Reynolds' Ex'or v. Pettyjohn

Citations

• 79 Va. 327
• 1884 Va. LEXIS 88

Syllabus

<p>1. Fiduciaries—Liability.—Nothing more should be required of a trustee than that he should act in good faith and with the same prudence and discretion that a prudent man is accustomed to exercise in the management of his own affairs. Davis v. Harman, 21 Gratt. 200.</p> <p>2. Idem—Receiver—Power to Sue.—A receiver appointed by a court to collect money, after giving certain security, cannot sue until he has given such security. Davis v. Snead, 33 Gratt. 705.</p> <p>3. Idem—Idem.—Laches—Case at Bar.—R. was appointed receiver and ordered, after giving security as such, to collect certain bonds on C. & L., July, 1860. He gave the security October, i860. On those bonds he could not have got judgment before March, 1861. The stay law went into effect in April, 1861, and continued until January, 1869. C. &. L. were solvent until their slaves were emancipated. In August, 1868, R. obtained judgment against C. & L. on their bonds, and fifa was issued thereon, but was returned “ not levied, because of general order from military commandant of the district of Virginia.” C. & L. then went into bankruptcy. R. proved the debt in bankruptcy, and it is not apparent but that it may yet be collected from the sale of the lands of C. But in November, 1860, J., one of the persons interested in the fund to be collected by R., gave C. an order on R. for $530 on account of his (J’s) interest in said fund, and R. credited that sum on á bond due him individually from C., instead of crediting it on the bond of C. & L., which R. was to collect as receiver.</p> <p>Held:</p> <p>1. R., the receiver, was not guilty of laches and should not be held liable for the loss of the C. & L. debt, if such loss occurred by reason of his failure to sue before March, 1861.</p> <p>2. But R.’s duty was to apply the $530 order as a credit first on the bond which he was officially bound to collect, in preference to the bond due him individually, and he should be held accountable for that sum and its interest as ha