U.S. Supreme Court
Hoyt v. Latham, 143 U.S. 553 (1892)
Hoyt v. Latham
Argued January 28-29, 1892
Decided February 29, 1892
143 U.S. 553
ERROR TO THE CIRCUIT COURT OF THE UNITED
STATES FOR THE DISTRICT OF MINNESOTA
While it is true that a trustee cannot legally purchase on his own account that which his duty requires him to sell on account of his cestui que trust, nor purchase on account of the cestui que trust that which he sells on his own account, and that the cestui que trust may avoid such a sale even though made without fraud, and without injury to his interests, yet it is also true that such a transaction is not absolutely void in the sense that the purchaser takes no title, and that it may be ratified and affirmed by the cestui que trust, either directly or by acquiescence and silent approval; and in such case, when he has ample notice of the facts and waits before taking action to set the sale aside until he can see whether the transaction is like to prove a profitable speculation, he is guilty of laches, which amount to a ratification and approval.
Hammond v. Hopkins, ante, 143 U. S. 224, cited and followed.