made in close expecta- tion of death ; this may be presumed from the circumstances of the case, if the donor is evidently and to his own know- ledge near death {n). This condition is evidently implied in the name itself, and it distinguishes the donatio mortis causa from both a legacy and a gift inter vivos. (2.) The gift must be conditioned to take complete effect only after the donor's death (o) ; but in this case, as before, the condition need not be expressly declared. If the gift is made in evident contemplation of death the law will imply an intention that it is to be absolute only in the event of death (^)). There were two modes of donatio mortis causa recog- nised at Rome ; in one, the subject of the gift was given on condition that it should become the property of the donee in the event of the donor's death ; in the other, the subject of the gift became at once the property of the donee, but on condition that he should return it to the donor in the event of his recovery. English equity recognises only the former of these modes, a gift under a suspensive condition. Such a gift is in this respect analogous to a legacy, being revocable during the donor's life, and is accordingly con- trasted with a donatio inter vivos. (3.) The gift must be completed by a delivery of the subject-matter thereof (9). But in the application of this rule, it must be observed that a clear constructive delivery is deemed tantamount to actual delivery. Thus delivery to an agent of the donee or to some one on his behalf will (m) Inst. II., 7. 1 ; Duffield v. £lwes, 1 Bli. N. S. 5.30 ; Edwards v. Jones, 1 My. & Cr. 23.3. (n) Miller v. M., 3 P. Wms. 356 ; Lawson v. L., 1 P. Wms. 441. (o) Edwards v. Jones, sup. (p) Gardner v. Parker, 3 Madd. 184. (q) Tate v. Hilbert, 2 Ves. jr. 120 ; 4 Bro. C. C. 286. DONATIONES MORTIS CAUSA. 029 suffice (-)■), So also will a delivery by an agent of the donor at the donor's request ; but not a delivery by the donor to his own agent(s). Again a delivery by symbol is equivalent to an actual delivery ; thus, for instance, the delivery of the key of a box with intent to give the contents is equivalent to a delivery of its contents (t) ; but such a delivery must be distinguished from that of the delivery of a key to a person for some other purpose, as to a housekeeper, for the purpose of safe custody (u). The case of negotiable instru- ments, which are in some sense symbols of choses in action, rests on a different principle, which will be presently con- sidered. In this respect a drmatio mortis causa is contrasted Property both with a legacy and with a gift inter vivos, which may „£ being be eiFected by deed without delivery. A peculiar effect 8'iven . . . . . . mortii^ of this condition, acting in connection with the equally causa. essential condition that the gift is to take effect absolutely only in case of death, has been to render some kinds of property seemiugly incapable of being the subject of a donatio mortis causa. A chose in action may, indeed, be generally effectually given by the delivery of the means of its enforcement ; thus a bond {v), a mortgage deed {x), a promissory note payable to order though not indorsed {y), and other similar instruments {z), may be transferred by donatio mortis causa. But it has been considered that a Cheque, donor's cheque cannot be validly so given, a cheque being nothing more than an order for the delivery of a certain sum of money, which order is revoked by the death of the drawer. The argument would be that a cheque is not itself a delivery of the mouey ; and that from its nature it cannot be made conditional on death (a). On similar reasoning (r) Moore v. Darton, 4 De G. & (x) Dvffield v. Elives, 1 Bli. N. S. Sm. 517. 497. (s) Farquharson v. Cave, 2 Coll. {y) Veal v. V., 27 Beav. 303. 356, 367. (2) Moore v. Darton, sup. ; Amis {t) Jones V. Selhy, Prec. Ch. 300. v. Witt, 33 Beav. 619. (m) Trimm£r v. Danby, 25 L. J. (a) Tate v. Hilbert, sup. ; Hewitt v. Ch. 424. Kai/e, 6 Eq. 198 ; Be Beak's Estate, (v) Snelgrove v. Bailey, 2 Atk. 214. 13 Eq. 489. M M 530 MATTERS RELATIVE TO ADMINISTRATION. Trust created. Impei-fect dunationes mm-tis causa. it has been held that a delivery of receipts for annuities (b), or of railway scrip (c), will not effect a donatio mortis causa. Where a cheque given is in fact actually negotiated before the death, the gift has been held to be complete and effectual (d), but in that case it would seem that the feature of revocability which is essential to donatioTies Tnoiiis causa is wanting, and that, therefore, if such a gift is sustainable at all it must be rather as a transaction inter vivos than as one of the class we are now considering. A donatio Tnortis causa may not only be given absolutely, but may be made subject to a trust for a third person (e), or coupled with a trust for some particular purpose, or charged with a condition (/). (4.) When speaking of voluntary gifts inter vivos {()), it was pointed out that it was open to a donor to confer a benefit either by a direct transfer of his property, or by the creation of a trust in favour of the intended beneficiary, and it was seen that an imperfect attempt to effect a direct gift would not be assisted by considering it as a declaration of trust. A similar principle applies to dona- tiones mortis causa.. The donor may if he chooses bequeath his property by a testamentary instrument, or he may in most cases bestow it by a donatio mortis causa. If he chooses to adopt the former method the law imposes on him certain conditions, compliance with which is necessary to the validity of the bequest. Thus there must be a written instrument duly witnessed and in all respects conformable to the Wills' Act {h). If, on the contrary, he elects to make a donatio mortis causa, the Wills' Act indeed will not affect him (i), but he must comply with the conditions above laid down ; particularly, he must deliver the pro- perty to the donee or to some one for him. But as in the (6) Ward v. Turnei',2Yes. sr. 431. (c) Moore v. M., 18 Eq. 474. (c/) Rolls V. Pearce, 5 Ch. D. 730. (e) Drvry v. Smith, 1 P. Wms. 40.5. ( / ) Blount V. Barroiv, 4 Bro. C. C. 71 ; Hills V. H., 8 M. & W. 401. (q) Svp. p. 51. ('//) 1 Vict. c. 26. (i) Moon' V. Barton, 4 De C. & S. 519. DOXATIOXES MORTIS CAUSA. 531 case of a gift inter vivos so in this case, his attempts to bestow his property will be futile unless they amount to one or other of these alternatives. An attempt to make a donatio 'mortis causa which is defective from there being no delivery of the property, will not be suffered to take effect as a will. However clear the intention may be, and whether expressed by parol or in writing, unless it complies with the Wills' Act so as in fact to be an actual testa- mentary instrument, it will not be enforced (k). On the other hand, if the donor clearly intends to make a testa- mentary gift, but omits the necessary formalities, his intention will not be carried into effect by treating his attempt as a donatio mortis causa, even though there may have been an actual delivery (l). It has, indeed, been sought to aid a donee by setting up an instrument as a declaration of trust, which is clearly void for informality as a will (m). But it seems clear both on principle and on authority, that such an attempt should not succeed. A written instrument expressing an intention to confer a direct gift on another, is quite a distinct thing from an instrument expressing an intention to become a trustee for another. The two intentions are not by any means the same, nor are they so closely allied that where the former is expressed the latter may be implied. We have seen this decidedly established as regards an instru- ment purporting to confer a benefit inter vivos (n), and it is difficult to see how the principle can be otherwise in the case of donatio Quortis causa. The same reasoning has in fact been applied in the latter instance, and aj^proved by high authority (o). Again, the same principle prevents an ineffectual attempt to make a gift inter vivos from being supported as a valid donatio mortis causa. The two things are quite distinct, (k) Rijden v. Vallier, 2 Ves. sr. 475. 258 ; Tate v. Hilbcrt, 2 Ves. jr. 120. («) Sap. p. 51 ; Milroi/ v. Lord, {I) Mitchell V. Smith, 12 W. R. 4 De G. F. & J. 264. 941. (o) Warriner v. W., 16 Eq. .310 ; (m) Morrjan v. Mcdleson, 10 E(i. Richards v. Delhrid'je, 18 Eq. 11. M u 2 532 MATTERS RELATIVE TO ADMINISTRATION and an intention to do the former by no means implies an intention in the alternative to do the latter. On the con- trary, it has been laid down that the former intention is quite inconsistent with the latter (p). 2. Place in achninistration. How far For the purposes of administration a donatio niiortis rfe^cy °^ caitsa is treated in some respects as a legacy. It is true that, being given to vest absolutely in the donee at the death of the donor, the donee's title does not, like that of a legatee, require the assent of the executor or adminis- trator. Nevertheless, it seems that on a deficiency of assets, the subject of the gift is liable like a legacy to the debts of the deceased (q). If this be so, it is clear that it can only be reached by the authority of the Court, which would, we submit, be exercised only in favour of creditors, so that in the order of administration the sub- ject of a donatio mortis causa would be the last of the assets resorted to. It is, however, by statute, subject to legacy duty {r). (p) Edtvards v. Jones, 1 My. & Cr. 406, cited. 226. (r) 8 & 9 Vict. c. 76. (5) Smith V. Casen, 1 P. Wms. 533 CHAPTER III. PARTNEKSHIP. Grounds of Jurisdiction. I, Equity as affecting the natiure and formation of PaHnership. Cox V. Hickman. II. Equity as affecting the Partnership Property. III. Equity as affecting the Rights of Parttiers inter se. IV. Equity as affecting the relation of Partners to Third Persons. V. Eqiiity as affecting the Dissolution of Partner- ship. It is evident that in no class of cases are the facilities Grounds afforded by Courts of equity for taking accounts more °f junsdic- serviceable than in those respecting partnerships. Nor was their superiority to Courts of law in this respect the only element in establishing and confirming their jurisdiction in these matters. The Chancery procedure for procuring dis- covery, the powers of granting injunctions and of decreeing specific performance, adds to the fitness of its Courts for dealing with disputes arising between partners, the nature of which is often such as to be beyond the reach of any adequate remedy under the procedure formerly known to the Courts of common law. It is not surprising, there- fore, that with the development of commercial pursuits, the High Court of Chancery acquired an almost exclusive jurisdiction in partnership cases ; nor that when that Coiu"t was replaced by the Chancery Division of the High Court of Justice, the dissolution of partnerships and the taking 58-1- PARTNERSHIP. of paitncrsliip accounts should prominently appear in the business especially assigned to that division (i'). In dealing in a work of the scope of the present with so wide a subject as partnership, the necessity is evident of confining our consideration as closely as possible to those questions which are peculiarly equitable. By far the greater part of the considerations arising out of the contract of partnership are common to law and equity, and it would therefore be inappropriate to discuss them here. It suffices to call attention to matters to which the dis- tinctive doctrines or remedies of equity are applicable. These may thus be classified : — I. Equity as affecting the nature and formation of the partnership : II. Equity as affecting the partnership property : III. Equity as affecting the relation of the partners inte?' se : IV. Equity as affecting the relation of the partners to third persons, and particularly creditors : V. Equity as affecting the dissolution of the partnership. I. Tlie nature and formation of a Partnership. Definition. 1. Partnership in its widest sense has been defined as " the relation which subsists between persons who have agreed to share the profits of a business carried on by all or any of them on behalf of all of them " (.s). Partner- But this definition gives a more comprehensive meaning tinguished ^o the word than that which it usually bears in English law. from com- j^ includes public companies as well as partnerships in the panies. . '■ ,. . . . ordinary sense, and the distinction between public com- panies and private partnerships is so great that they cannot be conveniently treated together. It must be therefore observed that private partnerships for general business purposes may not consist of more than twenty persons ; (r) Jud. Act, 1873, s. 34. (s) Pollock's Dig. p. 1. NATURE AND FORMATION OF A PARTNERSHIP. 535 and for the business of banking of not more than ten persons. A partnership exceeding these numbers is only- legal when it is either — (1.) Registered as a company under the Companies Act, 1862 ; or (2.) Formed in pursuance of some other Act of Parlia- ment or of letters patent ; or is (3.) A company engaged in working mines within and subject to the Jurisdiction of the Stannaries (t). Partnerships coming under one or other of these dis- tinctions we shall hereafter designate companies. The law respecting them is especially determined by certain statutes, to which the student should carefully refer (u). 2. Confining ourselves then to the consideration of part- Essential nerships in the restricted and more familiar sense of the ship'*'^*'^^^' word, some further elucidation is needed of the definition above quoted, since many important and subtle questions have arisen respecting the precise character or extent of the sharing of profits which is required to constitute the relation of legal partnership. A leading authority on questions of this kind is the case of COX V. HICKMAN. [8 H. L. 268.] In that case Benjamin and Josiah Smith carried on business under the name of Smith & Son. Becoming embarrassed they executed a deed by which they assigned their property to trustees, and empowered them to carry on the business under the name of the Stanton Iron Com- pany, and to divide the net income amongst the creditors in rateable proportions, with power for the majority of the creditors, assembled at a meeting, to make rules for con- ducting the business or to put an end to it altogether; and after the debts had been discharged the property was to be retransferred by the trustees to Smith & Son. It was sought to make the creditors liable for debts {t) 25 & 26 Vict. c. 89, s. 4. c. 131 ; 32 & 33 Vict. c. 114 ; 42 & 43 (u) Ibid. ; 30 & 31 Vict. c. 47, Vict. c. 76 ; 43 Vict. c. 19. 5SG PARTNERSHIP. incurred in the management of the business on the ground that their participation in the profits constituted them partners therein. But it was held that no partnership was created by the deed (v). The principle that a mere sharing of the profits or receipt of a payment varying with the profits of a business is not of itself sufficient to constitute the relationship of partner- ship therein, which was strongly established in this case, was shortly afterwards further amplified and defined by an Act of Parliament commonly known as Bovill's Act (x). 28 & 29 ^ It was thereby enacted that — "The advance of money by way of loan to a person engaged or about to engage in any trade or undertaking upon a contract in writing with such person that the lender shall receive a rate of interest varying with the profits, or shall receive a share of the profits arising from carrying on such trade or undertaking, shall not of itself constitute the lender a partner with the person or persons carrying on such trade or undertaking or render him responsible as such " (y). " No contract for the remuneration of a servant or agent of any person engaged in any trade or undertaking by a share of the profits of such trade or undertaking shall of itself render such servant or agent responsible as a partner therein nor give him the rights of a partner " (z). " No person being the widow or child of the deceased partner of a trader and receiving by way of annuity a por- tion of the profits made by such trader in his business shall by reason only of such receipt be deemed to be a partner of or to be subject to any liabilities incurred by such trader " («). " No person receiving by way of annuity or otherwise a portion of the profits of any business in consideration of the sale by him of the goodwill of such business shall by ((■) See also Molhvo March <{; Co. (y) s. 1. V. Court of WarcU, 4 L. R. P. C. (z) s. 2. 419. (a) s. 3. {y) 28 & 29 Vk-t. c. 80. NATURE AXD FORMATION OF A PARTNERSHIP. 537 reason only of such receipt be deemed to be a partner of or be subject to the liabilities of the person carrying on such business " (b). " In the event of any such trader as aforesaid being- adjudged a bankrupt or taking the benefit of any Act for the relief of insolvent debtors or entering into an arrange- ment to pay his creditors less than 20s. in the pound, or dying in insolvent circumstances, the lender of any such loan as aforesaid shall not be entitled to recover any por- tion of his principal or of the profits or interest payable in respect of such loan, nor shall any such vendor of a good- will as aforesaid be entitled to recover any such profits as aforesaid until the claims of the other creditors of the said trader for valuable consideration in money or money's worth have been satisfied " (c). This Act agraiii has given rise to considerable discussion. In PooUy V. Driver {d), a person lent money to a firm under a contract that the loan should be repaid at the termination of the partnership, and that during the part- nership and continuance of the loan the firm should account to the lender for the profits and pay him a definite share thereof. It was also provided that in the event of the lender's bankruptcy the firm might pay off the loan and determine the agreement, that there should be a settlement of accounts at the end of the partnership, and payment of the loan and an agreed share of profits out of the assets, subject to the lender's repayment of any sum overpaid to him on account of profits ; and the agreement expressly purported to be for an advance by way of loan under the provisions of the last-named statute. The firm having become bankrupt, it was held that the lender was liable for its debts, the transaction being merely a pretence of a loan, and in fact amounting to a partnership. A similar transaction was similarly regarded in Exp. Delhasse (e). Un tlie contrary, where a father became security f) p. 588. (?■) England v. Curlinf/, 8 Beav. 129 ; Hercy v. Birch, 9 Ves. 357. NATURE AND FORMATION OF A PARTNERSHIP. 530 woman cannot enter into a binding contract, and is there- fore incapacitated from being a partner. If slie purports to become such, it is her husband, and not herself, who becomes legally liable (k). But in equity a married woman having separate estate may, as we have seen, bind that estate by her contracts, and to that extent, therefore, she may, it seems, be treated as a partner in equity (?). II. Equity as aj^ectmg the Partnershvp Property. 1. " The partners in any firm are owners in common of Ownersliii^ all property and valuable interests originally brought into partners the partnership stock, or acquired, whether by purchase or otherwise, on account of the firm, or for the j^urposes and in the course of the partnership business " (-m). " The share of a partner is his proportion of the part- Share of a nership assets after they have been all realised and con- ^^^^ ^^^' verted into money, and all the debts and liabilities have been paid and discharged " {n). Where the property of the partnership comprises real Doctrines estate, especial attention is required to the doctrines of estate^ equity as affecting it and its devolution. Land may become partnership property either by being brought in at the formation of the firm by one or more of the partners, or by being purchased out of the partnership funds, or by being devised to the firm. It was formerly very material to inquire in which of these ways the land in question came to be a partnership asset ; but more recent cases have to a great extent broken down the dis- tinctions between them. In the first place, it must be understood that modus et conventio vincunt legem. It is quite open to the partners by the articles of partnership, or any other agreement betAveen them, to determine, as between themselves, the (k) Burlinsons case, 3 De G. M. G. F. &. J. 533. & G. 18. (»i) Pollock's Dig. Ptship. p. 53. (/) Lindley, 4th edit., p. 84 ; (ti) Lindley, 661. LuariVi case, 6 Jur. N. S. 5 ; 1 De 540 PARTNERSHIP. liaiuls l»nmi,'ht in at forma- tion of firm. Lancia purchased with part- nership funds. Lands devised. mode of disposition of the partnership property. Our inquiry only relates to cases in which this has not been done. (1.) If land belongs to the partners separately before the commencement of the partnership, or, if even it be- longs to them as tenants in common, d fortiori if it belono-s to one of them alone, then the fact that it is used for partnership purposes will not make it partnership property (o). (2.) If lands are purchased with partnership funds, it was in some early cases held that in the absence of express agreement, the partners occupied as joint tenants, with a right of survivorship (2?). But it has since been maintained by many high authorities that lands so acquired are to be regarded as accessory to the business of the partner- ship, and that the right of survivorship has no application thereto (q). And though the conveyance of real estate in these circumstances be taken in the name of one of the partners, yet, if purchased with partnership money, there will be a resulting trust in favour of the firm (r). The question on which such cases depend, resolves itself into a question as to the purposes for which the property was bought. If for the purpose of carrying on the part- nership business, or for the purpose of a speculation on account of the partnership, there will be an equitable tenancy in common and no survivorship : if for the separate use of the partners, not in connexion with the business, there will be a simple joint tenancy and survivorship, with which equity will not interfere (s). (3.) Where lands have been devised to partners, the decisions as to whether or not it is to be regarded as partnership property have been very conflicting. A dis- (o) Burdon v. Barkus, 4 De G. F. & J. 42 ; 8 Jur. N. S. 656 ; Crmo- shny V. Maule, 1 Swanst. 495, 523 ; Roberts v. Eberhardt, Kay, 159. (/') Jcffireys v. Small, 1 Vern. 217. (7) Elliott V. Brovcn, 3 Swanst. 489 ; Lyster v. Dolland, 1 Ves. jr. 421. (?•) Smith V. ,S'., 5 Ves. 193 ; Clegg V. Fishunck, 1 Mac. & G. 294. (s) Bank of England case, 3 DeG. F. & J. 645. EQUITY AS AFFECTING THE PARTNERSHIP PROPERTY. 541 tinction was drawn between devised lands and purchased lauds which were similarly used by a firm, in the case of Morris v. Barrett (t), the latter being deemed partner- ship property, the former not so ; and a similar rule as to devised property was followed in Brown v. Oakshot (u) and Phillips v. P. (x). On the contrary, lands devised were deemed accessory to the trade and as partnership property in Jackson v. J. (y) and Crawshay v. Maule {z) ; and by the more recent and strong case of Waterer v. W. (a), such lands seem to have been placed on the same footing as lands purchased ; the question depending on whether they are " substantially involved in the business." (4.) Where partners hold real estate for partnership pur- Conver- poses, the question arises, whether the real estate is not, real estate even in the absence of any expressed intention of the ^^ ^^^^^ "^ "^ ^ . partner- partners, so absolutely converted into personalty as to be ship when held by the surviving partners, not in trust for the heir- ^**"'^'*^'^ at-law, but for the personal representative of the deceased partner. It is clearly settled that where real estate is purchased with partnership capital, for the purposes of partnership trade, it will, in the absence of any express agreement, be considered as absolutely converted into per- sonalty, so as to pass to the personal representatives of a deceased partner, free from dower (b). On the contrary, where real estate belonged to the partners at the time of their entering into partnership, or has been subsequently acquired by them out of their own private monies, or by gift, it was formerly held that conversion would not, unless by express agreement, take place, although the real estate had been used for partnership purposes in trade (c). More recent cases, however, have proceeded upon the Modern broader principle, that where real property has been sub- favour of (t) 3 Y. &. J. 384. on Partnership, App. 97 ; Fereday \u) 24 Beav. 254. v. Wightiokk, 1 Russ. & M. 45. \x) Lindley, G52. (c) Thornton v. Dixon, 3 Bro. C. (y) 9 Ves. 591. C. 199 ; Phillips v. P., 1 My. & K. (z) Sup. 649 ; Balmain v. Shm-e, 9 Ves. 500 ; (rt) 15 Eq. 402. Cookson v. C, 8 Sim. 529. (h) Townsend v. Demy men, 1 Mont. 542 PARTNKliSITTP. conver- staiitially involved in a business or trade, it is part of tlie partnership property, and therefore personal estate, and that it is immaterial how it may have been acquired by the partners, whether by descent or devise (d). The question then comes to this, that, as a general rule, it is inherent in the contract of partnership and needs no special stipulation, that upon the dissolution of the part- nership all the property thereof must be sold and the proceeds, after payment of all the partnership liabilities, divided among the partners according to their shares, no one partner having any right to insist on retaining his share of any one item of the property in specie. It follows that any real property which has become the pro- perty of the partnership becomes, by force of the partner- ship contract, converted into personalty ; and that, not merely between the partners, but as between their repre- sentatives after their decease (e), and also for fiscal pur- poses, so that the Crown can claim legacy and probate duty in respect thereof {/). Land Both principle and authority also point to the conclu- for re-TaTe •'^i*"^ that conversion will take place, not only where real converted, property is acquired for the piu^poses of partnership in trade, but also where it is acquired with the partnership funds for the purpose of a re-sale upon a speculation not coming within the usual denomination of trade (g). Conversion Of course if the owners of real estate upon entering nient. ^^^'^ partnership direct or agree that it shall be sold upon • the death of one of them, it will be held to be absolutely converted into personalty and will go to the personal repre- sentative, the conversion being held to have taken place at the date of the agreement (h). Dealings But real estate may be so dealt with by partners as to inconsist- "^ ^ ent with f)revent this result, by showing that conversion was not conversion, intended ; as, for instance, if they procure it to be con- - (d) Watered- v. W., 15 Eq. 402. 189. (e) JJarhij v. D., 3 Drew, 495, (r/) Darhy v. !>., sup. 503, 506. ('/,) Essex v. h\, 20 Beav. 442. if) Fori a V. Steven, 10 Eq. U8, EQUITY AS AFFECTINfJ THE RIOTITS OF PAllTNERS. 543 veyed to them in equal undivided shares (i) ; and the result is the same, where, though purchased out of partnership capital, it is not used for the purposes of the partnership in trade (k). Also where real estate was purchased for the purpose of the partnership in trade, but by agreement between the partners it was to be the separate proj)erty of one of them, who took a conveyance thereof in his own name, it was held that it was not partnership property, and was liable to dower (l). So, likewise, property purchased with partnership capital, Reconver- for jDartnership purposes in trade, and therefore converted into personalty, may be reconverted by the express or implied agreement of the partners. As an instance of what amounts to an implied agreement, may be mentioned a stipulation for payment of rent by the partnership to one or some of the individual partners (m). III. Equity as affecting the Rights of Partners inter se. 1. The jurisdiction of equity respecting the mutual Actions rights of partners was especially required to meet the ends parties" of justice because of the great restrictions imposed by the principles of the common law on actions between partners. A firm or partnership had formerly no judicial existence at at law, law as distinguished from the persons composing it. If then one partner had a claim against the partnership, for instance for money advanced on its account, or on the other hand, if one partner was indebted to the partnership, it would have been formally necessary that in the first case all the partners {including the plaintiff) should appear as defendants ; and in the second, that all the partners (including the defendant) should appear as plaintiffs. But by the technical rules of law, the same person could not ajjpear as both plaintiff and defendant in an action. There was, therefore, a j)urely (j) Custance v. Bradshaw, 4 Ha. Randall v. R., 7 Sini. 271. 31.5. (I) Smith V. S., 5 Ves. 19-3. (A-) Bell V. Phyn, 7 Ven. 453; [m] Rowlri/ v. Adams, 7 Bea.v. 5iS. 544 TARTNET^STIT?. in equity. formal, but none the less insuperable hindrance to the legal remedy in such cases hi). Equity, however, dis- reoarding these distinctions of form, entertained such cases and decreed as justice required, demanding only that all the parties, Avhether as plaintiffs or defendants, should be before it (o). Hence its jurisdiction over an extensive class of cases involving mere money demands. It need scarcely be repeated that at present the rules of equity in this as in other respects prevail in all divisions of the High Court. 2. Many other cases, however, come within the cognizance of equity on the ground of the particular forms of relief which it is able to give. Some of these fall more appro- priately under the head of dissolution, and are accordingly postponed for the present. Others might with perfect consistency be relegated to the general headings of injunc- tion and specific performance ; but the balance of con- venience nevertheless seems in favour of their consideration here. Where there are articles of partnership the assistance of equity is often sought for the purpose of compelling the specific performance thereof The general principles on which this peculiar form of relief is granted are elsewhere fully considered. It suffices here to say that questions arising on partnership articles fall entirely within those principles, the most conspicuous of which is that no such relief is given if there is an adequate remedy at law. illustrated. The application of remedy in cases of partnership articles may best be illustrated by referring to cases in which specific performance has been decreed of agi-eements respecting the style or name of the partnership (jy) ; of agreements not to carry on business within a certain area or limits of time (q) ; of agrcen:icnts as to the custody and Specific perform- ance of articles (?)) Borill V. Ilammmul, 6 B. & C. 151 ; Sedfjuick v. Dunidl, 2 H. & N. 319. (o) Wriijld V. Hunter, 5 Ves. 792. (p) Marshall v. Cobnan, 2 J. & W. 266, 2S9. (q) Whittakcr v. Howe, 3 Beav. 383 ; Tvrncr v. Major, 3 Giff. 442. EQUITY AS AFFECTING THE RIGHTS OF PARTNERS. 545 inspection of the partnership books (r) ; of agreements as to the mode of valuing the share of an outgoing or a deceased partner (s) ; of agreements giving a right of pre- emption of the share of an outgoing partner (t) ; of agree- ments to grant an annuity to a retiring partner (u) ; and of agreements not to divulge a trade secret (x). As to specific performance of agreements to refer to arbitration, see p. 589. It is observable that in many of these cases, the agree- ments being negative, the remedy of specific performance takes the form of an injunction. 3. In the absence of articles of partnership, the mutual Injunc- rights of the partners are determined by the general principles of law, and are equally enforceable in equity by means of the remedy of injunction. Thus acts tending to the destruction of the partnership property have been so restrained (y) ; and the same remedy has been applied where a partner has been hindered in the exercise of his legal right to partake in the management of the business (z). And, generally, acts inconsistent with the proper duties of partners may be restrained by injunction, even though no dissolution is sought, no countenance being given to any one of the partners wrho seeks by improper conduct to drive others to a dissolution (ci). Similarly, and for similar reasons, an account may be Account, decreed in equity without seeking a dissolution ; not, how- ever, a continuous account of the business operations. The Court will not so undertake the carr^ang on of a business, though it will in proper cases investigate its accounts up to the time of commencing the action (6). (r) Linden v. /Sinywo??, 1 S. & S. (y) Miles v. Tkoiruts, 9 Sim. G06 ; 600. Marshall v. Watsoii, 25 Beav. 501. (s) Morris v. Kearsley, 2 Y. & C. (2) Amn, 2 K. & J. 441. Ex. 139 ; Gibson v. Goldsmid, 5 De (a) Hall v. //„ 12 Beav. 414 ; G. M. & G. 757. 20 ib. 139 ; 3 Mac. & G. 79 ; Fair- it) Homfray v. Fothergill, 1 Eq. thorne v. Weston, 3 Ha. 387. 567. (h) Loscombe v. Russell, 4 Sim. 8 ; (m) Aubin v. Holt, 2 K. & J. 66. FairtJiorne v. Weston, sup. Morison v. Moat, 9 Ha. 241. N N 546 PARTNERSHIP. Con- 4. A third particular in which equity exercises beneficial tnists^^^ influence in preserving the rights of partners is by its appli- where cation of the principle of constructive trusts to cases in advauta're which a partner unconsciously seeks to take advantage of made. j^jg position to the prejudice of his co-partners. Cases in illustration of this have already been given and commented on (c) ; and at present, therefore, mere refer- ence will suffice to such cases as the renewal of leases and purchases of partnership property by individual partners. Actions between firms having a common partner. Joint liability partners, of IV. Equity as affecting the relation of Partners to Third Persons. 1. Recourse to equity was sometimes needed as between one partnership and another, on the same grounds as those above shown to have founded its jurisdiction in matters of account between the members of a single partnership. Thus, for the reason already given, it was formerly impos- sible for one firm to sue another at law if there was one partner common to both firms (d). But equity in this case, as in the other, was independent of such technical difficulties, and, having the parties before it, adjudicated upon the dealings between the firms, determining and enforcing their respective rights (e). 