DocketNumber: [No. 181, October Term, 1948.]
Judges: Marbury, Delaplaine, Collins, Grason, Henderson, Markell
Filed Date: 6/28/1949
Status: Precedential
Modified Date: 10/19/2024
This is an appeal from a decree assuming jurisdiction over the distribution of the residuary trust estate under the will of Thomas H. Brodwater, construing his will and directing distribution.
Brodwater, a native of Accomack County, Virginia, died on March 7, 1923, in Paris, leaving a will dated September 15, 1913 and a codicil dated July 26, 1917, in which he declared himself a citizen of Baltimore, "temporarily residing in a foreign country". His will was probated and his estate administered in Baltimore.
By the will he gave the residue of his estate to Safe Deposit and Trust Company, in trust, to pay out of the income $200 monthly to his only child Henry Simu Brodwater for life, and at his death to his children till the youngest should reach the age of twenty-one, when the trust should be "dissolved" and all the estate paid to the child or children then living, or the then living descendants of any deceased child or children. By the codicil this provision was superseded by provision for payment of half "the annual net revenue" from the estate to Henry for life and half to testator's (second) wife Alexandra Simu Brodwater for life; upon the death of Henry without issue "his proportion in the revenue" to be paid to Alexandra, upon his death leaving issue to "revert to his child or children as provided for in" the will, upon the death of Alexandra her proportion to be paid to Henry, if living, otherwise to "revert" to his *Page 405 child or children then living or the then living descendants of any deceased child or children, "as is provided for" in the will.
Henry died in 1941 without issue. By his will he left all his estate to his widow Victoria, who has since married Robert S. Tenger. Alexandra died September 16, 1947. The trustee divided the income between Henry and Alexandra till Henry's death, and thereafter paid the entire income to Alexandra. The entire trust fund (corpus) now (on June 19, 1948) consists of $44,132.16 cash. Alexandra by antenuptial contract had waived all right over testator's estate. By Henry's death without issue the above-mentioned disposition of testator's estate by the will and codicil failed. After Alexandra's death the trustee filed a bill for assumption of jurisdiction, construction of the will and directions as to distribution. Mrs. Tenger, as sole legatee of Henry, is entitled to any reversionary interest, if a contingent disposition by the will is not valid. The question now presented is whether the contingent disposition is valid. The lower court held that it is not and that Mrs. Tenger is entitled to all testator's trust estate.
The contingent provisions in the will are verbose but can best be considered by setting them out in full. After providing for payment of the estate to the children or descendants of Henry, the will provides: "and in the event of none such, then my whole estate shall be distributed in the following manner:
"1st: — That fifteen thousand dollars out of my estate or if necessary, not to exceed twenty thousand dollars shall be paid to S. James Turlington, Dr. Oscar Richard Fletcher and Donald F. Fletcher all of Accomack County, State of Virginia, United States of America, the disposal of same shall be made first in securing a charter in perpetuity from the Legislature of the State of Virginia, United States of America, for the foundation of what shall be called and named `The Brodwater Home of Rest', to be established in Accomack County, State of Virginia, United States of America, and to be exempt *Page 406 forever from taxation and after the Charter shall have been obtained, in purchasing near the center of Accomack County, State of Virginia, of a site of land of not less than twenty acres, and having built thereupon a suitable building and furnishing same, which building shall be called and named `The Brodwater Home of Rest'.
"2nd: — That I appoint the said S. James Turlington, Dr. Oscar Richard Fletcher and Donald F. Fletcher and their successors all of Accomack County, State of Virginia, United States of America, as my `Trustees', and to have jurisdiction over the said mentioned `Brodwater Home of Rest', to decide whom [sic] shall be admitted therein, and to whom as `Trustees' shall be paid annually in quarterly payments the revenue upon my remaining estate as hereinafter provided, for the maintenance of the said `Brodwater Home of Rest'.
"3d: — That the said mentioned `Brodwater Home of Rest' when built and furnished, shall be opened for the reception of those persons of both sexes of white blood who are of sound mind, not inebriates, nor paupers, and natural born citizens of Accomack County, State of Virginia, and who are able to pay annually for their upkeep the sum of One Hundred Dollars, But should it be proven to the satisfaction of my `Trustees' that some persons who may present themselves for admission are worthy subjects, but unable to pay any compensation for their keeping, then such persons shall be admitted free of any charge.
