McSorley v. Bullock

Citations

• 62 Wash. 140
• 113 P. 279
• 1911 Wash. LEXIS 661

Syllabus

<p>Trusts — Constructive Trusts — Evidence—Sufficiency. A constructive trust is shown, by clear and convincing testimony, although the evidence of the two parties in interest is in direct conflict, where it appears that the plaintiff was interested in a bankrupt corporation and applied to the defendant for an advance to enable him to bid for the assets at a receiver’s sale, that the defendant consented, and stated to others in plaintiff’s presence that he was bidding in the property for the plaintiff and that there was not time, and it was not necessary to draw up a contract, the plaintiff taking an active interest in the sale, the arrangement being that defendant was to take the bill of sale in his own name for security only, after which he repudiated the trust and converted and sold the property.</p> <p>Same — Frauds, Statute of — Possession of Trust Property. The statute of frauds does not apply to an oral agreement to advance the money to bid in property at a sale and hold the same in trust for another, whereby a constructive trust is created, and it is immaterial who had possession of the property.</p> <p>Trover and Conversion — Damages—Measure—Trusts — Liability of Trustee. Where a trustee sells and dispossesses himself of property bid in by him and held in trust for another, he is guilty of a conversion, and the measure of damages is the market value of the goods at the time of the conversion, with interest, less the sum advanced by the trustee on the purchase price.</p>