2. But the jurisdiction of equity as between partnerships and third persons is most conspicuous in its administration of the assets of partnerships and partners for the benefit of creditors. (1.) Every partner is liable jointl}^ with the other partners for all debts and obligations incurred while he is partner, and in the usual course of the partnership business by or on behalf of the firm (/). It has been recently decided by the highest authority (r) Supra, pp. 8-t and 97. (ci) Bosanquet v. Wray, 6 Taunt. 597. (e) M[. 213. 566 PARTITION. any such request or undertaking on the part of an infant unless it appeared that the sale or purchase would be for his benefit. Notwithstanding section 9 of the Act of 1868, consider- able difficulty arose in cases where persons interested were out of the jurisdiction, it being held that no sale could be ordered unless every person interested in the property was either a party to the cause or had been served witli notice of the decree (p). And where a decree for sale had been made in the absence of such parties, the Court refused to allow it to be acted upon until notice of the decree had been given them by advertisement (q). The Court also refused to decree a sale in the absence of a married woman whose share in the property was vested in trustees (r). 8. 3. These decisions led to sect. 3 of the Act of 1876, which gave the Court discretion to dispense with service on persons whom the Act of 1868 required to be served where it was impracticable, or could not be done but at an expense disproportionate to the value of the property, directing advertisements to be published instead of such service ; and provided that after the expiration of the time limited by the advertisement such persons should be bound by the proceedings in the action, and that the Court might then direct a sale. ss. 4 & 5. Sects. 4 & 5 made provision for the payment into Court, further disposal, and ultimate distribution of the purchase- money, in cases in which service had been thus dispensed with. V. Costs. The rule laid down in Agar v. Fairfax (s) was that no costs would be given until the commission — that is to say, until the hearing — but that the subsequent costs of issuing, executing, and confirming the commission should (p) Hurry v. //., 10 Eq. 346. (?•) Doddsv. Gronmo, 20 L. T. 104. (7) Peters V. Bacon, 8 Eq. 125. (s) 17 Ves. 533. COSTS. 567 be borne by the parties in proportion to the value of their respective interests, without any costs of the sub- sequent proceedings. It has been held that under the Partition Act, 1868, sect. 10, the Court is not bound by the old rule, and may now exercise its discretion (t). Sometimes the old rule has been followed (u.), but the general rule now is that the entire costs should be borne by the parties in proportion to their interests as declared by the decree (v). This is, however, subject to the dis- cretion of the Court under the influence of special cir- cumstances. (t) Simpson V. Ritchie,lQ Eq. 103. 14. (u) Wilkinson v. Joherns, 16 Eq. (v) Cannon v. Johnson, 11 Eq. 90. 568 SETTLEMENT OF BOUNDARIES. Section II. — Settlement of Boundaries. Wake V. Conyers. I. Ownership of Soil must be in question. II. Proof of Defendant's possession and Plaintiff's title, and necessity of equitable relief. III. Tliere must be special equitable ground f(yr relief. We learn from the leading case of WAKE V. CONYERS [1 Eden, 331 ; 2 W. & T. L. C. 405] some of the essential conditions which are required to create a jurisdiction as to the settlement of boundaries — con- ditions which are not rendered obsolete by the Judicature Act {x). Soil must I. There must be a bondb fide dispute as to the owner- puted.' s^ip of the soil itself. Thus the Court will not issue a commission to ascertain the boundaries of a parish in order to settle a dispute as to tithes {y) or rates {z). There being such dispute, relief has been granted where a part of the land in dispute belonged to a charity, and could not be ascertained without inquiry (a). And the jurisdiction has been held to extend to the colonies (6). Owner of An owner of a rent has been held entitled to equitable reulved. assistance, " on usage of payment," where in consequence of the confusion of boundaries or otherwise, the particular lands on which the rent was charged could not be fixed (a;) ZasceZZ€s V. 5. of Leeds v. Powell, 1 Ves. (g) Miller v. Warmington, 1 J. & sr. 171. W. 491. {d) Mayor dr. of Basingstoke v. (Ji) Bouverie v. Prentice, 1 Bro. C. Bolton, 3 Drew, 50, 63. C. 200. (e) Att.-Gen. v. Stephens, 6 De G. {i) Bute v. Glamorgan Canal Co., M. & G. Ill, 149. 1 Ph. 681. (/) Godfrey v. Littel, 1 Russ. & (h) Att.-Gen. v. FuUerton. 2 V. & My. 59 ; 2 ib. 630. B. 264 ; Brown v. Wales, 15 Eq. 142. .570 SETTLEMENT OF BOUNDARIES. that the same result would follow if the confusion was occasioned by a tenant for life (I). Where a confusion of lands was occasioned by a devisor, and they came into the hands of parties whose duty it was to ascertain the boun- daries, a person entitled to part of such lands was allowed to come into equity to establish his claim (m). Relief will be granted not only against a party guilty of such neglect or fraud, but also against all claiming under him, either as volunteers or purchasers with notice (n). (I) Att.-Gcn. V. Stephens, 6 De G. 701. M. & G. 133. (n) Att.-Gen. v. Stephens, sup. {m) Hicks v. Hastings, 3 K. & J. \ 571 CHAPTER V. SPECIFIC PERFOKMANCE. Section I. — Principles of the Jurisdiction. I. Generally. II. Grounds for refusing relief. 1. Fromn the nature of the contract. 2. From the conduct of the plaintiff. III. Statutory modifications of the Jurisdiction. I. The remedy for a breach of contract at common law General is personal only ; the sole redress which it affords to a dis- q""^^ appointed party is damages. Consequently, as far as the jurisdic- coramon law remedy is concerned, it is open to a contract- ing party either to perform the contract or to pay damages, and to choose between these two courses at his pleasure. Equity, on the other hand, has regarded such a remedy as in many cases inadequate ; and deeming a con- tracting party bound in conscience to do exactly what he has agreed to do, has exercised its authority to compel the specific performance of such agreements. But it is not in every case that equity will thus interfere. Remedy at The ground of its jurisdiction being the inadequacy of the Jj^^ij^^^^* remedy at law, it follows as a general principle that where adequate, damages at law will give a party the full compensation to which he is entitled, and will put him in a position as beneficial to him as if the agreement had been specifically performed, equity will not interfere. 572 SPECIFIC PERFORMANCE. Equity regarilsthe «• . i substance, finecteu not the forui. The juris diction is discre- tionary. The jurisdiction is not, however, depended upon or by the form or character of the contract. It suffices that the transaction in substance amounts to and is intended to be a binding agreement for a specific object. Thus if a bond with a penalty is made upon con- dition to convey certain lands upon the payment of a certain price, it will be deemed in equity an agreement to convey the land at all events, and not to be discharged by the purchaser's election to pay the penalty, although it has assumed the form of a condition only (a). It suffices that the primary object of the parties is the transfer of the pro- perty, and if that requires specific performance, the penalty will be regarded only as a security for its attainment (b). Further, the exercise of the jurisdiction of equity to grant specific performance is always discretionary. The mere fact that the legal remedy is not adequate relief for the breach of a contract is not in itself sufficient to give to a plaintiff a claim as of right to the assistance of a Court of equity. The Court v^^ill always look at all the facts of the case, and will direct or refuse its action accordingly ; and it may well be that something in the circumstances of the case, or in the position or conduct of the parties, will prevent the granting of the relief where the nature of the agreement would seem to afford good ground for seek- ing it. II. Before proceeding, therefore, to particularly examine refusino-^ the operation of the doctrine of specific performance, it will be convenient to inquire what are the circumstances which will, on general grounds, induce equity to refuse its assistance. These circumstances relate eitlier to the nature of the contract or to the conduct of the parties. 1. From the nature of the contract. Agree- (1.) The agreement must be a legal one. be"le<'.™"'^ There is clearly no jurisdiction in equity to enforce an agreement which the law will not recognise at all. It is. I General specific perform- ance. (a) French v. Macccde, 2 Dr. & W. 269, 27 i; sup. p. 212. (6) Story, 715. GENERALLY. 573 as we shall see, often a ground for equitable relief that there is no remedy at law owing to the neglect of some formal provision, such as the writing or signature of a party, while nevertheless the circumstances are such as to render it inequitable for the party to avail himself of such a defence, and thus to refuse performance. But it is obvious that the neglect of such a legal provision cannot make a contract any better than it would have been if that pro- vision had been complied with. Thus, though the Court will in some cases enforce parol arrangements in the nature of a trust, it cannot do so when the trust or understanding is designed to compass what is illegal — as, for instance, to hold land for the purposes of a charity in evasion of the Mortmain Act (c). Nor will it enforce an agreement which would result in the commission of a fraud, or which calls upon a man to do what he is not competent to do (d), still less an immoral agreement. Where a contract has been divisible, part being legal and part illegal, the legal part has been eu forced (e). Similarly, specific performance has been refused when to enforce it would be to compel the defendant to commit a breach of a prior agreement with another person (/), and where performance would give rise to a fraud on the public (g). (2.) On the same principle, an agreement without con- On good sideration cannot be enforced — as, for instance, where a l^^^^'' person by voluntary settlement covenants to convey lands, and afterwards refuses to do so, or disposes of the lands otherwise by his will (h). Here, again, none of the circum- stances which constitute a claim upon equity for assistance can make the agreement any stronger than it would have been at law. (8.) There must be a completed agreement, and the Complete (c) 9 Geo. 2, c. a6 ; Stickktnd v. (/) Willmott v. Barber, 15 Ch. D. Aldridge, 9 Ves. Bi6. 96. (d) Harnett v. Yeildhig, 2 S. & L. {[/) Post v. Marsh, 16 Ch. D. 395. 549. (fi) Jefferys v. J., Cr. & Ph. 138 (e) Odessa (kc. Co. v. Mendel, 8Ch. 141 ; Price v. Jenkins, 4 Ch. D. 483. D. 235. 574 SPECIFIC PERFORMANCE. iind not terms of it must be certain and unambiguous (i). But in ambiguous. i ,i • i • , , some cases where the evidence was m some respects contra- dictory, the Court has decreed performance, at the same time directing inquiries to ascertain the precise terms about which the parties differed (k); and it is not necessary to prove terms which are immaterial — e.g., an agreement to do an act which has been already done, or which would be enforceable apart from such stipulation (I). Reason- (4.) Equity will not interfere to assist a contract which not pre- i^ Unreasonable or prejudicial to third parties interested in j"^^^^l *^o i\iQ property (m), and though mere inadequacy of con- persons, sideration is not of itself a sufficient ground for refusing specific performance (n), equity has refused to enforce where to do so would work great hardship on the defend- ant (o), or would cause a forfeiture (p) ; but in general if hardship is made a ground of defence, it ought to be proved that it existed at the date of the contract (q). Not pro- (.5.) A contract will not be enforced when future litiga- future^ ^ tion is likely to result from its performance — for instance, litigation, forcing a doubtful title upon a purchaser (r), or where there are other conflicting claims likely to harass the pur- chaser (s). Possible of (6.) Nor will specific performance be decreed of a con- ance°'^"^' tract which it is impossible to perform, or the material terms of which the Court has it not in its power to enforce {t). 2. As to the conduct of the parties. The (1.) It is a general rule of equity that a plaintiff must plaintiff (i) Swaisland v. DearsUy, 29 Beav. 600 ; 8 Beav. 103 ; Watsmi v. Mars- 430 ; Tatham v. Piatt, 9 Ha. 660 ; tm., 4 De G. M. & G. 230. Taylor v. Portington, 7 De G. M. & (p) Peacock v. Penson, 11 Beav. G. 328. 355. Ik) MoHimer v. Orchard, 2 Ves. jr. (q) Wehh v. L. cb P. R. Co., 9 Ha. 243 ; Chattock v. Midler, 8 Ch. D. 129. 177. ('■) Rogers v. Waterhouse, 4 Drew, (I) Gregory v.Mighell,18 Yes. B28. 329; Parkin v. Tkwold, 16 Beav. (vi) Thomas v. Dering, 1 Keen, 59, 67. 729; Bee»ton v. ."itutely, 6 W. R. 206. (s) Peglei- v. WhUe, 33 Beav. 403. (n) llayu-ood v. Cojte, 25 Beav. [t) Green v. Smith, 1 Atk. 572, 140 ; tiuUivan v. Jacoh, 1 Moll. 477. 573 ; Waring v. M. S. ). 2. Part payment, or even entire payment of the pur- ^^'^^ P^J- chase-money, is not sufficient to entitle to relief Here the sufficient, legal remedy would be quite adequate, return of the money, with interest, being a complete redress (c). 3. Whether or not admission into the possession of an Possession, estate will be considered part performance depends on cir- cient. cumstances. If it has unequivocal reference to the contract, it is sufficient. That a stranger should be found in acknowledged possession of the laud of another is strong evidence of an antecedent agreement, and is usually sufficient to warrant an application for relief in equity (d) ; d fortiori where (as in the principal case), in addition to possassion, the plaintiff has laid out money on the land (e). On the other hand, if the possession can be reasonably When not accounted for apart from the alleged contract, it will not suffice : for instance, if in a suit for the specific per- formance of an alleged agreement for a lease, the tenant was in possession under a previous tenancy, he cannot set up that as a part performance (/). Or if a farm tenant from year to year continues in possession, and lays out such moneys as are usual in the orditiary course of hus- bandry, this is no part performance (t admis- sible to support a claim for specific perform- ance ; but admissible in defence. Ill, Evidence of Parol Variations. The consideration of the effect of the Statute of Frauds in suits for specific performance cannot be dismissed with- out reference to the important class of cases which have turned upon the question of the admissibility of parol evidence of alleged variations from the written agreement. The leading principle which guides the Court in deciding this question cannot be better illustrated than by reference to the case of TOWNSHEND v. STANGROOM [6 Ves. 328]. There a lessor filed a bill for specific j)erformance of a written agreement for a lease, alleging a parol variation as to the quantity of land included ; and the lessee filed a cross-bill for specific performance of the agreement simply as written. Lord Eldon dismissed both bills ; the lessor's (p) Edwards v. Pike, 1 Eden, 267. [q) Att.-Gen. v. Sitwell, 1 Y. & C. Ex. C. 559. 37. (r) Cooth V. Jackson, 6 Ves. 12, (s) Catlinr/ v. King, 5 Ch. D. 660. EVIDENCE OF PAROL VARIATIONS. 599 because parol evidence was not admissible for him as plaintiff to set up an agreement different from that which was written ; the lessee's because the very same evidence was admissible on the part of the lessor by way of defence (t). 1. Thesecasesareconspicuousamongmany decisions which The rule have well established the difference between the evidence general which is available for a plaintiff seeking and a defendant principles resisting specific performance of a contract. Although the question as to the admissibility of parol evidence is affected by the Statute of Frauds, it does not wholly rest thereon. Independently of the Statute, by "the general rules of evidence, writing stands higher in the scale than mere parol testimony, and when treaties are reduced to writing such writing is taken to express the ultimate sense of the parties, and is to speak for itself. In the case of a contract respecting land, the general idea receives weight from the circumstance that you cannot contract at all on that subject but in writing ; and this, therefore, is a further reason for rejecting parol evidence. In this way only is the Statute of Frauds material, for the foundation and bottom of the objection is in the general rules of evidence " {it). The rule, then, is that parol evidence on the part of a General plaintiff seeking performance of a written contract with a i^l"'**'^^- variation supported by such evidence will be rejected, not- withstanding that the difference of the written from the real agreement is the result of fraud, accident, or surprise. Thus a plaintiff cannot adduce evidence to prove that lands comprised in a written agreement were by parol agreed to be left out of a lease (x), nor to prove verbal declarations at an auction in opposition to printed conditions of sale (y), nor that a written agreement to sell to two jointly was in reality an agi'eement to sell to one of them, and that the other was to have some interest in the premises by way of {t) See also WooUa7)i v. Hcarn, 7 (x) Lawson v. Laude, 1 Dick. 346. Ves. 211. (y) Jaikinson v. Pcpys, cited, 1 («) Davis V. Symonds, 1 Cox, 402. V. & B. 528. available in defence. (JOO SrEO'IFIC PERFORMANCE. security for such part of the purchase-money as he might advance (z), nor in any similar case {a). Exception. 2. On the principle, however, alreadj' explained in vrnltion connexion with Lester v. Foxcroft, that part performance partly ^^jQ scrvo the purpose of evidence which is otherwise want- performed. ^ ^ 1 11 1 1 • .• ing, it is established that when the alleged parol variation has been partly performed, specific performance of the written agreement with the parol variation will be decreed (b). In such cases the parol variation is in fact treated as a new agreement partly performed ; and it is considered that such agreement having been acted upon, cannot be disregarded without injustice (c). When 3. It is equally well established that it is open to a defen- dant in certain circumstances to resist a claim for specilic performance by means of parol evidence designed to show that the real agreement was not that which is represented in the writing, and that its enforcement would be, there- fore, ineciuitable. This is, indeed, no infringement of the statute, which "does not say that a written agreement shall bind, but that an unwritten agreement sliall not bind"(<0- The circumstances, always of much weight in equity, which entitle a defendant to make use of such evidence, are fraud, mistake, or surprise (e). Where the terms of a written agTeement have been ambiguous, so that, adopting one construction they may reasonably be supposed to have an effect which the defendant did not contemplate, the Court has on that ground refused to enforce the agreement (/) ; the author of the ambiguity has even himself had the benefit of this principle ((/). (z) Davis V. Syraonds, 1 Cox, 402. (c) Joynes v. Statham, 3 Atk. 388 ; (a) Clinan v. Cooke, 1 S. & L. 22, Clowes v. Hig(jinson, 1 V. & B. 524 ; 30. Mauser v. Back, 6 Ha. 443. (6) Anon., hYm.Ahr. 522, tit. 38; (/) Calverley v. Williams, 1 Ve.s. Legal v. Miller, 2 Ves. sr. 299. 210 ; Clmves v. Higfjinson, 1 V. & B. (c) Piteairn v. Osbourne, 2 Ves. sr. 524. 375. (g) Neap v. Abbott, C. P. Coop. (d) Clinan v. Cooke, 1 S. & L. 22, 333. 39. EVIDENCE OF PAROL VARIATIONS. GOl The admissibility of parol evidence in defence is not, moreover, confined to matter collateral to and independent of the written agreement, but may amount even to a con- tradiction of it (h). It is not sufficient, however, to entitle the vendor to the When not benefit of such evidence, that the contract is not precisely such as he expected it to be. A mere unproved suspicion of fraud in the plaintiff (i), or a mistake in law, or as to the legal effect of the contract, or the legal consequences of an act (/<;), or a mistake as to the interest which the pur- chase will enable a person to acquire (I), cannot be set up as a defence. And if mistake of fact is alleged it must be clearly proved (m). Further, an inadvertent omission to propose an intended term to an agreement (n), or its pur- posed omission, upon the sujjposition that it was illegal, is not sufficient (o). 4. An analogous class of cases is that in which two contracts Mutually are alleged by the defendant to be mutually dependent, contracts and he claims to resist the performance of one until the plaintiff performs the other, parol evidence being necessary to connect the two. In Croome v.Lediard (p) such evidence was rejected, and the plaintiff's prayer granted, though the defendant could not make a good title to the estate he wished to sell, and he sought to prove that the whole transaction was intended as an exchange. Lord Brougham rejected the tendered evidence, on the ground that evidence of matter dehors the written agreement was not admissible to alter the terms and substance of the contract ; though evidence of matter collateral to it might be received. But Lord St. Leonards, in commenting on the case, has con- (7i) RamsboUom v. Gosden, 1 V. & Vern. 243. B. 165 ; Winch v. Winchester, ib. (m) Darnley v. L. C. <£• D. R., 2 375. L. R. H. L. 43. (i) Lirjhtfoot V. Heron, 3 Y. & C. [n) Parker v. Ta&well, 2 De G. & Ex. 586. J. 559. (k) Cooper \. Phihhs, 2 L. R. H. L. (o) Irnliam v. Child, 1 Bio. C. C. 149 ; Powell v. Smith, 14 Eq. 85 ; 92 ; see also Cross v. Berridne, 8 Ch, G. W. R. V. Cripps, 5 Ha. 91. 359. (/) Mildmay v. Hunyerford, 2 (p) 2 My. & K. 251. G()2 SPECIFIC PERFORMANCE. Parol waiver. Sub- Ke(iuent variation. Contem- poraneous variation. Plaintiff may assent to parol variation. sidereJ that the proper ground was the absence of any- proof of fraud, mistake, or surprise (q). 5. A clearly proved parol waiver of a written contract, amounting to a complete abandonment, will bar specific performance (r). And where a written agreement is subsequently varied by parol, upon proceedings being taken for specific performance with or without the variation, the Court will, it seems, put the defendant to his election, and if he declines to elect will decree specific performance of the agreement without the variation (s). But it seems that parol evidence of a contemporaneous variation in or addition to an agreement which was by admission correctly put into writing, is not admissible as a defence to specific perform- ance (t). 6. Although it will be a good defence to show that a written agreement does not contain a provision in favour of a defendant verbally agreed upon between the parties, nevertheless, when such a verbal agreement is alleged the plaintiff may, by submitting to perform the omitted jjro- vision, and in the absence of fraud or mistake with reference to it, obtain a decree for performance of the whole contract (%). And there are many cases in which the effect of the evidence has been, not to defeat the plaintiff's claim to specific performance, but to lead the Court to perform the contract, taking care that the parol agreement is also carried into effect, so that all the parties may have the benefit of what they contracted for (x). (q) Sugd. V & P. 163, 14tli ed. ; Lloyd v. Z., 2My. & Cr. 192. (?•) Price V. Dyer, 17 Ves. 356. (s) Robinson y. Pufje, 3 Russ. 114. (t) Ormcrod v. Hardman, 5 Ves. 722. (m) Martin v. Pycroft, 2 De G. M. & G. 785. (flc) Ranishottom v. Gosden, 1 V. & B. 165 ; L. cO B. R. Co. v. Winter, Cr. & Ph. 57 ; Smith v. Wheatcroft, 9 Ch. D. 223. CONTRAST OF LAW AND EQUITY. 003 Section IV. — Specific Performance with a Variation. Contrast of Law and Equity. Setou V. Slade. I. Where the Dispute relates to Time. 1. When twie is essential. 2. When not so. 3. Compensation. II. Where the Dispute relates to Quantity or Quality. 1. In vendors' suits. 2. In purchasers' suits. Having examined the general principles which deter- Defences , , 1 , -IP • n r- o peculiar to muie whether or not a suit tor specinc perrormance oi g^its for a contract will lie in equity, we are now led to consider specific perform- the force of a peculiar class of defences which may be ance, used in answer to such a claim, and to observe the manner in which equity deals therewith. There is scarcely any branch of the subject of equitable jurisdiction more fertile with ilkistrations of the contrast between the principles and methods of equity and those which prevail in the Courts of Common Law. In the important case of SETON V. SLADE [7 Ves. 265 ; 2 W. & T. L. C. 501] the defendant agreed to purchase certain property from the plaintiff. The memorandum of agreement was signed by him, but not by the plaintiff. One of the terms thereof was that a good title to the property was to be made within two months, and the purchase was to be completed within that time. The abstract of title was only delivered Avithin a few days of the expiration of the two months, but the defendant received and retained it 604! SPECIFIC PERFORMANCE WITH A VARIATION. without objection until the expiration of the two months. On a bill for specific performance of the agreement, it was held that the defendant could not insist on the time as of the essence of the contract, and specific performance was decreed. In many respects analogous to this are other cases in which the dispute as to performance rests not upon the question of time, but upon the fact that the vendor has not the same interest in the estate as that which he contracted to sell ; or that there is some deficiency in the quantity or quality of it. In such cases a party not able strictly to perform his contract had no remedy at law by way of damages ; but in equity he might often obtain specific performance, adequate compensation being allowed for the partial departure from the contract. At the suggestion therefore of this case we may con- veniently investigate the general circumstances under which, though the plaintiff cannot strictly carry out his agreement, he will obtain specific perfoi'mance on allowing compensation, Applica- This is a fitting place in which to mention a recent summons nseful enactment which has been the means of saving con- ""^^^■^ siderable expense in case of disputes such as we are about Vict. c. 78, to consider. By the Vendor and Purchaser Act, 1874 (?/), it is provided that a vendor or purchaser of real or lease- hold estate in England may apply in a summary way to a Judge in Chambers in respect of any requisitions or objec- tions, or any claim for compensation, or any other question arising out of the contract (not being a question affecting the existence or validity of the contract), and the judge shall make such order upon the application as to him shall appear just. s. 9. I. Where the Dispute relates to Time. Time In the Courts of law previous to the passing of the Judicature Act of ] 873, time was in all cases considered ('^ inquiry is, what is, and what is not considered substantial, stantial. (1.) The difference often relates to the tenure of land ; Differ- and it is established that a purchaser cannot be required ten^^re° to accept land of a different tenure from that for which he What bargained. Thus leaseholds, however long the term, or ^^^^ copyholds, cannot be substituted for freeholds (k), nor free- stantial. (i) Re Bunburi/'s Estate, 1 I. R. & G. 109. Eq. 458 ; Ridgway v. Gray, 1 Mac. (k) Brew v. Corp, 9 Ves. 368. 614 SPECIFIC PERFORMANCE WITH A VARIATION. hold fur copyhold (/) ; though where the conditions of sale left the tenure doubtful or barred any objection on this ground, and the difference in value was slight, performance was enforced (m). Similarly a perpetual rent-charge will not sufficiently answer the description of a fee simple (n), nor can a purchaser be compelled to take an underlease instead of an original lease (o). And where the term of a leasehold turns out to be largely different from what was represented, the vendor will not be able to enforce his bargain, e.g., where the contract was for a sixteen years' lease, and the term offered was only six (^j). A purchaser of an entirety would not be obliged to take an undivided share of the estate (q), nor a remainder instead of an estate in possession (r), nor an estate subject to unusual easements (s), or to an undisclosed reservation of minerals (t). What not. Ou the other hand, where there are undisclosed quit- rents, and rent-charges, at any rate if of small amount, they are considered fit subjects for compensation (u) ; and simi- larly, where there was a small error as to the term of a lease (x), or a mistake as to the amount of quit-rents sold (?/). Waiver by Objections to the tenure may be waived by the conduct purchaser, of the purchaser, as by his proceeding with the treaty after notice of the nature thereof, though by such waiver he does not lose his claim to compensation on perform- ance (z). Differ- (2.) Another class of cases is where the misdescription quantity relates to the quantity or the boundaries of the estate {I) Ayles V. Cox, 16 Beav. 23. 390. (m) Price v. Macaulay, 2 De G. (t) Uppe)-ton v. yickolso7i, 6 Ch. M. & G. 339. 436. {n) Prendergast v. Eyre, 2 Hogan, (u) Esdaile v. StepheTison, 1 S. & 81. S. 122; Hornihloio v. Shirley, 13 (o) Madeley v. Booth, 2 De G. & Ves. 81. Sm. 718. (x) Hahey v. Grant, 13 Ves. 77. (p) L(n\g V, Fletclier, 2 Eq. Ca. (y) Cuthbert v. B ike); cited Sugd. Ab. 5, pi. 4. V. & P. concise view, 219, ed. 1851. (q) Att.-Gen. v. Day, 1 Ves. 218. (z) Fordyce v. Ford, 4 Bro. C. C. (r) Collier v. Jenkins, You. 295. 494 ; Calcraft v. Roebuck, 1 Ves. jr. («) Scaniaa v. Vandrey, Itj Ves. 221. WHERE DISPUTE RELATES TO VENDOR'S INTEREST. 615 sold. Though the vendor fails to make a title to a small "r \^oun- , • n 1 • n 1 • • -11 daries portion 01 the estate, ii such portion is not material to the compen- possession and enjoyment, specific performance with com- •'''^*"| '^ pensation will be decreed (a) ; but not if the portion is and not material, as where the contract is for a wharf and a jetty, gn'-)^,Yn"ent' and it turns out that the jetty is liable to be removed by the Corporation of London (6). So also if a purchaser in the same contract agrees to purchase an estate for a fixed price, and also something else not essential to the enjo}Tiient of the estate, but only a small adjunct of it, and a good title to this adjunct cannot be made, the sale of the estate alone will be en- forced ; for instance, a contract to buy an estate for £24,000 and the furniture thereon at a valuation (c). Seciis if the adjunct is essential to the enjoyment of the pro]3erty, as the fixtures of a public house (d). In the case of an estate being sold by auction, after Sales by which it is found that a good title cannot be made to some lots. of the lots, specific performance will be decreed, unless the lots as to which the failure occurs are complicated with the others (e) : but everything depends in such a case upon the nature of the property ; for instance, if a farm were sold along with a house for residence thereon, and the title to the house failed, the rest of the contract would scarcely be enforced. Where lands are described as of or about a certain Effect of acreage, or of a certain acreage " be the same more or less," mate^de- after actual conveyance to a purchaser he has no title to scription. an abatement, though they should turn out considerably short of the figure named. But if he discovers the error before conveyance, unless it is of trifling extent, he may claim abatement (/). If, however, the vendor knew the (a) M'Queen v. Farquhar, 11 Ves. (d) Darhey v. mdtakei; 4 Drew. 467. 134. (h) Pcei-s V. Lambert, 7 Beav. 54(5 ; (c) Poole v. Sheryold, 2 Bro. C. C. Perkins v. Edv, 16 Beav. 193. 118. [c) Rkhanlson v. ^mith, 5 Cb. (/) ///// v. Buckley, 17 Ve.s. 394 ; 648. W'titrh V. TT7«c7(C5^t)-, 1 V. & B. 375. 616 SPECIFIC PERFORMANCE WITH A VARIATION. true quantity, the use of such phrases would not protect liim from liability to compensate ; nor would the pur- chaser's intimate acquaintance with the estate relieve the vendor (g). If lands are purchased on the usual condition as to compensation for misdescription, and they prove to exceed the estimate, though the purchaser can enforce perform- ance on paying compensation, the vendor cannot compel him to complete and pay a larger sum than he contracted to pay (h). Pur- ^ 2. Where the 2^urchaser seeks specific performance. suits. Ttie general rule is that a purchaser may, if he chooses. Purchaser compel a Vendor who has contracted to sell a larger can usually ^ _ i • i claim per- interest in an estate than he has, to convey to him such vdth abate- interest as he is entitled to, with compensation (i), and ment. this, whether the difference is one of tenure or of quantity (k). Excep- Where, however, the title of the vendor is doubtful or defective, it has been held that the purchaser cannot Large compel E Conveyance of such interest as he has (I) ; and error. ^}^g Same was held where there was a difference of nearly one-half arising from the vendor's mistake between the representation and the fact (wi). Notice. If the purchaser, at the time of the contract, knows of the limited interest of the vendor, he will not be able to insist upon a conveyance of such interest witli compen- sation (n), and the neglect of a purchaser to make proper inquiries may disentitle him from claiming compensation for some defect which with ordinary care he might have discovered (o), as where a vendor has contracted to sell ig) Kinrj V. Wihon, 6 Beav. 124. McKenzie v. Hesketh, 7 Ch. D. 675. (h) Price V. North, 2 Y. & C. Ex. [l) WiUiams v. Jliyden, 1 C. P. 620. 500. (i) Mm-Uock V. Buller, 10 Ves. (m) Wheateley v. Slade, ^^^.12^. 315. (?i) Laiorenson v. Butler, 1 S. & L. (k) Hv'jhes V. Jones, SDeG.F.&J. 1-3 ; Harnett v. Yeilding, 2 S. & L. 307; Wood v. 6'r(^Vi,WilsonCh.Kep. 549 ; Castle v. Wilkinson, 5 Ch. 534. 44 ; Leslie v. Crommelin, 2 I. R. Eq. {o) Edwards- Wood v. Majoribanks, 134 ; Hoopa- v. Smart, 18 Eq. 683 ; 7 H. L. 806. WHERE DISPUTE RELATES TO VENDOR'S INTEREST. 