Hubbard v. Goodwin
Hubbard v. Goodwin
Opinion of the Court
The claim of the appellee being founded on the acts of assembly of 1825-6 and 1826-7, granting and releasing to him all the commonwealth’s right, title and interest, in the estate called Celeys, we are to inquire what were rights of the commonwealth, which those acts granted to the appellee and authorized him to assert by suit at law. or in equity? From the facts of the case, it is very clear, there could be no escheat, technically speaking; for the legal estate was vested in a citizen. But it is equally clear that this citizen was a mere trustee, holding the estate for the benefit of Philips the alien. It was a good deal discussed at the bar, whether this trust resulted, by operation of law, solely from the facts that the purchase money was paid by one, and the deed made to another, or was an express trust, raised by the agreement of the parties? Upon my mind, the evidence has left no doubt, that it was an express trust. The statute of frauds has no application to the case, even supposing the proof of the trust rests on parol evidence; as I think is clearly shewn by chancellor Kent, upon a full and very able review of the cases, in Boyd v. M'Lean, 1 Johns. Ch. Rep. 586. The declarations of Brodie, made at various times and on some solemn occasions, are full to prove, that he purchased and held this land for his friend Philips, and never.paid a cent or laid the slightest claim to it,.and that.he. said he would make the right, whenever any of the family could receive it. But I do not think it necessary to resort to parol evidence, to shew that there was an express agreement between the parties as to the trust. It is in clear proof, that there was a writing executed by Brodie to Philips, to secure Celeys. We are not, to be sure, made acquainted with the particular terms of this writing; nor. ought we (I apprehend) to be too strict in requiring this, when we reflect, how this paper has pro-v bably disappeared. Brodie was the representative of Philips, and the husband of his daughter, and in these characters, had a right to all his papers and documents. But, though the paper be lost,, the acts of the parties throw a
Now, we know that, in equity, the trust is the land ; the trustee, the mere instrument of conveyance, in no event to take a benefit. In Burgess v. Wheate, 1 W. Black. 161. lord Mansfield uses this strong language: “Twenty years ago, I imbibed this principle, that the trust is the estate at law in this court, and governed by the same rules in general, as all real property is, by imitation. Every thing 1 have heard, read or thought of since, has confirmed that principle in my mind.” It is, and has long been, I believe, the policy of most nations, to exclude from all participation in the soil, those who owe allegiance to a foreign government. It is a principle deeply rooted in the common law of England, which as to this, is our law. By it, an alien cannot hold land: he may take indeed by purchase, but it is only for the benefit of the king, and so soon as there is an office found, it is seized into the king’s hands; or if he die, the king is seized without office, for otherwise the freehold would be in abeyance, as an alien cannot have any inheritable blood; by act of law he can take nothing in land, for the law (which, as lord Hale says, nihil frustra facit) will not give him an inheritance or freehold, for he cannot keep it. The law, therefore, will not give an alien the benefit.of descent, curtesy, dower or guardianship. These positions are too well settled to need a reference to authorities. Would it not seem a strange inconsistency in the law, if principles so vital, so carefully guarded, might be rendered a dead letter by a mere change in the form of conveyances ? And yet this would be very much the case, if by making a citizen the trustee, the beneficial interest of the alien, in the
But I think no rents and profits ought to be given. Such is the settled doctrine in cases of escheat at law; and the reason given there, which I think a very good one, holds equally here.
Cabell and Brooke, J. concurred.
This case brings into question the rights and capacities of aliens.
An alien may take lands by purchase, but he cannot hold them, except for the benefit of the state. But although he can take by purchase, he cannot take by act of law, as by descent or curtesy; in other words, he cannot take by act of the law, but only by his own act; for the law will not cast the freehold upon him, merely that it may be forfeited. There is, moreover, no distinction herein, whether the purchase be by feoffment, bargain and sale, or other deed, or by devise. In all those cases, as the act of the party, and not the mere act of the law, casts the freehold on the alien, he can take; though he can only hold the estate he ac
But though there seems to be no ground for difference of opinion, where the alien takes by purchase the legal title to •lands, yet there does not appear to be the same unity of sentiment, in relation to an equitable interest in lands acquired ¡by an alien.
That there are cases, in which the equitable interests of an alien in real property, are vested in the state, it will not be difficult to shew from reason and authority. But that wherever, in the case of a citizen, an equitable interest would be raised, it will be raised in favour of an alien, in order to forfeit it to the state, may, I think, well be questioned.
