MacDougall v. Citizens National Bank

Citations

• 265 Pa. 170
• 108 A. 608
• 1919 Pa. LEXIS 519

Syllabus

<p>Trusts'and trustees — Purchase by trustee — Resulting trust — Control of sale.</p> <p>1. If a trustee becomes the purchaser of property at public sale brought about or in any manner controlled by him, he will be presumed to buy and hold for the benefit of the trust. But this rule does not apply where the trustee is without control over the sale and is not instrumental in bringing it about. In the latter case he may bid and become the purchaser of the property free from any trust on his part.</p> <p>2. Neither are lien creditors, equally with third persons, prevented from bidding at a sale fairly conducted and purchasing the property free from obligation to other creditors; consequently, an agreement between two or more lien creditors and the trustee to bid for tbeir mutual protection does not alter the situation so long as the transaction is free from fraud or attempt in any manner to prevent free and open competitive bidding.</p> <p>3. The mere fact that the property was purchased. at a price considerably less than its actual value is not sufficient evidence upon which to found an inference of fraud.</p> <p>Equity — Findings of fact — Review.</p> <p>4. The findings of a chancellor based upon sufficient evidence will not be reversed in the absence of clear error.</p>