The Sun.
London, England, 1865-03-24 00:00:00

THE EDMUNDS' SCANDAG.

The following is the award made by Lord Cran-
worth on the arbitration submitted to his lordship
last December with regard to the transactions be-
tween Mr. Edmunds and Mr. Wm. Brougham :

" Whereas by an agreement in writing under the
hands of William Brougham and Leonard Edmunds,
the said William Brougham having signed the same
on behalf of himself and Lord Brougham, it was
agreed to refer all questions and disputes between
them, the said Lord Brougham, William Brougham,
and Leonard Edmunds, to the award of me, Robert
Monsey Lord Cranworth, and the parties to the
said reference having agreed that the subjects so
submitted to me were embraced under three heads :
—lst. Whether Lord Brougham is liable to the pay-
ment of all or any part of a sum of £5,000, secured
by a mortgage dated in 1811, or the interest thereof.
2d. Whether William Brougham is liable to Leo-
nard Edmunds in respect of a bond for £1,200,
dated in 1845 ; and 3d. Whether W. Brougham is
liable to repay to Leonard Edmunds all or any part
of a sum of £9,300, alleged by Leonard Edmunds
to have been paid or accounted for by him to W.
Brougham as a trustee for the family of John
Brougham, deceased, but which William Brougham
has not applied on any such trust. Now, having
taken on myself the burthen of the said reference,
I decide as follows :

" Ist. As to the said mortgage, I decide that Lord
Brougham is liable to repay the principal sum of
£5,000 thereby secured, with interest thereon, from
the 24th of June, 1864, up to which time all parties
admit that interest has been paid. I come to this
conclusion on the facts as stated by Lord Brougham
and Wm. Brougham. I place entipe confidence
in what Lord Brougham states, namely, that he
did not receive any part of the £5,000, and had alto-
gether forgotten that any such mortgage existed; but
his brother James Brougham joined in the mortgage,
and Lord Brougham and James Brougham jointly
and severally covenanted with the mortgagee for
payment of principal and interest. James
Brougham died at the end of 1833 ; but shortly
before his death he came to certain arrangements
with Leonard Edmunds, under which it was
stipulated that Leonard Edmunds should thence-
forth pay the interest on the mortgage (£2OO per
annum) which James Brougham was by virtue
of his covenant bound to pay. Leonard Edmunds
has accordingly regularly paid this interest, which
I consider to be the same thing as if James
Brougham, one of the parties liable, had himself
paid it. The mortgage, therefore, is clearly a sub-
sisting mortgage valid against Lord Brougham, who,
though appearing on the face of the deed to be the
principal debtor, was, I have no doubt, merely a
surety for his brother James.

4,2 d. With respect to the £1,200 bond there is
no dispute. William Brougham is clearly liable to
the payment of the £1,200 thereby secured, with
interest from the 24th June, 1864, up to which day
it is admitted that all interest has been paid.
" 3d. As to the £9,300 claimed by Leonard Ed-
munds, I decide that he has no right to recover any
part of it. He says it is the amount of payments
of £3OO per annum which, for the last 31 years, he
has paid to or on account of Wm. Brougham as a
trustee for the family of John Brougham, but which
sums Wm. Brougham has appropriated to his own
use. William Brougham admits the receipt of £lOO
per annum, but no more ; but he denies that he re-
ceived it as a trustee for the family of John or on
any other trust, though it was well understood be-
tween him and Leonard Edmunds that it should be
made available towards the liquidation, of the debts
of James ; and, accordingly, it is established that in
the year 1840 Wm. Brougham effected a policy on
the life of Leonard Edmunds for £3,000, and he has
ever since applied the £lOO per annum (within a
small fraction) to keep alive the policy, and so form
a fund for payment, or towards payment, of the
£5,000 at Leonard Edmunds's death, when his pay-
ment of the interest would cease. Ido not think it
necessary to
pursue any investigation as to this part
of the matters referred to me, for even, taking the
facts to be as represented by Leonard Edmunds,
they do not give him a right to recover back from
William Brougham money which he holds as trustee
for the family of John. If the facts be as Leonard
Edmunds represents them to be, the family of John
may have a claim on William Brougham which this
award cannot reach. Dated this 26th day of
January, 1865. 4 CRANWORTII."