Atl. 693.

b. Fraud is one of the original grounds upon which courts of equity are always entitled to entertain jurisdiction. Hall v. Alabama Terminal & Improv. Co. 2 L.R.A. (N.S.) 130, 143 Ala. 464, .39 So. 285. c. The jurisdiction of the court of chancery in cases of fraud is as broad and reaching as the forms, the devices, and the ramifications of fraud can extend. Vanderbilt v. Mitchell, 14 L.R.A. (N.S.) 304, 72 N. J. Eq. 910, 67 Atl. 97.

i. It is the peculiar province of a court of equity to detect and countervail the various devices of fraudulent debtors. Hall v. Alabama Terminal & Improv. Co. 2 L.R.A. (N.S.) 130, 143 Ala. 464, 39 So. 285.

j. A court of equity can and will interfere to restore, to a party injured, property which has been obtained from him by L.R.A. 222, 115 Mo. 496, 22 S. W. 497. imposition or deceit. Kinzy v. Kinzy, 20

tract is not of itself sufficient to take a case k. Fraud in the procurement of a conout of the rule that equity will not interfere to procure its cancelation if there is an adequate remedy at law. Johnson v. Swanke, 5 L.R.A. (N.S.) 1048, 128 Wis. 68, 107 (Annotated)

N. W. 481.

1. Equity has jurisdiction to cancel a fraudulent contract alleged to bind the assets of a corporation, and which, until canceled, will tend to injure its business and impair its credit, although there is a remedy at law by defense to an action to enforce it, or by an action to compel restora. tion of the funds secured by means of it. Fred Macey Co. v. Macey, 5 L.R.A. (N.S.) 1036, 143 Mich. 138, 106 N. W. 722.

(Annotated)

m. Equity has jurisdiction of a suit to recover from the estate of an alleged pauper for money and goods furnished her, because of her fraudulent representations as to her poverty, especially where numer ous small items must be taken into account in ascertaining the compensation due. Anderson v. Eggers, 55 L.R.A. 570, 63 N. J. Eq. 264, 49 Atl. 578.

n.

d. What fraud creates equity will destroy. Ewing v. Wilson, 19 L.R.A. 767, 132 Ind. 223, 31 N. E. 64.

e. Equity will interfere to grant relief where necessary to prevent the consummation of a fraud. Adams v. Gillig, 32 L.R.A. (N.S.) 127, 199 N. Y. 314, 92 N. E. 670. f. For misrepresentation or concealment which misleads a party to a contract, equity will relieve, but not for ignorance of that which is before his eyes, and which he must see. Louck v. Orient Ins. Co. 33 L.R.A. 712, 176 Pa. 638, 35 Atl. 247.

g. Where a fraudulent advantage has been taken of the fears, the affections, or the sensibilities of a party, equity will grant relief. Embrey v. Adams, L.R.A. 1915D, 1118, 191 Ala. 291, 68 So. 20.

h. The jurisdiction of courts of equity in cases of fraud, is limited to those in which the fraud is not remeadiable in an action at law. William Deering & Co. v.

o. Equity has jurisdiction, not only to arrest tax proceedings, but to set aside tax deeds founded on, or resulting from, fraudulent conduct of taxing officers. Gould v. Sullivan, 20 L.R.A. 487, 84 Wis. 659, 54 N. W. 1013.

p. That the proofs of loss upon an insurance policy have placed a fraudulently excessive valuation on the property destroyed will not give equity jurisdiction of a suit to enjoin the assured from maintaining an action at law and to secure an adjustment of the loss. Mechanics' Ins. Co. v. C. A. Hoover Distilling Co. 32 L.R.A. (N.S.) 940, 173 Fed. 888, 97 C. C. A. 400.

q. Equity will take cognizance and grant relief where an insurance policy has been obtained by fraud or deception or by false and fraudulent misrepresentation, or through accident or mistake. Pacific Mut. L. Ins. Co. v. Glaser, 45 L.R.A.

8. An action to set aside a sale for knowingly taking advantage of the seller when he was incapacitated by intoxication is one addressed to the equitable consideration of the court. Swan v. Talbot, 17 L.R.A. (N.S.) 1066, 152 Cal. 142, 94 Pac. 238.

t. Violation of an assurance by the own-| er of a tract of land when selling lots there. on restricted to residential purposes, that the whole tract will be so restricted, is not such fraud as to entitle grantees to equitable relief. Sprague v. Kimball, 45 L.R.A. (N.S.) 962, 213 Mass. 380, 100 N. E. 622. § 68.concurrent jurisdiction as to. See also post, § 96 d.

a. The jurisdiction of equity is concurrent with courts of law in case of fraud. John Hancock Mut. L. Ins. Co. v. Dick, 43 L.R.A. 566, 114 Mich. 337, 72 N. W. 179, later appeal in 44 L.R.A. 846, 117 Mich. 518, 76 N. W. 9.

b. The jurisdiction of courts of equity is concurrent with the jurisdiction of courts of law, in cases of fraud and they may grant more complete relief by compelling

the cancelation or surrender of instruments.