617 certain property which the purchaser knew to be in the occupation of a tenant, and it turned out that the tenant had an agreement for a lease {p), the occupation being considered to amount to constructive notice of the lease. But it appears that the doctrine of constructive notice is not generally applicable to such cases, and that at least it would not suffice in a vendor's suit {q), or in a purchaser's suit to give a title to compensation in respect of the tenant's interest (?'). Where, however, the statement as to quantity was Mistake simply a mistake, and it would be plainly unjust to the opt-j^n^to'^ ^ vendor to decree specific performance with compensation, rescind, the purchaser has been required to elect whether he would perform the contract without compensation, or have his bill dismissed (s) ; in this case there was a difference of nearly one-half in the acreage stated. The right to compensation also may be excluded by Express express contract, as by a stipulation to that effect con- to^con- ^'^^ tained in the conditions of sale if), unless such a condition trary. may be construed so as to extend only to small accidental inaccuracies {u). The right, however, is not excluded by a mere condition that he shall not object to complete the purchase if the quantity should turn out less than was stated in the particulars {x) ; nor by acts on his part which merely amount to a waiver of objections to the title {y). It may be excluded by the vendor rescinding the contract under a condition empowering him to do so, if unwilling or unable to make a satisfactory title {z) ; but not if the vendor sold the property under such a condition knowing his title to be defective, or has been guilty of wilful mis- representation (a) ; and notwithstanding such condition, if (p) James v. Lichfield, 9 Eq. 51. (x) Frost v. Brewer, 3 Jur. 165. Iq) Caballero v. Hcnty, 9 Ch. 447. (y) Calcraft v. Roebuck, 1 Ves. jr. (7-) PhiUips V. MiUer, 10 L. R. C. 221. P. 428. (2) Mawson v. Fletclier, 6 Ch. 91 ; (s) Earl of Durham v. Legard, 34 10 Eq. 213 ; DuddeU v. Simpson, 2 L. J. Cli. N. S. 589. Ch. 102. (t) Cordinrjley v. Chceseborouyh, 3 (o) Ndthorpc v. Hohjatc, 1 Coll. Giff. 496. 203 ; Price v. Macaulay, 2 De G. M. ((() Whittcncore v. W., 8 Eq. 603. & G. 347. 618 SPECIFIC PERFORMANCE WITH A VARIATION. the purchaser is willing to waive all objections to the title, he is entitled to take the property without compen- sation (h). The right to rescind may, moreover, be lost by the vendor's replying to the purchaser's objections or requi- sitions (c), and by acquiescence in, or confirmation of the contract ((/). (b) Page v. Adam, 4 Beav. 269. (d) Cole v. Gibbons, 3 P. Wms. (c) Tanner v. Smith, 10 Sim. 410. 290 ; Attwood v. Small, 6 CI. & F. 424. 619 CHAPTER VI. INJUNCTIONS. In some respects analogous to the equitable remedy of Injunction specific performance, is the equally characteristic remedy ^^itT^^'^ of injunction. A decree of specific performance, as its specific name implies, enforces the performance of some specific act. ance. An injunction is the very converse ; it judicially forbids the performance of some specific act or series of acts. From the nature of the case the remedy of specific performance only applies to cases arising out of contract ; since it rarely happens apart from contract that one person has a right to the performance of a particular act on the part of another. On the contrary, the cases for which injunction is a proper remedy have usually no connexion with contract. There are, indeed, cases in which one person contracts with another not to do a certain act ; and such negative con- tracts may, as we have seen, be specifically enforced by means of injunction (a). But a gi-eat majority of the cases in which one person seeks to prohibit a certain act, depend on rights which avail against all the world; or to use the technical language of jurisprudence, depend on jura in rem not on obligationes. As far, however, as regards the remedy, there is little importance in the distinction. Whether the negative duty, or duty to abstain, be con- tractual or general, the injunction which enforces it is the same in nature and in form. ('() P. .590. Ltun'ci/ V. Wr'gncr, 1 De G. M. & G. 615. 620 INJUNCTIONS. Definition, Interlocu- tory or peqjetual. Manda- tory in- junctions. An injunction may be described as a judicial process whereby a party is required to do a particular thing or to refrain from doing a particular thing. There is, however, a marked contrast between injunctions which command and injunctions which forbid the doing of an act. The former only issue after decree, and are of the nature of an execution to enforce the same. The latter may be either interlocutoiy or perpetual. Interlocutory injunctions are made pending the hearing of the cause upon the merits, and are generally expressed to continue until such hearing or until further order. Perpetual injunctions are such as form part of the decree made at the hearing upon the merits, and perpetually restrain the defendant from the assertion of a right or the commission of some act contrary to equity : they are in fact final decrees. Interlocutory injunctions are merely provisional and do not conclude a right. Their object is to preserve the property subject to litigation in statu quo until the hearing or further order, and may be obtained by a plaintiff who shows that he has a fair question to raise as to the existence of the right which he alleges (a). Though a Court of equity has no jurisdiction in the absence of contract to compel the performance of a positive act, such as the removal of a work already executed, it may, by framing the order in an indirect form, compel a de- fendant to restore things to their former condition. Such orders are called mandatory injunctions (6). This juris- diction is, however, only exercised in cases which admit of no other adequate remedy, and their occurrence is unfre- quent. This species of relief will always be refused if the injury can be reasonably recompensed by damages, or even if the balance of convenience is strongly on the side of the defendant (c). (a) See Kerr on Injunctions, pp. 11, 12, ed. 2. (6) Kerr Inj. p. 50. ((•) Dccrc V. Guest, 1 My. & C. 516 ; Jacomb v. Kniylit, 3 De G. J. & S. 5^38. INJUNCTIONS. 02 1 The jurisdiction of equity to decree injunctious arose, <^"?"\"f like that of specific performance, from the want of an diction, adequate remedy at law. The common law had, indeed, in certain cases, the power of prohibiting the committal of wrongs ; for instance, waste could be restrained by the writ of prohibition and estrepment of waste. But the cases in which the common law supplied remedies of this nature were very few, and the procedure by which they were applied was cumbrous and inconvenient, so that the assistance of equity was at an early period found necessary for the proper administration of justice ; and when this jurisdiction was established, the superiority of its process gradually caused the inferior remedies of law to fall into desuetude. The following is in substance the enumeration given by Classifica- a learned author of the circumstances in which the remedy iniunc- of injunction has been most commonly applied (d). tions. 1. To stay proceedings in Courts of law. 2. To restrain the indorsement or negotiation of nego- tiable instruments, the sale of land, the sailino; of a ship, the transfer of stock or the alienation of a specific chattel. 3. To prevent the wasting of assets or other property pending litigation. 4. To restrain trustees from assigning or improperly dealing with the legal estate or trust property. 5. To prevent the removing out of the jurisdiction, marrying, or having any intercourse which the Court dis- approves of, with a ward. 6. To restrain the commission of every species of waste. 7. To prevent the infringement of patents and the viola- tion of copyright. 8. To prevent the continuance of public or private nuisances. 9. To prevent multiplicity of suits and vexatious liti- gation. It will be observed that this enumeration admits of a (rf) Eden on Injunctions, p. 1. 622 INJUNCTIONS. Injunc- tions against equitable wrongs. Injunc- tions against legal division into two strongly distinguished classes of cases ; first, those in wliich the wrong restrained is one which is regarded as such in equity only, and in which, accordingly, the ground of the jurisdiction is the absence of a legal remedy altogether ; secondly, those in which the wrong restrained is both legal and equitnble, in which, therefore, the ground of the jurisdiction is the superiority of the equitable to the legal remedy. The former class comprises, — first, injunctions which are designed to prevent the abnse of legal processes, under circumstances which render it inequitable to apply them ; secondly, injunctions protecting equitable estates and interests not recognised at law. The latter class includes, — first, injunctions protecting common rights as to the enjoyment of land ; secondly, injunctions protecting the peculiar rights arising from patents, copyright and the use of trade marks. The enumeration above quoted does not indeed pretend to be exhaustive ; nor is it possible to specify every case to which the remedy of injunction might be applied. Wherever a plaintifi:" is equitably entitled in rem or in 'personam to restrain the commission or continuance of an act, he may be aided by means of injunction. The cases here given copiously illustrate the circumstances in which the remedy is most usually sought ; and whatever other cases may suggest themselves will be found to fall easily within one or other of the classes indicated. TO PREVENT THE ABUSE OF LEGAL PROCESSES: 023 Section I. — Injunctions restraining Wrongs purely Equitable. I. To prevent the abuse of Legal Processes. Earl of Oxford's Case. II. To 'protect Equitable Estates and Interests, I. Injunctions to prevent the abuse of Legal Processes. The most important class of cases falling under this description is that on which one of the oldest, and most famous of authorities is — THE EARL OF OXFORD'S CASE [1 Ch. Eep. 1 ; 2 Wh. & T. L. C. 590]. This case is celebrated in history on account of the warm dispute which arose therefrom between Lord Chancellor Ellesmere, and Lord Chief Justice Coke. The former in- sisted on the right and jurisdiction of equity to restrain persons who had obtained judgments at law from making such judgments instruments of inju.stice. He did not pretend to a power to overrule the judgment, but merely to prevent the party obtaining it from acting upon it contrary to conscience. The latter, however, considered the exercise of this power as an encroachment upon the jurisdiction of the Courts of common law. So far did the contention go that indictments were preferred at Coke's instigation against the parties who had filed their bill in Chancery, their counsel and solicitors ; and on the other hand, the Attorney-General was directed to prosecute in the Star Chamber those who had preferred the indict- ments. In the event tlie jurisdiction of equity contended for was firmly established. And reasonably so, for it con- sisted not in any assumption of superiority to the Courts 024) injunc:tions restraining equitable wrongs. of law, but in the assertion of a right to control the acts of the parties concerned, according to principles of conscience and equity. The recent history of this head of equitable jurisdiction shows by what steps it has come to be at present of very small effect and importance, compared with what it formerly had. C. L. P. 1. First, by the Common Law Procedure Act, 1854 (e), Act, 1854. -J. ^^g enacted (/) that equitable pleas and replications might be made use of at law. The effect of this might have been to have rendered the interference of equity on behalf of the defendant at law in the future unnecessary. But this effect was prevented by the narrow construction put upon the Act by the common law judges, who held that no equitable plea was good unless it disclosed facts which would entitle the defendant to a perpetual and un- conditional injunction in equity (g). Thus in a multitude of cases, applications to the Court of Chancery continued to be necessary. Moreover, the Act only gave an option to the defendant at law to plead an equitable defence ; it still left him the j)Oiver of proceeding in equity for an injunction as before (It). Jud. Acts. 2. By the Judicature Acts, 1873 and 1875 {i), the prin- cipal previously existing Courts of law and equity were consolidated into the Supreme Court of Judicature, con- sisting of Her Majesty's High Court of Justice and Her Majesty's Court of Appeal ; and it was enacted that in every division thereof law and equity should be concur- rently administered. Further, by section 24, sub-s. 5 of the Act of 1873, it is enacted that "no cause or proceed- ing at any time pending in the High Court of Justice or before the Court of Appeal shall be restrained by pro- hibition or injunction ; but every matter of equity on which an injunction against the prosecution of any such (c) 17 & 18 Vict. 0. 12.5. 453. ( f) Sect. 83. (0 36 & 37 Vict. c. 66, and 38 & (ff) Jeffs V. Da;/, L. R. 1 Q. B. 374. 39 Vict. c. 77. (A.) (iompcrtz v. PooJey, 4 Drew, TO PREVENT THE ABUSE OF LEGAL PROCESSES. C25 cause or proceeding might have been obtained if this Act had not passed, either unconditionally or on any terms or conditions, may be relied on by way of defence thereto : Provided always, that nothing in this Act contained shall disable either of the said Courts from directing a stay of proceedings in any cause or matter pending before it if it shall think fit ; and any person, whether a party or not to any such cause or matter, who would have been entitled if this Act had not passed, to apply to any Court to restrain the prosecution thereof, or who may be entitled to enforce by attachment or otherwise any judgment, decree, rule, or order contrary to which all or any part of the proceedings in such cause or matter may have been taken, shall be at liberty to apply to the said Courts respectively, by motion in a summary way, for a stay of proceedings in such cause or matter, either generally, or so far as may be necessary for the purposes of justice ; and the Court shall thereupon make such order as shall be just." The result of this legislation is to put a stop in general Effect of to mjunctions agamst judicial proceedings ; providing m- ° stead thereof a power for any division of the High Court to order a stay of its own proceedings, and in applications for this purpose to consider and give weight to those prin- ciples of equity which were previously invoked for the purpose of obtaining an injunction. 3, Still, there are cases not affected by the Judicature Cases not Act in which this equitable procedure may be accordingly ^^^^ appealed to ; and it is therefore not idle to consider the principles by which it was and may be still directed. In the first place, it is to be observed that the old juris- diction remains in force as regards proceedings in all Courts not comprised by the Judicature Acts in the High Court of Justice. Thus the Chancery Division may restrain a person Suits in within its jurisdiction from taking proceedings in Courts q^uiI" out of its jurisdiction — for instance, in Scotland, Ireland, restrained. the colonies, or in foreign countries. But no more in these s s 020 INJUNCTIONS RESTRAINING EQUITABLE WRONGS. And in Eiiiili.sh Courts not affected by the Acts. Court of Bank- ruptcy. In what circum- stances granted. cases than formerly in granting injunctions against pro- ceedings in the ordinary Courts of" law does equity affect to control, or overrule, or examine the judicial or adminis- trative action of the foreign tribunals. It addresses its decree to the person within its jurisdiction, forbidding his action (/•). Again, tliere are certain Courts in England which were not affected by the Judicature Act, and which, therefore, continue to be ruled by the old principles and procedure. One instance of this is the Lord Mayor's Court in London ; and if from any circumstances it were inequit- able that a person should take or continue proceedings therein, there seems no reason why he should not as formerly be restrained by a Court of equity (l). Other local Courts in England fall within the same principle. 4. Conversely with these cases, the Court of Bankruptcy, which is not affected by the Judicature Act, retains its former power of I'estraining actions in other Courts under the circumstances coming under its special cognisance (m). 5. There being, therefore, cases in which injunctions against legal proceedings may still be sought in equity, it is not immaterial to inquire into the circumstances which will be deemed to warrant such application ; especially since in cases in which an injunction is no longer the proper remedy, the same circumstances which formerly warranted it will now entitle a defendant to a stay of proceedings. Lord Ellesmere in the principal case gave certain illus- trations of the circumstances in which the Court had interfered to stay proceedings at law, on the grounds of some equity of which the defendant coiild not avail him- self in a Court of law, but to which he might appeal as a suppliant in Chancery. The following heads have been specified as comprising the various grounds on which .such interference of equity might be sought : — accident, (k) PorUirlinyton v. Sovlby, .3 My. k. K 106 ; Hoie v. Carnfqir, 1 Ch. S20 (n Mihhal V. Neate, 1 Dick. 279 ; Cottcsuorth V. St/jJioif:, 4 Ha. ] S."). (m) Exp. Ditton, 1 Ch. D. br>7. TO PREVENT THE ABUSE OF LEGAL PROCESSES. 027 mistake, fraud, accounts, illegal and immoral coutracts, penalties and forfeitures, breaches of covenants, adminis- tration of assets, marshalling of securities and suretyship (n). The distinction between equitable and legal doctrines and practice as to these matters have already been expounded under the various headings of this work, and of course need not now be particularly referred to. It suffices to adduce a few illustrations of the operation of the juris- diction in the cases in which it still applies, at the same time contrasting it with the procedure by which in other cases the same result is now reached. First, however, we may premise that it was always Equitable necessary for a plaintiff seeking an injunction against quired, legal proceedings to establish some special equitable title to relief — the remedy was not given on the ground of matter which might be alleged in defence at law (o); and thus the amendment of the law effected by the Common Law Pro- cedure Act, 1854, already quoted, reduced the nimiber of cases in which the remedy of injunction was available (29). Moreover, the principle of injunctions cannot be so applied Mere error as to amount in effect to an appeal from a Court of law. sufficient. An injunction will never be granted against the execution of a judgment on the mere ground of its being a decision erroneous at law (q). Still less where the result has been produced by the negligence of the party seeking relief (r). The illustrations adduced will show the nature of the special equitable claims which form proper grounds for seeking the remedy. 6. Perhaps there is no class of actions in which the remedy of injunction has been so frequently applied as in those of creditors against the legal personal representa- tives of deceased persons. In some of such cases the injunction is sought and Exeon- (n) Eden on Injunctions, 4; Joyce Drew, 122, and cf. Gomprrttv. Poolei/, on Injunctions, 1053, 12.')?. 4 Drew, 453. (0) Harrison v. Nettlcship, 2 My. (7) Simpson v. Howden, 3 My. & & K. 423, Cr. 108. [p) Far ehr other v. WeU-hman, 3 {r) Bateman\.WiUoe,\^.kJj.2Qi SS2 028 INJUNCTIONS RESTRAINING EQUITABLE WRONGS. tors and adminis- trators protected. Stay of proceed- ings. General creditors protected, Present practice. granted for the protection of the executor or administrator. At law, when the legal personal representative had once acquired possession of or become chargeable with sufficient property of the deceased to discharge his debts, he remained chargeable, notwithstanding any accident, such as robbery or fire, which might destroy the property before its distri- bution ; and it mattered not how free from default he may have been, or how great the liability thus devolving upon him personally. But in equity the hardship and injustice of a creditor's action under such circumstances was recognised, and on the application of the executor or administrator, a Court of equity would issue an injunc- tion forbidding the creditor to continue his proceedings at law (s). Under the present practice, the Courts of law would themselves stay proceedings under these circumstances, or else direct a verdict for the defendant at the trial (t). 7. In another class of cases an injunction was obtain- able for the protection of the general creditors. We have elsewhere seen that executors had at law large powers of preference with regard to the payment of the debts of their testator. To prevent the unfair exercise of this preference, Courts of equity encouraged suits for the general adminis- tration of estates, in which their decrees differed from a judgment at law in that they were equally in favour of all creditors. After the granting of such a decree, equity was wont to restrain all actions brought by individual creditors at law (u). Under the present practice, a Court of law would stay proceedings in such an action (x), and the Judge in whose Court the administration action is pending has power, without any further consent, to order the transfer to him- self of any action pending in any other division of the Court (.s) Crosse v. Smith, 7 East, 258 ; Croft V. Lyndsey, Freem. I. (t) Job V. /., 6 Ch. D. .562. (») Morrke v. B. of En) Montayue v. Dodnian, 2 Ves. sr. 396. (q) M. of York V. Pilkiwjton, 2 Atk. 302. (»•) SauU V. Broome, 10 Ch. 64 ; Kerr v. Corp. of Preston, 6 Ch. D. 463. is) xVcivlands v. Payntcr, 4 My. & Cr. 408. INJUNCTIONS PROTECTING EQUITABLE ESTATES. 633 que trust (t). So where a cestui que trust proves a pro- Breach of bable intention on the part of his trustee to commit a st"ained breach of trust, he may procure an injunction to restrain him (it) ; and it is not necessary to entitle him to this relief that the threatened damage should be irreparable {v). It is the right and duty of a trustee who apprehends a breach of trust by his co-trustee to seek an injunction to restrain him {x). 2. Thus again, the lien of a purchaser has been protected Liens by an injunction restraining the vendor from parting with "^"^^ ^^ ^ the legal estate {y). Constructive trusts arising from Construc- frauds have also been assisted by restraining the indorse- ^'^^ trusts. ment or negotiation of notes fraudulently obtained {z). 3, We have seen elsewhere (p. 394) that the unauthorised improper mamage or removal of wards of Court will be prohibited ^vjtij^vards by injunction ; a guardian may even be restrained from of Court, giving his consent to such a marriage without the leave of the Court((/.) ; and by an analogous jurisdiction, fathers have for special reasons been restrained from taking their children abroad, or interfering with their education (6). (t) IliU V. Turner, 1 Atk. 516. {y) EcliUff v. Baldivin, 16 Ves. (m) Balh V. Strutt, 1 Ha. 146. 267. {v) Anon., 6 Mad. 10 ; Dance v. {z) Smith v. Ayhivell, 3 Atk. 566. Goldingham, 8 Ch. 902. {a) Beard v. Travers, 1 Ves. 313. {x) Jie Chcrtseij Market, 6 Pri. {h)Exp.Warner,ABvo.C.C.U\l; 279. De Manneville v. De M., 10 Ves. 52. 634 INJUNCTIONS RESTRAINING LEGAL WRONGS. Section II. — Injunctions Restraining Wrongs at ONCE Legal and Equitarle. GENERAL PRINCIPLES. I. Injunctions protectlmj Riyhts in Land. 1. Waste. (1.) Doctrines and remedies of law as to tuaste. (2.) Doctrines and remedies of equity as to waste. Garth v. Cotton. 2. Trespass. 3. Nuisances. II. Injunctions protecting Patent Rights, &c. 1. Patents. Hill V. Thompson, 2. Copyright. 3. Trade marks. Principles The protection of legal rights to property from irre- jurisdic- parable, or at least from serious damage, pending the trial tion. y£ ^|jy legal right, is part of the original and proper office of a Court of equity (c). It has sometimes been quoted as a maxim that equity will not suffer a wrong without a remedy. A full discussion, therefore, of the cases in which the protection of an injunction might be afforded would require an exposition of legal rights generally, which can- not, of course, be here attempted. It must suffice, first, to indicate the general principles by which the exercise of the jurisdiction is directed, and secondly, to pass in review, by way of illustration, some of the most frequently occurring and important cases in which this particular remedy is applied. (-■) Ken- Inj. l:J ; HUtnn v. OmncUU, Cr. & Ph. 283, 292. GENERAL PRINCIPLES. 63o (1.) A plaintifF seeking in equity an injunction for the riaintifT protection of a legal right, must first show a fair primd ,,rim/t facie facie case in support of the title which he asserts (d). "g^t, It is not necessary for him to show a clear legal title, but he must satisfy the Court that he has a fair question to raise as to the existence of the legal right which he sets up (e). (2.) He must also show that there are substantial and that grounds for doubting the existence of the right asserted g^jj^-^ ,.i„lji; by the defendant whom he seeks to restrain (f) ; or, if his '■'* ^loubt- 1 1 • 1 • 1- 11 , 1 , ful, or his legal right is not disputed, he must show that the act com- act is in- plained of is in fact a violation of his right (g), and that 3'^"*^^^' there is a real probability or danger of his right being in- vaded. On the one hand, the mere apprehension of injury is not sufficient (h) ; on the other, the mere denial by the defendant of his intention to infringe the plaintiff's right will not necessarily prevent the Court from interfering (i). It suffices if the Court is satisfied that an infringement is threatened or is imminent (k). (3.) Thirdl}^, the plaintiff must show that the mischief and that which he seeks to restrain will be such as to be incapable remedy is of reparation by any legal remedy. It must be such as i^suffi- that a mere payment of damages will not suffice to put the parties in their original position (/). This may be the case either because the act threatened would destroy the subject- matter of dispute (m), or because the nature of the act renders it impossible to accurately ascertain the damage (n). On these general conditions rests the jurisdiction to grant an injunction for the protection of a legal right. The detailed considerations which affect it will best be seen {d) Ibid.; Saunders v. Smith, 3 (/() Hanson v. Gardiner, 7 Ves. My. & Cr. 714, 728. 307. (e) Shrewsbiiri/ cfc Chester R. Co. v. (i) JacJcson v. Cator, 5 Ves. 688. Shrewsbury d: Birminr/ham E. Co., 1 {k) Gibson v. Smith, 2 Atk. 182. Sim. N. S. 410, 426. (l) Wood v. Stitdife, 2 Sim. N. S. (/•) Sparrow v. 0. W. <£• W. R. Co., 165. 9 Ha. 436, 441. {m) Hilton v. Granville, Cr. & Ph. (d) Ripon V. Hobort, 3 My. & K. 283, 292. IQ^n^o; Haines X.Taylor, iOBe-AV. (n) Att-Gen. \. Aspinall, 'I My. L 471; 2 Ph. 209. Cr. 613. C36 INJUNCTIONS RESTRAINING LEGAL WRONGS. under the headings which particularly illustrate its applica- tion. These fall under one or other of two classes, of which the first comprises common law rights respecting the enjoyment of land or houses ; the second, the somewhat peculiar class of rights which arise from patents, copyright, and the use of trade marks. I. Injunctions protecting Rights in Land. 1. Injunctions against waste. Some of the most important cases in which equity assists the law by applying its special processes for the protection of legal rights are supplied by questions respect- ing waste. There are indeed cases of waste in which the wrong redressed is simply equitable, and which would, therefore, more strictly fall under the preceding heading. But it will be more convenient to treat together the various matters concerning waste which call for comment ; and in doing so, the distinctions between legal and equitable waste will be plainly indicated. The principles of equity re- specting waste will most clearly appear if we first review those of law on the same subject. (1.) The doctrines and remedies of laiu as to waste. Definition. Waste at • law has been defined as " any spoil or destruction done, or allowed to be done, to houses, woods, lands, or other corporeal hereditaments by the tenant thereof, during the continuance of his particular estate" (o). (a.) Against wlioni chargeable. Tenant for Waste, as distinguished from trespass, could only be committed by a limited owner, that is, a tenant for life, or for years, in dower or in curtsey, and it could only be charged against him by one between whom and himself tliere was privity of estate. Rector or A rector or vicar is in the same position as an ordinary life, vicar. {") .3 Hteph. Comm. 105, 7th eJ. WASTE AT LAW. 6 P. 7 tenant for life, and has no right to fell timber except for necessary repairs to the premises {p). A tenant in tail after possibility of issue extinct, although Tenant m . . . r tail not practically a tenant for life, was not within the legal rcstric- liable, tions as to waste ; he was regarded as having an inherit- ance {q); but a person to whom he conveyed his estate was treated as only tenant for life (r). These legal restrictions from waste have no application Legal when the instrument giving rise to the life or limited allowed, tenancy contains with respect thereto the common clause " without impeachment of waste," or its equivalent. Then, he may fell timber, or open quarries or mines, and will be entitled to the full produce (s). In the presence of these words, the Courts of law possessed no restraining power, and had no further jurisdiction. (b.) What acts amount to waste at laiv. i. Timber trees (oak, ash, and elm) being part of the Felling inheritance, it is waste to fell or lop them, or do any act ^^ whereby they might decay. A tenant is allowed to cut • down trees under twenty years old for the purpose of allowing the proper development and growth of other timber in the same wood and plantation ; that is improve- ment rather than waste (t). The tenant for life of a timber estate, i.e., an estate cultivated merely for the produce of saleable timber, and where timber is cut periodically, may fell it in the ordinary course. To do so is a mode of culti- vation, and timber felled in proper course constitutes the annual fruit of such land, such as the settlor of the land would expect the successive tenants to receive. He may also cut underwood and willows in due course (w), and all trees other than timber trees (x). ii. Such a tenant would, moreover, commit waste by Opening {p) D. of Marlhoroughv. St. John, (t) Honyicood v. H., 18 Eq. 310 ; 5De G. & Sm. 174. Lowndes v. Norton, 6 Ch. D. 139. (q) Williams \. Jr., 15 Ves. 419. (u) I/a7nptony.IIod;/cs, 8VGfi.105; (r) George Ap-Rirc's Case, 3 Leon. Phillip.^ v. Smith, 14 M. & W. 589. 241. (.<;) Ilonyivood v. H., sup. (s) Lewis Bowies' Case, 1 1 Eep. 83. 038 INJUNCTIONS RESTRAINING LK(iAL WRONGS. Writ of waste. Inade- quacy of the remedy. new pits or Jigging pits for gravel, lime, clay, stone, &c. (except for repairs), or by opening new mines for metal, coal, &c. (y); but he may continue working pits and mines previously opened, and in order to do so may make new pits or shafts (^). (c.) Remedies at laiu. The remedies for waste at law were by writ of waste (abolished by 8 & 4 Will. 4, c, 27, s. 3G), by an action for damages, by trover for trees, &c., which became the pro- perty of the next owner of the inheritance as soon as they were felled, or by action for money had and received for the produce of their sale (a). The incompleteness or inadequacy of these remedies is very apparent. They only contemplate the recovery of damages after the- waste has been committed, and pre- vious to 17 & 18 Vict. c. 125, Courts of law had no power to prevent by injunction the commission of the waste. Again, Courts of law had no efficient machinery for the taking of accounts, which were often long and com- plicated. Further, they supplied no remedy at all for many cases of legal waste, as will be more fully seen when considering the nature of the equitable jurisdiction. And lastly, they took no cognisance whatever of what is termed equitable waste. Of course the contrast thus suggested between law and equity is now a matter of history. By the Judicature Act, 1873 (h), it is enacted that, " An estate for life without impeachment of waste shall not confer or be deemed to have conferred upon the tenant for life any legal right to commit waste of the description known as equitable waste, unless an intention to confer such right shall expressly appear by the instrument creating such estate." Though tenants for years and tenants in tail after possibility of (//) Co. Litt. 53 b. ; Viner v. Vau'/han, 2 Beav. 466, (z) Clarcrim/v.C, 2r.Wms. 388; Elias V. Gr!jfi(/i, 8 Ch. D, 521, (a) Seagram v. Kniqht, 2 Ch. 632. (h) 36 & 37 Vict.'c. 66, s. 25, .^ub-s, 3, EQUITABLE WASTR. GoU issue extinct are not here mentioned, they are brought within the same rule by sub-s. 11, Avhich enacts that in case of a conflict between law and equity the rules of equity shall prevail. (2.) Tlie doctrines and remedies of equity as to ivaste. The contrast between the doctrines of equity and those Contrast of of law with respect to waste is twofold. In the first place, equity. it consists in the more extended meaning which equity ascribes to the word, reckoning, as it does, many acts as waste which the law did not consider chargeable. Secondly, ec[uity affords a remedy to many persons to whom law would not have allowed a locus standi. Its jurisdiction, therefore, in cases of waste depends partly upon the nature of the act complained of, partly upon the position of tlie parties. (a.) As to the nature of the act charged. The consideration of the jurisdiction which particularly depends on the nature of the waste complained of requires a definition of equitable waste. Though equity follows the law in allowino- weifj-ht to the Equitable . . „ . . waste words" without impeachment of waste," or their equivalent, defined. when used respecting a limited tenancy, it does so only to a certain degree. AVheii they arc used it will not restrain from the committing of ordinary waste, such as cutting timber trees and opening mines ; but it will not allow this power to be exercised contrary to conscience and in an unreason- able manner, so as to amount in fact to a destruction of the estate settled (c). The following acts of waste, with which in tenancies Instances " without impeachment of waste " the law would not able waste. have interfered, have been deemed unconscionable and unreasonable in equity, and constitute, therefore, equitable waste : — i. The destruction or dismantling of the mansion Destroying house (d), and the wanton pulling down of farmhouses house." (c) Vane v. Bfirnord, 2 Vern. (d) Lord Barnard's Case, 2 Veni. J. 78. 