United States Supreme Court Cases & Opinions

U.S. Supreme Court

Rothwell v. Dewees, 67 U.S. 2 Black 613 613 (1862)

Rothwell v. Dewees

67 U.S. (2 Black) 613

Syllabus

1. Where the surviving partner of an insolvent firm assigned certain lots of ground belonging to the firm for the benefit of its creditors, the heirs of the deceased partner cannot be made parties to a suit involving the title to the lots on the ground of any relation of trust or confidence subsisting between them and the assignee.

2. Where a party purchases property under the direction of or on behalf of another, the purchase must be held to be in trust for the benefit of the principal on repayment of the money advanced by the agent.

3. Where two devisees or tenants in common hold under an imperfect title, and one of them buys in the outstanding title, such purchase will enure to their common benefit upon contribution made to repay the purchase money.

4. This rule is based upon a community of interest in a common title, creating such a relation of trust and confidence between

Page 67 U. S. 614

the parties that it would be inequitable to permit one of them to do anything to the prejudice of the other in reference to the property so situated.

5. The reason of this rule applies as forcibly to the husband of a tenant in common as to one of the immediate co-partners.