Towle v. Ambs

Citations

• 123 Ill. 410
• 14 N.E. 689

Syllabus

<p>1. Trusts and trustees—when a trust arises—in respect of land conveyed to one to perfect title and sell on joint accownt. The owner of land which had been sold under a deed of trust, conveyed the same to another, under a written agreement that the latter should take legal steps to have the trustee’s sale set aside and remove the incumbrance, and then sell the same, and after reimbursing himself for his outlays, account to the former for one-half of the remaining proceeds. The grantee, by a compromise with the purchaser at the trustee’s sale, acquired the title free of incumbrance: Held, that the person so holding the title thereby became the trustee of his grantor, and that it became his duty, as such, to sell the land for its reasonable value, and after deducting his advances, with interest thereon, pay over to the cestwi que trust one-half of the remainder of the proceeds.</p> <p>2. Same—fraud on the part of a trustee—in the sale of trust property at inadequate price—remed/y of cestui que trust. A trustee holding the legal title to real estate to be sold for the use of another and himself, is not justified in selling the same at half its real value, and when the purchaser is not a bona fide one, the sale will be set aside, in equity, at the suit of the cestui que trust. Facts and circumstances stated, from which a sale by a trustee to another, and a sale by the latter, are held fraudulent, and merely colorable, as against the cestui que trust.</p> <p>3. Same—loss of compensation by reason offraudulent conduct. Where a trustee holding land under a contract is to have an interest in the proceeds of the sale of the same for his services in clearing up the title and in dividing and selling the land, violates his trust, and seeks to dispose of the property for his own use, by making a fraudulent and colorable conveyance at a grossly inadequate price, he will lose all claim to any compensation for his services and all interest in the land.</p> <p>4. Same—rescission o