Ellig v. Naglee & Sharp

Citations

• 9 Cal. 683

Syllabus

<p>When trustees act with good faith, in the management of the trust property, and without selfish motives, they are entitled to be treated by a Court of Equity with liberality and indulgence, and especially when they act under the advice of counsel.</p> <p>Very supine negligence, or willful default, will render them liable; but to make them liable for mere errors of judgment, would tend to discourage good and prudent men from undertaking the trust.</p> <p>Delay, on their part, in bringing suit to recover the rents of the trust estate, if subsequently approved by the cestui que trusts, will excuse them.</p> <p>Money advanced by the trustees to the cestui que trusts, with the understanding that the same should be repaid out of the rents of the trust property, is a lien only upon the net incoming rents, and not a lien upon the trust property.</p> <p>The same is true respecting the charges for legal services of one of the trustees in the management of the trust property. The rents must be applied to the payment of such allowances until they are liquidated.</p>