Goodwin v. Mix

Citations

• 38 Ill. 115

Syllabus

<p>1. Trustees—presumption that they act honestly and do their duty. It is a presumption of law, that officers and trustees act honestly and do their duty, and the burthen of proof is upon those who seek to impeach their conduct in those respects.</p> <p>2. So where a creditor for whose benefit his debtor has made an assignment, seeks to impeach a sale of the property by the assignees, either upon the ground of their neglect of duty, or that they have acted fraudulently, he is bound to show, such misconduct by affirmative evidence, or by strong circumstances.</p> <p>3. Same—inadequacy of price, as evidence of fraud. It does not follow, because the assignees may have sold the property at prices far below its estimated value, that the sale was not fair, or that it was in fraud of the rights of creditors.</p> <p>4. Assignment—-for the benefit of creditors—duty of the assignees. Where a debtor makes an assignment of his property for the benefit of his creditors, the assignees succeed to all the rights of the debtor in the property, and receive it with all its burdens. It is their duty to take charge of it, to preserve and protect it until it can be sold, and to sell it to the best advantage for the beneficiaries, and within such reasonable time and manner as that the highest price shall be obtained for it.</p> <p>5. It is the duty of the assignees to manage the trust confided to them with all the care, caution and diligence a prudent owner of like property would under the circumstances, and to observe good faith in all their transactions in relation to it, and must be held to a strict accountability.</p> <p>6. Same—sale must be fair. And if such persons, acting in a fiduciary character, make declarations or do acts which prevent competition at a sale of trust property, or which causes a sacrifice of the property, the sale should be set aside at the instance of any beneficiary injured thereby.</p> <p>7. Same—of grounds for the removal of the assignees. If the creditors i