040 INJUNCTIONS RESTRAINING LEGAL WRONGS. Stripping estate of timber. Felling or- namental timber. When or- namental timber may be felled. on the property {c). If, however, such destruction has been simply for the purpose of erecting houses of a better kind or in more favourable situations, the tenant incurs no liability to account (/). ii. Though equity allows the ordinary and reasonable cutting of timber, it will interfere if a tenant threatens to strip the estate thereof, or to grub up a wood settled, or make any such extravagant misuse of the power (g). iii. Similarly, it will not allow the felling of timber planted or left standing for the shelter or ornament of a mansion house or grounds (h), even if planted by the tenant himself (i). In applying this restriction equity will not criticise the designs of the settlor : his taste as well as his will binds his successors (k). The principle extends also to ornaments of outhouses and grounds, plantations, vistas, avenues, and to all the rides for ten miles round (/) ; but not necessarily so as to prevent the cuttiog for repairs of woods through which such rides pass (m). Circumstances, however, may justify the felling of orna- mental timber; for instance, if a storm, by blowing down some trees, renders the removal of others desirable to restore symmetry (n) ; or if some trees are impeding the growth of others of greater importance (o), or are from their proximity to the house prejudicial or dangerous thereto (^j). In these cases, however, the burden of proof is on the parties alleging the necessity (q). The protection of ornamental timber being ascribable to its connexion with the mansion-house or grounds, a ques- tion has arisen as to whether such protection should (e) Aston v. A., 1 Ves. sr. 265. (/) Morris v, M., 3 De G. & J. 323. {fj) Talbot V. Hopc-firott, 4 K & J. 96 ; Abrahal v. JJubb, 2 Freem. 54. (A) Rolt V. Somerville, 2 Eq. Ca. Ab. 759. ((•) Coffin V. C, Jac. 71. (k) M. of Dowmhire v. Sandys, 6 Ves. no. (0 Ibid. (»i) Ibid. (w) Mahon v. StanJiope, 3 Madd. 523, n. (o) Lushinr/ton v. Boldcro,6 Madd. 149. (p) Campbell v. AUgood, 17 Beav. 623. {q) Ibid. WASTE. 041 be continued after the mansion house has been pulled down. The distinction has been drawn that if the house has been pulled down by the owner in fee without any inten- tion of rebuilding it, the timber which was formerly orna- mental ceases to be so, and may be cut down (r) ; but if it is proved or may be inferred that the intention was to rebuild the house, or that any devisee under his will should do so, the trees should still be protected (s). But in an important case, destruction of such timber was restrained notwithstanding the unqualified destruction of the mansion house (t). iv. The Court will prevent the cutting of saplings not Cutting proper to be felled (u), and of underwood before it is of ■^'^^^^"^^* sufficient growth (x), but not the felling of timber merely because it is not full grown or proper for building (y). V. Analogous to the wanton destruction of timber is the Tmprovi- improvident or destructive working of mines, from which ^inino- a tenant for life may be restrained, though not impeach- able for waste. vi. It is now settled that the Court will not usually Permissive interfere to prevent or remedy permissive waste, that is to ^^ ^' say, waste occasioned not by act, but by omission, as by suffering houses to fall into decay for want of repairs (z) ; but an account would be directed where there was an express covenant to repair (a). There seems, however, to have been a legal liability for such waste (6). (b.) By and against tvhor)i waste Tiiay be charged. The next inquiry is as to those cases in which the juris- diction of equity arises from the position of the parties concerned being such as to leave no remedy at law. i. A tenant in tail after possibility of issue extinct, although Tenant iii (r) Micklahwait v. M., 1 De G. & 279. J. 504. {y} Aston v. ^., 1 Ves. sr. 264. (s) Ibid., 519. (z) Poinys v. BUif/rare, Kay, 495 • (<) WeUesley v. W., 6 Sim. 497 ; 4 De G. M. & G. 448. see also 3f orris v. M., 15 Sim. 505 ; (a) Marsh v. Wells, 2 S. & S. 87. 11 Jur. 196. ' (6) Greene V. Cole, 2 Wms. Saund. (7f) O'Brien \. O'B., Amh. 107. 252 and notes; Woodhoztsev. Walker, (x) Brydijes v. Stevens, 6 Madd. 5 Q. B, D. 404. T T 642 INJUNCTIONS RESTRAINING LEGAL WRONGS. tail after unimpeachable of waste at law, is within the principle of orissue^ ^ equitable waste, and will be restrained in equity from com- extinct. mitting malicious and extravagant waste, such as pulling Tenant in down houses, and the other acts above mentioned (c). But countebiT" equity will not, any more than law, interfere with an ordi- generally. nary tenant in tail, who may at his unrestrained pleasure commit any degree of waste, and this notwithstanding that he is restrained by statute from barring his issue or those in remainder, with reversion to the Crown (d). Mortgagee ii. A mortgagee in fee in possession may at present be re- sion""*''^^' strained from committing waste, as by cutting timber, unless the security be insufficient ; and if so, the money arising by sale of the timber or otherwise from the waste must be applied to sink the principal and interest of the debt (e). But as regards mortgages executed after Dec. 31st, 1881, it has now been enacted that a mortgagee in possession shall have power to cut and sell timber and other trees ripe for cutting, and not planted or left standing for shelter or ornament, or to contract for any such cutting and sale, unless a contrary intention is expressed in the mortgage deed(/). Mort- On the other hand, a mortgagor in possession will be gagor. restrained from waste at the suit of the mortgagee, on his showing that the security would be thereby rendered in- sufficient or scanty (g). Tenant for iii. The most important of the cases under this heading mainder ^^'^ tliosc wliich are illustrated by the leading authority of for life. GARTH V. COTTON [1 Ves. sr. 524, 546; 1 Dick. 183; 1 W. & T. L. C. 751]. In its simplest form it is as follows : An estate is limited to a tenant for life, remainder to another for life, with remainder over in fee or in tail. Here the remainderman for life could not sue for waste at law, because he has not (c) Att.-Gen. v. D. of Marlborourjh, (/) 44 & 45 Vict. c. 41, s. 19. 3 Madd. f>2>%. (g) Humphreys v. Harrison, 1 J. (d) Ibid., 498, .^36, 539. & W. 581 ; King v. S7nit/), 2 Ha. (e) Farmnt v. Lovel, 3 Atk. 723. 239. WASTE. 043 the inheritance ; and the remainderman in fee or tail conld not sue, because the plaintiff' at law must recover the place wasted, and that would be an injustice t-o the remainder for life which is not forfeited. Under such circumstances equity has a very aucient jurisdiction to grant an in- junction (i), either at the suit of the owner of the in- heritance, or of the mesne remainderman for life (k). The case of Garth v. Cotton (I) is complicated by Garth v. other circumstances. The first tenant for life was there not impeachable for waste except voluntary waste, there was a remainder to trustees during his life to preserve contingent remainders, remainder to his first and other sons in tail, remainder to B. in fee. Moreover the waste was committed before a son was born to the first tenant, when the only parties in existence who were beneficially interested were the person who committed the waste and the remainderman in fee who consented thereto. In these circumstances equity granted relief to the mesne tenant in tail long after the waste had been committed. The strongest foundation for the decision was the collu- sion between the parties to the waste ; but notwithstand- ing this circumstance, always so unfavourably regarded in equity, the plaintiff could not have succeeded had it not been for the intermediate estate limited to trustees to preserve contingent remainders. Their duty it was to have interfered to stay the waste at the time, so as to preserve the whole inheritance, and it was expressly de- cided that their neglect or ignorance of their duty could not be allowed to prejudice the tenant in tail, though not in esse when the waste was completed. So also where there was a limitation to A. for life, re- mainder to trustees to preserve, &c., remainder to his first and other sons in tail, remainder to B. for life, remainder to his first and other sons in tail, with reversion in fee to (?■) Tracy v. T., 1 Vern. 23. Ca, Ab. 400. (k) Dayrell v. Champneyn, 1 Eq, {I) Hup. TT 2 044 INJUNCTIONS RESTRAINING LEGAL WRONGS, A., an injunction against waste by A. was granted on the prayer of B. (m). Trustees to Although by virtue of 8 & 9 Vict. c. 106, s. 8, and 40 & contingent ^1 Vict. c. 33, the insertion of a limitation to trustees to remain- preserve contingent remainders is no longer necessary for the purpose for which it was originally designed, Garth v. Cotton, and other similar cases, indicate that it may still serve a useful effect ; because, though by virtue of these statutes such trustees will not be required where the inter- mediate tenant who may be damnified by collusive destruc- tion is m esse, and able to seek his own remedy, neverthe- less such trustees may, if appointed, pray for the restrain- ing of waste before the intermediate tenant comes into esse, when in their absence there would be no one capable of taking action for the purpose. Wliere there is a mesne tenant in esse, it woidd not seem to matter, since 40 & 41 Vict. c. 83, whether the preceding estate is for life or for years. In either case, on the principle of Garth v. Cotton, the remedy would avail for the mesne tenant, even in the absence of trustees. Devisee in As to executory devises, after some doubts (n) it seems executory ^^ ^^ Settled that a devisee in fee, with an executory devise dcvise over on his death without leaving issue, may be restrained from equitable, but not from legal waste (o), though a testator could make such a tenant impeachable for legal waste by express words (p). Waste by Where a plaintiff in possession sought an injunction to under^ restrain waste by a person claiming under an adverse title, adverse the tendency of the Court was to grant the relief prayed, at least when the acts complained of did or might tend to the destruction of the estate (q); and now, by Judicature Act, 1873, s. 25, sub-s. 8, such an injunction is expressly placed within the discretion of the Court. (m) Perrot v. P., 3 Atk. 94. (p) Blake v. Peters, 1 De G. J. & {«) Robinson v. Litton, 3 Atk. 309 ; S. 345. Stansfieldv. Ilabtr'jham, 10 Ves. 278. (q) Loumdes v. Settle, 10 Jur. N. S. (o,' Turner v. IVrirfht, 1 Johns. 226 ; 12 W. R. 399. 740 ; 2 De G. F. & J. 234. WASTE. (Ji.J Thoiioli tenants in common will not in general be re- Waste by tenants ii common. strained from committing either ordinary or equitable waste, equity will interfere between them to prevent malicious or destructive waste — as, for instance, cutting saplings and timber trees or underwood at unseasonable times (r). And under special circumstances ordinary waste has been restrained — for instance, where the parties interested were only equitable tenants in common, and the one who was committing the waste not only was not entitled to the possession, but was also insolvent, and un- able to pay to his co-tenants their shares of the produce of the waste (s). After a decree has been made in a partition suit between such tenants, the Court has jurisdiction to restrain waste (t). A ground landlord may have an injunction to stay waste Under- against an under-lessee, where the original lessee, by collusion or neglect, does not seek to restrain it (u). (c.) Equitable remedies. (1.) The jurisdiction of equity in matters of waste is not Superio- less due to the superior remedial processes which it com- equitable mands, than to the broader principles which it applies. At I'emedies. common law, previous to the addition to its power effected by 17 & 18 Vict. c. 125, there existed no power to interfere with the commission of waste generally. The injured party could at most recover damages to indemnify himself after the wrong had been done. On the contrary, equity could always be appealed to where a single act of waste could be established, to interfere by injunction to restrain the offending party from any further acts of like nature ; and this whether the waste complained of were legal or equit- able {x). Again, while common law was hampered in its estimation of damages by the want of the machinery requisite for examining lengthy matters of account, which (?•) Hole V. Thomas, 7 Ves. 589 ; (t) Wriyld v. Atlcyns, 1 V. & B. Ciey/) Per Lord Selborne, 9 Ch. (s) National, <£r. Co. v. Prudential 221 ; and see Raddiffe v. I), of Port- Ass. Co., 26 W. R. 27. land, 3 Giflf. 702. {t) Aldred's Ca., 9 Co. 58 a; (z) Aldrcd's Ca., svp ; St. Helens Potts V. Smith, 6 Eq. 315. SmeUinrj Co. v. Tlppiwj, 11 H. L. (m) Att.-G. V. Bowjhty, 2 Ves. 642. jr. 453. (rt) Weld v. Hornhy, 7 East, 199. (x) Jones V. Tapling, 12 C. B. U U ings. 058 INJUNCTIONS RESTRAINING LEGAL WRONGS, Noises. If^ again, real damage or great inconvenience is occasioned by tlie carrying on of a noisy trade or otherwise causing excessive noise or vibration, an action may be brought and an injunction obtained to restrain its continuance. Here, again, tlie decision depends greatly on the locality ; and each case nnist be decided on its own circumstances. Rights to (2.) Another extensive and important class of cases support of I'ests on the right of a landowner to the lateral support of land ; ]-jjg land in its natural state. This right is a common law right altogether independent of prescription. He may, therefore, restrain his neighbour from so digging into the adjacent soil as to cause a subsidence of the surface of his land. No action lies until damage has actually been done ; but when this has happened, it is no defence to show that the works causing the damage have been carried on with care and skill (6). of build- But the right to the support of a building by the adjacent soil of an adjacent owner is of a different nature. Tliis is not a natural right of property ; it is an easement which can be acquired by prescription from the time of legal memory, or by grant express or implied : but it is not within the Prescription Act (c). It may, moreover, be acquired by the circumstance that the building has stood for twenty years, if during that period the owner of the adjacent soil knew, or might have known, that the building was thereby supjx)rted and was capable of making a grant ; and after twenty years' enjoyment in point of fact the claim to the right will not be defeated by proof that no grant of the easement was ever made (d). As between adjoining houses, no right to lateral support is acquired by long enjoyment (e). The only case in which it can be asserted seems to be where both houses have been so built as to be mutually dependent on each other, and the owner of both alienates one of them. He may then claim (b) Hunt V. Peake, John. 710. 162 ; 6 App. C. 740. ((■) 2 & 3 Will. IV. o. 71. (e) Peyton v. Mayor of London, {(I) Angus v. Dalton, 4 Q. B. D. 9 B. & C. 736. NUISANCES. 659 in respect of the house he retains the support which it in return affords to the other (/). (8.) Another large class of nuisances which often provoke Rights equitable interference, relates to rights respecting water, ^^ter ^"^ All acts done by a man on his own land, whereby the rights of his neighbour respecting water are injuriously affected, or whereby water becomes a cause of damage to the land of his neighbour, are considered as nuisances relating to water (g). We cannot digress into a particular account of the various rights to water. They may be conveniently classified as rights respecting quantity, and rights respect- ing quality. The riparian proprietors have a right to the use of the as to water which flows by their land, and this right is incident ' to the ownership of the adjacent soil. And the right being enjoyed by the successive proprietors along the bank, none may so interfere with the water as to prejudice those above or below him, unless, of course, he has some special title to exclusive enjoyment. He may therefore be restrained from diverting the stream, or materially diminishing the quantity which would naturally flow to his neighboui*s below (h) ; or, on the other hand, from damming back the stream so as to cause an overflow on the land of his neighbour above him. Secondly, a riparian proprietor has a right to a natural and stream in a natural state of purity. He may therefore *^"* ^ ^" restrain the fouling of the water, and this without even proof of actual injury (i). And it is immaterial that the stream was previously in some degree polluted. The right is as clear to prevent an increase of pollution as to prevent pollution in the first instance (k). The rights respecting artificial watercourses must, how- Artificial (/) Richards v. Rose, 9 Ex. 218. (t) Crossley v. Lightoiuler, 2 Ch. (g) Kerr Inj. p. 224. 478 ; Pennington v. Brinsop, dr. Co., {h) Ferrandv. Corp. of Bradford, 5 Ch. D. 772. 21 Beav. 412. (A) Ibid. U U 2 GGO INJUNCTIONS RESTRAINING LEGAL WRONGS. water- cver, bc carefully distinguished from the above. The courses water iti an artificial stream is the property of the person by whom it is created or caused to flow. In the absence of long- enjoyment he has no right to discharge it on the land of another; while his neighbour cannot claim the continuance of the flow, notwithstanding that a right to discharge it may have been acquired by the producer (l). Navigable The public rights in navigable rivers are likewise frequently protected by means of the remedy of injunc- tion. These rights may be infringed either by buildings, &c., which interfere with the public right of navigation, or by the fouling of rivers in such a manner as to be in- jurious to the public health, or destructive of a fishery (m) ; and where a sufficient case of injury is established, the nuisance may be restrained at the suit of the Attorney- General. Other It must Suffice merely to mention other extensive classes "of nuisances which are dealt with on the principles already amply expounded ; for instance, obstructions of public high- ways and private rights of way, obstructions of the sea- shore and of ferries, markets, commons, &c. Nuisances Before dismissing the subject of nuisances, it must be bv statute observed that when a statutory power has been conferred to do an act which otherwise might have been actionable, the person so protected is not amenable to the process of the Court as long as he confines himself strictly to the limits of the power conferred upon him. The unlawful character of the act is taken away by the sanction of the legislature, however injurious it may be (n). Such powers when conferred must, however, be strictly complied with. Any injurious act which is not covered by their provisions brings the oflender at once within the reach of the law (o). {I) Kerr Tnj. 23.5. Bridges v. Higliton, 1 1 L. T. N. S. 653. [ill) See Att. G. v. Lonsdale, 7 Eq. {n) Hex v. Pease, 4 B. & A. 30. 388; Att.-G. v. Tei-ry, 9 Ch. 423; (o) AU.-G. v. Leeds Co7'p., 5 Ch. Att.-G. V. Mayor, d:c. of Kingstmi- 591; Clowes v. Staffordshire Pot- uiwn-Thames, 34 L. J. Ch. 481 ; teries Co., 8 Ch. 139. LIBEL, ETC. C61 Injunctions against libel, ^-c. Abundant illustrations have been given of the applica- Crimes tion of the remedy of injunction to restrain the commission "ti-ained of torts. Moreover, it is clear that equity will not interfere by injunction to restrain the commission of a crime. But there is a class of offences which partakes both of the nature of a tort and of that of a crime, inasmuch as a breach of the rights to which they refer renders the offender at once liable to a civil action and to criminal proceedings. The most conspicuous illustration of such offences is afforded by cases of libel ; and it is necessary to inquire whether or not equity will interfere by injunction in such cases. Now the genera] purpose on wliich injunctions are Libel, granted is for the protection of property ; and unless the ^ ." ^T plaintiff can show that injury to his property is threatened, equity will not assist him. It is evident that the offence of libel will rarely come within this condition ; and accord- ingly we find that as a rule an injunction cannot be obtained to restrain a publication of this character (p). But in a recent case in which the nature of the libel complained of was to injure the plaintiffs in their trade, an injunction was granted (q). It is evident, however, on both principle and authority, that no such relief could be obtained in the case of a merely personal slander or abuse (r). II. Injunctions protecting Patent Rights, Copyright and Trade Marks. It is convenient to class together the rights here men- Grounds of tioned, since though they are in themselves strongly ^]^J^^^^' contrasted, the jurisdiction of equity respecting them rests on the same foundation, namely, the desirability of prevent- ing a multiplicity of suits and vexatious litigation. (p) Mtdkerti V. Ward, 13 Eq. 619 ; Blassam, 14 Ch. D. 763. Prudenticd Ass. Co. v. Knott, 10 Cb. (>•) See also Da// v. Bvownrli/ij, 142. 10 Ch. D. 294. iq) Thorkjfs Cattle Food Co. v. GC2 INJUNCTIONS RESTRAINING LEGAL WRONGS. Inade- The rights ill themselves are fully recognised at law, and the remedy have always sufficed to ground an action at law for at law. damages. But it is evident that such a remedy sup- plies an exceedingly inadequate protection. Not only might the patentee, or author, or owner of a trade mark be compelled to bring innumerable actions, and thus be ruined by interminable litigation, but in many cases damages, even if recovered, would aftord an insuffi- cient redress for the injury sustained. The business or the reputation might be impaired by the interference pending the litigation, in a manner and to an extent which no inquiry could ascertain (r). And further, the facility for taking accounts afforded by equity, and yet more con- spicuously its power of peremptorily stopping the infringe- ment of the right by injunction, plainly indicate the appropriateness of the jurisdiction of its Courts for dealing with such matters. It must suffice very briefly to describe the rights them- selves here under review, the particular object being to ascertain under what circumstances an aggrieved party can obtain an injunction against an infringement of them. 1. Patent rights. Origin of (1.) The abuse of the royal prerogative of gi'anting pa en s. patents for monopolies, and the disputes which arose there- from, are well-known matters of English history, and need not be here recapitulated (s). Suffice it to say, that the 21 Jac. I. result thereof was the statute 21 Jac. I. c. 3, which abolished the general power of gi'anting monopolies and patents, but by express reservation excepted the power of granting letters patent for the term of fourteen years or under to the inventor of any new manufacture, provided it were not contrary to law nor mischievous to the State {t). On this statute rest the patent rights now enjoyed by inventors. (r) Ifogri v. Kirhi, 8 Ves. 223. St. Tr. 1110. (s; See Mompcssons Case, 2 How. (t) Sect. 6. c. 3. PATENT RIGHTS. G63 The first qnestion which arises is as to what may be the subject of the right. It is to be observed that the statute uses only the term "Maimfac- " manufacture," and that it does not at all enlarge on the ^^^*^'^' right as previously existing at common law. The subject- matter of a patent must therefore come within this term. and must be for a legal purpose. It would be supereroga- tory to trace the course of the decisions by which these conditions are now in some degree defined : it is sufficient to briefly summarise their results. The word "manufacture" not only comprehends any- What aom- thing made, but also the mode, method or process of P^'^^^"^*^'^- making a thing ; it comprises, therefore, not only vendible articles, the result of chemical or mechanical processes, but new machines or new combinations of machinery, or an improvement of an old process (u). It is, however, to be particularly observed, that a bare No patent principle cannot be the subject of a patent. For instance, «t)tainable •^ •* _ "^ '^ ^ ... for ^ mere no one could obtain a patent for the mere idea of utilising principle, electricity as a motor power (,r). The discovery of a principle is not an invention in the sense of patent law. The means must be shown of practically applying the prin- ciple (y). This distinguishes a principle from a process. Secondly, the invention must be new. It is not indeed Novelty necessary that the object produced should be of a species ^^^^^^'^'^i'- unknown before, but the process of making it must be the true and original invention of the person seeking protec- tion ; original not only in the sense that he derived it from no one, but in the sense that no one had used it before (z). Previous sale even by the inventor himself would avoid the patent (a). Previous user beyond the realm is, how- ever, no objection to a patent (6). (w) Kerr Inj. 282; Johnson's Pat. (//) Bou/ton v. BuU, 2 H. Bl. 463. Man. 5 ; Crane v. Price, 4 Ma'^. & (z) Tennnnfs Ca., Dav. on Pat. G. 580; Ralston v. Smith, 11 H. L. 429. 223. («) Wood V. Zimnier, 1 Holt N. (x) Jupe V. Pratt, 1 W. P. C. 145 ; P. C. 58. Danrjcrjidd v. Jones, 13 L. T. N. y. ih) Edjehcrni v. Sttplicns, 2 Salk. 142. 447. 6G4 INJUNCTIONS RESTRAINING LEGAL WRONGS. Utility. Thirdly, it must be useful ; but this word is applied with considerable latitude (h). Procedure. These are, briefly stated, the conditions which determine what may be the subject of a patent right. But not only must the matter for which protection is sought fall within these conditions; the inventor must also, in order to procure patent privilege, closely follow the procedure laid down, the most important element in which is the specification. Specifica- The specification, which must be enrolled in Chancery, must particularly describe and ascertain the nature of the invention, and show how it is to be applied and carried into effect, the test of a good specification being " whether a workman of ordinary skill can from merely reading it make the thing of which it is the specification " (e). It must contain the best and fullest information of the patentee respecting the object of the patent (d). As with regard to the objects of patents, so with regard to procedure, it is impossible here to enter into detail. To attempt to do so without occupying a considerable space Avould only tend to delude the student. Keference should 15 & 16 be made to the Patent Act, 18.52 (e). \m^ \^ ' ^■^■■^ ^ patent is infringed when a man directly or in- amountsto directly uses the protected invention, or prodvices the same men°^^' result by means only colourably different. Similarity in principle between two machines will not constitute an infringement, if the mode of operation is different, though the same result may be attained (/) ; nor is there an infringement in the application of a patented machine to a different purpose from that for which it was patented (g). It is an infringement to offer patented articles for sale, though no sale takes place (It), or to buy or sell in the way of trade, articles made by a machine which is itself an {h) Munton V. Parker, Dav. P. C. M. & W. 806. 327. («') 1.0 & 16 Vict. c. 83. (c) Per Lord Campbell, 8 E. & B. (/) .Seed v. Higuins, 8 H. L. 550. 937. See Plimpton v. Malcolmson, (ij) JS'eu-tcm v. Vaucher, 6 Ex. 859. 3 Ch. IJ. 569. (/() Oxhy v. Ilohlen, 8 C. B. N. S. (d) Ibid. Neilson v, Ueirfm-d, 8 666. PATENT RIGHTS. CG5 infringement (?'). It is immaterial whether there is or is not an intention to infringe (k) ; even ignorance of the existence of the patent is no answer (l). When the question as to infringement depends on the When a construction of the specification only, it is a question of i^^^ ^^g^ law for the judge ; when it depends on the degree of dif- of fact. ference or similarity between two things, it is a mixed question of law and fact. In as far as it is a question of fact it is for the jury ; the finding of the jury as to the fact is applied according to law by the judge (vi). (3.) Such being a brief review of the nature and con- Remedies, ditions of patent right, we may now intelligibly observe the application for its protection of the equitable remedies. i. The injunctions sought in patent cases are usually of Injunction, the interlocutory species. One of the leading authorities on the principles of the Court respecting them is HILL V. THOMPSON [3 Mer. 622], which not only substantiates and illustrates what has been above stated as regards the necessity for novelty and utility in the invention (n), but also clearly ex- presses the circumstances under which an injunction would be granted. From that case it appears that with When respect to patents which have been for a long time in the exclusive enjoyment of the plaintiff, equity would presume an exclusive right, and would restrain a de- fendant from infringement thereof without requiring him to establish its validity at law, but that in the case of recently granted patents it would not interpose by injunc- tion until the right had been established at law (o). But if a good prinfid facie case is made out the Court has jurisdiction to interfere notwithstanding the recency of the (i) Wright V. Ilitchcock, L. R. 5 {n) P. 629. Ex. 38. (o) See also Univ. of 0. .(• C. v. [k] Heath v. Unwin, 15 Sim. 552. Jiiehardmn, 6 Ves. 689 ; Muicman (1) Curtis V. Piatt, 3 Ch. D. 138, n. v. Tetjff, 2 Russ. 385. (m) Kerr Inj. 310. G06 IXJUNXTIONS KESTKAINING LEGAL WRONGS. patent (p). The plaintiff nmst in any case show both a lyrimd facie title to the patent, and a, primd facie case of infringement (q). When the If the Court is satisfied of the validity of the patent and must be ^f the fact of the infringement, it may grant an injunction estab- a^t once without requiring the plaintiff" to establish his legal right ; but it will rarely do this if either the validity of the patent or the fact of infringement is denied. In such cases the Court will usually put the plaintiff to a trial of the right, either in the meanwhile protecting him by interim injunction, or ordering the motion to stand over until the right has been tried ; the defendant meanwhile keeping an account, and the plaintiff giving an under- taking as to damages. The Court will, in its discretion, follow whichever of these courses appears most convenient under the circumstances of the case (r). Proper A plaintiff who seeks the aid of the Court must apply rVuiTd^ with proper diligence. Any open encouragement or acquiescence in the invasion of his right, especially know- ingly permitting the defendant to expend monies upon the faith of non-interference, will bar his right to the extraordinary interference of equity (s). There are other equitable remedies incident to the protec- tion of patents which may here be advantageously noticed. Inspection. ii. Sometimes an owner of a patent can only obtain satisfactory proof of infringement by means of an inspec- tion of the defendant's premises. And if a pvir>id facie case of this nature is made out, the Court may require the defendant to submit to such inspection, subject to such restrictions and conditions as it sees fit (t). The order may be made on interlocutory aj^plication {ii). By a similar (p) Plim'ptonv.SpiUer,iCih.'D.2^Q. v. Spiller, sup. ('/) Bridaon v. MacaJpine, 8 Beav. (s) Bridsonv. Benecke, 12 Beav. 1; 230 ; Caldwell v. Vanvlissenrjen, 9 Bovill v. Crate, 1 Eq. 388. B-a,. -^-l^; Bidford w Skeii-es, iMy. (t) Bennitt v. Whitehnuse, 28 & Cr. 5O0. Beav. 121 ; Sinr/er, dr. Co. v. Wil- (r) Kerr Inj. 274 ; Bacon v. Jones, son, 13 W. E. 560 4 My. & Cr. 436 ; Renard v. Levin- (») Ennor v. Barvxll, 1 De G. F. stein, 2 H. & M. 628 ; Plimpton v. & J. 520. Mnlcolmson, 20 Eq, 37 ; Plimpton I PATENT RIGHTS. 667 jurisdiction samples may be ordered to be delivered up for analysis (x). iii. The right to an account of profits in respect of Account, articles manufactured or sold in violation of patent rights is incident to a right to an injunction to restrain future infringements. There can be no account if the case for an injunction fails, or if at the hearing there is nothing on which an injunction can operate (y). If an account is decreed it extends to all the profits arising from the in- fringement for six years previous to the action (z). The aggrieved patentee may elect between an account Ele'^tion and an inquiry as to damages. He cannot have both (a), account^ He may, however, have an account against the manu- and in- o • 11 • ■ 1 • quiry as to lacturer, and also an inquiry as to damages against a damages, person using the article (b). The Court will enforce dis- covery by the defendant of such facts as to sales, &c., as may be needed in the inquiry to ascertain the damages (a). 2. Coi^yrigld. (1.) It is now established that copyright exists only by Origin of statute {d). The term designates the exclusive right of *^® ^^^^*' multiplying a work of literature or art after its publica- tion (e). The right commences by publication (/), and the publication must be in this country {g). Copyright is declared by statute to be personal property (A), and it therefore descends to the owner's legal personal repre- sentatives. There are many different species of copyright, differing Various in accordance with the nature of the subiect-matter to ^P®*^'®f ^[ copyright. which it refers. Literary copyright depends upon the statute 5 & 6 Vict. Literary (x) Patent, d-c. Co. v. Walta; (h) Penn v. Bibhi/, 3 Eq. 308. John. 727. (c) Howe v. M'Kernan, 30 Beav. {y) Kerr Inj. 312 ; Baily v. 5i7 ; Saxby v. Easterbrook, 7 L. R TayLw, 1 R. & M. 73 ; Smith v. L. Ex. 207. , 2 V. & B. [y) Newberi/s Ca., LoflFt. R. 775 ; 19 ; Drew Inj. 208, 209. Dickens v. Lee, 8 Jur. 184. (t) Qaeensberry v. Shehheare, 2 (z) Tinsley v. Lacy, 1 H. & M. Eden. 329 ; Prince Albert v. Strawje, 747 ; Dickens v. Lee, supra. 1 Mac. & G. 25. G70 INJUNXTIONS 1!EST1!AIN1N0 LEGAL WRONGS. 3 & 4 Will performance have been provided in addition by 3 & 4 5&6 Vict Will- I^- c- l-'^, and o & G Vict. c. 45; and the first public c. 45. re])resentation or performance is in respect of such works equivalent to publication. Public representation or per- formance of such a work, or of a material and substantial part thereof, amounts to an infringement of the copy- right (6). Penalties are by statute (c) imposed for such infringements ; but none the less an injunction may be obtained to restrain an intended infringer (d). Copyright (4.) Copyright in prints, engravings and etchings de- &c. ' pends on the statutes 8 Geo. II. c. 13, 7 Geo. III. c. 38, and 17 Geo. III. c. 57. The protection has been extended to sculpture by 54 Geo. III. c. 50, to lithographs by 15 &; 16 Vict. c. 12, s. 14, and to original paintings, drawings and photographs by 25 & 26 Vict. c. 28. Every copy of such works which comes so near to the original as to give the same idea created by the original is an infringement (e), and this includes any copy made by photograph}^ or other chemical process ( /'). Copyright (5 ) Copyright in designs for ornament is regulated by fo/oTnf' ^ & 6 Vict. c. 100, 6 & 7 Vict. c. G5, 13 & 14 Vict. c. 104, meiit, 21 & 22 Vict. c. 70, and 24 & 25 Vict. c. 73 ; the duration of the protection differing according to the articles pro- tected (g). A design within these statutes need not neces- sarily be a new invention ; a combination of old materials may be protected if the design be new (h). and de- Designs for utility are protected by 6 & 7 Vict. c. 65 and utility.'^'^ 13 & 14 Vict. c. 104, and have reference to the shape or configuration of an article as conducive to its utility. The statutes do not apply to a combination of old designs, or to inventions or new applications however useful ; except in (6) Reade v. Laci/, 1 J. & H. 524 ; (/) Gamhart v. BuU, 14 C. B. Chatterton v. Cave, 2 C. P. D. 42. N. S. 306 ; Graves v. Ashford, 2 (c) 3 & 4 Will IV. c. 15. L. R. C. P. 410. (d) Russell V. Smith, 15 Sim. 181. {g) See Grave's Ca., 4 L. R. Q. B. (e) West V. Francis, 5 B. & Aid. 715. 743; Moore v. Clark, 9 M. & W. [h] Holdsworth v. Macrae,2Jj.'R. 692. H. L. 380. COPYRIGHT. 071 SO far as the shape and configuration confer utility upon the invention (i). The foregoing very general descriptions must here suffice to indicate the nature of the various species of copyright. For further details, and in particular as to the question of international copyright, reference should be made to works specially devoted to the subject. (G.) The proprietor of a copyright cannot, generally speak- Action, ing, maintain an action in respect of the infringement of maintain- his right, until his copyright has been registered (k) ; and able, he can obtain no injunction until the defendant's work has ^^''^*^'^" been published (l). It is not, however, necessary that he should show a clear legal title. A fair prima facie title, or Primdfade a clear colour of title, legal or equitable, is sufficient, even *|g^t^" though limited in point of time or extent (m). Delay or acquiescence, unless adecjuately explained, will Plaintiff be fatal to the claim (n), as also will participation in the ^jij^^q^ conduct complained of (o). Under 5 & 6 Vict. c. 45, s. 2G, all actions must be commenced within twelve months of the offence. The injunction may be granted against the whole or a Nature of part of the work, according to the extent of the piracy (p) ; *r*^ '"junc- the whole will be included if the pirated part is so inter- mixed with the original matter as to be practically in- separable (q). In copyright, as in patent cases, an inter- locutory injunction if granted usually determines the action. The plaintiff is, however, entitled to a perpetual in- junction, and this will be decreed with costs at the hearing, unless the defendant has submitted to the interlocutory injunction, and offered to pay the costs up to that time {/•), Whatever relief is required by the plaintiff, as incident Discovery. {i) Rogers v. Driver, 16 Q. B. (n) Maioman v. Tegg, 2 Russ. 102. 393. (k) See 5 &6 Vict. c. 45, .s. 24, and (o) Rundell v. Murray, Jac. 311. the various other statutes referred to. {p) Letvis v. FuUarton, 2 Beav. 6. (I) Mon-is V. Wright, 5 Ch. 279. (q) Mawman v. Tegg, sup. ; Kellij (m) Univ. of 0. k- C. v. Richard- v. Morris, 1 Eq. 697. son, 6 Ves. 689 ; Nichol v. Stoclalale, (?•) MiUinglon v. Fox, 3 My. & 3 Swanst. 687. Cr. 352. 672 INJUNCTIONS RESTRAINING LEGAL WRONGS. Account. G^eneral principles of trade- marks. to the right to an injunction, may be decreed to him. Thus he may have discovery of the original sources from which the defendant alleges that he has taken his work (.s). A riglit to an account of profits is also incident to the injunction (t). By statute the plaintiff is also entitled to delivery up of all copies of the defendant's work (u). In deciding the question of piracy, the Court now usually inspects the work itself (x). 3. Trade mai'ks. A third species of right for the protection of which the remedy of injunction is peculiarly sidtable, is that to the exclusive use of a trade mark. (1.) No man has a right to sell his goods as being the goods of another manuflicturer or trader. If, therefore, some particular mark or symbol has come to be recog- nised in trade as the mark of the goods of a particular person, another person cannot lawfully mark his goods with that mark so as to induce a purchaser to believe that they are the goods of the person entitled to use the mark (y). The right is limited to the use of the mark in connexion with a particular class of goods ; that is to say, it would be no infringement to mark goods of a different class with the same symbol (z). Moreover, if an article has acquired a certain name in the market, which name indi- cates its nature rather than its being of a particular manu- facture, any man may call it by that name, though in the first place it may have been the name of the inventor or original maker (a). What may (2.) Any name, symbol, or emblem which is not merely be a trade- jg^,^,j,-p^^^g of an article, or which does not denote the mark. ^ _ general character of a business, may constitute a trade (s) Kelly V. Wi/man, 17 W. R. 399. {t) Baily v. Taylor, 1 R. & M. 73 ; Colbm-n v. Simms, 2 Ha. 560. (a) 5 & 6 Vict. 0. 45, s. 23 ; Mac- rae V. Holdsworth, 2 De G. & S. 497. (x) Lexois V. Fulktrton, 2 Beav. 6. (y) Perry v. Truefitt, 6 Beav. 66. (2) Edehten v. E., 1 De G. J. & S. 185. (a) Hall V. Barrows, 4 De G. J. & S. 150 ; Bury v. Bedford, ibid. JS52. TRADE MARKS. 673 raark (b). No person other than the original inventor, or those claiming through him, may use such words as " the original " or " the only genuine " as a trade mark (c) ; but a man cannot be prevented from calling goods by his own name merely because someone of the same name invented the goods or made them before him (d). The same prin- ciple applies in the case of a partnership name, if the use of the name be bond fide ; but the Court will not suffer a name to be used for the purpose of having the benefit of the reputation which another firm has acquired. This amounts to a fraud on the piiblic (e). (3.) By the Trade Marks' Registration Act, 1875 (/), Registra- registration of a trade mark was required before proceed- gg ^ „q ings to prevent its infringement could be instituted. The Vict. c. 91. Amendment Act of 1S7G, however, provides that want of ff.*^ "^^^o , ^ Vict. c. .3-3. registration shall not be conclusive against the right to take proceedings, a certificate of refusal of registration being sufficient to enable the owner to proceed (g). In this, as in other cases, prompt action must be taken by the plaintiff after discovery of the fraud. Delay or acquies- cence will bar his remedy (Ji). (4.) As to what amounts to colourable imitation or in- What fringement, reference may be made to Leather Cloth Co. v. fetation'*' American Cloth Co. (i), Seixo v. Provizende {k), and the cases therein cited. Almost all that can be laid down respect- ing this question in general terms is that the resemblance must be such as to deceive an ordinary purchaser ; it is sufficient if it be calculated to deceive even the unwary ; and it is not incumbent on the plaintiff to show that any one has been actually deceived. On the other hand, it has [h) Braham v. Bustard, 1 H. & D. 748. M. 447 ; Burgess v. B., 3 De G. M. (/) 38 & 39 Vict. c. 91. & G. 896 ; Raggett v. Findlater, 17 {g) 39 & 40 Vict. c. 33 ; Exp. Eq. 29. Stephens, 3 Ch. D. 659; Jie Bar- (c) Cocks V. Chandler, 11 Eq. 449 ; row s Trade Marks, 5 Ch. D. 353. James v. /., 13 Eq. 425. (/<) Motley v. Doionman, 3 My. & (d) Burgess v. B., sup. Cr. 1 ; Lee v. Haley, 5 Ch. 160. (e) Croft V. Day, 1 Beav. 84 ; (/) 11 H. L. 523. Singer ) Peake v. Hif/hfidd, 1 Russ. (/) Pierce v. V/ebb, 3 Bro. C. C. 559 ; Johnston v. Reiiton, 9Eq. 181. 16; Bijne v. Vivian, 5 Ves. 607. {k) pp. 139, et seq., 186, et seq. (g) Bromley v. Holland, 7 Ves. G78 Plaintiff must be innocent, or not in pari delicto, Relief on grounds of public policy. Even though plaintiff h.as par- ticipated. Valid in- struments. Relief on REMEDIES ANALOGOUS TO INJUNCTION. This is the simplest and clearest case, plainly conformable to the elementary rule that a man shall not be allowed to reap an advantage from his own fraud against one who is innocent. (2.) Where the plaintiff, as well as the defendant, has in some degree participated in the fraud, but they are not in pari delicto. It is a general maxim that he who comes into equity must come with clean hands ; and as a rule no relief will be given to one who has been guilty of any unconscientious dealing respecting the subject-matter of the suit. But if a fraud has been committed by the defendant, and par- ticipated in by the plaintiff, yet if the plaintiff acted under the influence of oppression, imposition, hardship, or other undue influence, such as may arise from great inequality between the ages and conditions of the parties, he may succeed in establishing his claim to relief (l). (3.) If the transaction has been in effect a fraud upon public policy. In these cases, as in those last mentioned, relief may be given notwithstanding the participation of the plaintiff in the fraud ; the reason in this case is that public policy would be defeated by allowing the transaction to stand. Thus gaming securities have on this ground been decreed to be given up (pi), and other agreements founded on immoral considerations cancelled (n). Save, however, in these two exceptional cases, equity will peremptorily refuse its assistance to one who has him- self been guilty of fraud, whether actual or con.structive (o). 8. Lastly, we have to consider those cases in which the plaintiff' seeks the delivery up of an insti'ument, not on the ground of any equity arising out of the nature of the instru- ment itself, but because he has an equitable right as I {I) Osborne v. WiUiams, 18 Ves. 379 ; Bosanquet v. Dashwood, Ca. t. Talb. 37, 40, 41. {m) Milltoun v. Stewart, 3 My. & Cr. 18. («) W. V. B., 32 Beav. 574. (o) Franco v. Bolton, 3 Ves. 386 ; St. John V. St. J., 11 ih. 535 ; Ayerst v. Jenkins, 16 Eq. 275. CANCELLATION AND DELIVERY UP OF DOCUMENTS. G79 against the defendant to its possession or custody. In ^j^^""*^ °^ these cases there is of course no question as to cancellation ; the relief sought is simply delivery up. A person is entitled to the title-deeds of his own property ; thus heirs-at-law, devisees, and other persons properly entitled to the custody and possession of the title- deeds of their property may come into equity and obtain a decree for the specific delivery of them (p) ; and the same doctrine applies to other instruments, such as bonds, negotiable instruments, &;c., which are detained from per- sons who have a legal or equitable interest in them (q). In such cases the Courts of Common Law could not afford complete redress, since the prescribed forms of their remedies rarely enabled them to pronounce a judgment in rem. Similarly, remaindermen and reversioners, and other Preserva- persons having limited or ulterior interests in real estate, deeds, may in many cases take measures in equity to secure the preservation of their title-deeds (r). The plaintiff must, however, in such cases be prepared to show the necessity for his action by proving that there is some danger of the loss or destruction of the instruments unless protected by the Court, and his interest must not be too remote (s). It may be here observed that voluntary agreements Vohmtary untainted with fraud, although not enforceable in equity, ments not will not be set aside. Unless such a deed reserves a power relieved of revocation, the settlor will be bound thereby (t). II. Actions to estahlish Wills. In considering the equitable jurisdiction to establish wills, the student must carefully observe two things: first, (p) Reeves v. R, 9 Mod. 128 ; Stanford v. Roberts, 6 Ch. 307. Tanner v. Wise, 3 P. Wms. 296. (s) Ivie v. /., 1 Atk. 431 ; Ford (q) Kaye v. Moore, 1 S. & S. 61 ; v. Peering, 1 Ves. jr. 76. Freeman v. Fairlie, 3 Mer. 30. (t) Viiliers v. Beaumont, 1 Vern. (r) Smith v. Cooke, 3 Atk. 382 ; 101 ; £iU v. C'ureton, 2 My. & K. and see/c«ne>' V. Morris, 1 Ch. 603; 503. GNO REMEDIES ANALOUOIS TO INJUNCTION. Will of personalty requii'ea legal personal represen- tative, in whom the pro- perty vests. Will of real pro- perty is a convey- ance to the devisee. Former must be proved ; latter not Distinc- tion between disputes as to validity and as to constnac- tion. X" general the distinction between the juristic effects of wills of personalty and wills of realty ; secondly, the distinction between disputes as to the validity and disputes as to the construction of wills. 1, A will of personal property requires for its effectual performance the appointment of a legal personal represen- tative. Usually the will itself provides for this by the appointment of one or more executors. If not, or if those appointed are incapable, the Court supplies the vacancy by the appointment of an administrator. If the will is in other respects valid, the administrator cum testamento annexo acts in conformity therewith as an executor. The persona of the testator devolves in a measure upon him ; he is liable for the debts ; the general personalty vests in him, and only passes to the beneficiaries by his consent. A will of real property, on the other hand, is in effect a conveyance. Putting aside for the present the various steps by which it has become liable to debts, and in some respects placed within the power of the executors, the will itself may be regarded as an assignment of the real estate to the devisee or devisees named. A will of personalty, again, is ineffectual until it is proved in the proper Court, and administration granted to the personal representative. A will of realty does not require any such proof; and is of full effect though no personal representative at all be appointed. 2. The second distinction needs only to be stated. It is evident that the question whether a certain document is or is not a will is quite distinct from the question as to what its language means. When we speak of the jurisdiction of Courts of equity over wills we refer to the former of these questions. The construction of wills is a matter in which they are con- tinually concerned, and which has already come largely under our consideration in connexion with the adminis- tration of assets. Previous to the Judicature Acts, the Court of Chancery ACTIONS TO ESTABLISH WILLS. 681 had no general iurisdiction as to the validity of wills. As h'nsdic- . "^ , tion m regards wills of personal property the Court of Probate, chancery which by virtue of 20 & 21 Vict. c. 77, succeeded in 1857 Validity of to the functions of the Ecclesiastical Court, was the wills ; proper forum ; and the same Court at the same time ac- quired jurisdiction as to wills of real property, which was formerly exercised by the Courts of Common Pleas and Queen's Bench. The position of the Court of Chancery with respect to wills "o* even in cases of IS well illustrated by the case of Allen v. M'Pherson (u), fraud. in which it was sought to set aside a will of personalty by suit in equity on the ground of undue influence, notwith- standing that it had been admitted to probate in the Ecclesiastical Court ; but the bill was dismissed for want of jurisdiction. A similar decision has been much more recently arrived at in a case in which both real and per- sonal property were concerned (x). It has indeed been held under the Judicature Acts that the Chancery Division has now concurrent jurisdiction with the Probate Division to grant probate of wills (y) ; but the same case shows that it is most unlikely to put this power into exercise. But notwithstanding these considerations, and previous to the Judicature Acts, the cases were numerous in which a qualified jurisdiction respecting wills was exercised by Courts of equity. In the first place, if a will came incidentally before the Incidental iiinscliC" Court, and its validity had not been admitted or elsewhere tion before established, the Court effectually determined the question. J"*^- -^<^^^' This was done either by directing an issue to be tried at law, or by the production and examination of witnesses in the Court of equity itself ; and when the validity of the will was thus once determined, the rights of those claiming under it might be established, if necessary, by a perpetual injunction against the heir (z). (u) 1 H. L. 191. (?/) Pimiey v. Hunt, 6 Ch. D. 101. {x) Meluish v. Milton, 3 Ch. D. (2) Sheffield v. D. of Bucking- 27. hamshire, 1 Atk. 628. 082 REMEDIES ANALOGOUS TO INJUNCTION. Wills of Secondly, as regards wills purely of real estate, which estate recjiiire neither the appointment of an executor nor a in^e'^uTtv^^ grant of probate, equity had, and seemingly still has, juris- diction to entertain a suit by a devisee to establish his right against the heir, by means of a perpetual injunction restraining him from contesting its validity in future (a). Such action could not have been brought at law, and yet might be necessary for the security of the devisee ; since the heir might delay seeking ejectment against him until the evidence was grown obscure. The jurisdiction, therefore, is in some respects analogous to that which empowers interference quia timet (b). Boyse v. A leading authority respecting actions of this nature is borough. Boyse V. RosshoTougli (c), where a will was established at the suit of a devisee against an heir, although the heir had brought no ejectment against the devisee, although no trusts were declared by the will, and although there was no necessity for the administration of the estate by the Court. It has also been held that the Court has power to establish such a will not only against the heir, but against all persons setting up adverse claims — for instance, claims depending on a prior will {d). Heir can- On the Other hand, an heir, having a complete legal contest a remedy by action of ejectment, could not have come into ^^1- equity as plaintiff to contest the validity of a will, except, at least, by consent of the devisee. Under the present practice, these distinctions between the jurisdiction of Courts of law and equity have, of course, ceased to exist. The combined result of legislation and decision, there- fore, practically confines the jurisdiction to establish wills to a very limited number of cases — namely, to wills relating solely to real property. (a) Booth V. BlundeU, 19 Ves. De G. M. & G. 817 ; 6 H. L. 1. 494, 509. {(1) Ibid. ; Lovett v. £., 3 K. & (6) Lifra, p. 683. J. 1. ((■) Kay, 71 ; 1 K. & J. 124 ; 3 I ACTIONS QUIA TLMET. 683 III. Actions Quia Timet. In certain circumstances equity has jurisdiction to interfere for the protection of a right before any injury has been actually done, and a party who fears a probable invasion of his right may establish an action for his pro- tection without claiming any other relief. The nature of the relief given depends, of course, upon Nature of ,1 . ,■,.■,.. , . . relief given tne circumstances under which it is sought; sometimes it quia timet. takes the form of the appointment of a receiver of rents or other income ; sometimes that of an order to pay a fund into Court ; sometimes security is directed to be given ; sometimes it suffices merely to issue an injunction (e). The object of the action in all cases is to preserve pro- perty to its appropriate uses and ends. It must here suffice to adduce a few illustrations of the circumstances which call for and warrant the exercise of the jurisdiction. 1. If property in the hands of a trustee is in danger of Preserva- being diverted or squandered, to the injury of any claimant trust°pro- having a present or prospective title thereto, the Court perty. will take such measures for its protection as it deems requisite. And the same principle aj^plies to executors or administrators, if there is danger of collusion between them and the debtors of the estate, or of a waste of the estate from any other cause (/). Such cases will generally Apijoint- be met by the appointment of a receiver ; and when this receiver, is done the appointment is made for the benefit of all the parties in interest, and not for that of the plaintiff only (g). The appointment of a receiver rests in the discretion of the Court; and when appointed he is regarded as an officer of the Court, and therefore subject to its orders (h) : he is commonly required to give security. 2. Where the tenants of a particular estate for life or in Keeping (e) Story, 826. if/) Davis v. D. of Marlboro uc/h, 1 (/) Ibid. 827-8; ra>/lor v. Swanst. 83 ; 2 i'6. 125. Allen, 2 Atk. 21-3. ' (/*) Skij) v. Ilarimod, 3 Atk. 564. 684 REMEDIES ANALOGOUS TO INJUNCTION. down tail neglect to keep down the interest due upon incum- brances, brances, the Court often appoints a receiver to secure the performance of this duty (i). Protection 3. The jurisdiction is also exercised for the protection of ' sureties. A surety who apprehends loss from the delay of his creditor to sue the principal debtor may come into equity to compel the discharge of the debt (k). Protection 4. In all cases in which there is a future right of enjoy- rightsTn ment of personal property, and there is danger of loss or personalty, deterioration or injury to it in the hands of the party entitled to present possession, equity has power to inter- pose, and grant relief on an action in the nature of a bill Security, quia timet (I). Such cases may be met by an order to Payment give Security (m) ; or still more effectually by requiring into Court. ^^^^ ^^^^ ^^ ^^ p^.^ .^^^ ^^^^^^ ^^-^^ Whenever trust money is traced to hands not entitled to hold it, the Court will, on the application of the cestui que trusts, order its payment into Court (o). Injunc- j^ jg^ Qf course, unnecessary here to dwell upon the circumstances which warrant the gi'anting of injunctions for the protection of property, these having been already copiously illustrated. We need only further observe that the same authority, above quoted, which now enables the Court to grant an injunction by an interlocutory order whenever it seems to be just or convenient, enables it to Jud. Act, appoint a receiver in a similar manner and on similar 1873 s. 25 8ub-s. 8. ' conditions (p). This extensive power renders it now un- necessary to consider many restrictions on the jurisdiction which were formerly effective. (i) Giffard v. Hart, 1 S. & L. («) Slanning v. Style, 3 P. Wms. 407, n. 336. {k) Wright v. Simpson, 6 Ves. (o) Leigh v. Macaulay, 1 Y. & C. 734 ; and see Wooldridge v. Norris, Ch. 260 ; Bowsher v. Watkins, 1 R. 6 Eq. 410. & M. 277. (I) Story, 845. {p) Supra, p. 651 ; Jud. Act, 1873, (m) Rous V. Noble, 2 Vern. 249. s. 25, sub-s. 8. ACTIONS IN THE NATURE OF BILLS OF PEACE. G85 IV. Actions in the nature of Bills of Peace. In some respects analogous to the remedy last con- sidered is that formerly known as a bill of peace, and now taking the form of an action of the same effect as the former bill, A bill of peace was one brought to establish and per- Nature of petuate a right which from its nature might be controverted peace, by different persons at different times, and by different actions; or where separate attempts had already been made to overthrow the same right, and justice required that the party should be quieted in the right and relieved from the annoyance of continual litigation. In such cases equity, which is always opposed to multiplicity of suits, has jurisdiction to interfere and put an end to the fruitless litigation. One class of cases in which this remedy is appropriate The right consists of those in which one general right is to be established established against a great number of persons, as where a agamst person has possession and claims a right of fishery on a fendants. river, and the riparian proprietors set up several adverse rights (q), or where a lord seeks to restrain encroachments by tenants under colour of a common right, or to establish an enclosure which he has approved under the statute of Merton (r). Similar relief may be sought where many persons claim "The right ^ n ^ • 1 • ^ j^ii*^^ many or defend a right against one ; as where tenants seek against to prevent the disturbance by a lord of a common '^"®- right (s). But in order to entitle a party to claim the assistance Conditions of the Court on these grounds, it must be clear that there remedy, is a right claimed which affects many persons, and a (q) M. of York v. Pilkington, 1 Gardiner, 7 Ves. 305 ; D. of Norfolk Atk. 282 ; Tenham v. Herbert, 2 ib. v. Myers, 4 Mad. 50, 117. 483. (s) Coni/ersv. Aberr/avenny,! Atk. (r) 20 Hen. III. c. 4 ; Hanson v. 285 ; Phillips v. Hudson, 2 Ch. 243. 686 REMEDIES ANALOGOUS TO IX.IUNCTIOX. suitable number of parties in interest must be brought before the Court (t) ; and it is to be observed that the Court will not decree a perpetual injunction in contradiction of a public right, such as a right to a highway or to a common navigable river (u). On the one hand, the right in question nu;st affect numerous parties ; on the other, it must not affect the public at large. Protec- Another class of cases for which a bill of peace was an rights well apt remedy comprised those in which the plaintiff had after at law.^ repeated trials established his legal right, but yet was threatened with further litigation from new attempts to controvert it. In such circumstances, the Court was wont to grant a perpetual injunction to quiet the plaintiff's possession, and to suppress future litigation (x). It would not, however, interfere until the right had been satisfactorily established at law ; but two trials was deemed a sufficient determination of the right to warrant an injunction (y). Rolfs Act. By 25 & 26 Vict. c. 42, the Court of Chancery was em- powered to direct an issue, if necessary, to be tried at the assizes or at nisi j>rM(S, or to itself decide the question of J ad. Act law or fact; and since the Judicature Act the Courts of law could themselves apply the remedy without requiring the defendant to appear as a plaintiff in equity. We have already seen that as regards the various divisions of the High Court of Justice no one division can now restrain proceedings in another. Each can order a staj'^ of its own proceedings whenever there is an equitable claim to it. V. Ne Exeat Regno, Nature The writ of ne exeat regno was a prerogative writ, an origin jgg^g^j ^^ prevent a person from leaving the realm. It {t) Story, 857 ; Cowper v. Clerk, Ch. 261 ; 10 Mod. 1 ; 4 Bro. P. C. 3 P. Wms. 15. 373. (h) Story, 858 ; Hilton v. Scar- (y) Devonshcr v. Neivenham., 2 borovrjh, 2 Eq. Ca. Ab. 171, S. '& L. 208 ; Leightmi v. L., 1 P. (x) E. of Bath V. Shcrimn, Prec. Wms. 671. NE EXEAT REGNO. G87 was originally applied only for political objects and pur- o^ the poses of state, and at present it is exercised for the protec- tion of private rights with much caution and jealousy (0). The writ ne exeat rec/no was as a rule only granted in Granted '^ . . , . onlv for respect of equitable debts, a plaintiff who had a legal claim eqviitable being left to his legal remedy. But to this rule there °^°*^' were two exceptions. First, when alimony had been decreed to a wife the writ except in . , cases of was procurable to restrain the husband Irom evading the alimony, obligation by leaving the realm (a). The alimony must, however, have been actually decreed, and not appealed from. The writ could not be obtained while the case was still pending (5). Secondly, where there was an admitted balance due and where from the defendant to plaintiff, but the plaintiff claimed a admitted larger sum, he might be assisted by the writ (c). This case balance 1 1 • 1 • 1 • n • i 1 • J • • 1 • , • t)ut larger was brought withm the purview 01 equity by its jurisdiction sum is in matters of account. claimed. With respect to the equitable demands for wliich the Conditions writ might be issued, they were required to be certain as ^g^^j^^ ^^" to their nature, and actually paj^able, not contingent (d). It must also have been a pecuniary demand, and not of the nature of damages or any unliquidated claim (e). It need not, however, have been directly created between the parties ; thus the cestui que trust or obligee of a bond was entitled to the writ against the obligor (/). Such were the general conditions of the jurisdiction as unaffected by legislation. At present it seems that its scope is completely determined by the following statutes. (1.) By the Debtors' Act, 1869 (a), which, with certain Debtors' . . . \^'' ^ j^^^ I860, exceptions, abolished imprisonment for debt, it was enacted that in future no person should be arrested upon mesne (2) Story, 1465-7. {d) Anon., 1 Atk. 521 ; Bico v. (a) Read v. R., 1 Ch. Ca. 115 ; Gaidtier, 3 ib. 500. Shaftoe V. S., 7 Ves. 71. (c) Etches v. Lance, 7 Ves. 417 ; (6) Ibid.; Dawson v. D., 1 Ves. Cock v. Ravie, 6 ib. 283. 173. (/) Grant v. G., 3 Russ. 598 ; (c) Jones V. Sampson, 8 Ves. 593 ; Leake v. L., 1 J. & W. 605. Jones V. Alephsin, 16 Ves. 471. (y) 32 & 33 Vict. c. 62. 088 REMEDIES ANALOGOUS TO INJUNCTION. process in any action, but that where the plaintitf in any action in any of the Courts of law at Westminster in which previously the defendant would have been liable to arrest, proves at any time before final judgment by evidence on oath to the satisfaction of the judge that the plaintiff has good cause of action against the defendant to the amount of £50, and that there is probable cause for believing that the defendant is about to quit England, and that his absence will materially prejudice the plaintiff in his action, such judge may order the defendant to be arrested and imprisoned for a period not exceeding six months, unless he gives the prescribed security, not exceeding the amount claimed in the action, that he will not go out of England without the leave of the Court. Effect of With respect to this enactment it has been held that it the Act. . "^ , • o has m effect confined the writ of ne exeat regno to cases which come within its provisions (k), the reasoning being that the jurisdiction of Chancery must follow that of law, and the power of the Courts of law to arrest for legal debts being by this statute restricted, the power of the Courts of equity with respect to equitable debts was sub- jected to a corresponding restriction. This argument does not seem to have been resoited to in Sohey v. Sobey (i), in which the writ was issued in the same manner as before the statute (k). Jud. Acts. (2.) Further, by the Judicature Acts, the distinction between legal and equitable debts has disappeared, so that the reasoning applied by the Master of Rolls in Drover V. Beyer is now much stronger than it would have pre- viously been. It is clear from this case, at any rate, that the effect of the Judicature Acts has not been to extend the remedy (I). Abscond- (3.) It may here be further mentioned that by the Absconding Debtors' Act, 1870 {m), power is conferred (h) Drover v. Beyer, 13 Ch. D. 242. Ch. D. 866. (i) 15 Eq. 200. (I) See Snell'.s Pples., p. 624. (^•) And see Lees v. Patterson, 7 (m) 33 & 34 Vict. c. 76. mg ACTIONS TO PERPETUATE TESTIMONY. G89 upon the Court of Bankruptcy to issue a similar writ under Debtors' . . i ^ ^^.j. 1370 the conditions there prescribed, to prevent a debtor from going abroad after the service upon him of a debtor's summons under the Bankruptcy Act. VI. Actions to perpetuate Testimony. Circumstances often arise in which public justice requires Grounds of that measures should be taken to perpetuate evidence of a ^jctio "^" right which cannot be presently protected by judicial decision. For instance, a person may have a claim to a remainder, or he may be in actual possession of the property in question : in neither case can he directly make his right the subject of a judicial decision; and yet his right may be dependent upon evidence which the laj^se of time will weaken or perhaps destroy. In such circum- stances it is in the highest degree necessary for him that some measures should be taken to secure or perpetuate this evidence, and so to protect him against some adverse claimant Avho may be purposely delaying his suit with a view to profit by the loss of the proofs of title. Such cases strongly appealed to that principle of equity which declares that it will not suffer a wronof without a remedy. And yet the exercise of a jurisdiction thus to Objections perpetuate testimony was evidently subject to the strong ^^'^''°' objection that the depositions so taken were not published until after the death of the witnesses. The evidence, there- fore, was not given under the sanction of the legal penalties attached to perjury. In consequence of the danger thus and conse- attending the process, we find that the Courts of equity 1"*^"* . o r ^ I J caution in were careful only to grant relief of this kind in strong its exer- cases, where a failure of justice would be otherwise seriously threatened (?i). Assistance was refused if by any means open to the plaintiff the whole matter could be at once adjudicated upon (o). If, as in the illustrations above (n) Angell v. ^., 1 S. & S. 83. (o) ElUct v. RouptU, 32 Beav. 299. Y Y 090 REMEDIES ANALOGOUS TO INJUNCTION. given, this was impossible, equity would exercise the neces- sary jurisdiction, and take the requisite evidence (p). Applicable It is immaterial as regards the exercise of the jurisdic- kind of tion, whether the subject-matter in question is real or property, personal estate or of the nature of a mere personal demand, or whether the evidence to be used tends to the proof of the plaintiff's title or is needed for defence (q). Equity, however, will do nothing in vain, and it accordingly will not interfere to support a right which is liable to be immediately barred ; for instance, it will not entertain an action of this nature by a remainderman against a tenant in tail in possession, who can at any time bar the entail (r). Expect- Formerly, moreover, a mere expectancy, such as that of an heir-at-law, was not deemed sufficient to sustain a bill, though 5 & 6 Vict, a remote or contingent interest would do so (s). But 5 & 6 Vict. c. 69, provided for this case, and extended the remedy by enacting that any person who would under the circumstances alleged by him to exist become entitled upon the happening of any future event to any honour, title, dignity or office, or to any estate or interest in any pro- perty, real or personal, the right or claim to which could not by him be brought to trial before the happening of such event, should be entitled to file a bill in Chancery, to per- petuate any testimony which might be material for estab- lishing such claim or right. The terras of this enactment, Titles and it will be ob.served, extend the remedy to claims to titles igni les. ^^ J dignities ; it was previously confined to cases in which the right to some property was in dispute (t). Bills for Actions in the nature of bills to perpetuate testimony obsolete, would seem to have remained unaffected in principle by the Judicature Acts ; bills for discovery, on the contrary, which were formerly analogous in many respects thereto, and which formed a conspicuous feature in equitable juris- ip) Spencer v. Peek, 3 Eq. 415 ; 261. Re Tayleur, 6 Ch. 416. (s) Ibid. {q) Story, 1509; Suffolk v. Green, {t) Townshcnd Pecraqe Case, 10 CI. 1 Atk. 450. & F. 289 ; and see Campbell v. E. of (r) Durdcif v. Fitzhardhuje, 6 Ves. Dalhousie, 1 L. E. H. L. (Sc.) 462. ACTIONS TO PERPETUATE TESTIMONY. 