Price v. Reeves

Citations

• 38 Cal. 457

Syllabus

<p>Resulting Trust.—Where the lender of money has assigned to him, as collateral security, a note and mortgage for a much larger sum on a third person, and afterwards agrees with the borrowers that at the foreclosure sale of the mortgaged premises he would purchase the property in the name of the borrowers, and would hold the same for their benefit, subject only to a lien for the money loaned, upon faith in which promise the borrowers take no further interest in the sale, but the lender, in his own name, purchases, and for a sum much less than the amount called for in the note, and makes the payment of the purchase by crediting the amount of his bid, less the costs, on the judgment, a trust is thereby created in favor of the borrowers, and equity will decree them a conveyance, if it is in the power of the lender to make a title unencumbered by any acts of his own.</p> <p>Idem.—A party who purchases trust property, with a knowledge of the trust, occupies the same position with the original trustee.</p> <p>Action for Loss Arising from a Breach op Trust. —In case the execution of a valid conveyance cannot be decreed, the beneficiaries of the trust are entitled to recover its value from those by whose wrongful acts it was lost.</p> <p>Measure op Damages.—In such case the value of the property at the time of the commencement of the suit is the measure of damages.</p> <p>Specific Contract Act.—If the beneficiaries of the trust .seek to recover by action the value of the property in dispute at the time of suit brought, and not to obtain the amount for which it has been sold, the relief sought is not within tho provisions of the Specific Contract Act, and a judgment payable therefor in gold coin will be reversed, unless the plaintiff consents to a modification thereof.</p>