The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1892-07-28

the contrary, we find that Chun
Hoy, instead of relying on any such
expectation tried to pacify those
representing the plaintiff, who de-
manded payment then and there.
by promising that Hopper would re-
pay the money in semi-annual or
annual installments of $4,000 each.
The note was delivered with the
other papers belonging to Along
held by Chun Hoy, and in receipt
ing for it the precaution was taken
to describe it as ga document pur-
porting to be a promissory note"
etc., thus giving definite notice to
the other side of the refusal OF the
plaintiffs attorney to receive it as
bona f1de note for value. There is
no evidence that anyone was de-
ceived by this transaction or sup
posed that the note was received SIS
payment for the money. Moreover,
suit was promptly brought for the
| payment of the debt, further show.
| Ing that there was no intention on
the part of the PLAINTIFFS represent
alive to accept the note as pay
ment.
/ find therefore, that there was
no ratification by the plaintiff of
Chun Hoy's conduct and the latter
is liable for the balance of the
money.
AS to the question of the liability
of Mr.. Hopper, the law applicable
to this point is that "those who re-
ceive trust property from a trustee
in breach of his trust, become them
selves trustees, if they have notice
of the trust;" [Trull VS.. Trull and
Tower, - Allen 407; Blake vs.
Traders National Bank, 145 Mass.
IA; Bohemian VS.. Hoskins, 2 d. NJ
& G.. 905.1 and 'tNotice of the ex-
istence of an instrument of trust aft
fects the party purchasing trust
property with full notice of its con-
tents, whether he chooses to exam
inc it or not" rLoring VS.. Brodie,
1874 Mass, 453; Smith VS.. Burgess,
1873 Mass. Sill Bispham in his
Principles of Equity 1874, states this
rule of law in these words: 'any-
thing which puts person upon en-
curry Is said to amount to notice.
He is bound if circumstances point
out path of investigation to follow
it. If he makes no enquiries, the
presumption is that he has improp-
erly turned away from a knowledge
of the true state Of the case, and he
is therefore presumed, as a conciu-
sion of fact, to know what he might
have informed himself Of"
Under these principles of law, the
defendant Hopper, knowing that
Chun Hoy was acting under let
ter of attorney from Along was
bound by it as fully as if he had
read it, as he should have done.
The payment of this money to him
surprised him; it was suspicious; it
was out of. the common course of
business; it was an investment that
he would not himself have made
under any consideration; this was
an additional reason why he should
have demanded of Chun Hoy his
authority for making so extraordi-
nary use of the trust funds COM
mitted to his care. The assurance
of the trustee that he had made ar
rangements with Along for this
money is no defense to Hopper,
especially as he knew that the
trustees authority was in writing.
If he had examined the letter OF
attorney be would have learned not
only that it contained no authority
for loaning money, but also that it
contained no suggestion of any ar
rangements whereby Chun Hoy
might use the trust funds for his
private interest. A little enquiry
would have shown him that Chun
Hoy was acting absolutely without
authority in an action which was
indefensible without special au-
thority.
l find therefore that the defend.
ant [Hopper) is liable as trustee
Jointly with Chun Hoy to the use of
the plaintiff for $29, 6OO.7 subject
|
to the payments endorsed on the
said note, which are admitted by
the plaintiff, with interest from
Move mber 1st, $780,. and the plain
tiff may have decree therefor.
The further prayers that the de-
PENDANT Hopper be declared trus-
tee of the said mortgages for the
benefit of the plaintiff, and that he
be decreed to pay the said balance
and interest out of the first proceeds
of said rice crops which shall be re-
ceived by him under the said
mortgages, appearing te be some
what in the nature of alternative
relief, are not granted.
March 23d, 1892.
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