691 diction, have been rendered completely obsolete by the present procedure. It has been, therefore, deemed unneces- sary here to discuss them. A study of the Orders under the Judicature Acts, in particular of Order XXXI., in any of the recognised hand-books thereto, will supply ample information as to the present means of attaining the ends formerly sought by bill in Chancery. Again, it is now scarcely necessary to do more than and also mention the bills to take evidence de bene esse, which once ^^^^ ^^^ occupied a useful and important place in the auxiliary jurisdiction of equity. The purpose of these bills was to take the testimony of persons resident abroad. They could only be brought while an action was then depending: but they were available as well for a person out of as for one in possession ; in both these respects differing from bills to perpetuate testimony. Ample powers of a similar nature were, however, long ago conferred upon the Courts of law (u), and at present such matters fall entirely within the province of Procedure, and consequently beyond the scope of this work. («) 13 Geo. III. c. 63, s. 44 ; 1 Will IV. c, 22, s, 1, Y Y 2 INDEX. ABANDONMENT of lien, 274 ABATEIMENT of legacies, 500 specific performance with, 616 ABSCONDING DEBTOR, He exeat regno, 688 ABSOLUTE CONVEYANCE, mortgage compared with, 219, 221 ABSTRACT of title, effect of delay in delivering, 609 ACCIDENT, 198—204 annuities reduced by, 204 apprenticeship, 203 contracts for personal service, 199, 203 definition of, 198 destruction of deeds, &c., 200, 202 — 3 demised premises, 201 subject-matter of contract, 199 equal equity, no relief, 201 executor, remedy in case of, 204, 628 indemnity in cases of, 202 jurisdiction in cases of, 198 lost bonds, 200, 202 deeds, 200, 202 negotiable instruments, 200, 203 negligence, effect of, 201 payments lay executors, 203, 627 — 8 positive contracts, 201 remedy in equity, 198, 203 at law, 199 trust property, to, 108, 628 vis major, 199 warranty, 199 694 INDEX. ACCOUNT, action iu equity, 469 at law, 4(58 apportionment, 480—1 ; see AFroRxioNMENT. appropriation of payments, 473—7 ; see AppRorRiATioN of Pay- ments. contribution, 481 ; see Contribution, Surety. copyright suits, in, 672 defences to action for, 482 — 3 laches, 483 Limitations, Statute of, 483 settled account, 482 election, in cases of, 420 equitable claims in, 469, 473, 478 jurisdiction, 470 procedure, 469 falsify, liberty to, 483 fiduciary relations, 470 foreign rents, 12 fraud, effect of, 483 guardians, of, 391 injunction, incident to, 470, 646, 653, 667, 672, 674 Judicature Acts, effect of, 470 jurisdiction founded on, 471 Limitations, Statute of, 483 mistake, 483 mortgagor and mortgagee, 236 — 9; see ^Mortgagee. partnership, of, 545, 552 patent suits, in, 667 principal and agent, 470 re-opening, 482 set-off, 477 — 80 ; see Set-off. settled, 480 solicitor and client, between, 483 surcharge, liberty to, 483 trade marks suits, in, 674 trespass, 653 trustee and cestui que trust, 100, 115, 121—2, 470, 483 waste, 646 — 50 ; see Waste. ACCOUNTANT'S LIEN, 265 ACKNOWLEDGMENT. See Married Woman. mortgage of, 225 — 6, 244 ACQUIESCENCE, breach of trust by co-trustee, 117 generally, 123 constructive trusts, effect in, 91 copyright, by owner of, 671 creditors, by, in payments by executor, 294 in trust deed, 57 INDEX. 695 ACQUIESCENCE— con<(Hwerf. election, effect in, 421 evidence of, 92 fraud, in, 91, 149 improvements, in, by mortgagor, 239 by owner, 168 legatees, in pa3'^ments by executor, 294 patentee, by, 667 req^uisites of, 92, 149 restraint on anticipation, effect in, 353 resulting trust rebutted by, 69 specific performance, in actions for, 575 trade mark, by owner of, 673 trespass, in actions of, 653 vigilantibus twn dormientibus, &c. ; see Maxims. ACTIO IN PERSONAM, 10, 13 in rem, 10 ACTS OF PARLIAMENT, injunction against procuring, 631 notice of, 285 private, and public distinguished, 179, 285 trusts not affected by, 83 ADEMPTION, legacies by portions, of, 445 — 50 leaning against double portions, 446 locus 2)arentis, 447 occasional gifts, 450 presumption, how repelled, 448, 450 pro tanto, 449 - residuary bequest, 449 specific legacies, of, 517, 523 — 5 change or removal of subject-matter, 524 insanity of testator, 525 Wills' Act, effect of, 525 ADMINISTRATION OF ASSETS, 4S4— 515 assets, 484—9; see Assets. creditors, rights of, 496 debts, priority of, 489 crown, 489 judgments, 489, 490 recognisances, 490 secured, 494 simple contracts, 491, 493 specialty, 490, 493 statutes, 490 executors, rights and liabilities of, 491 — 2 Judicature Act, effect of, 493 marshalling assets, 509 — 14 ; see Marshalling. securities, 514 ; see Marshalling. mortgage debts, 502 — 9 adoption of debt, 504 — 5 69G INDEX. ADMINISTRATION OF ASS'ETS— continued. iiiort^'iij,'e debts, Locke King's Act, 272, 506 mortgaged estate, when lialile, 503, 504, 506 personalty, when liable, 503, 507 order of, appointed property, 502 charge of debts, 500 devise, residuary, specific, 500 lands charged, 499 descended, 499 devised on trust for payment, 499 legacies, general, specific, 500 paraphernalia, 501 partnership, of, 547 ADMINISTRATOR. And see Executor. cum testamento annexo, 680 ADVANCEMENT, DOCTRINE OF, child, in favour of, 71 evidence, rules of, 74 — 5 locus parentis, 71 rebiittiug cii'cum stances, 73 wife, in favour of, 72 ADVANCEMENT OF INFANT distinguished from maintenance, 401 power of, 401 without a power, 402 ADVOWSON, mortgage of, foreclosure, 241 partition of, 558 AGENCY, contract of ; specific performance, 588 AGENT, account against, 470 notice to, effect of, 284 purchase Tjy, 95 — 6 renewal of lease by, 84 secret profit, 132 trustees may employ, when, 90, 127 AGREEMENTS. See also Contracts. against public policy, 165, 313 assigning pensions, 165, 313 buying offices, 165 champerty, 165, 313 maintenance, 165, 313 marriage, respecting, 163 restraint of trade, 164 INDEX. 01)7 ALIEN cestui que trust, 26 trustee, 25 ALIENATION. See also Separate Estate. lands, of, restrictious at law, 19 married woman, by, 341 — 7 wife's property, of, 373 — 6 ALLOWANCES to co-owiier, 85 — 6, 100 to mortgagee, 238 ANCIENT LIGHTS, 656 ANNUITIES, accidental reduction of, 204 administration, in, 500 executor, given to, for trouble, 128 lien of vendor for, 270, 275 purchase-money, application of, 296 valuation of, 500 ANTE-NUPTIAL AGREEMENT, effect of written, 60 settlement rectified by, when, 190 ANTICIPATION, restraint on, 348 — 53 ; see Separate Estate. APPARENT POSSESSION, 231, 233 APPLICATION of purchase money, 293 — 304 ; see Purchase Money. APPOINTMENT, contract between appointees, 173 defective, 192 ; see Powers. fraudulent, 169 — 74 ; see Powers fund appointed, in administration, 502 illusory, 174 APPORTIONMENT Act, 1870... 481 apprentice, premium of, 203, 480 divisible contracts, 481 maintenance, 481 rents, 481 APPRENTICE, premium apportioned, 203, 480 698 INDEX. APPROPRIATION OF PAYMENTS, creditor's option, 475 debtor's option, 474 general effect, 477 illegal debts, 475 presumption of law, 476 Eoman law compared, 474 statute barred debt, 475 ARBITRATION, agreements to refer ; specific performance, 589 ARBITRATOR, purchase of claim by, 98 ARCHWAY, notice of right of way, 283 specific performance of contract to build, 587 ARREARS, pin-money, 359 settlement out of arrears of income, 371 ARTICLES, MARRIAGE, executory trusts in, 42 — 4 settlement rectified by, 190 ARTISAN'S LIEN, 265 ASSETS. And see Administration. definition, 484 descent, by, 485 equitable, 486 — 7 legal, 486 marshalling, 509—14 ; see Marshalling. real, 485 statutory, 485 ASSIGNMENT, causes of, to divisions of the High Court, 2 champerty, 165, 313 choses in action, 305, 307, 308 bankruptcy, effect of, 310 bills of exchange and of lading, 305 bonds, 305 communication to creditor, 308 illegal, 313 Jud. Act, effect of, 312 laches, 312 IiNDEX. 009 ASSIGNMENT— coHiiTiwed clioses in action, notes, 305 notice, 309 pendente lite, 314 pensions, 313 policies of assurance, 56, 305 reputed ownership, 310 subject to equities, 311 when complete, 308 expectancies, 306 future acquired property, 306 maintenance, 165, 313 mortgages, 221 — 2 non-existent property, 306 possibilities, 305 — 6 ATTORNEY. See Solicitor. ATTORNMENT CLAUSE, 239 AUCTION, defect of title, 615 sale by, Stat, of Frauds, 595 specific performance, 595 trustees purchase at, 90 AUCTIONEER, executor, profit by, 131 purchase of property by, 95 AWARD, specific performance of, 589 BANK, deposit by trustees in, 108, 109 BANKER, lien of, 266 BANKRUPT, BANKRUPTCY, administration of estate of, 488, 493 — 5 consolidation against trustee in, 254 equitable mortgage, 261 fraudulent preference, 240 injunctions by Court of, 626 partner, of, 547, 552 reputed ownership, 310 surety, rights of, in, 332 trustee bankrupt, 25, 117, 122 in bankruptcy, purchase from, 90 by, 94 voluntary settlements, how aflected by, 57- 700 INDEX. BAKIIISTER. See Counsel. BENEFIT BUILDING SOCIETIES, statutory peiuilties, relict' against, qiutie, 212 BEQUEST. See Legacy. BILL OF EXCHANGE, assignment of, 305 injunction against negotiation, 629 loss of, remedy, 200, 203 BILL OF LADING, assignment of, 305 BILL OF PEACE, 685—6 BILL OF SALE Acts, 229 actual possession, 231, 233 apparent possession, 231, 233 fixtures, 231, 232—3 growing crops, 231, 232 — 3 registration, 230, 231 reputed ownership, 310 BOND, administration, place in, 485, 488, 490, 493 — 6 assignment of, generally, 305 to surety, 331 destroyed, remedy, 200, 202 lost, remedy, 200, 202 penalty relieved against, 206 tacking, 248, 252 BOUNDARIES, commission to ascertain, 554, 568 foreign lands, 12, 568 jvirisdiction to settle, 554, 568 — 9 BREACH OF TRUST. And see Trustee. acquiescence in, 91, 122, 123 agreements involving, not specifically enforced, 573 co-trustee, by, liability for, 109, 117, 119; see TRUbTEE. fraudulent, indictable, 123 Limitations, Statute of, 122 married woman, by, 344 purchaser party to, 298 simple contract debt created by, 491 BROKER'S LIEN, 266 INDEX. 701 BUILDING, agreeineiit to build, specific performance, 587 covenant to build, forfeiture on breach, 211, 213 injunction against, when, 652 society ; see Benefit B. S. CANCELLATION OF DOCUMENTS, 675—9 fraud of plaintiff, effect of, 678 gaming securities, 678 valid instruments, 678 void instruments, 186, 676 voidable instruments, 677 voluntary instruments, 679 CATCHING BARGAINS, 144. See Fraud. CESTUI QUE TRUST, acquiescence by, 69, 91, 123 following trust funds, 116, 290 pixrchase from, 88 — 100; see Trusts, Constructive. release by, 123 who may be, 26 — 7 CHAMPERTY, 165, 314 CHARGE, apportionment of, 481 debts, on realty, administration, in, 486, 499 contrasted with devise on trust for debts, 67 effect on purchaser, 299 equitable assets, 486 sale by executors, 298 separate estate, 343 — 6 ; see Separate Estate. CHARITIES, CHARITABLE TRUSTS, cy-pr^s, doctrine of, 28 defective assurances remedied, 30 favoured in equity, 28 lapse prevented, 28 marshalling not allowed for, 30, 514 particular distinguished from general design, 29 resulting trusts in gifts to, 66 — 7 what are charitable objects, 27 CHATTELS, contracts respecting, 581 — 7 ; see Specific Performance. donatio mortis causa of, 529 gift of, 49 married woman's, husband's rights respecting, 334 mortgage of, 228 — 33 ; see Bill of Sale. pledge of, 229—30 trust of, how created, 33 voluntary settlement of, 60 702 INDEX. CHILDREN. See Advancement, Parent and Child, Infant. CHOSES IN ACTION, assignment ot, .305 — 8 ; see Assignment. dunatio murtis causa, .')29 — 30 married women's, husband's rights, 334 reduction in possession, 380 COLONIES, lands in, suits respecting, 12, 13 trusts of, 23 laws of, 179 COMMISSION, boundaries, 554, 568 examination of married woman, 372 partition, 554, 558 COMPANY, Acts referred to, 95, 535 contracts of, specific perfonnance, 579 directors, office vacated, 95 profits beyond salary not allowed, 132 purchases by, 94 distinguished from partnership, 534 injunctions against, 652, 660 nuisances by, 660 promoters, secret profits by, 95 shares, agreements to take, specific performance, 585 sale of, 585 trespass by, 652 winding up, inixinctions in, 629 rules in, 495 COMPENSATION, election, in cases of, 409, 4l2 forfeiture instead of, 210 penalties, 210, 213 .specific performance with, 611 — 2, 613, 615, 617 COMPOSITION, debts by trustees, 102 sureties, with, 326 rights of, in case of, 324 COMPOUND INTEREST, HPOLL\D IJNTEKKST, when charged against mortgagor, 236 m trustee, 115, 126 ? INDEX. 703 COMPROMISE, debt of, by executors and trustees, 102 family settlements, 182 married woman, by, 353 COMPULSORY POWERS, conversion under, 428 injunction against abuse of, 652, 660 purchase money of leaseholds taken, 86 specific performance of agreements, 579 CONCEALMENT, active, effect of, 141 composition deeds, in, 143 insurance, in, 143 family settlements, 143 latent delects of, 142 married woman, by, 167 suretyshiji, in, 143, 319 supjrressio veri, effects, 141 — 2 third person, from, 166 — 9 trustee, by, 123 CONDITIONAL SALE compared with mortgage, 219, 221 CONDITIONS IN RESTRAINT OF MARRIAGE. See Marriage, 160—2 CONFIDENTIAL RELATIONS. See Fiduciary. CONFIRMATION, fraudulent transactions, 149 title, of, 168 CONSENT, marriage of infant, 395 — 6 married woman, of, 372, 374 CONSIDERATION OF MARRIAGE, 59 CONSOLIDATION. See Mortgage, 253—5 CONSTRUCTIVE fraud, 137 notice, 280 — 4 ; see Notice, trust, 79—100; see Trusst. CONTEMPT OF COURT, marriage of ward, 395 704 INDEX. CONTINGENT INTERESTS, assiguineiit of", 305 — 7 maintenance of infant out of, 398 CONTRACT. See Agreement, Settlement. drunkenness, effect of, 151, 575 duress, 151 fraud, 150—2 illegal, 162—4 infant, of, 152 influence testators, to, 164 lunatic, 151 marriage brokage, 163 married woman, of, 153 misrepresentation, effect of, 150 mistake, 176 — 191 ; see Mistake. sailors, with, 153 rescission of ; see Fraud, Mistake. restraint of trade, 164 specific performance, when decreed, 572, 579 — 90 ; see Specific Performance. trustee and cestui que trust, purchases, 88 — 100 ; see Trusts, Con- structive. remuneration of trustee, 129 ; see Trustee. varying on condition, penalty distinguished, 212 CONTRIBUTION, charge on lauds, 482 partition, in, 482 suretyship, in, 317, 327 — 9 ; see Surety. trustees, between, 122 CONVERSION, bankruptcy in case of, 427, 431 character of converted property, 430 unconverted, 438 Court, by the, effect of, 427 discretionary power of, 426 failure of purposes of, effect of, 433 partial failure, 434 — 5 total, 433 where conversion by Court, 437 heir, when excluded, 436 how effected, 424—8 infant's property, 427 intention, express or implied, 424 land into money, effects of, 429 lapsed land, descends to heir, 435, 438 lunatic's property, 427 married woman, by, 428 money into land, eft'ect of, 428 — 9 mortgages, 426 optional powers of sale, 425 INDEX. 70; CONVERSION— raHi/nwed partial, 426 partnersliip property, of, 542 principle of, 423 purchase under compulsory powers, 428 reconversion, 439 — 43 ; see Reconversion. time from which it takes place, bankruptcy, in, 431 compulsory sales, 432 generally, 431 — 3 options to purchase, 432 COPYHOLDS, defective surrender aided, 30, 193 partition of, 557 trusts of, Statute of Frauds, 33 Statute of Uses, 21 COPYRIGHT, account in cases of, 672 action, when maintainable, 671 designs of, 670 discovery in cases of, 671 dramatic, 669 infringement generally, 669 injunction, nature of, 671 lectures in, 668 letters, private, 669 literary, 667 musical, 669 origin of the right, 667 piracy, how decided, 672 prints, 670 registration of, 671 CORPORATION. &e Charity, Company. cestui que trust, 26 trustee, 24 COSTS, lien of solicitor for, 267 mortgagor and mortgagee, 239, 247 partition, actions in, 566 — 7 tacking of, 247 town agent of solicitor, 132 trustee of and against, 100, 126 — 7 CO-TRUSTEE. And see Trustee. acquiescence of, 117 contribution from, 122 fraud of, 117 Z Z 706 INDEX. CO-TRUSTEE— con Magazine. " We should strongly advise any person cinuected with elections, whether acting aa candidate, agent, or in any other capacity, to become possessed of this manual." BANKING. — Walker's Treatise on Banking Law. In- cluding the Crossed Checks Act, 1876, with dissertations thereon, also references to some American Cases, and full Index. By J. DOUGLAS WALKER, Esq., Barrister-at-Law. Demy 8vo. 1877. 14s. " Persons who are interested in banking law may be guided out of many a difficulty by consulting Mr. Walker's volume." — Law Times. BANKRUPTCY.— Bedford's Final Examination Guide to Bankruptcy. — Fourth Edition. [In preparation.) Haynes. — Vide "Leading Cases." Pitt- Lewis. — Vide "County Courts." Sal am an. — Vide "Liquidation by Arrangement." Scott's Costs in Bankruptcy. — Fide "Costs." Smith's Manual of Bankruptcy. — A Manual relating to Bankruptcy, Insolvency, and Imprisonment for Debt ; comprising the New Statute Law verbatim, in a consolidated and readable form. With the Rules, a Copious Index, and a Supplement of Decisions , By JOSIAH W. SMITH, B.C. L., Q.C. 12mo. 1873. 10a. *,* The Supplement may be had separately, net, 2s. Qd. Williams' Law and Practice in Bankruptcy: comprising the Bankruptcy Act, the Debtors Act, and the Bankruptcy Repeal and Insolvent Court Act of 1869, and the Rules and J'orms made under those Acts. Second Edition. By ROLAND VAUGHAN WILLIAMS, Esq., and WALTER VAUGHAN WILLIAMS, Esq., assisted by Fkakcis Hallett Hardcastle, Esq., Barristers- at-Law. 8vo. 1876. 1?. 8s. ■ ' It would be difficult to speak in terms of undue praise of the present work." BAR, GUIDE TO THE. — Shearwood.— FeWe "Examination Guides." BILLS OF EXCHANGE— Chalmers' Digest of the Law of Bills of Exchange, Promissory Notes, and Cheques. By M. D. CHALMERri, of the Inner Temple, Esq., Barrister-at-Law. Second Edition. Demy 8vo. 1881. 15*. " In its present form this work contains a very complete digest of the subjects to which it relates." — T/tuiaej. Green^^'Ood's Manual of Conveyancing. — A Manual of the Practice of Conveyancing, showing the present Practice relating to the daily routine of Conveyancing in Solicitors' Offices. To which are added Concise Common Forms and Precedents in Conveyancing. Seventh Edition. Edited and revised, with special reference to the Conveyancing and Law of Property Act, 1881, by HARRY GREEN- WOOD, M.A., Esq., Barrister-at-Law. Demy 8vo. 1882. 15s. " 'riie Autlior lias carefully worked the provisions of the Act into his text, calling special attention to the effect of those sections whicli make absolute changes in the law, as distinguished from those which are merely optional for adoption or exclusion." — The La a- Magazine, February, 1882. "We should like to see it, or some such work, placed by his principal in the hands of every articled clerk, at a very early period of his articles. It is, altogether, one of the most useful practical works we have ever seen Invaluable for general purposes. ' — ladertiwMr's Law student's jouviwi. Harris and Clarkson's Conveyancing and Law of Property Act, 1881 ; with Introduction, Notes and Copiou.s Index. By W. MANNING HARRIS, M.A., and THOMAS CLARKSON, M.A., of Lincoln's Inn, Barristers-at-Law,and Fellows of King's College, Cambridge. Demy 8vo. 1882. 9i-. " The notes in this volume are more coi)ious and exhaustive than those in any other edition of these Acts which has at present appeared." — The Law Journal, Jan. 28, 1882. " The notes which are intercalated between the sections of the Acts are both elaborate and valuable The index is specially full and clear." — Law Mayazine, Feb. 1882. Humphry's Common Precedents in Convey- ancing, adapted to the Conveyancing Acts, 1881-82, the Settled Land Act, 1882, and Married Women's Property Act, 1882. To- gether with the Acts, an Introduction, and Practical Notes. Second Edition. By HUGH M. HUMPHRY, Esq., Barrister-at-Law. {In pirparation.) Palmer's Company Precedents. — For use in relation to Companies subject to the Companies' Acts, 1862 to 1880. Arranged as follows : — Agreements, Memoranda and Articles of Association, Prospectus, Resolutions, Notices, Certificates, Deben- tures, Petitions, Orders, Reconstruction, Amalgamation, Arrange- ments, Private Acts. With Copious Notes. Second Edition. Bv FRANCIS BEAUFORT PALMER, of the Inner Temple, Esq", Barrister-at-Law. Royal 8vo. 1881. 1^ 10s. " A work of great pi-actical utility." — Law Magazine. " To those concerned in getting up companies, the assistance given by Mr. Palmer must be very valuable, because he does not confine himself to bare precedents, but by intelligent and learned commentary lights up, as it were, each step that he takes. . . There is an elaborate index. "^law Tiines. " To those who are acqiiainted with the fii-st edition we recommend the second edition as a great improvement." — Law Journal. Prideaux's Precedents in Conveyancing. — With Dissertations on its Law and Practice. Eleventh Edition. Tho- I'oughly revised and adapted to the Conveyancing and Law of Property Act, 1881. By FREDERICK PRIDEAUX, late Pro- fessor of the Law of Real and Personal Property to the Inns of Court, and JOHN WHITCOMBE, Esqrs., Barristers-at-Law. 2 vols. Royal 8vo. 1882. Zl. 10s. " The most useful work out on conveyancing'."— ifwTouniaZ. " The whole of the Precedents have been revised by the light of the new Act with discriminating care The conciseness and scientific firecision of these Precedents of the Future are at once plea.sing and startling The Valuable Dissertations on the law and practice, which have always formed a feature of these volumes, have been revised thoroughlj', and brought into confoi-mity with the various changes and modifications introduced by the new Act." — Law Magazine, r«br\iary, 1SS2. *#* All alandard Law Worlcs are Icept in StocJc, in lav; calf and other bindings. 119, CHANCERY LANE, LONDON, W.O. 9 CONVICTIONS.— Paley's Law and Practice of Sum- mary Convictions under the Summary Juris- diction Acts, 1848 and 1879; including Proceedings preliminary and subsequent to Convictions, and tlie responsibility of convicting Magistrates and their Officers, with Forms. Sixth Edition. By W. H. MACNAMARA, Esq., Barrister-at-Law. Demy 8vo. 1879. 1^ 4s. Templer. — Vide "Summary Convictions." Wigram. — Vide "Justice of the Peace." CORONERS.— J ervis on the Office and Duties of Coroners. — With Forms and Precedents. Fourth Edition. By R.E.MELSHEIMER, Esq., Barrister-at-Law. PostSvo. 1880. 12s. COSTS. — Morgan and Wurtzburg's Treatise on the L.B.W of Costs in the Chancery Division of the High Court of Justice. — Being the Second Edition of Morgan and Davey's Costs in Chancery. With an Appendix, containing Forms and Precedents of Bills of Costs. By the Right Hon. GEORGE OSBORNE MORGAN, one of Her Majesty's Counsel, Her Majesty's Judge Advocate General, and E. A. WQRTZBURG, of Lincoln's Inn, Esq., Barrister-at-Law. DemySvo. 1882. 30.s-. '"Cannot fail to be of use to solicitors and their Clianccry managing clerks."— Laio Times, July 22, 18S2. Scott's Costs in the High Court of Justice and other Courts. Fourth Edition. By JOHN SCOTT, of the Inner Temple, Esq., Barrister-at-Law, Reporter of the Com- mon Pleas Division. Demy 8vo. 1880. 1^. 6s. " Mr. Scott's introductory notes are very useful, and the work is now a compendium on the law and practice regarding costs, as well as a booli of precedents." — Law Times. Scott's Costs in Bankruptcy and Liquidation under the Bankruptcy Act, 1869. Royal 12mo. 1873. A^ei, 3s. Summerhays and Toogood's Precedents of Bills of Costs in the Chancery, Queen's Bench, Common Pleas, Exchequer, Probate and Divorce Divisions of the High Court of Justice, in Conveyancing, Bankruptcy, the Crown Office, Lunacy, Arbitration under the Lands Clauses Consolidation Act, the Mayor's Court, London ; the County Courts, the Privy Council, and on Passing Residuary and Succession Accounts ; with Scales of Allow- ances and Court Fees, the Law Society's Scale of Commission in Conveyancing ; Forms of Affidavits of Increase, and Objections to Taxation. By Wm. FRANK SUMMERHAYS, Solicitor, and THORNTON TOOGOOD. Fourth Edition. (In preparation.) Webster's Parliamentary Costs. — Private Bills, Election Petitions, Appeals, House of Lords. By EDWARD WEBSTER, Esq., of the Taxing and Examiners' Office. Fourth Edition. By C. CAVANAGH, Esq., Barrister-at-Law. Author of "TheLawof Money Securitie.s." PostSvo. 1881. 20s. "This edition of a well known work is in great part a new publication; and it contains, now printed for t)ie first time, the Table of Fees cliargcd at the House of Lords We do not doubt that Parliamentiiry agents will find tlie work eminently useful." — Law Jmmnd. *.* All Standard Law Works are kept in Stock, la law calf and other hindings. A 3 10 STEVENS AND SONS' LAW PUBLICATIONS. COUNTY COURTS.— Pitt-Lewis' County Court Prac- tice. — A Complete Practice of the County Courts, including Admi- ralty and Bankruptcy, embodying the Acts, Rules, Forms and Costs, with Additional Forms and a Full Inde.x. By G. PITT-LEWIS, of the Middle Temple and Western Circuit, Esq., Barrister-at-Law, sometime Holder of the Studentship of the Four Inns of Court, assisted by H. A. De Coltak, of the Middle Temple, Esq., B.arrister-.at-Law. In 2 vols. (2028 pp.). Demy 8vo. 1880. 21. 2s. " The late Lord Chief Justice of England in his written judgment in Stooke V. Taylor, says, ' The law as to the difference between set-off and counter-claim is correctly stated by Mr. Pitt-Lewis, in his very useful work on County Court Practice.' " — See Laio Times Reports, October 16, ISSO, p. 204. Mr. Justice Fry in Beddall v. Maitland also cites and approves the same passage.— See L. /?., Chancery, June, 1880. " It is very clearly written, and is always practical, ... Is likely to become the standard County Court practice." — Solicitors' Journal. " One of the best books of practice which is to be found in our legal literature." — Lan; Times " We have rarely met with a work displaying more honest industry on the part of the author than the one before us." — Laio Jouimal. " Mr. Pitt-Lewis has, in fact, aimed — and we are glad to say success- fully — at providing for the County Courts' practitioner what ' Chitty's Archbold ' and ' Daniell's Chancery Practice' have long been to practi- tioners in the High Court." — Law Maijazine. CRIMINAL LAW.— Archbold's Pleading and Evidence in Criminal Cases. — With the Statutes, Precedents of Indictments, &;c., and the Evidence necessary to support them. Nineteenth Edition, including the Practice in Criminal Proceedings by Indictment. By WILLIAIVI BRUCE, Esq., Barrister-at-Law, and Stipendiary Magistrate for the Borough of Leeds. Royal 12mo. 1878. i;. lis. 6d. Roscoe's Digest of the Law of Evidence in Criminal Cases.— Ninth Edition. By HORACE SMITH, Esq., Barrister-at-Law. Royal 12mo. 1878. ll.Ws.M. Russell's Treatise on Crimes and Misdemea- nors.— Fifth Edition. By SAMUEL PRENTICE, Esq., one of Her Majesty's Counsel. 3 vols. Royal 8vo. 1877. 51. 15s. 6rf. "What better Digest of Criminal Law conld we possibly hope for than 'Russell on Crimea? ' " — Sir James Fiujames Stephen's Speech on CodiHco.lion. "No more trustworthy authority, or more exhaustive expositor than 'Russell' can be consulted." — Law Magazine and Reviac, " Alterations have been made in the arrangement of the work which without interfering with the general plan are sufacient to show that great care and thought have been bestowed We are amazed at the patience, industry and skill which are exhibited in the collection and arrangement of all this mass of learning." — The Times. Shirley's Sketch of the Criminal Law. — By W. SHIRLEY SHIRLEY, M.A., Esq., Barrister-at-Law, Author of " Leading Cases made Easy," assisted by C. M. ATKIXSON, M.A., B.C.L., Esq., Barrister-at-Law. Demy 8vo. 1880. 7s. 6d. " As a primary introduction to Criminal Law, it will be found very acceptable to Students."— Zflic Students' Jov.rnal, Noveniher 1, 1S80. CROSSED CHEQUES ACT— Cavanagh.— Fic^e "Money Securi- ties." Walker.— Fide "Banking." DECREES.— Seton.— FzcZe " Equity." *,* AM iiandard Law Works are Icept in Stock, in law calf and other Jnndings, 7 5 6 8 7 6 9 6 8 6 10 6 5 119, CHANCERY LANE, LONDON . W.C. 11 DIARY.— Lawyer's Companion (The), Diary, and Law Directory for 1883.— For the use of the Legal Profession, Public Companies, Justices, Merchants, Estate Agents, Auctioneers, &c., &c. Edited by JOHN THOMPSON, of the Inner Temple, Esq., Barrister-at-Law ; and contains Costs in Conveyancing and business other than in any Action, Court, or Chambers, General Charges in Conveyancing, before 1st January, 1883 ; a Digest of Useful Decisions on Costs ; Monthly Diary of County, Local Govern- ment, and Parish Business ; Oaths in Supreme Court ; Summary of Legislation of 1882; Alphabetical Index to the Practical Statutes ; a Copious Table of Stamp Duties; Legal Time, Interest, Discount, Income, Wages and other Tables; Probate, Legacy and Succession Duties ; and a variety of matters of practical utility. Published Annually. Thirty-seventh Issue. {Ready Nov. 1.) * The work also contains the most complete List published of Town and Country Solicitors, with date of admission and appointments, and is issued in the following forms, octavo size, strongly bound in cloth : — s. d. 1. Two days on a page, plain 5 2. The above, inteeleaved for Attendances 3. Two days on a page, ruled, with or without money columns 4. The above, interleaved for Attendances .... 5. Whole page for each day, plain 7 6. The above, interleaved for Attendances 7. ^V^lole page for each day, ruled, with or without money cols. 8. The above, interleaved for Attendances . . . 9. Three days on a page, ruled blue lines, without money cols. The Diary contains memoranda of Legal Business throughout the Tear. " An excellent work."— 77(€ Times. " A publication whicli has long ago secured to itself the favour of the profession, and which, as heretofore, justifies by its contents the title assumed by it." — Lo.io Joui-nal. " Contains all the information which could be looked for in such a work, and gives it in a most convenient form and very completely. We may unhesitatingly recommend the work to our readers."— Solicitors' Jouraal. " The' Lawyers Companion and Diary' is a book that ought to be in the possession of every lawyer, and of everj' man of business." ""The ' Lawyer's Companion ' is, indeed, what it is called, for it combines everything required for reference in the lawyer's office." — LaiD Times. " It is a book without which no lawyer's library or office can be complete." — Irith Law Times. " This work has attained to a completeness which is beyond all praise."— J/oj'n/jio Post. DICTIONARY — Student's (The) Pocket Law Lexicon, or Dictionary of Jurisprudence. Explaining Technical Words and Phrases used in English Law, together with a Literal Translation of Latin Maxims. Fcp. Svo. 1882. 63. " A wonderful little legal Dictionary." — InderDtaiir's Laic S/t'(h_nts' Journal. " A very handy, complete, and useful little work." — Solm-dau Ei^ciw:, April S, 1SS2. Wharton's La"W Lexicon. — A Diction.iry of Jurispru- dence, explaining the Technical Words and Phrases employed in the several Departments of English Law ; including the various Legal Terms used in Commercial Transactions. Together with au Explanatory as well as Literal Translation of the Latin Maxims contained in the Writings of the Ancient and Modem Commentators, Sixth Edition. Enlarged and revised in accordance with the Judicature Acts, by J. SHIRESS WILL, of the Middle Temple, Esq. , Barrister-at-Law. Super royal Svo. 1876. 2/. 2s, " As a work of reference for the library, the handsome and elabwate edition of ' Wharton's Law Lexicon ' which Mr. Shiress Will has produced must supersede all former issues of that well-known work." — Laio Magazine and Review. " No law library is complete without a law dictionary or law lexicon. To the practi- tioner it is always useful to have at hand a book where, in a small compass, he can find . an explanation of terms of infrequent occurrence, or obtain a reference to statutes on tr.oyt subjects, or to books wherein particular subjects are treatea of at full lenprth."— iaw Times. *»* AU standard Law Wo^'ks are kept in StocJc, m law calf and other bindings, a4 12 STEVENS AND SONS' LAW PUBLICATIONS. DIGESTS.— Bedford.— FkZc " Examination Guides." Chanibers' — Vide "Public Health." Chitty's Equity Index. — Chitty's Index to all the Reported Cases, and Statutes, in or relating to the Principles, Pleading, and Practice of Equity and Bankruptcy, in the several Courts of Equity in England and Ireland, the Privy Council, and the House of Lords, from the earliest period. Third Edition. By J. MACAULAY. Esq., Barrister-at-Law. 4 vols. Royal 8vo. 185-3. 71. 7s. Fisher's Digest of the Reported Cases deter- mined in the House of Lords and Privy Council, and in the Courts of Common Law, Divorce, Probate, Admiralty and Bank- ruptcy, from Michaelmas Term, 1756, to Hilary Term, 1870 ; with References to the Statutes and Rules of Court. Founded on the Analytical Digest by Harrison, and adapted to the present practice of the Law. By R. A. FISHER, Esq., Judge of the County Courts of Bristol and of Wells. Five large volumes, royal 8vo. 1870. 121. 12s. Consolidated Supplement to above, during the years 1870—1880. By T. W. CHITTY and J. MEWS, Esqrs., Barristers-at-Law. 2 vols. Royal 8vo. 1880. 31. 3s. (Continued Annually.) " Mr. Fisher's Digest is a wonderful work. It is a miracle of human industiy." — Mr. Justice Willes. "I tbink it would be very difficult to improve upon .Mr. Fisher's 'Co-nnion Law Digest.'" — Sir .James Fitzjames Stephen, cr. Codification. Godefroi. — Vide •' Trusts and Trustees." Leake. — Vide " Real Property " and " Contracts." Notanda Digest in Law, Equity, Bankruptcy, Admiralty, Divorce, and Probate Cases. — By H. TUDOR BODDAINI, of the Inner Temple, and HARRY GREENWOOD, of Lincoln's Inn, Esqrs., Barristers-at-Law. Third Series, 1873 to 1876 inclusive, half-bound. Net, ll.Ws. &d. Ditto, Fourth Series, for the years 1877, 1878, 1879, 18S0, and 1881, with Index. Each, net, 11. Is. Ditto, ditto, for 1882. By H. TUDOR BODDAM and E. W. D. MANSON, EsqvR., Barristers at-Law. Plain Copy and Two Indexes, or Adhesive Copy for insertion in Text-Books (without Index). Annual Subscription, payable in advance. Xet, 21s. *^* The numbers are issued regularly every alternate month. Each number contains a concise analysis of every case reported in the Law Reforts, Law Journal, Weddy Reportei-, Law Times, and the Irish Law Reports, up to and including the cases contained in the parts for the current month, with references to Text-books, Statutes, and the Law Reports Consolidated Digest, and an alphabetical INDEX of the subjects contained in each npmbee. Pollock. — Vide " Partnership." Roscoe. — Vide "Criminal Law " and " Nisi Prius." DISCOVERY.— Hare's Treatise on the Discovery of Evidence. — Second Edition. Adapted to the Procedure in the High Court of Justice, with Addenda, containintj all the Reported Cases to the end of 1876. By SHERLOCK HARE, Barrister-at- Law. Post 8vo. 1877. 12s. " The book is a useful contribution to our text-books on practice." — Solicitors' Journal. " We have read his work with considerable attention aul mterest, and we cau speak in terms of cordiil praise of the manner in which the uew procedure has been worked into the old material. ... All the sections and orders of the new legislation are referred to in the text, a synopsis of recent cases is given, and a good index completes the volume." — Law Titites. Seton.— Vide "Equity." *^* All standard Law Woi ks are Icept in Stock, in law calf a7id other bindings. 119, CHANCERY LANE, LONDON, W.C. 18 DISTRICT REGISTRIES.-Archibald.— nrfe "Jiulges' Chamben Practice." DIVORCE.