1. I am of opinion, that equity will never raise a resulting trust in favour of an alien. A resulting trust is the creature of equity. It is raised for the benefit of the party, who, upon principles of justice and the circumstances of the case, is entitled to the subject. Being raised for his benefit, there can be no motive for raising it, when that will pervert it to his prejudice. That which is designed as a boon, will not be changed into a forfeiture. To raise the trust, and thereby forfeit the estate, would be to commit the offence, and make the alien bear the penalty. Accordingly, although there is no case, perhaps, exactly like this; no case, where the court refused to raise a resulting trust for the alien, because
2. I am of opinion, that, in the case of a mere executory contract for a purchase of land, while it yet remains in fieri, n0 forfeiture accrues. For until the purchase is complete by the execution of a conveyance, there is a locus penitentice, of which the parties may avail themselves. The act is not yet consummate, which the law has forbidden. If it should never be consummated, there would be no offence against this policy of the law. If the parties, by mutual consent, should rescind their contract, there could be no doubt of their right to do so, and then no forfeiture could ever accrue. If it were otherwise, then upon a contract to sell to an alien, even before a cent of the purchase money was paid, the land of the citizen would be forfeited, while no penalty would fall upon the alien.' But,
3. I am very clearly of opinion, that where for the purpose of evading the law, which prohibits an alien to hold lands, he purchases real estate in the name of a trustee, upon an express or secret trust to be permitted to take and receive the rents and profits, this is such a trust as in reason and upon the well received principles of equity, as well as upon authority, will pass to the state and be enforced at its instance and in its favour.
In reason, indeed, there can be no doubt. The inhibition of the law would be vain and nugatory, if it could be evaded by such a trust. The policy of that rule which denies to an alien the capacity to hold lands for'his own benefit, rests upon the ground, that it is unwise to permit the soil of the country to be in the hands of the subjects of a foreign power, and its revenues to be enjoyed by them; since the state must be impoverished by transporting the revenues of the land into foreign countries, and weakened by putting a part of its territory under subjection to a foreign prince. Now, in a trust of this description, every evil that can flow from the conveyance of the legal title, equally exists; and hence we shall find, that, for centuries past, it has been held
The well received principles of equity concur in sustaining this position. Trusts are considered as the legal ownership, governed by the same rules, and liable to the same charges. The trustee is considered as merely the instrument of conveyance. He is treated as a mere machine used to effect a transfer to the cestui que trust, and is called a conduit, because without deriving any benefit himself, he serves merely to conduct the beneficial interest to another. The cestui que trust, on the other hand, is regarded as the real owner of the estate, and the declaration of the use or trust as the essential part of the instrument. Though courts of law look upon the clause, which binds the feoffee to permit the cestui que use to enjoy the land, as nothing, courts of equity look upon it, as every thing. How, then, is the policy of the law sustained, if the alien may be permitted to become the actual owner, the real beneficiary of the land? if, by this arrangement, he is permitted actually to hold and enjoy it as the ordinary landholder; to receive its rents, to use its resources, to spend them if he resides among us, in the acquisition of an influence which is deprecated by law, or if he resides abroad, to withdraw them to foreign lands, and, so far, to sap the foundations of our strength and diminish the wealth and prosperity of our people, by this worst of all kinds of absenteeism. I cannot think that such practices can be endured ;' for by such means, foreigners by selecting confidential friends as trustees, might ensure the actual enjoyment of the lands for a very long series of years, if not forever, in direct contravention of the policy of the law; (5 Munf. 140.) and that space in the land would be filled up by persons alien to our institutions, and the subjects
Authority, upon this subject, is, I conceive, equally emphatical. I shall not stop to examine minutely, whether opinions, which have received the sanction of every luminary of the law, from the time of Coke and Roll to our own, were or were not expressed extrajudicial!y. To the opinion of the venerable sages of the law of ancient times, we are told that great veneration and respect are to be paid, “ as evidence that cases have formerly happened, in which such and such points were determined, which are now become settled and first principles.” They are among the fountains, from which we draw the common law; and when Coke or Roll or Hale lays down a principle as received, we may safely receive it as an adjudicated principle. If we consider only as dicta, and disregard accordingly, doctrines for which an express adjudication cannot be produced, the most unquestioned principles would be most in danger; for these are most apt to have their sources hidden, in the recesses of a remote antiquity. Confiding then, as I do, in the weight of the authorities, there can be no question, that they concur in establishing that a trust for an alien enures to the crown. Besides the short annunciation of this doctrine in the successive abridgements and elementary writers, to which reference has been made in the argument, I shall content myself with the mention particularly of the well reflected declaration of this opinion on the part of lord Hale as chief baron of the exchequer. In the case of The Duke of York v. Sir John Marsham, Hardr. 432. 436. he cites the case of The King v. Holland, in which he had been counsel. There, an alien had purchased a copyhold, which was conveyed to another in trust for him : and in assigning the reasons upon which, as he says, the right of the crown was declared not to be forfeited, there is no intimation of an idea, that it arose from the interest in the alien being merely equitable. On the contrary, the reasons assigned go as well
Here then, we have an explict opinion of lord Hale upon this point, not resting solely upon that in Holland’s case, but sustained by reasons suggested by his own accurate mind. We also have an explicit statement of the fact that such was the decision in Holland’s case. This statement was doubtless correct, for Hale was of counsel in the case, and his account of the judgement is far more satisfactory than the report in Stiles, in which there appears to me to be some omission, as the resolution of the court no where clearly appears. These decisions, more than 150 years ago, transmitted from generation to generation by the learned, as settled principles of the common law, cannot now with propriety be considered as mere dicta, which should have no influence with the court. As such this court did not consider them in The commonwealth v. Martin’s ex’ors; for there, the only debateable question was, whether the aliens were to be considered as having a trust in the lands; for it seems to have been agreed, on all hands, that, if they had, the right of the commonwealth was not debateable.
