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2 Utah 35

Matthews v. Hamilton

Utah Supreme Court

Decided June 15, 1880

Utah Supreme Court · decided 1880-06-15

The facts are stated in the opinion of the court, and also in the case of Kahn v. Hamilton, post. The powers of the trustees are limited by the terms in which they are conferred, and must be strictly pursued, (Martin v. Farnsworth, 49 N. Y. -555,) and must be construed with reference to the subject matter of the trust. Taylor y. Ha/r-low, 11 Barb. 232; 2 Story’s Eq. Jur. § 1,276.

Decided 1880-06-15

EmeRSok, Justice,

¶1delivered tbe opinion of tbe court:

¶2Tbe plaintiff claims for three distinct demands, one of which accrued to him; tbe others accrued to other persons, and were assigned to him.

¶3Tbe smaller one, assigned to him by Bennett & Whitney, was for services rendered by them as attorneys, partly in defending suits against tbe Mammoth Copperopolis of Utah (limited), and partly in advice to Cook, who was an agent of tbe company, and also of the defendants in respect to two distinct trusts, referred to in tbe opinion given in Kahn et al. v. Hamilton et al.

¶4Mr. Bennett, as a witness, says: Bennett & Whitney “ rendered no service to enforce tbe first debenture mortgage,” and Cook testified that he employed them, and they rendered legal advice relative to bis power of liquidating debts. He paid *38them on account of previous services for the company $1,050, and $260 to apply on their account for services rendered at his request. He paid these amounts out of the second debenture funds mentioned in the opinion above referred to.

¶5The account which accrued to the plaintiff was made solely on Cook’s retainer for work at the company’s mine, Cook took possession of the mine under a title derived through a Marshal’s deed, and he procured it with the second debenture funds, and for the purposes of that trust.

¶6The other demand, which accrued to Smith, was originally a demand against Wells, Fargo & Co. Cook assumed it, on the debtors refusing to pay it, as he testifies, because he had to agree to pay it “ to get possession of the property,” the mine.

¶7The defendants, as trustees for the first debenture holders, are not liable for either of these claims, for they do not appear to have arisen in connection with any business pertaining to that trust.

¶8All these claims have no relation to the defendants, except through Cook, and he was agent for them only in their fiduciary capacities; they are not liable unless there is some ground for charging them as trustees of the second debenture funds. Their trust began and ended with that fund and so did Cook’s agency. He had no authority to create or assume any debts to be paid by his principals, except out of that fund, and since that fund has been wholly expended we can perceive no ground for holding them responsible.

¶9Judgment is reversed, with costs.

BokemaN, A. J., concurs.SCHAEFFER, C. J., dissents.
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