— Browne's Treatise on the Principles and Practice of the Court for Divorce and Matrimonial Causes:— With the Statutes, Rules. Fees and Forms relating thereto. Fourth Edition. (Including the Additional and Amended Rules, July, 1880.) By GEORGE BROWNE, Esq., Barrister-at-Law. Demy Svo. 1880. 1^ 4*. " The book is a clear, pi-actical, and, so far as we have been able to test it, accurate exposition of divorce law and procedure." — Solicitors' Journa'. Haynes.— Fic?e "Leading Cases." DOMICIL. — Dicey on the Law of Domicil as a branch of the Law of England, stated in the form of Rules.— By A. V. DICEY, B.C.L., Barrister-at-Law. Author of " Rules for the Selection of Parties to an Action." Demy 8vo. 1879. 18«. " The practitioner will find the book a tlioroujjhly exact and trustworthy summary of the present state of ibe law."— 77ie Spectator. EASEMENTS.— Goddard's Treatise on the Law of Easements.— By JOHN LEYBOURN GODDARD, Esq., Barrister-at-Law. Second Edition. Demy 8vo. 1877. 16*. "The b'Ok is invaluable: where the cases are silent the author has taken pains to ascertain what the law would be if brought into question."— iau> Journal. "Nowhere has the subject been treated so exhaustively, and, we may add, so scientifl- cally, as by Mr. Goddard. We recommend it to the most careful study of the law student as well as to the library of the practitioner."— Zatc Ti'ws. ECCLESIASTICAL LAW. — Dcdd's Burial and other Church Fees and the Burial Act, 1880 :— With Notes. By J. THEODORE DODD, M.A., Barrister-at-Law, of Lincoln's Inn. Royal 12mo. 1881. is. Phlllimore's (Sir R.) Ecclesiastical Law. — The Ecclesiastical Law of the Church of England. With Supplement, containing the Statutes and Decisions to end of 1875. By SiB ROBERT PHILLIMORE, D.C.L., Official Principal of the Arches Court of Canterbury ; Member of Her Majesty's Most Honourable Privy Council. 2 vols. 8vo. 1873-76. Zl. Is. Qd. *^* The Supplement may be had separately, price is. 6d., sewed. ELECTIONS- — Browne (G. Lathom.) — Fit^ " Registration." FitzGerald.— Fide "Ballot." Rogers on Elections, Registration, and Election Agency. — Thirteenth Edition, including Petitions and Muni- cipal Elections and Registration. With an Appendix of Statutes and Forms. By JOHN CORRIE CARTER, of the Inner Temple, Esq., and Midland Circmt, Ban-ister-at-Law. Royal 12mo. 1880. 1^. 12«. " Petition has been added, setting forth the procedure and the decisions on that subject ; and the statutes passed since the last edition are explained down to the Parliamentary Elections and Corrupt Practices Act (18S0)." — T/ie Times. " We have no hesitation in commending the book to our readers as a useful and adequate treatise upon election law." — SoliHton' Journal. " A book of long standing and for information on the common law of elections, of which it contains a mine of extracts from and references to the older authorities, will always be resorted to." — Laic Journal EMPLOYERS' LIABILITY ACT.— Smith.— F/rfc "Negligence." ENGLAND, LAWS OF,— Bo wye r.— Fide " Constitutional Law." Broom and Hadley. — Ftrfe " Commentaries." *,* All standard Law Worlcs are kept in Stocl',in lavj calf and other hindingt. 14 STEVENS AND SONS' LAW PUBLICATIONS. EQUITY, and Vide CHANCERY. Seton's Forms ot Decrees, Judgments, and Orders in the High Court of Justice andCourts of Appeal, having especial reference to the Chancery Division, with Practical Notes. Fourth Edition. By K. H. LEACH, Esq., Senior Kegistrar of the Chancery Division ; F. G. A. WILLIAMS, of the Inner Temple, Esq. ; and the late H. W. MAY, Esq. ; suc- ceeded by JAMES EAST WICK, of Lincoln's Inn, Esq., Barristers- at-Law. 2 vols, in 3 parts. Royal 8vo. 1877—79. 4^. 10«. *^* Vol. II., Parts 1 and 2, separately, price each \l. 10s. "The Editors of tliis new eilition of Seton deserve much pi-aise for what is almost if not absohitely, an innovation in law books. In treating of any division of theirsubject they have put prominently forward the result of the latest decisions, settling the law so far as it is ascertained, thus avoiding much useless reference to older cases. . . . Tliere can be no doubt that in a book of practice.like Seton, it is much more important to be able to see at once what the law is than to know how it has become what it is ; and the Editors have evidently taken great pains to carry out this principle in pre- senting the law on each division of their laboars to their readers." — The Times. " Of all the editions of ' Seton ' this is the best. . . . We can hardly speak too highly of the industry and intelligence which have been bestowed on the preparation of the notes." — Solicitors' Journal. " Now the book is before us complete ; and we advisedly say complete, because it has scarcely ever been our fortune to see a more complete law book than this. Exten- sive in sphere, and exhaustive in treatise, comprehensive in matter, yet' apposite in details, it presents all the features of an excellent work . . . The index, extend- ing over 278 pages, is a model of comprehensiveness and accuracy." — Law Journal. Smith's Manual of Equity Jurisprudence.— A Manual of Equity Jurisprudence for Practitioners and Students, founded on the Works of Story, Spence, and other writers, and on more than a thousand subsequent cases, comprising the Fundamental Pi-inciples and the points of Equity usually occurring in General Practice. By JOSIAH W. SMITH, B.C.L., Q.C. Thirteenth Edition. 12mo. 1880. 12s. M. "There is no disguising the truth ; the proper mode to use this book is to learn its pages by heart." — Law Magazine and Review. " It will be found as useful to the practitioner as to the BixiAtni.'"— Solicitors' Journal. Sniith's Practical Exposition of the Principles of Equity, illustrated by the Leading Decisions thereon. For the use of Students and Practitioners. By H. ARTHUR SMITH, M.A., LL.B., of the Middle Temple, Esq., Barrister-at-Law. Demy 8vo. 1882. 20s. "In a moderately-sized volume, such as no lawyer who has his own advantage in view could object to 'read, mark, leam, and inwardly digest,' Mr. Smith sets forth succinctly and in due order all the fundamental principles administered by Courts of Equity, showing how they have by recent enactment been engrafted on the Common Law, and carefully abstaining from overlaying his subject-matter with multifarious details of practice which might tend to confuse and mj'stify. . . . Writing as he does for practising lawyers and students, he sees plainly enough that what such people want to know is, what things are, not what they have been, or how they came to be what they are. . . . We must again state our opinion that this is a most remarkable book, containing in a reasonable si^ace more information, and that better arranged" and conveyed, than almost any other law book of recent times which has come under our notice." — Sntanlay Rtvicio, July 8, 1882. EXAMINATION GUIDES — Bedford's Guide to the Pre- liminary Examination for Solicitors. — Fourth Edition. 12mo. 1874. Net, 3«. Bedford's Digest of the Preliminary Examina- tion Questions in Latin Granimar, Arith- nietic, French Grammar, History and Geo- graphy, with the Answers. Second Edition. DemySvo. 1882. 18s. Bedford's Preliminary Guide to Latin Grann- mar.— 12mo. 1872. Net, 3s. *^* All standard Law Works are kept in Stock, in law calf and other bindings. 119, CHAN CERY LANE, L ONDON, W.C. 15 EX AMWATIO^GU IDES. -Coniinuerf: ~ 7 7^^ ~ 7 Bedford's Student's Guide to Smith on Con- tracts. Demy 8vo. 1879. 3s. Qd. Bedford's Final Examination Guide to Bank- ruptcy.— Fourth Edition. (In preparation.) Bedford's Student's Guide to tlie Eiglith Edition of Stephen's Ne^AA Commentaries on the Laws of England.— Second Edition. Demy 8vo. 1881. 12s. " Here is a book which will bo of the gi-eutest service to students. It reduces the ' Commentaries ' to the form of question and answer ... We must also give the author credit, not only for his selection of questions, but for his answers thereto. These are models of fulness and conciseness, and lucky will be the candidate who can hand in a paper of answers bearing a close resemblance to those in the work before us," — Law Journal. , , Bedford's Final Examination Digest : contaimng a Digest of the Final Examination Questions in matters of Law and Procedure determined by the Chancery, Queen's Bench, Comn.on Pleas, and Excheqiier Divisions of the High Court of Justice, and on the Law of Real and Personal Property and the Practice of Conveyancing, with the Answers. Svo. 1879. 16s. " Will furnish students with a large armoury of weapons with which to meet the attacks of the examiners of the Incorporated Law Society."— i 6s. " it is impossible not to be struck with the extraordinary research that must have been used in the compilation of such a book as this."— Xttio /ottrnaJ. ,. j. * * All Standard Law Works are kept in Stock, in law calf and other bindmgt. 16 STEVENS AND SONS" LAW PUBLICATIONS. FINAL EXAMINATION DIGEST. -Bedford. —Firfc "Examination Guides." FOREIGN JUDGMENTS.— Piggott's Foreign Judgments theireffect in the English Courts. The English Doctrine, Defences, Judgments in Rena. Status.— By F. T. PIGGOTT, M.A., LL.M., of the Middle Temple, Esq., Barrister-.atLaw. Eoyal 8vo. 1879. los. "A useful and well-timed volume." — Law Magaziiie. "Mr. Piggott writes under strong conviction, but he is always careful to reBt his arguments on authority, and thereby adds considerably to the value of his handy volume.'' Law Moriozme and Review, November, 1870. Part II.— The Effect of an Englisli Judgment Abroad. Service on Absent Defendants. Royal 8vo. 1881. 15s. "Mr. Piggott, in his present volume, brings together amass of details which it would be difficult to find elsewhere in our legal literature stated in so concise and accurate a form." — La}'- Mi':i"zine, May, 1881. FORMS. — Archibald. — Vide "Judges' Chambers Practice." Bullen and Leake. — Vide "Pleading." Chitty's Forms of Practical Proceedings in the Queen's Bench, Common Pleas and Ex- chequer Divisions of the High Court of Jus- tice: with Notes containing the Statutes, Rules and Practice relating thereto. Eleventh Edition. By THOS. WILLES CHITTY, Esq., Barrister-at-Law. Demy 8vo. 1879. 11. 18s. Daniell's Forms and Precedents of Proceed- ings in the Chancery Division of the High Court of Justice and on Appeal therefrom ; with Dissertations and Notes, forming a complete guide to the Practice of the Chancery Division of the High Court and of the Courts of Appeal. Being the Tliird Edition of " Daniell's Chancery Forms." By WILLIAM HENRY UPJOHN, Esq., of Gray's Inn, &c., &c. Demy 8vo. 1879. 21. 2s. " Mr Upjohn has restored the volume of Chancery Fonns to the place it held before the recent changes, as a trustworthy and complete collection of precedents." — Solicitors' Journal. " So careful is the noting up of the authorities, so clearly and concisely are the notes expressed, that we have found it of as much value as the ordinary text books on the Judi- cature Acts. It will be as useful a work to practitioners at Westminster as it will be to those in Lincoln s Inn." — Law Times. FRENCH COMMERCIAL LAW.-Goirand.-FicZe"CommercialLaw." HIGHWAYS.-Baker's Law of Highways in England and Wales, including Bridges and Locomotives. Comprising a succinct code of the several provisions under each head, the statutes at length in an Appendix ; with Notes of Cases, Forms, and copious Index. By THOMAS BAKER, of the Inner Temple, Esq., Barrister-at-Law. Royal 12mo. 1880. 15s. " Tills is distinctly a well-planned book, and cannot fail to be useful, not only to lawyers, but to those who may be locally engaged in the management of highways." — Zato Journal. " The general plan of Mr. Baker's book is good. He gi-oups together condensed statements of the effect of'the provisions of the different Highway Acts relating to the same matter, giving in all cases references to the .sections, which are printed in full in the appendix. To each condensed section, or gi-oup of sections, he appends a note, stating concisely the effect of the decisions." — Solicitors' Journal. Chambers' Law relating to Highways and Bridges, being the Statutes in full and brief Notes of 700 Leading Cases ; together with the Lighting Act, 1833. By GEO. F. CHAMBERS, Esq., Barrister-at-Law. 1878. Reduced tol2s. *^* All standard Law Works are kept in Stock, in law calf and other bindings. 119, CHANCERY LANE, LONDON, W.C. 17 INJUNCTIONS.— Seton.— Ficie " Equity." INLAND REVENUE CASES Highmore's Summary Pro- ceedings in Inland Revenue Cases in England and Wales. By NATHANIEL JOSEPH ItlGHMORE, of the Middle Temple, Esq., Barri.ster-at-Law, and of the Inland Revenue Department. Royal 12mo. 1832. 6s. "A comijleto tre.itise nn prncedui-e apjilied to cases under the Revenue Aet. .and a.s a book of iwactice it is the bjst wc li.ive sjon.' — TVie Justice of the Peace, Jan. 28,, 1882. INSURANCE.— Arnould on the Law of Marine Insu- rance.— Fifth Edition. By DAVID MACLACHLAN, Esq., Barrister-at-Law. 2 vols. Royal 8vo. 1877. 31. " As a text book, ' Arnould ' is now all the practitioner can want, and we congratulate the editor upon the skill with which he has incorjiorated the new decisions."— 2,ato Tijne*. Hopkins' Manual of Marine Insurance.— 8vo. 1867. 18s. Lowndes on the Law of Marine Insurance. — A Practical Treatise. By RICHARD LOWNDES. Author of "The Law of General Average," &c. Demy 8vo. 1881. 10s. 6d. "It is rarely, indeed, that we have been able to express such unqualified approval »f a new legal work." — Solicitors' Journal, February 12th, ISSl. INTERNATIONAL LAW — Amos' Lectures on Inter- national La^Ar. — Delivered in the Middle Temple Hall to the Students of the Inns of Court, by SHELDON AMOS, M.A., Pro- fessor of Jm-isprudence (including International Law) to the Inns of Court, &c. Royal 8vo. 1874. 10s. 6d. Dicey. — Vide "Domicil." Kent's International La"W. — Kent's Commentary on International Law. Edited by J. T. ABDY, LL.D., Judge of County Courts. Second Edition. Revised and brought down to the present time. Crown 8vo. 1878. 10s. 6d. "Altogether Dr. Abdy has performed his task in a manner worthy of hia reputation. His book will be useful not only to Lawyers and Law Students, for whom it was primarily intended, Dut also for laymen." — Solicitors' Journal. Levi's International Commercial Law. — Being the Principles of Mercantile Law of the following and other Countries — viz. : England, Ireland, Scotland, British India, British Colonies, Austria, Belgium, Brazil, Buenos Ayres, Denmark, France, Germany, Greece, Hans Towns, Italy, Netherlands, Norway, Portugal, Prussia, Russia, Spain, Sweden, Switzerland, United States, and Wiirtemberg By LEONE LEVI, Esq., F.S.A., F.S.S., Barrister-at-Law, &c. Second Edition. 2 vols. Royal 8vo. 1863. II. 15s, Vattel's Law^ of Nations.— By JOSEPH CHITTY, Esq. Royal 8vo. 1834. U. is. Wheaton's Elements of International Law; Second English Edition. Edited with Notes and Appendix of Statutes and Treaties, bringing the work down to the present time. By A. C. BOYD, Esq., LL.B., J.P., Barrister-at-Law. Author of " The Merchant Shipping Laws." Demy 8vo. 1880. 11. 10s. " Mr. Boyd, the latest editor, has added many useful notes ; he has inserted in the Appendix public documents of permanent value, and there is the prospect that, as edited by Mr. Boyd, Mr. Wheaton's volume will enter on a new lease of life." — The Tinics. " Both the plan and execution of the work before us deserves commendation. . . . The text of Wheaton is presented without alteration, and Mr. Dana's numbering of the sections is preserved. . . . The Index, which could not have been compiled without much thouglit and labour, makes the book handy for reference." — Laio Joui-nal. " Students who require a knowledge of Wheaton's text will find Mr. Boyd's volume very convenient." — Law Magazine. JOINT OWNERSHIP.-Foster.— FicZe "Real Estate." *^j* All standard Laio Works are kept in Stock, in laio calf and other hlndinjs 18 STEVENS AND SONS' LAW PUBLICATIONS. JOINT STOCKS.— Palmer.— Firfe "Conveyancing" and "Company Law." Thring's (Sir H.) Joint Stock Companies' La-w.— The Law and Practice of Joint Stock and other Companies, including the Companies Acts, 1862 to 1880, with Notes, Orders, and Eules in Chancery, a Collection of Precedents of Memoranda and Articles of Association, and all the other Forms required in Making, Administer- ing, and Winding-up a Company ; also the Partnership Law Amend- ment Act, The Life Assurance Companies Acts, and other Acts relating to Companies. By Sir HENRY THPING, K.C.B., The Parliamentary Counsel Fourth Edition. By G. A. R. FITZ- GERALD, Esq., M.A., Barrister-at-Law, and late Fellow of St. John's College, Oxford. Demy 8vo. 1880. 1?. 5s. ' This, as the work of the original draughtsman of the Companies' Act of 1862, and well-known Parliamentary counsel, Sir Henry Thring, is naturally the highest authority on the subject."— 77ie Times. "One of its most valuable featm-es is its collection of precedents of Memoranda and Articles of As.sociation, wliicli has, in this Edition, been largely increassd and im- proved." — Law Journal. Jordan's Joint Stock Companies. — A Handy Book of Practical Instructions for thr Formation and Management of Joint Stock Companies. Seventh Edition. 12mo. 1881. Net, 2s. &d. JUDGES' CHAMBERS PRACTICE— Archibald's Forms of Summonses and Orders, with Notes for use at Judges' Chambers and in the District Registries. By W. F. A. ARCHI- BALD, M.A., of the Inner Temple, Barrister-at-Law. Royal 12mo. 1879. 12s. 6cZ. " The work is done most thoroughly and yet concisely. The practitioner will find plain directions how to proceed in all the matters connected with a common law action, interpleader, attachment of debts, mandamus, injunction — indeed, the whole jurisdiction of the common law divisions, in the district registries, and at Judges chambers." — Law Times. "A clear and well-digested x'ade mecum, which will no doubt be widely used by the profession.'' — Law Magazine. JUDGMENTS.— Piggott.— Fi'c?c '-Foreig-n Judgments." Walker's Practice on Signing Judgment in the High Court of Justice. With Forms. By H. H. WALKER, Esq., of the Judgment Department, Exchequer Division. Crown 8vo. 1879. 4s. 6d. "The book undoubtedly meets a want, and furnishes information available for almost every branch of practice." " We think that solicitors and their clerks will find it extremely useful." — Lav; Journal. JUDICATURE ACTS.— Archibald. — 7i(Ze " Common Law." Ilbert's Supreme Court of Judicature (Officers) Act, 187y ; with the Rules of Court and Forms, December, 1879, and April, 1880. With Notes. By COURTENAY P. ILBERT, Esq., Bamster-at-Law. Royal 12mo. 1880, 6s. (In limp leather; 9s. 6d.) *^* A LARGE PAPEE EDITION (for marginal notes). Royal 8vo. 8s. The above for^ns a Supplement to" Wilson's Judicature Acts." Second Edition. Morgan. — Vide "Chancery." Stephen's Judicature Acts 1873, 1874, and 1876, consolidated. With Notes and an Index. By Sir JAMES FITZJAMES STEPHEN, one of Her Majesty's Judges. 12mo. 1875. 4s. 6d. S^Arain's Complete Index to the Rules of the Supreme Court, April, 1880, and to the Forms (uniform with the Official Rules and Forms). By EDWARD SWAIN. Imperial 8vo. 1880. Net, Is. "An almo.st indispensable addition to the recently issued rules."— Solicitois' Journal, May 1, 1880. *^* All standard Law WorJcs are Jcept in Stoch, in laio calf and other Mndivgi. f 119, CHANCERY LANE, LONDON, W.O. 19 dVD\CAT\}RE ^C^S. -Continued. Wilson's Supreme Court of Judicature Acts Appellate Jurisdiction Act, 1876, Rules of Court and Forms. With other Acts, Orders, Rules and Regulations relating to the Supreme Court. With Practical Notes. Third Edition. By M. D. CHALMERS, of the Inner Temple. Assisted by HERBERT LUSH-WILSON, of the Inner Temple, Barristers-at-Law. Royal 12mo. 1882. (pp. 850.) 25s. OPINIONS OF THE PRESS ON THE THIRD EDITION. ■ • This edition maintains the position of its predecessors."— if-M" Journal, July 22,1 SS2. "Numerous as have been the publications dealing with the practice vuider the Judicature Acts, this volume has retained its hold and is the popular practice."— iaw Time% August 5, 1SS2. " We have missed no case for which we have looked, and have found the effect of the decisions stated with accuracy and terseness. . . . The index seems to have been entirely remodelled, and is very convenient and well arranged."— Solicitors Jotrrnal, August 5, 1SS2. " This well known book, which has been from the first a general favourite in the profession, comes out afresh in this its third edition, under excellent auspices. Mr. Chalmers, whose valuable work on Bills of Exchange has been noticed by us in these pages, and Mr. Lush-Wilson, to whose pen we have ourselves been indebted for contributions, have devoted themselves with zeal to the task set before them. The result cannot but enhance the already widely acknowledged vahie of Wilson's 'Judicature Acts.' The Table of Cases runs, we observe, to over fifty images, and yet, although necessary additions have been made in several important p.articulars, the book has skilfuUy been kept within a most moderate compass, so that Wilson's ' Judicature Acts ' remains what it always was, one of the most handy as well as one of the best appreciated editions of the Acts."— Zai« Magazine, August, 1SS2. JURISPRUDENCE Phillimore's (J. G.) Jurisprudence.— An Inaugural Lecture on Jurisprudence, and a Lecture on Canon Law, delivered at the Hall of the Inner Temple, Hil.-iryTerm, 1851. By J. G. PHILLIMORE, Esq., Q.C. 8vo, 1851. Sewed. 3s. 6rf. JURY LAWS.— Erie's The Jury La\?vs and their Amend- ment. By T. W. ERLE, Esq., one of the Masters of the Supreme Court. Royal 8vo. 1882. 5s. JUSTINIAN, INSTITUTES OF -Cumin.— Fide "Civil Law." Mears. — Vide "Roman Law." Ruegg's Student's " Auxilium" to the Institutes of Justinian. — Being a complete synopsis thereof in the form of Question and Answer. By ALFRED HENRY RUEGG, of the Middle Temple, Barrister-at-Law. Post 8vo. 1879. 5s. " The student will be greatly assisted in clearing and arranging his knowledge by a work of this kind." — Law Journal. JUSTICE OF THE PEACE.— Burn's Justice of the Peace and Parish Officer. — Edited under the Superintendence of JOHN BLOSSETT MAULE, Esq., Q.C. The Thirtieth Edition. Five large vols. 8vo. 1869. (Published at 71. 7s.) Net, 21. 2s. Stone's Practice for Justices of the Peace, Justices' Clerks and Solicitors at Petty and Special Sessions, in Summary matters, and Indictable Offences, with a list of Summary Convic- tions, and matters not Criminal. With Forms. Ninth Edition. By WALTER HENRY MACNAMARA, Esq., Barrister-at-Law. Editor of " Paley's Summary Convictions," " Steer's Parish Law," &c. Demy 8vo. 1882. 25s " A very creditable effort has been made to condense and abridge, which has been successful, whilst the completeness of the work has not been impaired."— Zraic Times. Wigram's The Justices' Note Book.— By W. KNOX WIGRAM, Esq., Barrister-at-Law, J.P. Middlesex. Second Edi- tion. With a copious Index. Royal 12rao. 1881. 128.60?. " We have found iu it all the information which a Justice can require as to recent legislation."— r/iC Times. " We have nothing but praise for the book, which is a justices' royal road to know- ledge "—Solicitors' Journal. "This is altogether a capital book. Mr. Wigram is a good lawyer and a good justices' lawyer."— Zajf Journal. " We can thoroughly recommend the volume to magistrates."— Znw Times. *^* All standard Law Works are kept in Stock, in law calf and oilier bindings. 20 STEVENS AND SONS' LAW PUBLICATIONS. LAND ACT.— 5t'e "Settled Estates."— Middleton. LANO TAX. — Bourdin's Land Tax. — An Exposition of the Land Tax ; its Assessment and Collection, with a statement of the rights conferred by the Redemption Acts. By MARK A. BOUR- DIN (late Registrar of Land Tax). Second Edition. 1870. 4s. LANDLORD AND TENANT.— Woodfall's Law of Landlord and Tenant. — With a full Collection ot Precedents and Forms of Procedure. Containing also an Abstract of Leading Pro- positions, and Tables of certain Customs of the Country. Twelfth Edition. In which the Precedents of Leases have been revised and enlarged, with the assistance of L. G. G. Robbins, Esq. By J. M. LELY, Esq., Barrister-atliaw, Editor of " Chitty's Statutes," &c., &c. Royal 8vo. 1881. 1^ 18s. "The editor has expended elaborate industry and pystematic ability in making the work as perfect as possible." — Solicitort' Journal. LANDS CLAUSES ACTS.— Jepson's Lands Clauses Con- solidation Acts; with Decisions, Forms, & Table of Costs. By ARTHUR JEPSON, Esq., Barrister-at-Law. Demy 8vo. 1880. 18s. i " The work concludes with a number of forms and a remarkably good index." — | Law Times. I " As far as we h.ave been able to discover, all the decisions have been stated, and 4 the effect of them eon-ectly given." — Law Journal. j " We have not observed any omissions of cases of importance, and the puiport T of the decisions we have examined is fairly well stated. The costs under the Acts ^ are given, and the book contains a large niunljer of forms, which will bo found , useful." — SoHcilo\-s' Jotirna'. , LAW, GUIDE TO. — A Guide to the Law: for General Use. ■ By a Ban-ister. Twenty-third Edition. Crown 8vo. 1880. Net, 3s. 6rf. ; " Within a marvellously small compass the author has condensed the main provi- sions of the law of England, applicable to almost every transaction, matter, or thing ^ incidental to the relations between one individual and another." J LAW LIST. — Law List (The). — Comprising the Judges and Officers j (if the different Courts of Justice, Counsel, Special Pleaders, 1 Draftsmen, Conveyancers, Solicitors, Notaries, &c., in England 3 and Wales ; the Circuits, Judges, Treasurers, Registrars, and High Bailiffs of the County Courts ; Metropolitan and Stipendiary Magistrates, Law and Public Officers in England and the Colonies, Foreign Lawyers with their English Agents, Sheriffs, Under-Sheriffs, and their Deputies, Clerks of the Peace, Town Clerks, Coroners, &c., &c., and Commissioners for taking Oaths, Conveyancers Practising in England under Certificates obtained in Scotland. So far as relates to Special Pleaders, Draftsmen, Conveyancers, Solicitors, Proctors and Notaries. Compiled by WILLIAM HENRY COUSINS, of the Inland Revenue Office Somerset House, Registrar of Stamped Certificates, and of Joint Stock Companies, and Published by the Authority of the Commissioners of Inland Revenue. 1882. Net, 10s. 6c?. LAW REPORTS. — A very large Stock of second-hand and new Reports. Prices on application. LAWYER'S COMPANION.— Fic^e "Diary." LEADING CASES.— Haynes' Student's Leading Cases. Being some of the Principal Decisions of the Courts in Constitutional Law, Common Law, Conveyancing and Equity, Probate, Divorce, Bankruptcy, and Criminal Law. With Notes for the use of Students. By JOHN F. HAYNES, LL.D., Author of "The Practice of the Chancery Division of the High Court of Justice," "The Student's Statutes," &c. Demy 8vo. 1878. 16s. " Will prove of great utility, not only to Students, but Practitioners. The Notes are clear, pointed and concise." — Law 7i,net. " We think that this Ixjok will supply a want the book is singularly well arranged for reference."— iaic Jaur-iial. *,* All standard Law Wm'ks are kept in Stock, in law calf and other bindings. 119, CHANCERY LANE, LONDON, W.C. 21 LEADING CkSES,-Coniinued. Shirley's Leading Cases made Easy. A Selection of Leading Cases in the Common Law. By W. SHIRLEY SHIR- LEY, M.A., B.C.L., Esq., Barrister-at-Law, Second Edition. (//( prcparatwii.) "The selection is very large, though all are distinctly 'leading cases,' and the notes are by no means the least meritorious part of the work." — Lav: Jouriiat. ''Mr. Shirley writes well and clearly, and evidently understands what he is writing about." — Law Timet. LEGACY DUTIES.— HcZe "Taxes on Succession." LEXICON.— Ficie "Dictionary." LIBEL AND SLANOER.-Odgers on Libel and Slander.— A Digest of the Law of Libel and Slander, with the Evidence, Pro- cedure and Practice, both in Civil and Criminal Cases, with Precedents of Pleadings. With Appendix of Statutes including the Newspaper Libel and Registration Act, 1881. By W. BLAKE ODGERS,M.A., LL.D., Barrister-at-Law. Demy Svo. 1881. 2is. " We have rarely examined a work which shows so much industry. . . . So good is the hook, which in its topical arrangemsnt is vastly superior to the general run of la-v hook?, that criticism of it is a compli- ment rather than the reverse." — Law Journal. '■The excuse, if one be needed, for another book on Libel and Slander, and that an English one, may be found in the excellence of the author's work. A clear head and a skilled hand ai'e to be seen throughotit." — Extrart frora Prrface to American reprint LIBRARIES AND MUSEUMS.— Chambers' Digest of the La'w relating to Public Libraries and Museums and Literary and Scientific Insti- tutions generally. Second Edition. By C F. CHAM- BERS, Barrister-at-Law. Imperial Svo. 1879. %s. M. LICENSING.— Lely and Foulkes' Licensing Acts, 1828, 1869. 1872, and 1874; Containing the Law of the Sale of Liquors by Retail and the Management of Licensed Houses ; with Notes to the Acts, a Summary of the Law, and an Apjjendix of Forms, Second Edition. By J. M. LELY and W. D. I. FOULKES, Esqrs., Barristers-at-Law. Royal 12mo. 1874. 8s. " The notes are sensible aud to the point, and give evidence both of care aad know- ledge of the subject." — Solicitors' Journal. LIFE ASSURANCE.— Scratchleys Decisions in Life As- surance La'w, collated alphabetically according to the point involved ; with the Statutes. Revised Edition. By ARTHUR SCRATCHLEY, M.A.. Barrister-at-Law. Demy 8vo. 1878. 5s. LIQUIDATION BY ARRANGEMENT.— Salaman's Practical Treatise on Liquidation by Arrangenient and Coniposition with Creditors, under the Bank- ruptcy Act, 1 869 : comprising the Practice of the Office fur Regi.stration of Arrnngement Proceedings ; the Practice as to Receivers, Injunctions, Meetings of Creditors, &c. ; all the Autho- rised and Original Forms, Bills of Costs under Liquidation and Composition; Note.s of Cases; the Sections of the Bankruptcy and Debtors' Acts; and the Rules applicable to Liquidation and Com- position; the Rules of 1871. With Index. By JOSEPH SEYMOUR SALAMAN. Solicitor. Author of "A Practical Guide to the Bankruptcy Law of 1860." Re-issue. Crown Svo. 1882. 10s. lUNACY. — Elmer's Practice in Lunacy.— The Practice in Lunacy under Commissions and Inquisitions, with Xotes of Cases and Recent Decisions, the Statutes and General Orders, Forms and Costs of Proceedings in Lunacy, an Index and Schedule of Cases. Sixth Edition. By JOSEPH ELMER, of the Office of the Masters in Lunacy. Svo. 1877 21s. *J* All standard Law Works are kept in Stock, in law calf and other hindinys. 22 STEVENS AND SONS' LAW PUBLIC ATIONS. MAGISTERIAL L^Vf.— Burn.— Vide "Justice of the Peace^" Shirley's Elementary Treatise on Magisterial Law, and on the Practice of Magistrates Courts.— By W. SHIRLEY SHIRLEY, M.A., B.C.L., Esq., Bamster-at-La^v. Author of " A Selection of Leading Cases in the Common Law," "'A Sketch of the Criminal Law," &c. Eoyal 12mo. 18S1. 6s. 6d. Wigva.m.— Vide "Justice of the Peace." MAYOR'S COURT PRACTICE.— Candy's Mayor's Court Practice.— The Jurisdiction, Process, Practice, and Mode of Plead- ing in Ordinary Actions in the Mayor's Court, London (commonly called the "Lord Mayor's Court"). Founded on Brandon. By GEORGE CANDY, Esq., Barrister-at-Law. Demy 8vo. 1879. 14s. "The 'ordiuary' practice of the Court is dealt with in its natural order, and is Bimply and clearly stated." — Law Journal. MARITIME COLLISION. -Lowndes.— Marsden.— nde "Col- lision." MERCANTILE LAW— Boyd.— FwZe "Shipping." Russell. — Vide "Agency." Smith's Compendium of Mercantile La^Ar. — Ninth Edition. By G. M. DOWDESWELL, of the Inner Temple, Esq., one of Her Majesty's Counsel. Royal 8vo. 1877. \l. 18s. Tudor's Selection of Leading Cases on Mercan- tile and Maritime La^A^.-With Notes. By O.D.TUDOR, Esq., Barrister-at-Law. Second Edition. Royal 8vo. 1868. IZ. 18s. METROPOLIS BUILDING ACTS-Woolrych's Metropolis Building Acts, with Notes, Explanatory of the Sections and of the Architectiiral Terms contained therein. Second Edition. By NOEL H, PATERSON, Barrister-at-Law. 12mo. 1877. 8s. 6rf. MINES.— Rogers' La^^^ relating to Mines, Minerals, and Quarries in Great Britain and Ireland; with a Summary of the Laws of Foreign States, &c. Second Edition Enlarged. By ARUNDEL ROGERS, Esq., Judge of County Courts. 8vo. 1876. II. lis. &d. "The volume will prove invaluable as a work of legal reference." — Tlie Mining Joui-nal. MONEY SECURITIES.— Cavanagh's Law of Money Secu- rities. — In Three Books. I. Personal Securities. II. Securities on Property. III. Miscellaneous; with an Appendix of Statutes. By C. CAVANAGH, B.A., LL.B. (Lond.), of the Middle Temple, Esq., Barrister-at-Law. In 1 vol. Demy 8vo. 1879. 21s. "An admirable synopsis of the whole law and practice with regard to securities of every sort We desire to accord it all praise for its completfeness and general accuracy ; we can honestly say there is not a slovenly sentence from beginning to end of it, or a single case omitted which has any material bearing on the subject."— (Saturday Jieview. "We know of uo work which embraces so much that is of every-day importance, nor do we know of any author who shows more familiarity with his subject. The book is one which we shall certainly keep cear at hatid, and we believe that it will prove a decided acquisition to the practitioner."— ir^Mi Times. MORTGAGE.— Coote's Treatise on the Lav^r of Mort- gage. — Foiu-th Edition. Thoroughly revised. By WILLIAM WYLLYS MACKESON, Esq., one of Her Majesty's Counsel. In 1 Vol. (1436 pp.) Royal 8vo. 1880. 21. 2s. " There can be no doubt that the work is most comprehensive in its scope and ex- haustive in its treatment, and that it affords to the practitioner a mine of valuable and trustworthy information conveniently arranged and clearly expressed." — Zaio Mogazine, May, 1881. "The book will be found a very valuable addition to the practitioner's library. . . . . A complete, terse, and practical treatise for the modem lawyer." — Solicitors' Journal, Janiiary 1, 1881. "Mr. Mackeson's manner is clear and practical, and in many cases he suppliesuseful summaries bj- way of recapitulation . . . The new edition of ' Coote on Mortgages' will be found a valuable addition to the library of every jiractising lawyer." — Laio Jcarnal, January 22, ISSl. *»* All standard Law WorTcs are kept in Stock, in law calf and other hindings. 119 , CHANCERY LANE, LONDON, W.C. 23 NAVY, — Thring's Criminal Law of the Navy, with an Introductory Chapter on the Early State and Discipline of the Navy, the Rules of Evidence, and an Appendix comprising the Naval Discipline Act and Practical Forms. Second Edition. By THEODORE THRING, of the Middle Temple, Barrister-at-Law, late Commissioner of Bankruptcy at Liverpool, and C. E. GIFFORD, Assistant-Paymaster, Royal Navy. 12mo. 1877. 12s. 6d. " Tlie work is in everv way useful, ccmplete, and up to date." — Naval ^ Military Gazette. NEGLIGENCE — Sniith's Treatise on the Law of Negligence, A\'ith a Supplement containing "The Employers' Liability Act, 18S0," -n-ith an Introduction and Notes. By HORACE SMITH, B.A., Esq., Barrister-at-Law, Recorder of Lincoln, Editor of " Roscoe's Criminal Evidence," &c. Demy 8vo. 1880. \Qs. Qd. "The author has perfoi-med liis task with judgment and skill. . . A good index is veiy valuable, and the book appears to us to be excellent in that respect." — Solicitors' Journal, June 12, ISSO. NISI PRIUS.