Legal Opinion

McNeil v. Gates

Supreme Court of Arkansas

Decided May 15, 1883PublishedCited by 11 opinions

APPEAL from Prairie Circuit Court in Chancery. Hon. J. N. Cypert, Circuit Judge. Meyer was both beneficiary and trustee, and the real purchaser of the laud at his own sale. “It is a stern rule of equity that a trustee for others is not allowed to purchase either directly or indirectly for his own benefit at the sale. He cannot be both vendor and purchaser.” Imbodenvs.

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APPEAL from Prairie Circuit Court in Chancery. Hon. J. N. Cypert, Circuit Judge. Meyer was both beneficiary and trustee, and the real purchaser of the laud at his own sale. “It is a stern rule of equity that a trustee for others is not allowed to purchase either directly or indirectly for his own benefit at the sale. He cannot be both vendor and purchaser.” Imbodenvs. Hunter. 23 Arle., 622 ;■ Lenox v. Notrebe, Hempst, 251 1 /Story, Lq., secs. 321-2. The complaint was not answered by either Meyer or Holmes, and every material allegation therein against them must be taken as true. Gantt’s…

1Opinion of the Court

OPINION.

The theory of the defendants that Gates continued to be the creditor of McNeil, after receiving from Meyer the-amount of his debt, is not readily comprehended and is besides totally irreconcilable with the facts proved. If it was true, then it would seem to follow- that Meyer has been lending money to Gates at an usurious rate of interest. For the constitution and laws in force when this transaction was had, unlike those under which Gates and McNeil contracted, avoid all contracts that are tainted by usury,, and the lender can recover neither principal nor interest. But we are…

2Cases cited1 opinion

  1. Griffin v. CoffeyCourt of Appeals of Kentucky · 1849

3Cited by11 opinions

  1. Red Bud Realty Co. v. SouthSupreme Court of Arkansas · 1910
  2. Arizona Motor Speedway, Inc. v. HoppeNebraska Supreme Court · 1993
  3. Strasner v. CarrollSupreme Court of Arkansas · 1916
  4. Cull v. CavanaughSupreme Court of Oklahoma · 1923
  5. Schlumpf v. ShofnerSupreme Court of Arkansas · 1946

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