a thesis - Institute of Advanced Legal Studies

CONSTRUCTIVE TRUSTS. Ill
(1857), 8 De Gr. M. & Q-. 787, where the action was successfully
defended on the ground of laches.
10. A., acting on behalf of himself and his partners B. and 0.,
negotiates with X. for a lease to be granted to the firm. X.,
without the knowledge of B. and 0., pays A. a sum of 12,000/. in
consideration of his procuring the firm to take the lease. A. is a
trustee of this sum for the firm. Faiccett v. Whitehouse (1829), 1
Euss. & My. 132. Hichens v. Congreve (1828), ibid. 150, is to the
same effect. See also Bentley v. Craven (1853), 18 Beav. 75.
11. A., being director of a railway company, receives 5,000/.
to pay for the purchase of a concession of which he is the concealed
owner. A. is a trustee of the 5,000/. for the company on having
the concession restored to him. Great Luxembourg Ry. Co. v. Magnay
(1858), 25 Beav. 586.
12. The facts are as in Taster v. Marriott, supra (5), except that
A. assigns to B., who obtains the renewal. B. is a trustee for the
remaindermen. In re Lord Hanelagh's Will (1884), 26 Ch. D. 590.
The trustee is, however, entitled, on accounting for the advantage
gained by him, to repayment of any costs and expenses
properly incurred by him in obtaining such advantage, together
with interest thereon and the value of any permanent improvements
made to it by him, and to an indemnity against any
liabilities properly contracted in respect thereof.
" He that seeks equity must do equity." " If," as Kekewich, J.,
has put it (1897, 2 Ch. at p. 507), " you insist upon a man performing
his duties as trustee and making over property as trustee,
you must treat him as a trustee throughout, and you cannot
expect him to perform his duties without at the same time exonerating
him from expenditure incurred which benefits the property
of which he is trustee." (See Holt v. Holt (1671), 1 Ch. Ca. 190 ;
Keech v. Sandford (1726), Sel. Ca. Ch. 61; Rawe v. Chichester
(1773), Amb. 715; Eyre v. Dolphin (1813), 2 Ball & B. 290; Ex
parte Grace (1799), 1 Bos. & Pull. 376; Giddings v. CHddings
(1826), 3 Euss. 241; In re Lord Ranelagh's Will (1884), 26 Ch. D.
590; Roivley v. Ginnever, (1897) 2 Ch. 503.)
The trustee is also entitled to a lien or charge for such expenses,
&c. on the trust property. (Roicley v. Ginnever, supra.)