— Roscoe's Digest of the La^A^ of Evidence on the Trial of Actions at Nisi Prius. — Fourteenth Edition. By JOHN DAY, one of Her Majesty's Counsel, and MAURICE POWELL, Barrister-at-Law. Royal 12mo. 1879.21. (Bound in one thick volume calf or circuit, 5s., or in two convenient vols, calf or circuit, 9s. net, extra.) " The task of adapting the old text to the new procedure was one requiring much patient laboui, careful accuracy, and conciseness, as well as discretion in the omission of matter obsolete or unnecessary. An examination of the bulky volume before us affords good evidence of the possession of these qualities by the present editors, and we feel siu-e that the popularity of the work will continue unabated under their conscientious care." — Law Magazine. Selwyn's Abridgment of the Law of Nisi Prius.— Thirteenth Edition. By DAVID KEANE, Q.C., Recorder of Bedford, and CHARLES T. SMITH, M.A., one of the Judges of the Supreme Court of the Cape of Good Hope, 2 vols. Royal 8vo. 1869. {Published at 21. 16s.) Net, 11. NOTANDA.— F/cZe "Digests." NOTARY. — Brooke's Treatise on the Office and Prac- tice of a Notary of England. — With a full collection of Precedents. Fourth Edition. By LEONE LEVI, Esq., F.S.A., of Lincoln's Inn, Barrister-at-Law. 8vo. 1876. 11. is. OATHS.— Braithwaite's Oaths in the SupremeCourts of Judicature. — A Manual for the use of Commissioners to Administer Oaths in the Supreme Courts of Judicature in England and Ireland and of all other persons empowered to administer oaths in aid of proceedings in courts of law. Part I. containing practical information respecting their Appointment, Designation, Jurisdiction, and Powers ; Part II. comprising a collection of officially recognised Forms of Jurats and Oaths, with Explanatory Observations. Fourth Edition. By T. W. BRAITHWAITE, of the Central Office. Fcap. 8vo. 1881. 4s, 6d. " The work wUl, we doubt not, become the recognised guide of commissioners to administer o&Vas."— Solicitors' Jov.rnal. PARISH LAW. — Steer's Parish Law; being a Digest of the Law relating to the Civil and Ecclesiastical Government of Parishes and the Relief of the Poor. Fourth Edition. By W. H. MAC- NAMARA, Esq., Barrister-at-Law. Demy 8vo. 1881. 16s. " An exceedingly useful compeudium of Parish Law." — Lato Tiincs, February 5, ISSl. PARTNERSHIP.— Pollock's Digest of the Law of Part- nership. — Second Edition, with Appendix, containing an anno- tated reprint of the Partnership Bill, 1880, as amended in Committee. By FREDERICK POLLOCK, Esq., Barrister-at-Law, Author of " Principles of Contract atLaw and in Equity."Demy8vo. 1880. 8s. 6d. " Of the execution of the work, we can speak in terms of the highest praise. The language is simple, courise, and clear ; aud the general propositions may bear com- parison with those of Sir James Stephen."— iaw Magazine. " Mr. PoUock's work appears eminently satisfactory . . . the book is praise- worthy in design, scholarly and complete in execution." — Saturday Revieiv. • * All standard Law Works are kept in Stock, in law cu>f and other bindings. 24 STEVENS AND SONS' LAW PUBLICATIONS. PATENTS. — Hindmarch's Treatise on the Lav/ rela- ting to Patents.— 8vo. 1846. 1«, Is. Johnson's Patentees' Manual; being a Treatise on the Law and Practice of Letters Patent, especially intended for the use of Patentees and Inventors.— By JAMES JOHNSON, Barrister-at-Law, and J. H. JOHNSON, Solicitor and Patent Agent. Fourth Edition. Thoroughly revised and much enlarged. Demy Bvo. 1879. 10s. 6d. " A very excellent manual."— iato Times. "The authors have not only aknowledgeof the law, but of the working of the law. Be- .sides the table of cases there is a copious index to subjects." — Law Journal. Thompson's Handbook of Patent Law of all Countries.— Third Edition, revised. By WM. P. THOMPSON, C.E. 12mo. 1878. Net, 2s. 6d. PERSONAL PROPERTY.— Shearwood's Concise Abridg- ment of the Law of Personal Property; showing analytically its Branches and the Titles by which it is held. By JOSEPH A. SHEARWOOD, of Lincoln's Inn, E.sq., Barrister-at- Law, Author of " Concise Abridgment of Law of Real Property," kc. Demy 8vo. 1882. 5s. Qd. . . . " Will be acceptable to many .students, as giving them, in fact, a ready-made note book." — Indermaur's Law Students' Journal, January, 1S.S2. Smith. — Fide " Real Property." PETITIONS.— Palmer. — Vide "Conveyancing." Rogers. — Vide "Elections." PLEADING. — Bullen and Leake's Precedents of Pleadings, with Notes and Rules relating to Pleading. Fourth Edition. Revised and adapted to the present Practice in the Queen's Bench Division of the High Court of Justice. By THOMAS J. BULLEN, Esq., of the Inner Temple, and CYRIL DODD, Esq., of the Inner Temple, Barrister-at-Law. In 2 parts. Part I. (containing (1) Introductory Notes on Pleading; (2) Forms of Statements of Claun in Actions on Contracts and Torts, with Notes relating thereto). Royal 12m o. 1882. IZ. 4s. " Mr. Thomas Bullen and Mr. Cyril Dodd have done their work of adaptation admirably. ' — Law Journal, Jan. 21, 1882. POOR LAW.— Davis' Treatise on the Poor Laws. — Being Vol. IV. of Burns' Justice of the Peace. 8vo. 1869. II. lis. 6d. POWERS. — Farwell on Powers. — A Concise Treatise on Powers. By GEORGE FARWELL, B.A., of Lincobi's Inn, Esq., Barrister-at-Law. 8vo. 1874. 11. Is. " We recommend Mr. Farwell'a book as containing within a small compass what would otherwise have to be sought out in the pages of hvmdreds of confusing reports." — The Law. PRINCIPAL AND AGENT.— Petgrave's Principal and Agent. — A Manual of the Law of Principal and Agent. By E. C. PETGRAVE, Solicitor. 12mo. 1857. 7s. 6d. i Petgrave's Code of the Law of Principal and -y^ Agent, with a Preface. 12mo. 1876. Net, sewed, 2s. PROBATE. — Browne's Probate Practice : a Treatise on the Principles and Practice of the Court of Probate, in Contentious and Non-Contentiou3 Business. Revised, enlarged, and adapted to the Practice of the High Court of .Justice in Probate business, with the Statute of June, 1881. By L. D. POWLES, of the Inner Temple, Barrister-at-Law. Including Practical Directions to Solicitors for Proceedings in the Registry. By T. W. H. OAKLEY, of the Prin- cipal Registry, Somerset House. 8vo. 1881. 1/. 10s. " Thi.s edition will thus .supply the practitioners in both branches of the profession with all the information that they may require in connection with the probate of wilh5."— TVifi Tihun, Sept. 10, 1881. " In its present form this is undoubtedly the most complete work on the Practice of the Court of Probate This is strictly a practical book. No principle of law, statute or form which c -uld be of service to the practitioner in the Probate Division appears to have been omitted."— T/ic Laic Times, Sept. 17, 1881. "* All Standard Lav; Works are kept in Stock, in law calf and other bindinffS. 119, CHAMCERY LANE, LONDON, W.C. 25 PUBLIC HEALTH.— Chambers' Digest of the Law re- lating to Public Health and Local Govern- nnent. — With Notes of 1260 leading Cases. Various official documents ; precedents of By-laws and Regulations. The Statutes in full. A Table of Ofifences and Punishments, and a Copious Index. Eighth Edition. Imperial 8vo. 1881. 11. lis. Or, the above with the Law relating to Highways and Bridget. 21. FitzGerald's Public Health and Rivers Pol- lution Prevention Acts. — With Explanatory Introduc- tion, Notes, Cases, and Index. By G. A. R. FITZGERALD, Esq., Barrister-at-Law. Royal Svo. 1876. 11. Is. PUBLIC MEETINGS.— Chambers' Handbook for Public Meetings, including Hints as to the Summoning and Manage- ment of them ; and as to the Duties of Chairmen, Clerks, Secretaries and other Officials; Rules of Debate, &c., to which is added a Digest of Reported Cases. By GEORGE F. CHAMBERS, Esq., Bar- rister-at-Law. 12mo. 1878. Net, 2s. 6d. QUARTER SESSIONS.— Leeming & Cross's General and Quarter Sessions of the Peace. — Their Jurisdiction and Practice in other than Criminal matters. Second Edition. By HORATIO LLOYD, Esq., Recorder of Chester, Judge of County Courts, and Deputy-Chairman of Quarter Sessions, and H. F. THURLOW, Esq., Barrister-at-Law, Svo. 1876, 1^, Is. Pritchard's Quarter Sessions. — The Jurisdiction, Practice and Procedure of the Quarter Sessions in Criminal, Civil, and Appellate Matters. By THOS. SIRRELL PRITCHARD, of the Inner Temple, Esq., Barrister-at-Law, Recorder of Wenlock. 8vo, 1875, 21. 2s, RAILWAYS.- Browne and Theobald's Law of Rail- way Companies. — Being a Collection of the Acts and Orders relating to Railway Companies, with Notes of all the Cases decided thereon, and Appendix of Bye-Laws and Standing Orders of the House of Commons. By J. H. BALFOUR BROWNE, of the Middle Temple, Esq., Barrister-at-Law, Registrar to the Railway Commissioners, and H, S, THEOBALD, of the Inner Temple, Esq., Barrister-at-Law, and Fellow of Wadham College, Oxford, Demy Svo. 1881. 1/. 12s. "Contains in a very concise form the whole law of railways.'' — The Times, Sept. 15, 1881. " A marvel of wide design and accurate aud complete fulfilment. . . A complete and valuable repository of all the learning as to railway ma.t.teK."SatunUu/ Rtview, April 8, 1882. " As far as we have examined the volume the learned authors seem to have pre- sented the profession and the public with the most ample information to be found, whether they want to know how to start a railway, how to frame its bye-laws, how to work it, how to attack it for iujui-y to person or property, or how to wind it up." — Law Times. "There can be no doubt that the book under review offers to the practitioner an almost indispen.sable aid in aU cases of railway law and its kindred topics. No less than seventy-five Acts, from the Carriers Act (1 WiUiam IV, c. 08), down to the Employers' LiabiUty Act, passed on the Tth September, 1880, are set forth in chrouo- logical order. Between the sections are intercaLated notes — often lengthy, though concisely worded— setting forth the effect of all the decided cases to November, 1880. . . . The index, for which Mr. Montague Lush is responsible, is full aud well executed." — Law Magazine, May, 1881. Lely's Railw^ay and Canal Traffic Act, 1873.— And other Railway and Canal Statutes ; with the General Orders, Forms, and Table of Fees. By J. M. LELY, Esq. Post Svo. 1873. 8s. *,* All standard Law Wm'ks are kept in Stock, in law calf and other bindings. 26 STEVENS AND SONS' LAW PUBLICATIONS. RATES AND RATING.— Castle's Practical Treatise on the La^^^ of Rating. By EDWARD JAMES CASTLE, of the Inner Temijle, Esq., Barrister-at-Law. Demy 8vo. 1879. V.ls. "Mr. Castle's book is a correct, exhaustive, clear and concise view of the law." — LaAO Times. Chambers' La^A^ relating to Rates and Rating ; with especial reference to the Powers and Duties of Eate-Ievying Local Authorities, and their Officers. Being the Statutes in full and brief Notes of 550 Cases. By G. E. CHAMBEES, Esq., Barrister-at-Law. Imp. 8vo. 1878. Reduced to 10s. REAL ESTATE. — Foster's Law of Joint Ownership and Partition of Real Estate. By EDWARD JOHN FOSTER, M.A., late of Lincoln's Inn, Barrister-at-Law. 8vo. 1878. 10s. Qd. REAL PROPERTY.— Greenv/ood's Recent Real Pro- perty Statutes. Comprising those passed diuing the years 1874-1877 inclusive. Consolidated with the Earlier Statutes thereby Amended. With Copious Notes, and a Supplement containing the Orders imder the Settled Estates Act, 1878. By HARRY GREENWOOD, M.A., Esq., Barrister-at-Law, 8vo. 1878. 10s. " To students particularly this collection, with the careful notes and references to previous legislation, will be of considerable value." — Laio Times. Leake's Elementary Digest of the Law of Pro- perty in Land. — Containing : Introduction. Part I. The Sources of the Law.— Part II. Estates in Land. By STEPHEN MARTIN LEAKE, Barrister-at-Law. 8vo. 1874. 11. 2s. \* The above fc^nns a cornijlete Introduction to the Study of the Law of Real Property. Shearwood'fa Real Property. — A Concise Abridgment of the Law of Real Property and an Introduction to Conveyancing. Designed to facilitate the subject for Students preparing for Examination (incorporating the changes effected by the Convey- ancing Act). By JOSEPH A. SHEARWOOD, of Lincoln's Inn, Esq. , Barrister-at-Law. Second Edition. Demy 8vo. 1882. 7s. 6d. "We heartily recommend the work to students for any examination on real pro- perty and conveyancing advising them to read It after a perusal of other works and shortly before going in for the examination." — Law Student's Journal. April 1, 18S2. " A very useful httle work, particularly to students just before their examination." —Gib.ion's Laic Mjfes, May, 1882. " Excellently adapted to its purpose, and is in the present edition brought well down to date."— Law Magazine, May, 1882. " A very excellent specimen of a student's manual.'" — Law Journal, May20, 1882. " Will be found useful as a stepping-stone to the study of more comprehensive works." — Law Times, June 17, 1882. Shelford's Real Property Statutes. — Eighth Edition. By T. H. CARSON, Esq., Barrister-at-Law. 8vo. 1874. 11. 10s. Srnith's Real and Personal Property. — A Com- pendium of the Law of Real and Personal Property, primarily connected with Conveyancing. Designed as a second book for Students, and as a digest of the most useful learning for Practi- tioners. By JOSIAH W. SMITH, B.C.L., Q.C. Eifth Edition. 2 vols. Demy 8vo. 1877. 21. 2s. " He has given to the student a book which he may read over and over again with profit and pleasure."— iato Timet. "The work before us Mill, we think, be found of very great service to the practitioner."' — Sohcitort' Journal. REGISTRATION.— Brov/ne's(G.Lathom)Parliamentary and Municipal Registration Act, 1878 (41 & 42 Vict. cap. 26) ; with an Introduction, Notes, and Additional Eoims. By G. LATHOM BROWNE, of the Middle Temple, Esq., Barrister-at-Law. 12mo. 1878, 6s. 6d. Rogers — Vide " Elections." *,* All standard Law WorJcs are Jcept in Stoclc, in law calf and other lindings. I 11 9, CHANC ERY LANE, LONDO N, W.C. ^ REGISTRATION CASES.^^Hopv/ood. and Coltman's Registration Cases.— Vol. L (1868-1872). Net,2L18s. Calf. Vol. II. (1873-1878). Net, 21. 10s. Calf. Coltman's Registration Cases. — Vol.1. Part I. (1879 -80). Net, 10s. Part IL (1880). Net, 3s. M. Part IIL (1881). Net 9s. ROMAN Law.— Cumin.— Fjc^e"Civn." Greene's Outlines of Roman Law. — Consisting chiefly of an Analysis and Summary of the Institutes. For the use of Students. By T. WHITCOMBE GREENE, B.C.L., of Lincoln's Inn, Barrister-at-Law. Third Edition. Foolscap 8vo. 1875. 7s. ^d. Mears' Student's Gaius and Justinian. — The Text of the Institutes of Gaius and Justinian, The Twelve Tables, and the CXVII. and CXXVII. Novels, with Introduction and Translation by T. LA.MBERT MEARS, M.A., LL.D., of the Inner Temple, Barrister-at-Law. {This v:ork is a supplement to the same authcn'^s Analysis of M. Ortolan's Roman Lav;.) Post 8vo. 1882. 18s. Mears' Student's Ortolan. — An Analysis of M. Ortolan's Institutes of Justinian, including the History and GeneraHzation of Roman Law. By T. LAMBERT MEARS, M.A., LL.D. Lond., of the Inner Temple, Barrister-at-Law, Published by permission of the lateM. Ortolan. Post 8vo. 1876. 12s. Qd. R U e g g . — Vide ' ' Justinian." SAUNDERS' REPORTS.— Williams' (Sir E. V.) Notes to Saunders' Reports. — By the late Serjeant WILLIAMS. Contmued to the present tune by the Right Hon. Sir EDWARD VAUGHAN WILLIAjMS. 2 vols. Royal 8vo. 1871. 21. 10s. SETTLED ESTATES AND LAND ACTS.— Middleton's Settled Estates Act, 1877, and the Settled Estates Act Orders, 1878, and Settled Land Act, 1882, with In- troduction, Notes and Forms. Third Edition. By JAMES W. MID- DLETON, B.A., of Lincoln's Inn, Barrister-at-Law. [In the press.) SHERIFF LAW Churchill's Law of the Office and Duties of the Sheriff, with the Writs and Forms relating to the Office. Second Edition. By CAMERON CHURCHILL, B.A., of the Inner Temple, Barrister-at-Law. Demy 8vo. 1882. 11. is. " A very complete trea.tise."~Solicilors' Journal, March 25, 18S2. " The treatise is, as far as we can ascertain, completely exhaustive, and comprises statutes and cases to the date of publication ' — Zate Tiims. June o, 18S2. " Under-sherifts, and lawyers generally, vrill find this a useful book to have by them, both for perusal and reference." — Law Magazine. SHIPPING, and vide " Admiralty." Boyd's Merchant Shipping Laws; being a Consolida- tion of all the Merchant Shipping and Passenger Acts from 1854 to 1876, inclusive ; with Notes of all the leading English and American Cases on the subjects affected by Legislation, and an Appendix j forming a complete Treatise on Maritime Law. By A. C. BOYD, LLB., Esq., Barrister-at-Law. 8vo. 1876. 1?. 5s. " We can recommend the work as a very useful compendium of shipping law." — Lair Timst. Foard's Treatise on the Law of Merchant Shipping and Freight.— By JAMES T. FOARD, Bar- rister-at-Law. Royal 8 vo. 1880, Half calf, 11. Is. SIGNING JUDGMENTS.— \A/alker.— Firfe "Judgments." SLANDER.— Odgers.— FuZe "Libel and Slander." SOLICITORS. — Cordery's La^?v relating to Solicitors of the Supreme Court of Judicature.— With an Appendix of Statutes and Rules. By A. CORDERY, of the Inner Temple, Esq., Barrister-at-Law. Demy 8vo. 1878. 14s. " Mr. Cordery writes tersley and clearly, and displays in general great industry and care in the collection of cases.' — Solicitors' Journal. *,* All standard Law Wwks are kept in Stock, in law calf and other bindings. 28 STEVENS AND SONS' LAW PUBLICATIONS. SOLICITOR'S PRACTICE.— Archibald.— F/rfe "Common Law." SPECIFIC PERFORM ANCE.— Fry's Treatise on the Specific Performance of Contracts.— By the Hon. Sir EDWARD FRY, one of the Judges of the High Court of Justice. Second Edition. By the Author and W. DONALDSON RAWLINS, of Lincohi's Inn, Esq., Banister-at-Law, M.A., and late Fellow of Trin. Coll., Cambridge. Royal 8vo. 1881. 1/. 16s. "So far as wu have been able to compare the second edition with the first, we cannot bvit admit tliat the work has been much improved by the revision and re- vriting of whicli this edition is the result." — Th Tim'.'', Sept. 10, 18S1. "We have gone with some care through various portions of the work, and arc satisfied that the reputation which Mr Justice Fry has acquired as a Judge is fully sustained. His style is clear ; his method of treatment exhaustive. He has produced a work which is excellent in itself and by far the best treatise upon the subject. The index should not be passed over without a word of praise. It is extremely full and satisfactory and reflects great credit upon Mr. Bawlins, to whom it is due." — T/ie Law Times, Sept. 17, 1S81. " The result of their joint labours is a work at once scientific and of directly prac- tical utility, carefully brought down to date."— Z(((/- Mdimzlai: and Rcvkic, Nov. 1881. STAMP LAWS.— Tilsley's Treatise on the Stanap Laws.— 8vo. 1871. 18«. STATUTE LAW.— AA^ilberforce on Statute Law.— The Principles which govern the Construction and Operation of Statutes. By EDWARD WILBERFORCE, of the Inner Temple, Esq., Barrister-at-Law. Demy 8vo. 1881. 18«. " Mr. Wilberforce's book bears throughout conspicuoas marks of research and care in treatment." — Solicitors' Journal, February 5, 1S81. "A useful work upo)\ a ditficult and complicated subject." — Loao Times. STATUTES, and vide " Acts of Parliament." Chitty's Collection of Statutes from Magna Chartatol880 . — A Collection of Statutes of Practical Utility ; arranged in Alphabetical and Chronological order, with Notes thereon. The Fourth Edition, containing the Statiites and Cases down to the end of the Second Session of the year 1880. By J. M. LELY, Esq., Bai-rister-at-Law. In 6 very thick vols. Royal 8vo. (8,346 pp.) 1880. 12?. 12s. Supplement to ahove, 44 <£• 4,5 Vict. (1881). Royal 8fo. Seweel, 8s. *,* This Edition is printed in larger type than former Editions, and with increased facilities for Reference. " It is needless to enlarge on the value of " Chitty's Statutes " to both the Bar and to solicitors, for it is attested by the experience of many years .It only remains to point out that Mr. Lely's work in bringing up the collection to the present time is distinguished Ijy care and judgment. The difficulties of the editor were chiefly those of selection and anangement. A very slight laxness of rule in including or excluding certain classes of Acts woiUd materially affect the size and compendiousness of the work. Still more important, however, is the way in which the mechanical difficulties of arrangement arc met. The Statutes are compiled under sufficiently comprehensive titles, in alphabetical order. Mr. Lely, moreover, supyilies us with three indices — the first, at the head of each title, to the enactments cominised in it ; secondly, an index of Statutes in chronological order ; and, lastly, a general index. By these cross references research into eveiy branch of law governed by the Statutes is made easy both for lawyer and layman." — The Times, November 13, 1888. " A very satisfactory edition of a time-honoured and most valuable work, the trusty guide of present, as of former judges, jurists, and of all others connected with the administration or practice of the law."— Justice of the Peace, October 30, 1880. " The practitioner has oulj' to takedown one of the compact volumes of Chitty, and he has at once before him all the legislation on the subject in hand." — Solicitors' Journal, November 0, 1880. " ' Chitty ' is pre-eminently a friend in need. Those who do not possess a complete set of the statutes turn to its chronological index when they wish to consult a par- ticular Act of Parliament. Those who wish to know what Acts are in force with reference to a particular subject tuni to that head in ' Chitty,' and !it once find all the material of which they are in quest. Moreover, they aie, at the same time, referred to the most important cases which throw light on tlie auhject."— Law Journal, November 20, 1880. *^* All standard Law Works are kept in Slock, in law calf and other bindings. 119, CHANCERY LANE, LONDON, W.C. 29 ST ATUT ES— Continued. •The Revised Edition of the Statutes, a.d. 1235- 1868, prepared under the direction of the Statute Law Committee, published by the authority of Her Majesty's Government. In 15 vols. Imperial 8 vo. 1870-1878. 19^. 9s. •Chronological Table of and Index to the Statutes to the end of the Second Session of 1881. Eighth Edition, im- perial 8vo. 1882. 15s. •Public General Statutes, royal Svo, issued in parts and in complete volumes, and supplied immediately on publication. • Printed by Her Majesty's Printers, and Sold by Stevens & Sons. SUMMARY CONVICTIONS.— Highmore.— Fi(/r » Inland Revenue Cases." Paley's Law and Practice of Summary Convic- tions under the Summary Jurisdiction Acts, 1848 and 1879 ; including Proceedings preliminary and subse- quent to Convictions, and the responsibility of convicting INIaoi- strates and their Officers, with Forms. Sixth Edition. By W. H. MACNAMARA, Esq.,Barrister-at-Law. Demy Svo. 1879. IZ. 4s, "We gladly welcome this good edition of a good book." — Solicitors' Journal. Templer's Sunnnaary Jurisdiction Act, 1879. — Rules and Schedules of Forms. With Notes. By F. G. TEMPLER, Esq., Barrister-at-Law. Demy Svo. 1880. 5s, " We think this edition everything that could be desired." — Sheffield Post. Wigram. — Vide "Justice of the Peace." SUMMONSES AND ORDERS.— Archibald.— FitZe " Judges' Cham- bers Practice." TAXES ON SUCCESSION.-Trevor's Taxes on Succes- sion.^ — A Digest of the Statutes and Cases (including those ia Scotland and Ireland) relating to the Probate, Legacy and Succession Duties, with Practical Observations and Official Forms. Completely rearranged and thoroughly revised. By EVELYN FREETH and ROBERT J. WALLACE, of the Legacy and Succession Duty Office. Fourth Edition, containing full information as to the Altera- tions made in the above Taxes by the 44 Vict. c. 12, and the Stamp Duty thereby imposed on " Accounts." Royal 12mo. 1881. 12s.6d. " Contains a great deal of practical information, which is likely to make it very useful to solicitors." — Law Journal. " The mode of treatment of the subject adopted by the authors is eminently prac- tical." — Solicitors' Journal. TITHES.— Burnell.— The London City Tithe Act, 1879, and the other Tithe Acts effecting the Com- mutation and Redemption of Tithes in the City of London, with an Introduction and Notes, &c. By HENRY BLOMFIELD BURNELL, B.A., LL.B., of Lincoln's Inn, Esq., Barrister-at-Law. Demy 8vo, 1880. 10s. 6c?. TORTS. — Addison on Wrongs and their Remedies.— Being a Treatise on the Law of Torts. By C. G. ADDISON, Esq., Author of " The Law of Contracts." Fifth Edition. Re-written. By L. W. CAVE, Esq., M.A., one of Her Majesty's Counsel (now one of the Judges of the High Court of Justice). Royal Svo. 1879. 1/. 18s. " As now presented, this valuable treatise must prove highly acceptable to judges and the profession." — Lauj Times. " Cave's ' Addison on Torts ' will be recognized as an indispensable addition to every lawyer's library." — Law Magazine. Ball. — Vide "Common Law." *^* All Standard Law Works arc kept in Stock, in law calf and other bindingi. 30 ST EVENS AN D SO NS' LAW PUBLI CATION S. TRADE MARKS.— Hardinghani's Trade Marks: Notes on the Eritish, Foreign, and Colonial Laws relating thereto. Compiled for the use of Manufacturers, Merchants, and (jthers interested iu Commerce. By GEO. GATTON MELHUISH HARDINGHAM, Assoc. Mem. Inst. C.E., Mem. Inst. M.E., Consulting Engineer and Patent Agent. Ivoyal 12mo. 1881. 5s. Sebastian on the Law of Trade Marks. — The Law of Trade Mark.s and their llegistration, and matters connected therewith, including a chapter on Goodwill. Together with Appen- dices containing Precedents of Injunctions, &c. ; The Trade Marks Kegistration Acts, 1875 — 7, the Rules and Instructions thereunder; The Merchandise Marks Act. 1862, and other Statutory enactments; The United States Statute, 1870 and 1875, the Treaty with the United States, 1877 ; and the Rules and Instructions issued in February, 1878. With a copious Index. By LEWIS BOYD SEBASTIAN, B.C.L., M.A., of Lincoln's Inn, Esq., Barrister-at- Law. 8vo, 1878. 14s. " The Master of the Rolls in his judgment in Re Palmer's Trade Marks, said ' He was glad to see that the wcll-kncjwu writer on trade marks, Mr. Sebastian, had taken the same view of the Act.' " — The Times, May "i, 1882. " The book cannot fail to be of service to a large class of law^^ers." — Solicitws' Journal. " Mr. Sebastian has written the fullest and most methodical book on trade marks which has appeared in England since the passing of the Trade Marks Registration Acts." — Trade Marks. " Viewed as a compnation,'the book leaves little to be desii-ed. Viewed as a treatise on a subject of growing importance, it also strikes us as being well, and at any rate carefully executed.'' — Law Journal. Sebastian's Digest of Cases of Trade Mark, Trade Name, Trade Secret, Goodwill, &c., de- cided in the Courts of the United Kingdom, India, the Colonies, and the United States of America. By LEWIS BOYD SEBASTIAN, B.C.L., M.A., of Lincoln's Inn, Esq., Barriater-at-Law, Author of "The Law of Trade Marks." Demy 8vo. 1879. IZ. Is. " A digest which will be of very great value to all prastitioncrs who have to advise on matters connected wdth trade marks." — Solicitors' Journal. Trade Marks JournaL — 4to. Sewed. {Issued fm-tniyMy.) Nos. 1 to 258 are now ready. Net, each Is. Index to Vols, I. to VI. Each Net, 3», TRUSTS AND TRUSTEES.— Godefroi's Digest of the Principles of the Law of Trusts and Trus- tees.— By HENRY GODEFROI, of Lincoln's Inn, Esq., Barrister-at-Law. Joint Author of " Godefroi and Shortt's Law of Railway Companies." Demy 8vo. 1879. 1^. Is. " No one who refers to this book for information on a question within its range is, we think, likely to go away unsatisfied." — Salurdo.y Revieu: "Is a work of great Titility to the practitioner." — laiv Magazine. " As a digest of the law, Mr. Godefroi's work merits commendation, for the author's statements are brief and clear, and for his statements he refers to a goodly array of authorities. In the table of cases the references to the several coutemporaneous reports are given, and there is a very copious index to subjects." — Law Journal. USES— Jones (W. Hanbury) on Uses.— 8vo, 1862. 7s. VENDORS AND PURCHASERS Dart's Vendors and Pur- chasers. — A Treatise on the Law and Practice relating to Ven- dors and Purchasers of Real Estate. By J. HENRY DART, of Lincoln's Inn, Esq.. one of the Six Conveyancing Counsel of the High Court of Justice, Chancery Division. Fifth Edition. By the AUTHOR and WILLIAM BARBER, of Lincoln's Inn, Esq., Barrister-at-Law. 2 vols. Royal 8vo. 1876. M. 13s. 6d. " A standard work like Mr. Dart's is beyond all praise." — ITie Law Journal. "sTEVENS & SONS, 119, CHANCERY LANE, LONDON, W.C. 119, CHANCERY LANE, LONDON, W.C. 31 VOLUNTEER L\W — A Manual of the La>Ar regulating the Volunteer Forces. — Including the Voluntufi- Acts, 1863 to 1869, and other Acts relating to Volunteers. With Forms of Complaint, Summons and Order, &c. By W. A. BURN" and W. T. RAYMOND, Esqrs., Barrister.s-at-Law, and Captains in H.M. Volunteer Forces. R)yal 12mo. 1832. 2s. WATERS. — Woolrych on the Law of Waters. — Including Rights in the Sea, Rivers, &c. Second Edition. 8vo. 1851. iVe^, 10s. Goddard. — Vide "Easements." WATERWORKS— Palnner.— Vide "Conveyancing." WILLS,— Ra-wlinson's Guide to Solicitors on taking Instructions for Wills.— 8vo. 1874. 4«. Theobald's Concise Treatise on the Law of Wills.— With Statutes, Table of Cases and Full Index. By H. S. THEOBALD, of the Inner Temple, Esq., Barrister-at-Law, and Fellow of Wadham College, Oxford. Second Edition. Demy 8vo. 1881. 11. is. OPINIONS OF THE PRESS ON THE FIRST EDITION. "ilr. Theobald has certainly given evidence of extensive investigation, conscientious labour, and clear exposition." — Law Magazine. " We desire to record our decided impression, after a somewhat careful examination, that this is a book of great ability and value. It bears on every page traces of care and sound judgment. It is certain to prove of great practical usefulness, for it suppUes a want which was beginning to be distinctly felt." — Solicitors' Journal. "His arrangement being good, and his statement ot the effect of the decisions beir.g clear, his work cannot fail to be of practical utility, and as such we can commend it to the attention of the profession." — Law Times. WRONGS.— Addison.— Ficie "Torts." b,efo:rts.. — j^ large stock neto and second-hand. Estimates on application. BI.TsTIDUsrG-. — Executed in the best manner at mode- rate prices and with dispatch. The Law Reports, Law Journal, and all other Reports, bound to Office Patterns, at Office Prices. FIRZ^ATE ACT'S — The Publishers of this Cata- logue 2Jossess the largest known collection of Private Acts of Parliament (including Public and Local), and can supply single copies commencing from a very early "period. ATAX.TJ.A'jlOJsrs. —i^or Probate, Partnership, or other purposes, x.iB:E2,A.iaiES :F>T7iaoi3:7^SEiD. STEVENS & SONS, 119, CHANCERY LANE, LONDON, W.C. STEVENS & SONS' ANNOUNCEMENTS OF NEW WORKS AND NEW EDITIONS. Addison on Contracts. — Being a Treatise on the Law of Con- tracts. Eighth Edition. By Horace Smith, Esq., Barrister-at-Law, I Recorder of Lincoln. (In the press.) Ball's Leading Cases on ToPts.— Being a selection of Lead- ing Cases on the Law of Torts. With Notes. By W. E. Ball, LL.D., of Gray's Inn, Barrister-at-Law. [In preparnt'ion.) Daniell's Chancery Practice.— Sixth Edition, By L. Fithf, E. C. Dunn, and T. Ribton, assisted by W. H. Upjohn, Esqr.s., Barristers-at-Law. In 2 Vols. Demy 8vo. (Vol. II. m the press.) Fithian's Bills of Sale Act (1878), Amendment Act, 1882 ; with an Introduction and Explanatory Notes, showing the changes made in the Law with respect to Bills of Sale. By Edicard, W. Fithian, of the Middle Temple, Esq., Barrister-at-Law (Draftsman of the Bill). (In pjnpuration.) Haynes' The Honours Examination Digest.— By John F. Ilaynes, LL.D. (In preparation.) Humphry's Common Precedents in Conveyanc- ing. — Adapted ^to the Conveyancing Acts, 1881-82, the Settled Land Act, 1882, and Man-ied Women's Property Act, 1882. Together with the Acts, an Introduction and Practical Notes. Second Edition. By Hugh M. Humphry, M.A., of Lincoln's Inn, Barrister-at-Law. (In preparation.) Lely's Municipal Corporation Act, 1882; with Intro- duction and Notes. By /. M. Lely, of the Inner Temple, Esq., Barrister- at-Law. Editor of " Chitty's Statutes," &c., &c. (In ptreparation.) Lush's Law of Husband and Wife; with a chapter on Marriage Settlements. By C. Montague Lush, of Gray's Inn and North Eastern Circuit, Esq., Barrister-at-Law. (In prej)aration.) Macdonell's Law of Master and Servant.— By John Macdonell, of the Middle Temple and South Eastern Circuit, Esq., Barrister-at-Law. (In the pre?s.) Middleton's Settled Estates Act, 1877, and Orders, and Settled Land Act, 1882; with Introduction, Notes, and Forms. By /. W. Middkton, B.A., of Lincoln's Inn, Barrister-at- Law. Third Edition. (In the press.) Pyke's Digest of the Law of Charter-Parties and Bills of Lading; with Practical Notes. By L. E. Pyle, of the Inner Temple, Esq., Barrister-at-Law. (In preparation.) Russell's Treatise on the Duty and Power of an Arbitrator, and the Law of Submissions and Awards J with an Appendix of Farms, and of the Statutes relat- ing to Arbitration. By Francis Russell, Esq., M.A., Barrister-at-Law. Sixth Edition. (Nearly ready.) Shelford's Real Property Statutes.— Ninth Edition. Bv T. H. Carson, Esq., Barrister-at-Law. (In the press.) Shirley's Leading Cases made Easy. A Selection of Leading Cases in the Common Law. By W. Shirley Shirley, M.A., B.C.L., Esq., Barrister-at-Law. Second Edition. (In preparation.) Smith's Married Women's Property Act, 1882; with Inti'oduction and Notes. By H. Arthur Smith, of the Middle Temple, Esq., Barrister-at-Law. (In preparatum.) Weaver's Precedents of Wills; with Introduction and Notes. By Charles Weaver, B.A. (T.C.D.), Solicitor. (In the press.) Woolrych's Metropolis Building Acts, 1855-82; A. with Notes, Third Edition, By W. U. Macnamara, Esq., Barrister- at-Law. (In the pres s. ) STEVENS AND SONS, 119, OHANCERY LANE, LONDON, W.C, 'c/AQvaan-a^ 't/Aavaoiij»^ jjujnviuv^ "joa/Mwun* AWMNIVER5/A < AvlOSAKCnen> ^lllBRARYQr^ ^^IIIBRARY^. ^i^3DNVS0)=^ %a3AINn3ftV^ ^^OJIWDJO'^ ^^WE■l)NI\TO4 >- o o %a3AiNn-3Vft^ ^(?Aav«an# ^OFCAllF0/?,< A^^llBRARYOc A^HIBRARY^/ %jnV3J0^ '^tfOJIlYDJO'^ ^ = ^^ UU bUU 1 MtMN MtblUNAL LIOKAMY rMUILI I T IIVERI/A ^lOSANCElfj^ O ^tfOjnvDJo^^ ^tfojnv3jo=>^ ^OfCAllFOffi^ ^OFCAUF0fi5|j>, IIVERS"/^ "' \^my\^ .^W^UNIYtRS7A 5 o ^lOSANCElfJ-^ ^UIBRARYi?/: %a3AINfl3\«^ '^^OJIIVDjIO'^^ UIFOS*^ aan-# ^^,OFCAlIFO% > v/ f^ >&Aava8n#' .^\^E•^lNlVERy/A A>:lOSANCEl£j";> ^OFCAllFOff^ %aaAiNrt3\\v %Aavaan-# - ' "^jHAiNd-avw^ ^^m\m\^ '^tfojnvDjo'^ - ^iJlJONVSOl^ «Art»y/: UIFOff^ ^OFCAllFOftj^ ^^WE•UNIVER5/^ ^lOSANCElfj^ ?)i iN^i li2^S l^iTt^ 5^tllBHAKT6y/ ivjjo>^ '^^ojiivjjo'^