Bruner v. Finley

Citations

• 187 Pa. 389
• 41 A. 334
• 1898 Pa. LEXIS 822

Syllabus

<p>Trusts and trustees — Purchase by trustee at his own sale.</p> <p>Trustees and others acting under authority conferred upon them for the benefit of others are restrained or incapacitated from buying absolutely for themselves only so long as the trust or the authority in regard to the property sold continues to exist, and until notice is given of its having terminated, especially where the trustee divests himself of the trust or authority by his own act, to those beneficially interested in the property.</p> <p>Although the rule which disqualifies a trustee from purchasing at his own sale is inflexible, yet it does not apply where the sale is made by a public officer under proceedings adverse to the interest of the cestui que trust, a,nd the trustee has not the means in his power to prevent the sale.</p> <p>Trusts and trustees — Purchase by trustee at Ms own sale — Laches.</p> <p>Lapse of time is no bar to the assertion of a direct trust, although it is to a constructive one. Yet where there has been a distinct repudiation by the trustee of even a direct trust, and knowledge of the repudiation has been brought home to the cestui quo trust, the case comes within the ordinary rules of limitation and laches.</p> <p>If a trustee to sell becomes a purchaser his purchase is generally voidable but the cestui que trust must move to avoid it within a reasonable time.</p> <p>Oil a bill in equity filed by A against the executors of C for a conveyance of land and for an account, it appeared that A’s father and brothers owned the land in question, which was subject to incumbrances. After the death of A’s father the land was sold by the sheriff to D. Subsequently D sold it to C for about $16,000. O, in purchasing the property from U, stipulated that he was not to be personally liable for the mortgages which were to remain upon it. About a month prior to the purchase of the land C had entered into a written agreement with A, in which it was mentioned that A claimed an interest in