Rich v. Black & Baird

Citations

• 173 Pa. 92
• 33 A. 880
• 1896 Pa. LEXIS 664

Syllabus

<p>[Marked to be reported.]</p> <p>Principal and agent — Trust and trustees — Purchase by trustee at his own sale — Public policy.</p> <p>On grounds of public policy, purchases made on their own account by agents or trustees for sale, will be set aside at the instance of the cestui que trust, even where the latter has sustained no actual injury.</p> <p>Where a cestui que trust seeks to set aside a sale made by a trustee to himself individually, the cestui que trust is not bound to prove nor is the court bound to judge, that the trustee has made a bargain advantageous to himself.</p> <p>In such a case the cestui que trust must move to set aside the sale within a reasonable time; but what shall amount to a reasonable time will depend on circumstances, and lies in the discretion of the court. In the absence of special circumstances which may lengthen or shorten the time the analogy of the law is followed.</p> <p>Plaintiff placed real estate in the hands of defendants to sell, naming a minimum price. The defendants made no efforts to obtain competitive bids, and although naming certain persons to plaintiff as purchasers, really bought in the property themselves. Held, that plaintiff was entitled to have defendants account for profits made by them on a resale of a portion of the lands, and for a reconveyance of the unsold portions of the lands.</p>