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Bailey's adm'x v. Robinsons

Bailey's adm'x &c. v. Robinsons

Bailey's adm'x v. Robinsons, 42 Am. Dec. 540 (Va. 1844)
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Court
Supreme Court of Virginia · State Highest Courts
Decided
April 15, 1844
Judges
Ballwin
Citations
42 Am. Dec. 5401 Va. 41 Gratt. 4
Headnotes
1. A purchase of laud by an executor, at a sale made by himself as such, is a violation of his duty as trustee; and an invasion of the rights of his cestuis que trust; who are entitled to relief in a court of equity. 2. The general ride in such cases is, that though the sale may have been irregularly and fraudulently conducted, and the property sold for less than its value; the proper mode of relief, is not to subject the trastee to the payment of the actual value of the land at the time of the sale, upon the conjectural estimate of witnesses ; but at the election of the cestuis que trust, to direct a resale at a proper upset price. 3. A mere depreciation since the trustee’s purchase, in the market value of the property, arising from a change in prices, does not warrant an exception to this general rule. 4. Error to decree in favour of a person not a party in the cause.
Summary
Dixon Robinson of the comity of Fauquier, died in 1816, having first made his will, by which he gave his whole estate to' his wife for life, or until she married ; and then, (after a specific legacy of a slave to each of his eleven children,) he directs that after the death or marriage of his wife, the whole of the property devised to her, be sold (the land on a credit of twelve months) to the highest bidder; and the money to be equally divided among his children then living: and he appointed Carr Bailey and Samuel Weaver his executors ; who qualified as such, in the county court of Fauquier. . The land consisted of a tract of about one hundred and fifty-five acres: and the personal estate, after taking out the specific bequests, consisted of four slaves, and some perishable property. In 1817, the widow having died, the executors proceeded to sell the property, when the perishable part of it was purchased for the benefit of the children, eight of whom were then infants: one of the slaves was bought by the executor Bailey, at the price of 516 dollars 50 cents. The land was also purchased by Bailey at 8 dollars 50 cents per acre. In 1822, the children of Dixon Robinson filed their bill in the late superior court of chancery for the Fredericksburg district, against the executors Bailey and Weaver ; in which they charge, that after the death of their mother, the executors possessed themselves of the whole estate real and personal, for which they had never accounted. That in May 1817, they proceeded to sell the land; and sold it upon the terms of not delivering possession thereof, for twelve months from the day of salo. That Bailey repeatedly declared at the sale, that he wished to purchase the land for the benefit of the daughters of Dixon Robinson; whereby many who would have given 10 or 12 dollars an acre for it, were induced not to bid; so that Bailey became the purchaser at 8 dollars 50 cents per acre: and that the other executor Weaver had since executed to Bailey a deed for the land. That Ba,iley still retains the title, and possession of the land, which is worth considerably more than the price for which it was sold. They therefore pray that the sale of the land may be set aside; and that the same may be resold; and that the executors may be compelled to settle their executorial accounts. Before the executors had answered the bill, the plaintiffs, and a certain Samuel Mooney, who claimed to be assignee of JacJcin Robinson, one of the children and devisees of Dixon Robinson, filed an amended and supplemental bill; in which they charge that in December 1816, at the sale of the slaves and personal effects of his testator, Bailey declared in the presence of divers persons who attended the sale for the purpose of bidding thereat, that he desired to purchase in the slaves and personal effects for the benefit of the daughters of Dixon Robinson ; whereby many persons from kindness to the daughters, declined bidding; so that Bailey became the purchaser of the slaves and other personal effects at a price much below their value; and having thus obtained them, claims and uses them as his own. The plaintiffs therefore pray that Bailey may be held responsible to them for the price at which the land and slaves would have then sold at a fair sale. Bailey and Weaver answered separately. Bailey says, that the perishable property was purchased by Polly Robinson for herself and the other legatees; and has ever since remained in their possession, or has been consumed by them. That the land was sold on the terms stated in the bill; that it was a fair sale, and brought a full price. That after the sale, the children of Dixon Robinson' lived upon the land, and enjoyed the profits of it; and have never paid him any rent ; but are still his debtors for this, and other advances to them and the widow. That he purchased one slave for 516 dollars 50 cents—more than his value: that one of the slaves was a subject of expense, and entirely unfit for service ; that another was also old, and could not be sold at public auction; and that she was ultimately disposed of for 25 dollars, in a bond of William Robinson, who married the plaintiff Polly: and that the other slave was sold to a certain John Brown for 510 dollars. That he purchased none of the personal effects, except a wheat fan; and that was permitted to remain in the service of the family. Weaver answered to the same effect. The accounts were referred to a commissioner, before whom depositions were taken ; and the evidence satisfied the commissioner, and the court below, that the allegations of the bill as to the conduct of Bailey at the sale were sustained by the proofs, and that but for this conduct the land would have brought 11 dollars per acre; and the commissioner in his report, charged Bailey with the land at that price. Whilst the cause was before the commissioner, a certain William Lawler appeared before him, claiming two shares of the estate, as the assignee of William Robinson, who claimed to hold one share in right of his wife Polly, and one as the assignee of Henry Robinson ; though he was in no way made a party in the cause. The defendant Bailey died whilst the cause was before the commissioner, and it was revived against his administratrix. The cause came on for final hearing before the circuit superior court of law and chancery for the county of Prince William, (to which it had been removed) in October 1834, on the report and exceptions thereto ; when the court made a decree, fixing the liability of Bailey for the land at 11 dollars per acre; sustaining Lawler's claim as assignee; and referring the cause to a commissioner, to enquire into, and report upon other matters connected with the accounts. From this decree Bailey's administratrix appealed.

