Martin v. New York & St. L. Mining & Mfg. Co.

Citations

• 165 F. 398
• 91 C.C.A. 348
• 1908 U.S. App. LEXIS 4766

Syllabus

<p>1. Trusts (§ 76*) — Real Estate — Resulting Trust from Unauthorized Use of Money of One to Buy Land in Another’s Name — Ownership of Money by Alleged Cestui Que Trust Indispensable.</p> <p>It is indispensable to tbe existence of a resulting trust in land on tbe ground that the money of tbe complainant has been used without bis consent to acquire the title to the land in another that tbe complainant should have been tbe owner of tbe money when it was used.</p> <p>[Ed. Note. — For other cases, see Trusts, Cent. Dig. § 108 h Dec. Dig. § 76.*]</p> <p>2. Trusts (§ 80*) — Trust vs. Loan — Ownership of Money — Facts—Conclusion.</p> <p>Suit was brought against C. and bis corporation to charge tbe property and profits of tbe latter with a trust because C. bad used complainant’s money without tbe batter’s knowledge to acquire land in the name of the corporation. Complainant testified that be gave C. $4,000 with tbe understanding that he should place it in escrow with a trust company to be held there to assure the vendors of land that the required payment would be made by C.’s mining company, and to be returned to him at tbe end of 10 days, when C. said be would have secured a loan upon some bonds of his company which be was about to obtain. C. testified that be borrowed tbe $4,000 of tbe complainant, that nothing was said or understood about placing it in escrow or in trust, and that bo used it, not to pay for tbe land, but to buy materials for and to pay expenses of his corporation. At tbe time the $4,000 was paid over to C. by the complainant the latter gave to tbe former his promissory note for $4,000 and interest payable in 10 days, and a written agreement to give him 40 shares of the stock of bis company “in consideration of loan and other promotion benefits.” Complainant urged C. to pay, and some years later, and before this suit, C. did pay, tbe note.</p> <p>Held', tbe transaction was a loan. The money tbe complainant gave to C. upon receipt of bis note immediately