"4th: — That I would recommend to my `Trustees' that the site selected by them for the building to be called `The Brodwater Home of Rest', shall be built upon an elevation sloping down to some public road, and that the building itself shall consist of two wings, one for each sex, with a common sitting room between, and the dining room and kitchen in the rear of the building, that the grounds surrounding the building shall be laid out to make them attractive, and with several trees to offer sufficient shade, and that a gardener be kept annually for the upkeep of the same. That a sufficient quantity of *Page 407 papers and periodicals shall be subscribed for each year to be kept in the sitting room for the use of all occupants of `The Brodwater Home of Rest'.
"5th: — That all the rest and residue of my estate, real, personal and mixed, shall be paid over to `The Board of Supervisors', of Accomack County, State of Virginia, with the proviso and condition, that that which shall come into their possession shall be capitalized upon a 5% basis, and the revenue therefrom shall be paid perpetually and annually, in quarterly payments, to the `Trustees' of `The Brodwater Home of Rest', for its upkeep and maintenance, the latter to include an annual payment of one hundred dollars to each of my three `Trustees', and their successors, for the faithful performance of their services. But should the said mentioned `Board of Supervisors' refuse to act in such capacity, then I direct that my said mentioned `Trustees' shall act in their stead, and receive from the `Trustee' under my will and testament, the remainder of my estate, and they shall expend the income from my estate in the maintenance and upkeep of of the said `Brodwater Home of Rest', and as far as shall be expedient, shall keep my estate in the form and manner as that in which they may receive it, as to the securities in which it may be at that time invested, and apply the proceeds therefrom for the maintenance and upkeep of the said mentioned `Brodwater Home of Rest'.
"6th: — That the said `Brodwater Home of Rest', a body corporate, shall be incorporated within twelve months after the death of my son, Henry Simu Brodwater, or his last surviving issue, and I hereby request that S. James Turlington, Dr. Oscar Richard Fletcher and Donald F. Fletcher, shall be the incorporators and directors of the said `Brodwater Home of Rest', and in the event of the death or refusal of any one or two of them to act as such incorporators or directors, that the remaining two or one shall have power to fill such vacancy in the said number of three, and in the event that within five months after my said Son's death or that of his last surviving issue, of the failure or refusal to so *Page 408 fill the said number of three incorporators, or in the event of, the death, or refusal to act within the prescribed period of five months as aforesaid mentioned of all of said three persons, then within five months after the death of my said son, Henry Simu Brodwater, or his said last surviving issue, the then Chief Judge of the Circuit Court for Accomack County, State of Virginia, United States of America, shall appoint three persons to act as incorporators and directors as aforesaid, and they shall so act. That in the event of a vacancy by death, resignation, or removal of any of the directors or incorporators of the said `Brodwater Home of Rest', a corporation when formed as aforesaid, the vacancy or vacancies thereby occasioned shall be promptly filled by successors elected or appointed by a majority of the remaining directors.
"7th: — That my prime object in founding such a `Home of Rest' is to provide a home for those persons who so often find themselves homeless, and that in their last days they may herein find that comfort and consolation which is often deprived them under other circumstances. But this `Home of Rest' is not to be considered in any sense as intended to care for those persons who may be of unsound mind, inebriates, or paupers, and none such shall be admitted, or once admitted and after developing any of the above mentioned traits of character or condition, all such persons shall be dismissed.
"8th: — And I authorize and empower said `Trustee' (The Safe Deposit and Trust Company of Baltimore City, State of Maryland, United States of America,) to make division of said trust estate at the termination of said `Trust', and for that purpose to sell so much of said trust estate as may be necessary in its discretion."
Of the three persons named as trustees and incorporators of "The Brodwater Home of Rest", S. James Turlington died on January 30, 1926; the other two are living. No corporation has been incorporated. No "charter in perpetuity" for the home to be established in Accomack County, "and to be exempt forever from *Page 409 taxation", has been secured from the Virginia legislature. On January 5, 1948 counsel for the two surviving trustees wrote to Safe Deposit and Trust Company that nothing had been done toward incorporation, because until the recent death of the widow there were no available funds for the maintenance of the home, that in their opinion the amount of the trust fund was inadequate to carry out the establishment and maintenance of the home as planned for in the will, that for $20,000 it would be impossible to purchase land and a suitable building or to purchase land and erect a building that would conform with the requirements of the will, that "ordinary business judgment tells" them it would require "many times the available amount of invested principal to maintain such a home", and if "a place might be purchased for $20,000 that would accommodate a few persons, the income on the remaining amount, at the present low investment returns and the high labor costs, barely would pay the cook". Safe Deposit and Trust Company concurs in this opinion.
