El Nuevo mexicano., 1917-08-30
SYLLABUS OF IMPORTANT OPINIONS
HANDED DOWN BY SUPREME COURT


OF unusual interest to attorneys ant
others are the opinions by Justice Rob
erts of the supreme court In the Cart
wright case, q synopsis of which wat
given Saturday and by Justice Parkel
In the Kidd murder case, which was
also noted last week. District Judge
Leahy sat for Chief Justice Hanna IL
the former case. The syllabus Of TIN
two cases follows in full:
The Cartwright Case alA
a3A Syllabus
/. There is NJ particular formality
required or necessary In the creation
of a trust. All that Is required ia writ
ten evidence supplying every essen
tial detail of the trust. Any agree
ment or contract in writing, made by
o person having the power of dispo.
sal over property, whereby such per
son agrees or directs that a particu.
lar parcel of property ola certain fund
shall be held or dealt with in a par.
ticular manner for the benefit Of an.
other, In a court of equity raises d
trust In favor of such person claiming
under him voluntarily or with notice.
2. Where a corporation in failing
circumstances, by an agreement In
writing, executed under seal, transfer
to another corporation as trustee all
Its property and assets, and said agree
ment provides that such corporation
trustee shall convert such assets into
cash within a period Of three years
and distribute same to its creditors,
and any balance remaining to its stock
holders, such an agreement Greats a
trust in favor of the creditors ac-
cepting the same, and it is immaterial
that such an agreement contained q
provision giving to the creator OF the
trust, the trustee and q third party
the power to make other and different
arrangements relative to a certain
specified piece of real estate, in case
1t became necessary, where thereafter
the three parties named by a subse-
Quent arrangement caused the legal
title to said real estate to be con-
veyed to such trustee and all parties
thereafter treated such real estate as
constituting a portion of the trust es-
tate, and a director of the trustee cor
poration under such circumstances
will not be heard to say that the cor
poration, Of which he was a director,
was not acting, as a trustee for the
creditors of the creator of the trust,
where his object in so doing is to.
enable him to reap a benefit from his
dealings with the trust property with
his fellow directors.
8. Where a corporation trustee
acts upon the assumption that certain
real estate is a part of the trust es-
tate, a director of such corporation
will not be heard to say that it was
not in order that he may retain a pro-
fit in dealing with such property.
A.. The acceptance by a beneficiary
of the trust In his favor is presumed
until he rejects it. The fact that an
assignment for the benefit of credit
ors may have been invalid and subject
to attack by any of the creditors does
not aid a director of the trustee cor
poration where such corporation has
accepted the ~trusteeship and proceeds
to administer the trust, as such direc-l
tor is in no position to question the
validity Of the trust agreement or deed
of assignment, or to question the right
of the beneficiary creditors to call
him to account as a director, where he
has violated his duty in dealing with
the trust property.
5. A trust, in the modern and con-
fined sense of the word. is a confidence
reposed In a person with respect to
property Of which he has possession
over which he can exercise a power
to the extent that he may hold the
property or exercise the powerfor the
benefit of some other person or object.
8. While a director Of a corpora
tion is not disqualified from dealing !
with his fellow directors in regard to
corporate property nothing but the ut
most good faith upon his part, supple
mented by full and fair disclosure In
advance to his fellow directors, will
satisfy the requirements Of the law
and enable him to retain a profit made
at the expense of the corporation.
z. Where a corporation trustee is
invested by the trust agreement with
the power to sell real estate belong
Ing to the trust estate, a director Of
such corporation cannot take an
option of such real estate from his
directors and sell the same at
advance over his option contract
and retain to his own use the profit SO
made.
8. Where a trustee is guilty of any
breach of trust, or of any vexatious or
improper conduct, the court can with
hold all compensation, or 1t can allow
such compensation as will pay for the
value of its service, so far as they
have been beneficial to the estate.
Where the trustee joins with n Of
It's directors in attempting to secure
,or such director the profits made by
such director upon an option contract
obtained from the trustee upon trust
property, the trial court properly de-
MES such trustee a commission upon
such moneys as to which it denied it's
relation.
8. Where a debtor in falling cir
,umstances transfers all his property
% a trustee and directs the trustee
o sell the same and apply the pro-
reeds towards the liquidation OF its
Indebtedness, specifying in the trust
agreement certain claims which are to
30 given preference, 1. e.: labor
and that all the other credi-
.ors shall be paid pro rata, it is not
IN m nnknx.H f-. l. l..--4 = ~ -