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Opinion of the Court — Ballwin

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Ballwin, J.

delivered the opinion of the court.

The court is of opinion, that the purchase by the executor Bailey of the land in the proceedings mentioned, at the sale thereof ma.de by him and his coexecutor, was in itself a violation of his duty as trustee ; and an invasion of the rights of his cestuis que trust; who are entitled to redress in a court of equity. According to the general rule in such cases, though the sale may have been irregularly and fraudulently conducted, and the property sold for less than its value, the proper mode of relief is not to subject the trustee to payment of the actual value of the land, at the time of the sale, upon the conjectural estimate of witnesses; hut, at the election of the cestuis que trust, to direct a resale at a proper upset price. A mere depreciation since the trustee’s purchase, in the market value of the property, arising from a change in prices, does not warrant an exception to this general rule; the more especially in a case like this, in which no depreciation whatever is charged by the complainants, in either their original or amended hill. The court is therefore of opinion, that the said decree of the circuit court is erroneous, in requiring the appellants the representatives of said Bailey to retain the said land at the price fixed by the court; instead of directing a resale thereof at a proper upset price; to be ascertained by an account, debiting the price at which the land was purchased by said Balley, with interest thereon, and with any substantial apd permanent improvements made by said Bailey on thé land since his purchase; and crediting the rents or profits of the land since his purchase, except during the enjoyment thereof by the testator’s family. The balance of such account, with the addition thereto of a reasonable allowance for the commission and charges of resale, is the sum at which the land on a resale should be set up, on a credit of 12, 18 and 24 months, for equal instalments of the purchase money, with interest on those instalments from the day of sale. If the land should *10 not sell for more than the upset price, the purchase heretofore made by said Bailey should in all respects stand confirmed; and the purchase money and interest thereon remaining due, after crediting, at the proper dates, any Payments made on account thereof; and after also crediting the rents or profits of the land since said Bailey’s purchase, during the period of the enjoyment thereof by his testator’s family, paid into court for distribution amongst the appellees, and those claiming under them, according to their respective rights. If the land should sell beyond the upset price, then the former sale should be vacated; and the case further proceeded in, by causing the purchase money on such resale to be paid; and a proper conveyance to be made to the purchaser ; and the proceeds of sale applied, first to pay the charges of sale, and secondly to the administrators of said Bailey the amount of his permanent improvements aforesaid; and thirdly any payments made by him on account of the original purchase money, with interest thereon; and the residue to be distributed amongst the appellees, and those claiming under them, according to their respective rights. And the court is further of opinion that the said decree is also erroneous in prematurely deciding upon the claim of Lawler to the shares of Mary and Henry Robinson in the estate of the decedent Dixon Robinson; the said Lawler not being a party in the cause, and that he ought to be made a party by the proper proceedings. It is therefore ordered and decreed that so much of the said decree of the circuit court as is in conflict with the principles above declared, be reversed and annulled, with costs to the appellant; and the cause is remanded to the said circuit court, to be further proceeded in according to the principles of this decree, and of so much of said decree of the circuit court as is not in conflict therewith, and for the further enquiries before a commissioner directed by that decree; and for the decision of such questions in the cause as have not yet been adjudicated, and for a final decree.

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Cited by 12 cases

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1854–1855: 11870–1871: 11872–1873: 11882–1883: 21890–1891: 11898–1899: 11900–1901: 11916–1917: 11924–1925: 11928–1929: 11930–1931: 118542026peak 1882 · 2

Relies on it most ⓘ

  1. Walker's Ex'or v. Page21 Va. 636 (1872)
  2. Tennant v. Dunlop33 S.E. 620 (Va. 1899)
  3. Smith v. Miller37 S.E. 10 (Va. 1900)
  4. Christian & Gunn v. Worsham78 Va. 100 (1883)
  5. Swineford v. Virginia Trust Co.152 S.E. 350 (Va. 1930)
  6. Davies v. Hughes11 S.E. 488 (Va. 1890)

Most recent

  1. Swineford v. Virginia Trust Co.152 S.E. 350 (Va. 1930)
  2. McCraw v. Cooper118 So. 333 (Ala. 1928)
  3. Frazier v. Copen121 S.E. 503 (W. Va. 1924)
  4. Simms v. Ramsey90 S.E. 842 (W. Va. 1916)
  5. Smith v. Miller37 S.E. 10 (Va. 1900)
  6. Tennant v. Dunlop33 S.E. 620 (Va. 1899)

Citing references are not a citator: they show that a later opinion cites this case, not whether it followed, distinguished, or overruled it. Check negative history before relying on this case.

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