On May 20, 1948 the surviving trustees obtained from the Circuit Court for Accomack County an order confirming their appointment as trustees under the will and their appointment on March 30, 1948 of Robley J. Fletcher as a third trustee and authorizing the three to make application to and receive from Safe Deposit and Trust Company payment of $15,000 of the corpus of the trust funds for the purpose of incorporation and establishment of the home. Safe Deposit and Trust Company refused to comply unless authorized and directed to do so by the court in this proceeding. The Virginia trustees say the opinion expressed in the letter of January 5, 1948 "expressed only their informal opinions as to that time", and that "even if said expressions were actually true in fact, and such inadequacy actually existed", the Maryland court "is not the proper forum for determination of the question of adequacy or inadequacy of the trust funds", and "said expressions are, therefore, irrelevant and not germane in this proceeding". On October 6, *Page 410 1948 the Board of Supervisors of Accomack County declined and refused to accept the bequest to it. Accordingly, on October 13, 1948 the three trustees obtained another order authorizing them to make, and made, application for all the residuary funds of the estate. From the decree below the Virginia trustees appeal.
If the will had provided for establishment and maintenance of the home in Maryland, this provision, (apart from Art. 93, sec. 343 of the Code,) would have been void for indefiniteness. The charitable trust statute, (Acts of 1931, ch. 453, Art. 16, sec. 279,) and the cy pres statute, (Acts of 1945, ch. 727, Art. 16, sec. 279A,) are not applicable retroactively. The will became effective at testator's death, in 1923. Salem Church of UnitedBrethren v. Numsen,
In argument it seems to be suggested that decisions of this court are not "applicable retroactively". Such a suggestion is groundless. Whatever philosophy or language may have gained in the expression "judge-made law", courts which by overruling their own decisions have done most to give the expression meaning usually adhere, with relentless logic, to the orthodox theory that courts "declare" the law as it has been from the beginning. "Judge-made law" has no date of enactment. Rules of construction and constitutional limitations against retroactive legislation are not applicable to judicial decisions. Real or apparent exceptions to these principles (e.g., provisions in tax statutes for non-retroactive administrative rulings) are not now material. This court has never departed from these principles.
The general rule is that the validity of a will of movables, or of a trust of movables created by will, is determined by the law of the testator's domicile. Restatement, Conflict of Laws, §§ 295, 306. "However, where a trust is to be administered in a state other than that *Page 411
of the domicile, but is by the domiciliary law invalid from the outset under a rule grounded in a feeling that the administration of such a trust would be difficult or against the policy of the domicile, if such objections do not prevail at the place of administration the courts of the domicile will hold the trust valid". Goodrich, Conflict of Laws, 2d Ed., § 155, citingVansant v. Roberts,
In Vansant v. Roberts, supra, this court, holding the mortmain provision of the Bill of Rights inapplicable to a bequest to a foreign corporation, said: "The 34th section of the Bill of Rights [now Art. 38 of the Declaration of Rights] is analogous to the British Statutes of mortmain, which were introduced to check or prevent ecclesiastics from accumulating in perpetuity, in mortua manu, or hands that never die, the lands or property of the kingdom, and thereby withdrawing them from public and feudal charges. This provision in our Bill of Rights, was designed for the protection or benefit of the people of Maryland from similar evils, and therefore, so far as it refers to the gift or devise of personal property, it can have no extra-territorial operation. It might be very important to the people of this State, that a foreign religious corporation should not be permitted to hold large bodies of real estate within our own limits, but as personal property follows the locus of the owner, we cannot see why it should be a matter of concern to Maryland that the personal property of her citizens should not pass away to foreign corporations any more than to individuals living abroad. Nor is it a matter of concern to our State, in legal contemplation, whether property should accumulate in the hands of foreign corporations or not. These are questions to be regulated by each State for itself".
