Moeller v. Poland

Citations

• 80 Ohio St. (N.S.) 418

Syllabus

<p>Duty of trustee to cestui que trust — One of absolute good faith— Honest motive not sufficient, when — Specific enforcement of executory contract — Between trustee and third party — Without valuable consideration — Not decreed by court of equity, when.</p> <p>1. Inasmuch as a trust estate exists for the benefit of the cestui que trust, it is the duty of the trustee to administer the trust respecting the property of the cestui que trust strictly within the terms of the power given and for the benefit of the trust. And .while a coúrt of equity will treat a trustee with indulgence, and where he has acted in absolute good faith in all respects, will sustain him if it can be done without violating equitable rules, yet he will not be upheld in a course palpably arbitrary and unreasonable, for it is not sufficient that he be honest, and from a strictly moral standpoint act in good faith; he is bound in law to exercise diligence and to act reasonably.</p> <p>2. Where, with respect to the disposition of the property of ■ the trust, a trustee’s judgment is finally to control, and yet there be .devolved upon him by the nature of the trust the duly to take reasonable means to enable him to arrive at a correct and reasonable judgment, and such duty be entirely neglected ' by the trustee, the mere presence of good intention and absence of bad motive will not be sufficient to relieve him of a charge of breach of trust.</p> <p>3. A court of equity will not decree specific enforcement of a contract by a trustee bargaining away the property rights of his cestui que trust, by a contract executory in its character and . without valuable consideration, and in behalf of a party who was fully aware of the character of the trust and who in no way changed position or conduct in consideration of the acts or promises of the trustee.</p>