George ex rel. Jones v. Travis, L.R.A.1915E,

408, 185 Mich. 597, 152 N. W. 207.

c. It is a general rule that in cases of fraud, or where the charge is of conspiracy or of a fraudulent combination, equity has concurrent jurisdiction with the law and will give redress; but in every case the exercise of jurisdiction in equity rests in

the sound discretion of the court and de

pends upon the special circumstances disclosed. Leslie v. Lorillard, 1 L.R.A. 456, 110 N. Y. 519, 18 N. E. 363.

§ 69. Mistake.

Mistake as ground for rescission of contract, see CONTRACTS, §§ 538-542. Effect of laches to bar relief from mistake, see LIMITATION OF ACTIONS, § 7 b. Mistake of law, see MISTAKE, § 1 c, g, 1. Treating reply seeking relief for mistake

from release pleaded in defense, as a bill in equity, see PLEADING, § 550 b. Sufficiency of plea of mistake as against demurrer, see PLEADING, § 609. As ground for reformation of instruments, see REFORMATION OF INSTRUMENTS, §§

4-6.

Mistake as ground for refusing specific performance, see SPECIFIC PERFORMANCE, § 24.

See also ante, §§ 66 a, 67 q; post, § 110 c. a. A court of equity, in a proper case, has authority to reinstate a satisfied mortgage or other lien upon real estate, when

b. The holder of a recorded deed to real estate, who, with knowledge of a prior unrecorded deed, voluntarily, and without fraud or mistake of fact, satisfies of record a mortgage thereon owned by him, is not entitled to a reinstatement of the mortgage lien on the sole ground that he erroneously assumed that his title was superior to that of the holder of the unrecorded deed because his deed was recorded first, as such mistake was one solely of law, against which equity will not, under such circumstances, afford relief. Errett V. Wheeler, 26 L.R.A. (N.S.) 816, 109 Minn. 157, 123 N. W. 414.

c. Where by an innocent mistake erections have been placed a little upon the plaintiff's land and the damages caused to the defendant by removal of them would be greatly disapproportionate to the injury of which the plaintiff complains, equity will not order their removal but will leave the plaintiff to his remedy at law. Coombs v. Lenox Realty Co. 47 L.R.A. (N.S) 1085, 111 Me. 178, 88 Atl. 477. § 70. Conspiracy. See also ante, § 68 c.

a. A manufacturer is entitled to no equi

table relief to compel a labor union to reits members in his business on the same terms accorded his competitors, although its refusal to do so is the result of a contors to ruin his business, and his employees spiracy between the union and his competiof the old contract. Saulsberry v. Coopers' are willing to continue work on the basis International Union, 39 L.R.A. (N.S.) 1203, 147 Ky. 170, 143 S. W. 1018.

new a contract for the continued services of

fendants claiming title by adverse possesb. A combination and conspiracy by desion to separate tracts of land, to maintain by corrupt means their several defenses and delay involved in maintaining separate against the plaintiff, and the great expense actions of ejectment against them, are not sufficient to give a court of equity jurisdiction of a suit to have plaintiff adjudged the owner of the several tracts, and entitled to immediate possession thereof. Illinois Steel Co. v. Schroeder, 14 L.R.A. (N.S.) 239, 133 Wis. 561, 113 N. W. 51.

§ 71. Trusts. Jurisdiction to appoint trustee, see COURTS, § 253 c.

Power to order sale of trust property, see JUDICIAL SALE, § 13 d. Jurisdiction to prevent diversion of church property by majority of congregation, Jurisdiction to appoint successors to trussee RELIGIOUS SOCIETIES, § 19 r. tees, see TRUSTS, § 61 b. See also ante, § 18 d; post, §§ 80 c, 110 c; INJUNCTION, §§ 123 k, 196.

a. Extensive review of cases. The en forcement by equity of constructive trusts.

b. Trusts are objects of protection of courts of equity. Heiskell v. Chickasaw Lodge, 4 L.R.A. 699, 87 Tenn. 668, 11 S. W. 825.

c. It is the peculiar province of courts of equity to supervise the execution of trusts, and to call trustees to accounting for their management of trust estates, especially for every violation of their primary duty not to deal with trust property for their own advantage. Bosworth v. Allen, 55 L.R.A. 751, 168 N. Y. 157, 61 N. E. 163.