After the preceding view of the state of the law which bears upon this case, I proceed to remark, very succinctly, upon the facts as they appear to me. J am clearly of opinion, that the doctrine of resulting trusts does not apply to the case. There is no room for a resulting trust where there is an express trust; and here, I think, there was an express trust, in writing, to permit the alien to take and enjoy the rents and profits to him and his heirs. That the land was purchased with Philips’s money is admitted : that Brodie always acknowledged that the property was not his but Philips’s is certain. From these circumstances, I should infer that, ah ovo, there was an understanding between Bro-die and Philips, that tho former was to purchase the land
But it was not a mere verbal trust. It was a trust in writing. That there was a writing executed by the parties, is Perfec% clear; and this fact of itself puts the statute of frauds out of the question ; for, if the trust or bargain whatever it was, was reduced to writing, the statute cannot apply, even though the contract or writing be lost. What was the precise nature of that writing, we are not informed by the witnesses. They state, however, that it was a writing to secure the title of Celeys. It was executed in Philips’s lifetime, and the conduct of the parties amply supplies the defect of the testimony of the witnesses. Was it a bond to make a title ? Philips was an alien, and could not take one j else, the deed might have been made to him in the first instance. Was it a bond to make him a title when he should become a citizen ? If so, we should probably have heard of his taking some steps towards it. Nothing of that sort appears : no attempt at naturalization appears to have been made, though the facilities to admission had been, before 1805, the date of this transaction, very much increased.
These considerations shew, negatively, what was not the character of the written instrument. The acts of the parties shew pretty clearly, what was the character of the arrangement between the parties; and it would seem natural to suppose, that the writing contained the arrangement, whatever it might be. What was the arrangement ? I answer, that Brodie should continue to hold the estate in his own name, but should permit Philips to enter upon the estate, receive the rents and profits, enjoy it as his own, and have it completely under his control. .That this was the arrangement is to be presumed, because this was actually done. Philips did take possession; did enjoy, did receive rents and profits, did have complete control of the estate, and died in possession. After his death Goodwin and wife, both aliens, entered, in right of the wife, and held until his death, in the same manner. After Goodwin’s death, Mrs. Good
Having thus arrived at the conclusion, that the commonwealth bad the right, and that the plaintiff is invested with that right, we next proceed to the defences.
Neither Parker nor Hubbard were purchasers without notice of the trust. If they had so purchased, they would not have been affected by the trust. Yet they must have shewn payment of purchase money, and the receipt of the conveyance to protect them. But, in truth, it is clearly proved they had both sufficient notice, not only before one cent of the money was ever paid, but before Hubbard even became the purchaser.
It was said, this sale was authorized by the guardian and counsel of the appellee. No such authority could have been given by him, for he was an infaut; and it was not, therefore, possessed by the parties who exerted it. in fact, at that time, the commonwealth, and not Goodwin, was the party interested.
As to the profits : The commonwealth (or Goodwin who stands in her stead) can come into equity only upon the principle, equitas sequitur legem. They rely that trusts
I am clearly of opinion, that the court ought not in this cause to undertake to adjust the transactions between Hub-hard and Kennedy. None of the cases in which the court has decreed between defendants, have gone so far. I think it has been done in no case where the plaintiff was not entitled to a decree against both or either. The practice should not be extended further. The contest, if any, between defendants can never come fairly before the court. There is no issue made up, nor any provision for taking
However, as the appellants were both properly made parties in the court of chancery, in reference to the question of title, they must pay the costs of that court. They must have their costs here.
Both decrees reversed, so far as they directed an account of profits, and decreed the payment of the profits by Kennedy and JYimmo’s administratrix, and the first decree, for the land itself, affirmed.
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