In Hope v. Brewer,
The court also quoted Chamberlain v. Chamberlain,
Hope v. Brewer, supra, we think, is not at variance withDumfries v. Abercrombie,
The rule — or absence of rule — of conflict of laws in such a case may be more broadly — or loosely — generalized. "Courts tend, unhampered by any fixed conflict-of-laws rule, to sustain charitable trusts which do not violate the policy of any state concerned". Beach v. Gilbert, 77 U.S. App. D.C. 117,
It is contended that Church Extension of M.E. Church v.Smith,
It is also contended that the bequest in question is made invalid by section 2 of subchapter 1 of the Acts of 1798, ch. 101, Art. 93, § 333, which provides, "No will, testament or codicil shall be effectual to create any interest or perpetuity, or make any limitation, or appoint any uses not now permitted by the constitution or laws of this State." This statutory declaration, if it is more than a truism (that any unlawful interest or perpetuity is unlawful), like the mortmain provision, is not operative extraterritorially.
We find no reason, in principle, in statutes or in decisions of this court, why we should not follow Vansant v. Roberts, supra, to the extent that it has been followed in New York for more than fifty years, or why we should not follow, on the precise question now presented, Hope v. Brewer, supra, which has been cited by this court in cases in which it was less directly in point. If, therefore, the trust now in question is valid and enforceable under the laws of Virginia, we think the bequest is valid.
The legal history of charitable trusts in Virginia is much the same as in Maryland. In both states it began with the historical error in Baptist Association v. Hart's *Page 417 Executors, 4 Wheat 1, 4 L.Ed. 499, in holding that charitable trusts originated under the statute of 43 Elizabeth, c. 4, and therefore were outlawed by repeal of that statute in Virginia — and by failure to adopt it in Maryland. After the Supreme Court in the Girard will case, Vidal v. Girard's Executors, 2 How. 127, 11 L.Ed. 205, had corrected this historical error, and after abortive steps to correct it in Virginia, the Virginia and Maryland courts both adhered to the original error. By a Virginia act of April 2, 1839 and subsequent acts bequests "for literary purposes", or for the education of persons within the state, were made "as valid as if made to or for the benefit of a certain natural person". In 1914 these provisions were amended so as to cover gifts and bequests "for charitable purposes", whether made to a body corporate or unincorporated, or to a natural person. Acts of 1914, ch. 234; Code of 1887, § 1420; Code of 1919, § 587. This charitable trusts act of 1914 was followed by a cy pres act of 1946, Acts of 1946, ch. 187, adding § 587a to the Code, as in Maryland the charitable trusts act of 1931, supra, was followed by cy pres act of 1945, supra. "Whether [apart from the cypres act of 1946] the [judicial] cy pres doctrine in its broader aspects will be applied in a proper case we need not here decide". Thomas v. Bryant,
It is contended that, even if Virginia law is applicable in the instant case, the trust has failed because of failure to incorporate within twelve months, and to fill the vacancy among the trustees within five months, after Henry's death. The Virginia trustees contend that the codicil so modified the will that by implication these periods run from the death of the last life tenant. This question of construction we need not decide. Whether the periods run from Henry's death or from Alexandra's, they have expired. On the other hand, the will contains no limitation over, or other provision for forfeiture, in the event of delay in incorporating or filling vacancies. Provision *Page 418
for forfeiture will not be implied. Cf. In re Stickney's Will,supra. Mrs. Tenger has not been prejudiced, or acquired rights, by delay in establishing the trust. Charitable trusts, like private trusts, do not fail for want of trustees. Fitzgerald v.Doggett's Executor,
This is a trust "for charitable purposes". In the long, but not exclusive, enumeration of charitable purposes in the statute of 43 Elizabeth the first one mentioned is "relief of aged,
impotent and poor people". (Italics supplied.) Scott, Trusts, § 368.1; Second National Bank v. Bank,
In Massanetta Springs v. Keezell, Administrator,
In Moore v. Downham,
Compelled as we are to decide a question of Virginia statutory law on which the Supreme Court of Appeals of Virginia has not yet directly spoken, our conclusion is that under the charitable trusts act of 1914, independent of the act of 1934 or the cypres act of 1946, the trust created by the bequest in the instant case would be valid and enforceable, by application of the judicial cy pres *Page 421 doctrine or perhaps by construction of the will.
As the trust estate must now be paid over to the Virginia trustees, and not to Mrs. Tenger, it is unnecessary to consider the Virginia trustees' appeal from the lower court's refusal to allow them a counsel fee out of the money awarded to Mrs. Tenger. Reversal of the decree below will be without prejudice to any future application of the trustees in the lower court or in Virginia, for allowance of counsel fees for services heretofore or hereafter rendered.
Decree reversed and cause remanded for further proceedings inaccordance with this opinion, costs above and below to be paidout of the estate.
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