d. When a trust arises either through agreement of the parties or the circumstances of the transaction, the equitable rights of the beneficial owner will be protected in equity. Gray v. Graham, 49 L.R.A. (N.S.) 1159, 87 Conn. 601, 89 Atl. 262.

e. Equity has jurisdiction to grant relief in the case of a breach of trust by a trustee whether the breach of trust be actually beneficial to the wrongdoing trustee or only injurious to his cestuis que trust. Vulcan Detinning Co. v. American Can Co. 12 L.R.A. (N.S.) 102, 72 N. J. Eq. 387, 67 Atl. 339.

f. A plain and palpable abuse of a trust must appear in order to induce a court of equity to interfere. Lamb_v. Cain, 14 L.R.A. 518, 129 Ind. 486, 29 N. E. 13.

g. Equity will not enforce, in behalf of a mere volunteer, an executory parol trust. Orth v. Orth, 32 L.R.A. 298, 145 Ind. 184, 42 N. E. 277, 44 N. E. 17.

g1. A court of equity will not aid a mere volunteer to carry into effect an imperfect gift or an executory trust; but where a voluntary trust upon a meritorious consideration has been perfectly created, it is irrevocable and may be enforced in equity. McCartney v. Ridgway, 32 L.R.A. 555, 160

Ill. 129, 43 N. E. 826.

h. Equity will seize upon and execute a trust when derelict between a principal debtor and his creditor, when the subject matter of the trust has been pledged by the debtor to meet a specific obligation, which he is primarily obligated to pay and but

for which the trust would not have been

created. Johnson v. Martin, L.R.A.1916C,

1057, 83 Wash. 364, 145 Pac. 429.

i. If a chose in action belonging to a debtor has become impressed with a trust in favor of his creditor, chancery, in the absence of a statute, has jurisdiction to subject it to the debt. Hall v. Henderson,

63 L.R.A. 673, 134 Ala. 455, 32 So. 840.

738.

(Annotated) 1. A sufficient execution of the trust to enable equity to enforce it arises where a mutual benefit certificate is delivered to one having no insurable interest in the life of the member, upon the agreement of the beneficiary that, if he will pay the dues and make advances to the member, he shall have the proceeds when collected, and the member dies leaving the condition unchanged. Kerr v. Crane, 40 L.R.A. (N.S.) 692, 212 Mass. 224, 98 N. E. 783.

m. A bill in equity will not lie on behalf of a materialman against a municipal corporation to reach a fund which is retained under the provisions of a contract for a public improvement, inserted under the sanction of a municipal ordinance, which required the contractor at time of settle. ment to produce vouchers showing settle. ment in full for all material and labor einployed in the contract, and authorizing the retention of funds to pay claims not shown to have been satisfied. Lombard Governor Co. v. Baltimore, 48 L.R.A. (N.S.) 678, 121 Md. 303, 88 Atl. 140.

n. No such fiduciary relation exists between the tax collector of a township and the township in respect to tax moneys collected by him for its use as to call for the exercise of equitable jurisdiction. Franklin v. Crane, 43 L.R.A. (N.S.) 604, 80 N. J. Eq. 509, 85 Atl. 408. (Annotated)

§ 72.

-in proceeds of stolen property.

a. Equity has jurisdiction of a suit to reach the proceeds of property which a thief has turned into cash, since he holds them in trust for the true owner. Lightfoot v. Davis, 29 L.R.A. (N.S.) 119, 198 N. Y. 261, 91 N. E. 582.

b. Equity has jurisdiction to enforce a constructive trust in property into which stolen property was converted, although no fiduciary relation existed between the owner and the one who took the property. Pioneer Min. Co. v. Tyberg, L.R.A.1915B, 442, 215 Fed. 501, 131 C. C. A. 549. (Annotated)

c. An employee charged with the care and custody of receptacles of gold dust sustains a relation of trust to his employer so as to give equity jurisdiction of a proceeding to reach property into which he has converted gold dust which he feloniously abstracted from the receptacles; at least where the property is in custodia legis so as not to be subject to legal process. Pioneer Min. Co. v. Tyberg, L.R.A.1915B, 442, 215 Fed. 501, 131 C. C. A. 549.

k. A devise or bequest to one in trust for another, with no duties to perform and no gift over, vests in him merely a naked legal title, and equity may compel conveyance of the estate to the beneficiary. Hill v. Hill,

under trust instruments, to change the terms of the trust, courts of equity have not hesitated to direct such necessary modifications as will preserve the trust estate for the use of the beneficiaries. Johns v. Montgomery, L.R.A.1916B, 1073, 265 Ill. 21, 106 N. E. 497.