D ·.
stances, it may be' that the death of Mrs. ,Myers, and as soon as the parties became ,tenants ,in ,common, that the plaintiffs were entitled to claim the benefit of this purchase from,Mrs. Couch. The trust would arise and might beenforced as soon as the relation of cotenant was established by the termination of the estate for the life of Mrs. Myers. But, be this as it may, I find that the law regards the purchase of an incumbrance or outstanding title by the tenant for life as being made for the joint benefit of him'lelf and the remainclerman or reversioner, and that he cannot acquire it for his exclusive benefit. LJa/!iess Vo l11ycrs, 13 B. Mon. 513; Varney v. Stevens, 22 Me. 330; Perry, Trusts, §§ 116, 540. ,And in Co'-Lit. §§ 453-267b, it is laid down that "a release of a right made to a particular tenant for life, or in tail, shall aid or benefit him or them in the remainder." , My conclusion upon the whole case is that Reed obtained the con· veyance from Mrs. Couch for the benefit of himself and the plaintiffs, according to their respective interests in the premises under the deed from John H. Couch, and that, therefore, he took two-ninths of the estate derived from 1\lrs. Couch in trust for the plaintiffs, and should convey it to them: The demnrrer is overruled.
Lnm v.
GREEN.
(Uircuit COllrt, D. Colorado. 1.
.Tune 23,1883.)
EQUlTY-BrLL CHAnGING FRAUD-INJURY RESULTING.
The rule in equity is that it is not sutlicient to charge a fraud simply, but the bill must charge also some injury as the rcsult of the fraud: but this rule does not require any considerable and a slight injury as the result of a frauc] will give the party illjured the right to bring his action and cancel the ('(Jntract. SA)IE-FALSE HEPRESENTATlONS AS TO INcmIBRANCE ON REAL ESTATE.
2.
'Where a man represents that a piece of real estate is free antI clear of incumbrance, when in fact, it is to incumbrance, and induces anothcr to take it upon the belief that his repre.scntations are true, there is an injury, and a bill so charging is sufficient on demurrer. SA)IE-ExA)IINATION OF HECORDS.
3.
In such a case th" purchaser has a right to relv upon the representations of the grantor, and is not bound to search the records to find whether they are . true or not. . . '
MCCnARY, J., (orfllly.) This ·is a hill in chancery, filed to cancel and set aside a contract and conveyance whereby the defendant sold 10 the complainant an interest in a mine.. The bill avers that the defendant falsely and fraudulently represented to the complainant .that this pi'operty was free and clear of incutnbrance, and' that he \vas induced by these representations to purchase it, and to pay for it the sum of:$1,500; that he afterwards discovered that the·represen. ." 1 ' . : _:. _ ." '.. .-' ··. .. : .,:. 1 '.' ·
408
FEDERAL REPORTER.
tations were false; that the property was not free from incumbrance, but was subject to a judgment lien of some $700 against the defendant. Thereupon, immediately, as the bill avers, he tendered back a conveyance of the property, and demanded a return of the consideration money. There are various objections to the form of the bill, and some of them, perhaps, may be good, in strictness, if we were to consider them with very great nicety and technicality; but the only matter of substance is the question, whether there is an allegation of injury or damage here which is sufficient to give the complainant a right to relief in equity. He avers, as will be observed, that there was an incumbrance upon this property; ,that the representation was that it was free and clear from incumbrance. There is no allegation that the incumbrance has been enforced, or that complainant has been obliged to pay it in order to maintain his possession, ai' anything of that sort, The rule in equity is that it is not sufficient to charge a fraud simply, but you must charge also some injury as the result of the fraud. I think, however, that there is an mjury charged here. The rule does not require any considerable damnge. A slight injury as the result of a fraud will give the party inj ured the right to bring his action and cancel the contract; and I think it may be said that where a man represents that a piece of real estate is free antI clear of incumbrance, when in fact it is subject to incumbrance, and induces another to take it upon the belief that his representations are true, there is an injury. Heal estate is not worth so much when it is incumbered as it is when it is not incumbered. The party who buys real estate upon the belief that it is free and clear from incumbrance, finding afterwards that he has been cheated in that respect, is not bound to keep it. He may return it. It is also insistetl that the records were sutIicient to give notice to the purchaser of the judgment liens complained of. But the rule in regard to matters of this sort is that the purchaser has a right to rely upon the representations of the grantor, and is not bound to search the records to .find whether they are true or not. The demurrer to this bill will be overruled, and the defendant will answer in 60 days.
NICKERSON
and others, Trustees, v. (Circuit Court, D. Kflnsas.
ATCHISON,
T. & S. F. 11. Co.
November, 1881.) COXSTRUED.
1.
TnUST-ExPEXSES OF
here a large body of land IS conveyed to trustees to secure the payment of the principal and interest of a great numher of railroad honds, which have a long time to run before maturity, and the grantor, lhe railroad company, in the trnst deed reserves the right to the lauus and pay the proeee,ls of the sales thereof to the trustee, after deducting expenses incurred in executing the trust, it may ret'lin the proper amount for expenses in making the sail'S, and may also pay the taxes out of the procet:ds thereof.
,V