Byrne v. Jones

Citations

• 159 F. 321
• 90 C.C.A. 101
• 1908 U.S. App. LEXIS 4062

Syllabus

<p>1. Trusts- Trustee may Purchase Directly of the Cestui Qtte Trust upon Puli, Disclosure.</p> <p>A trustee or an agent may purchase the trust property directly from his cestui que trust sui juris, or principal, on condition that the latter intends that: the former shall buy, that the former discloses to the latter, before the contract is made, every fact he has learned in His fiduciary relation which is material to the sale, that he exercise's the utmost good faith, that no advantage is taken by misrepresentation, concealment of, or omission to disclose, important information gained as trustee or agent, and that the entire transaction is fair and open.</p> <p>[Ed. Note. — Por cases in p'int, see Cent. Dig. vol. 47, Trusts, § 331.]</p> <p>2. Same — Trustee’s Purouasf, of Cestui Que Trust Voidable for Omission, to Disclose Material Fact.</p> <p>But the foregoing condition is inexorable.</p> <p>, Any omission by the trustee or agent to disclose any fact material to the sale learned by him as trustee, any material misrepresentation, concealment, or other disregard of the condition renders the sale and the contract for it voidable, at the election of the cestui quo trust or principal.</p> <p>[Ed. Note.1 — For cases in point, see Cent. Dig. vol. -17, Trusts, § 331.1</p> <p>3. Same — Facts—Conci.usi ons.</p> <p>A trustee, residing in Arkansas to hold and sell land situated in that state and in Texas for himself and a cestui quo trust residing in Massachusetts, sold a right of way to a railroad company for $725, and without disclosing these facts bought the interest of Ms cestui quo trust for $7,500.</p> <p>Held: The contract of sale was voidable at the election of the cestui que trust.</p> <p>[Ed. Note. — 'For cases in point, see Cent. Dig. vol. 47, Trusts, § 331.1</p> <p>4. Equity — Practice—Settlement of Account before Decree ox? Sale Preferred.</p> <p>Where an accounting and a sale of property are required, a settlement, of the account and a determination of the exten