Renfrow v. Pearce

Citations

• 68 Ill. 125

Syllabus

<p>1. Trust—equity will follow proceeds of trust property. Wliei'e, after the dissolution of a partnership, the goods of the late firm are entrusted to one of the partners to be by him converted into money by sale at retail, and with the proceeds pay the partnership debts, such partner becomes a trustee, and the exchanging of the goods for land and taking the title in his wife’s name, is a fraudulent perversion of the trust property, and equity will follow the land thus acquired and subject it to the debts of the firm as against any person acquiring the title with notice of the facts, or in fraud of the rights of the other partner.</p> <p>2. Same—on sale, the record should show payment before confirmation. Where partnership property was sold under a decree of court for the payment of the joint debts, and one of the partners became the purchaser, it was held erroneous to confirm the master’s report of sale when it failed to show that the purchaser paid to the master the amount of his bid, or the payment of debts out of the sum bid, as the other partner was jointly interested'in the payment of the firm debts, and had the right to have the record show the payment of such debts, what debts, and to what extent.</p>