McColgan v. McLaughlin

Miller, J., delivered the opinion of the Court. In February, 1869, Thomas Clarke and wife conveyed all their property to Patrick McGolgan in trust, to sell the same at public or private sale, and to apply the proceeds, first, to pay the expenses of the trust, including a reasonable commission to the trustee, second, to pay Mrs. Clarke such sum in lieu of dower as a Court of equity would allow her if the property was sold under its decree, third, then to pay all the debts of Clarke in full, if tbe proceeds are sufficient, and pro rata if insufficient, and fourth, to pay over the residue, if any, to Clarke. ⁵⁰⁰ It appears from the record that the trustee from time-to time sold portions of the property so conveyed to him; but never reported such sales to any Court of equity. The record also shows that in April, 1877, Eleanor McLaughlin, executrix of Patrick McLaughlin, recovered a judgment against Clarke in the Superior Court of Baltimore City, and that the suit in which this recovery was had, was commenced by Patrick McLaughlin in his lifetime, upon a cause of action which antedated the deed of'trust. Having recovered this judgment the executrix in May, 1877, filed the bill in the present case, charging that a large amount of property had passed into the hands of the trustee under the deed of trust, and that he had refused to pay her judgment claim, or to render any account of the trust estate in his possession.

The hill then prays that the trustee may disclose what part of the trust property is now in his hands, how much has been disposed of, where the same is situated, and that an account thereof may he taken under the Court’s direction. • In his answer the trustee admits that he had made several sales, hut says he has not received the money therefor, except for one parcel, and has not, therefore, passed any account in the premises. He then denies the indebtedness of Clarke to McLaughlin, and also the regularity and validity of the judgment obtained by the complainant. Afterwards, in obedience to an order to that effect, the trustee filed a report stating what property was conveyed by the deed, and the amount he had received for sales, thereof. The case was then referred to the auditor, and after other proceedings which need not he stated in detail,, the auditor reported an account in which the trustee was charged with the sum of $7945.26, being the aggregate amount of sales and interest, and, after a small allowance for other purposes, the sum of $2518.35, is distributed to-the judgment claim of the complainant, leaving a balance ⁵⁰¹ of §5297.87 in the hands of the trustee to await disposition under the further order