McCormick v Grogan

THE LORD CHANCELLOR (Lord Hatherley )stated the facts, and then said:-

It is averred by the Appellant that Mr. Grogan having been so informed of the letter as well as of the will, he acted in such a manner as to bring himself within the operation of the rule which has been long established in Equity, that a person apparently taking property by devise or bequest from a testator with this knowledge of the existence of another instrument, which he actually or impliedly undertakes to carry into effect, will be fixed as trustee with the performance of such instructions and directions as are given in that other instrument. Mr. McCormick, the Appellant, therefore, says that this annuity of £10 a year was by those instructions and that letter directed to be given to him, and that Mr. Grogan was informed, from the first, if not of the exact contents of that letter, yet of its existence, as a letter which was to guide and direct him in carrying into effect the testator's instructions, though unexpressed in the will; and that Mr. Grogan impliedly undertook to execute the instructions in that letter, and by not performing that undertaking, committed a breach of trust.

Now this doctrine has been established, no doubt, a long time time since upon a sound foundation with reference to the jurisdiction of Courts of Equity to interpose in all cases of fraud; and therefore if, for example, an heir said to a person who was competent to dispose of his property by will, "Do not dispose of it by will, I undertake to carry into effect all such wishes as you may communicate to me." And if the testator, acting on that representation, did not dispose of his property by will, and the heir has kept the property for himself, without carrying those instructions into effect, the Court of Equity has interposed on the ground of the fraud thus committed by the heir in inducing the testator to die intestate, upon the faith of the heir's representations that he would carry all such wishes as were confided to him into effect. And the Court has said that the heir shall not be allowed to hold the property otherwise than as trustee for those with regard to whom the testator gave him the directions in question. So again, if a legatee states to the testator that upon the testator's confiding his property, apparently disposing of it, to him, the legatee, by a regular and formal instrument, he will carry into effect all such intentions as the testator shall confide to him, then that legatee, although he apparently may be held in law to take the whole interest, shall have fastened upon his conscience the trust of carrying into full effect those instructions which he received upon such representations as I have described. And, farther than that, such an undertaking or promise on the part of the legatee has been held, in some cases, to be capable of…