Speidel v. Henrici

• Decision Date: 07 March 1887
• Citation: 120 U.S. 377,7 S.Ct. 610,30 L.Ed. 718
• Parties: SPEIDEL and another, Executors, etc., v. HENRICI and another, Trustees, etc. 1
• Court: U.S. Supreme Court

120 U.S. 377

7 S.Ct. 610

30 L.Ed. 718

SPEIDEL and another, Executors, etc., v. HENRICI and another, Trustees, etc.¹

March 7, 1887.

[Statement of Case from pages 377-385 intentionally omitted] Wm. Reinecke, Geo. Hoadly, E. M. Johnson, and Edwd. Colston, for appellants.

George Shiras, Jr., for appellees.

GRAY, J.

This bill was filed against the trustees of the Harmony Society, an unincorporated association of persons living together as a community, by a former member of the society, claiming a share in property in the hands of the trustees. The bill is sought to be maintained on the ground that the trust was not a charity, in the legal sense, and the members of the society were equitable tenants in common of the property held in trust. The learned counsel for the appellants differ in their views of the trust; the one insisting that it was unlawful, because founded in fraud and against public policy, and should therefore be dissolved; and the other contending that it was a lawful and continuing trust. We have not found it necessary to consider which of these is the sound view, because we are of opinion that the plaintiff did not show himself to be entitled to invoke the interposition of a court of equity.

As a general rule, doubtless, length of time is no bar to a trust clearly established, and express trusts are not within the statute of limitations, because the possession of the trustee is presumed to be the possession of his cestui que trust. Prevost v. Gratz, 6 Wheat. 481, 497; Lewis v. Hawkins, 23 Wall. 119, 126; Railroad Co. v. Durant, 95 U. S. 576. But this rule is, in accordance with the reason on which it is founded, and as has been clearly pointed out by Chancellor KENT and Mr. Justice STORY, subject to this qualification: that time begins to run against a trust as soon as it is openly disavowed by the trustee insisting upon an adverse right and interest which is clearly and unequivocally made known to the cestui que trust; as when, for instance, such transactions take place between the trustee and the cestui que trust as would, in case of tenants in common, amount to an ouster of one of them by the other. Kane v. Bloodgood, 7 Johns. Ch. 90, 124; Robinson v. Hook, 4 Mason, 139, 152; Baker v. Whiting, 3 Sum. 475, 486; Oliver v. Piatt, 3 How. 333, 411. This qualification has been often recognized in the opinions of this court, and distinctly affirmed by its latest judgment upon the subject. Willison v. Watsins, 3 Pet. 43, 52; Boone v. Chiles, 10 Pet. 177, 223; Seymour v. Freer, 8 Wall. 202 218; Bacon v. Rives, 106 U. S. 99, 107, 1 Sup. Ct. Rep. 3; Philippi v. Philippe, 115 U. S. 151, 5 Sup. Ct. Rep. 1181. In the case of an implied or constructive trust, unless there has been a fraudulent concealment of the cause of action, lapse of time is as complete a bar in equity as at law. Hovenden v. Annesley, 2 Schoales & L. 607, 634; Beckford v. Wade, 17 Ves. 87. In such a case, Chief Justice MARSHALL repeated and approved the statement of Sir THOMAS PLUMER, M. R., in a most important case in which his decision was affirmed by the house of lords, that, 'both on principle and authority, the laches and non-claim of the rightful owner of an equitable estate, for a period of 20 years, (supposing it the case of one who must within that period have made his claim in a court of law, had it been a legal § tate,) under no disability, and where there has been no fraud, will constitute a bar to equitable relief, by analogy to the statute of limitations, if during all that period, the possession has been under a claim unequivocally adverse, and without anything having been done or said, directly or indirectly, to recognize the title of such rightful owner by the adverse possessor.' Elmendorf v. Taylor, 10 Wheat. 152, 174; Cholmondeley v. Clinton, 2 Jac. & W. 1, 175, and 4 Bligh, 1. Independently of any statute of limitations, courts of equity uniformly decline to assist a person who has slept upon his rights, and shows no excuse for his laches in asserting them. 'A court of equity,' said Lord CAMDEN, 'has always refused its aid to stale demands, where the party slept upon his rights, and acquiesced for a great length of time. Nothing can call forth this court into activity but conscience, good faith, and reasonable diligence; where these are wanting, the court is passive, and does nothing. Laches and neglect are always discountenanced, and therefore, from the beginning of this jurisdiction, there was always a limitation to suits in this court.' Smith v. Clay, 2 Amb. 645, 3 Brown, Ch. 640, note. This doctrine has been repeatedly recognized and acted on here. Piatt v. Vattier, 9 Pet. 405; McKnight v. Taylor, 1 How. 161; Bowman v. Wathen, 1 How. 189; Wagner v. Baird, 7 How. 234; Badger v. Badger, 2 Wall. 87; Hume v. Beale, 17 Wall. 336; Marsh v. Whitmore, 21 Wall. 178; Sullivan v. Portland & K. R. R., 94 U. S. 806; Godden v. Kimmell, 99 U. S. 201. In Hume v. Beale, the court, in dismissing, because of unexplained delay in suing, a bill by cestuis que trust against a trustee under a deed, observed that it was not important to determine whether he was the trustee of a mere dry legal estate, or whether his duties and responsibilities extended further. 17 Wall. 348. See, also, Bright v. Legerton, 29 Beav. 60, and 2 De Gex, F. & J. 606. When the bill shows upon its face that the plaintiff, by reason of lapse of time and of his own laches, is not entitled to relief, the objection may be taken by demurrer. Maxwell v. Kennedy, 8 How. 210; National Bank v. Carpenter, 101 U. S. 567; Lansdale v. Smith, 106 U. S. 391, 1 Sup. Ct. Rep. 350.

The allegations of this bill, so far as they are material to the defense of laches, are in substance as follows The Harmony Society is a voluntary association, formed in 1805 by the plaintiff's parents and other heads of families, who had emigrated from Germany under the leadership of one Rapp, and become subject to his control in both spiritual and temporal affairs. In that year, Rapp, for the purpose of acquiring absolute dominion over their means and mode of living, falsely and fraudulently represented to them that they could not be saved from eternal damnation except by renouncing the plan of a separate home for each family, yielding up all their possessions, as had been done by the early Christians, and laying them at the feet of Rapp as their apostle, to be put into...