Papineau

This action was brought for declaratory relief and damages for alleged fraud.

In 1916 Mrs. Louise Ganahl and nine others, including defendants' Vincent P. Ganahl and Ernest Ganahl, executed a declaration of trust under which property was transferred in trust to German-American Trust and Savings Bank, predecessor of defendant Security-First National Bank, as trustee. Ernest Ganahl was made agent of the trustee for rent collection and similar duties. The various transferors had one-tenth beneficial interests in the trust.

On July 23, 1925, defendant Vincent P. Ganahl borrowed $5,000 from defendant bank, giving his promissory note secured by an assignment of his one-tenth beneficial interest in the trust. Later Vincent P. Ganahl contracted with plaintiff to purchase property for the sum of $40,000, and on July 18, 1929, as security for his obligation to pay the price, he made another assignment of his one-tenth interest in the trust. He failed to pay the bank the money borrowed, and on January 17, 1931, the bank sold his interest at a public sale. Defendant Ernest Ganahl purchased the same at the sale for the sum of $5,392.83. .

Plaintiff brought this action on the theory that the…