Waldrop v. Leaman

Citations

• 30 S.C. 428
• 9 S.E. 466
• 1889 S.C. LEXIS 120

Syllabus

<p>1. Findings of fact by a referee, confirmed by the Circuit Judge, affirmed on appeal, such findings not being clearly -without any testimony to support them, nor obviously in conflict with the preponderance of the testimony.</p> <p>2. In settlements made by a trustee with his cestuis que trust, the utmost good faith is required on the part of the trustee. There must be no suggestio falsi or suppressio veri and no profit made to him ; the settlement must be fairly made, without concealment, undue influence, or misleading. But if cestuis que trust make a disadvantageous settlement when of full age, sui juris, and capable of understanding their rights, with full opportunity of ascertaining them, and advised as to all the circumstances, or in a situation by reasonable diligence to be so advised, they are bound, and the courts will not relieve them from the consequences of their folly.</p> <p>3. The trustee in this case having made a most advantageous purchase of the interests of the remaindermen, during the life-time of the life tenant, without a full disclosure of the estate in his hands, and with a suppression of the fact that part had been used in the purchase of land to which his wife held titles, the sale was set aside, although one of the cestuis que trust had employed counsel at the time, who learned all that the trustee’s returns disclosed. Mr. Chief Justice Simpson dissenting as to the cestui que trust who had employed counsel.</p> <p>4. But the trustee having afterwards made compromises with some of the debtors to the estate, he should be charged in his accounting only with the amounts received therefrom.</p> <p>5. This sale having been made and the deed put on record, the sureties on the bond of the trustee were held discharged, in action brought after the death of the life tenant, and three years after the sale.</p>