The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1872-03-28

At the request of many members Of tn,
bar of tho State we have prepared the fol
lowing abstract Of the decision of the Su
prcme Court OF Appeals of Virginia In Da
| Wis, commissioner. rS. Hal1nan and u,S.," set
Ting the liability Of iiiuciaries for invest
ments in Confederate money; and have also
added all the decisions referred to in "Myel<
| Us. Xctcllc":
court collects aud tshhrses Confederate. MONEY ant
retains saanrc N his hands until the rights of thu
parties yhn claim are gatcd, il not responsible
for tho TOSS of the fund by the result of the late civil
wax.
:. Where no n'ata Gdes is imputed, 6tuciarics will
D" only held accountable for that diligence and pru
dencc which ordinary incn accustomed TO cSer
'ssc III the management of their own affairs.
:. Mlea tiduciarics deposit fupds In bank In their
own ranCa, not designating * the trust fund ant
Is lost, thcy will be held responsible ONLY whert
such loss was occssoned IN csnseeue,.ce Of such de
rmSR. and not where tl,c fund would have persisted
! no matter how dtpusttd.
"DAris, COMMISSIONER, VS.. HARMAS AND AIS
In 1859 Mary IIarman filed her bill
in tie Circuit Court Of Smyth county to sell
the real estate of Jczrecl Harnlan, to satisfy
Il decree for 2,S60, which she had obtained
against him in Arc!b 1903. There were
prior liens ny Ee:S oh the land by deeds oil
trust, :;it first to j. w. Davis, trustee OF
g. Suayelv, and the other to secure debt
to Y. :. Morgan for $1,000. The cause hav.
ing been maturcd. Il decree was entered on
the 9Th Of April, 1850, directingJ. w. Davis,
special commissioner, to sell the land. on the
| terms of cash, for sufficient to dciray cX.
penses. and the balance payable ut twelve
eighteen, and twrntyAiour months. The
4 ~
land to v. S. Morgan for 1000. The re-
port was excepted to by defendant (lIarman
because of the inadcquacy in the price, and
ut the September term. 1860, the cause
was continued. In April, 1861. Commits.
s,oller Davis made another report stating the
facts of the sale, and at that time tue court
| confirmed the sale. and the commissioner was
directed to collect the purchase money as il
became due and to report his proceedings
from time to time. At the April term. 1863
(Which was the first court held since April,
1861 Commissioner Davis made his report
stating that Morgan had paid the whole pur.
chase money, and that lie (the commissioner,
had paid of the whole of Slmvcly's lien oil
81, 1863. $4,000 of Morg:n's lien, some eX.
pcnSes. taxes. SC, and had 4 balance OF
S3.Sl1.04 III his hands. in the Abingdon
Bank. subject to the order of the court. AT
| this time there were three persons claim
ing this fund besides the plaihtif:-viz.
Morgan for the baiance of his debt
(sl,2l6.t6). j. b. Straw. Il judgment ere.
ditor. for 81 i,2OO.27 (Which was conteSted)
and Thomas VI. Tate. by trust decd, fol
Sl7439. These claims did not amount
TO the sum in thr commissioners hands by
SGD SC thai at this term the court directed
! the commissioner 10 pay the plaintiff $500 out
of this fund, and by another decree at the
same term he was directed to pay Morgan
the balance due on his lien OF 81, ,24G.Ge. All
| the time of these DEGREES Tate was not q
party to the cause, but came in Ivy petition
and was made il defendant ut the September
term following, and fled his answer setting
up his claim.
At the April torn, 1864, the court ap
pointed Il commissioner to convey the lanC
| TO Morgan. the purchaser. This was the las
term Of the court held until March, 1866. III
March, 1866, Commissioner Davis made
another report showing that after paying The
plaintiff and Morgan, as directed by the las'
decree. there was left in his hands 81, ,20S.SS
in Confederate money. He says he wa:
anxious to pay over this sum ut the date
of this decree, in April, 1868; bu
owing TO the contest among tht
|
due. lie paid the sums mentioned in Contcd
crate money. and had the balance on hand il
the Abingdon Bank, subject to the order o
the court, and 50 reliored; aud he still la
the amount on hand in Confederate none.
He invested the fund in four per cent. Con
fedclltc certificates, which he now holds sub
ject 10 the order of the court This repor
was excepted to by Tate on the ground tha
Davis was not authorized by the court to re
crive Confederate money from the purchase
of the land. or to invest it. At this tern
the cause was referred to Il commissioner t.
report on the amount and priorities of tn
liens. and the consideration of Tate's eXccp
\ ton WAS postponed. III July, 1866, the com
missioner reported that Tate Was entitled t.
Sj05.2 20 first, and that the plaintiffs claim
was the next to be paid. On the 22d of No
yember, 1870. the Circuit Court sustained
Iate's exception to Commissioner Davis
report, and decreed that he should pa.
81 ,20S.4S, with interest from the date of tn
decree, not charging him with interest prio
to this time, "as he was ordered to hold tn
!, fund to await the decision of the court,
Tate's debt to be first paid, and the baianc
, to Mrs. uarman, the plaintiff; and from thi
decree Davis obtained his appeal.
Judge Christian delivered the opinion Q
: the court.
After rcciting the facts as above set forth
and the further facts that Commissioner Da
Wis reportcd that he collected the whole O
this purchase money in Confederate money
it being notorious fact that this was tn
oniv currency in circulation at the time o
. the collections, and paid out all he had pait
out in Confederate money, none of the pa1
ties ohiecting to receiving ii, and that he IL
vested tie balance in four per cent. certit
Gates under the laws as they then existed re
uuiring such investment, the learned JudS
says:
1--WE are of opinion that according to tn
wcllscttled principles of courts Of equity re
I spccting the liability of trustees and othc
tiduciarieS, where no ,nalG .fdeS- can be ill
puted, this decree was maniicstly erroneous
While the acts and omissions for which
trustee will be held responsible for violation
of the trust rcposed have not been caSSltle
or defined by the courts with such accurac
and precision as 10 furnish rule without eS
ception to be applied to the great variety
cases which grow out of this fruitful sourc
of equity jurisprudence, yet it is easy To eX
tract from the cases and the opinions G
learned jurists and text writers certain gene
raj rules which seem now to be UNIVERSAL
recognized and established. One of theS
general rules is this: that nothing NOR
should be required of a trustee than that b
should act in good faith, and with the sam
prudence and discretion that a prudent ma
is accustomed to exercise in the management
of his own affairs. Elliott .. Carter and ais
8 Grat., 54I, 559, $50; Taylor and ais. z
Benham, How. Y. $. r., 23S: In knigh
.. Earl of Plymouth, Atk. r., 4So, Lor
Hardwicke said If there is no mRa tide:
nothing wrongful, in the conduct OF the tru: