Baugh's Ex'or v. Walker

Citations

• 77 Va. 99
• 1883 Va. LEXIS 41

Syllabus

<p>1. Fiduciaries.—-Under no circumstances will a fiduciary be allowed to derive any personal benefit from his transaction of the trust business or . management of the trust assets. And if a trustee purchase claims or encumbrances against the trust estate at a discount, the purchase shall enure to the benefit of the interest which it is his duty to protect.</p> <p>2. Idem.—Reimbursement.—But though the profit belongs to the cestui qu.e trust, yet the fiduciary is entitled to be reimbursed the amount he has expended, with interest.</p> <p>3. Case at Bar.—In 1859, of N. W., a lot was bought by J. B., who paid all the price except $900.87, but received then no conveyance. In i860, J. B. conveyed it to A. B. in trust for himself and wife and survivor during life, remainder to their child. The deed was not acknowledged or cer- . tilled according to law, though recorded, and A. -B. knew of.it and held possession under it. In 1861, N. W. conveyed the lot to J. B. but retained a lien. By deed dated 1862, but not signed until 1863, J. B. conveyed absolutely to A. B. one-half the lot, in consideration of A. B.’s paying off the lien. J. B. and wife died, leaving one child, D. F., wife of W. F.; A. B. also died and his executor rented the lot to R. In 1879, N. W. conveyed the same lot to D. F., who, with her husband, conveyed it, together with all moneys due her from A. B.’s estate by reason of his trusteeship, or by reason of the rents and profits received by said trustee on account of said lot, to J. M. W., who, having already brought ejectment against R. for the lot, brought his bill in chancery to settle the accounts of A. B. as said trustee. Accounts of receipts and disbursements having been taken and reported, the trustee was charged with the rents received after the death of J. B., and credited with the amounts paid out by him on the trust account, including the amount paid by him in purchasing the said vendor’s lien of $900.87, which, having been paid in Confederate mon