Supreme Court of the United States
Prevost v. Gratz; Gratz v. Prevost
March 13, 182119 U.S. 481
Summary
The Court held that although the evidence established that the Tenederah conveyance was subject to a trust, the trust was presumed extinguished after approximately forty years, the death of the original parties, and circumstances indicating that the grantor had accepted the land's value. The Court also rejected the claims concerning the M'Ilvaine judgment because the judgment was validly acquired before the Gratz parties assumed any fiduciary role and no fraud or misuse of trust assets was proved. The decree was reversed, and the bill was ordered dismissed in its entirety.
Holding
- Tenederah lands. The evidence was sufficient to establish that the conveyance to Michael Gratz, though absolute in form, was subject to a trust or resulting trust for Croghan's benefit. However, after the lapse of approximately forty years, the death of all original parties, and the circumstances indicating that Croghan had accepted the land's value, the trust was presumed extinguished and no equitable relief was available.
- M'Ilvaine judgment. Croghan's estate was not entitled to relief concerning the M'Ilvaine judgment or the lands acquired through its enforcement. The judgment had been acquired during Croghan's lifetime, before the relevant trust deeds, and the evidence did not show that it was purchased with trust funds, that the underlying debt had been paid, or that the executions and sales were fraudulent.
Cited by
- Jonathan E. White versus Judah Loring
- Alexander Black versus Alexander Black Junior
- Solomon K. Eastman & another v. David Foster & others
- Hannah Townsend v. the Administrator of the Estate of John Downer
- A. S. Johnston v. Elbert A. Smith and another
- United States of America, Appellant v. Jeanice Stratton, Appellee
- George R. Cazallisi., In Equity v. Frank H. Ingraham, Admr.i.
- Lopez v. Gautier