Judges: Campbell
Filed Date: 12/15/1853
Status: Precedential
Modified Date: 11/15/2024
delivered the opinion of the court.
The appellees are the heirs at law of John McDonogh, a native of the State of Maryland, who died at McDonogh, near New Orleans, in the . State of Louisiana, in 1850, leaving there a very large succession. In 1839, the decedent executed, at New Orleans, an olographic will for the disposal of the estate he might have at his death. This will is in a legal form, and has been admitted to probate in the District Court of New Orleans. It contains two particular legacies which are not contested, and a single legacy under a universal title. In this bequest the testator declares, “that for the more general diffusion of knowledge, and consequent well being of mankind,” and “being convinced that he could make no disposition of those goods which the Most High had placed under his stewardship, as by means of which the poor will be instructed in wisdom and led into the path of holiness,” “he gives, wills, and bequeathes all the rest, residue, and remainder of his estate, real and personal, present and future, as well that which was then his as that which he might acquire at any time before his death, and of which he might die possessed, (subject to certain annuities,) to the corporations of the cities of New Orleañs and Baltimore forever, one half to each,” “to and for the several intents and purposes thereafter declared.” The testator directs his executors to convert his personal estate into real property, whereby “the whole of his estqie will become a permanent fund in real estate, affording rents, no part of which shall ever be touched, divided, sold, or alienated, but shall forever remain together as one estate, and be managed” as he shall order.
For the management of this estate, thus declared to be inalienable, he directs the two cities each to select, annually, three agents, whose duty it should be to receive seisin and possession of the estate from his executors, immediately after his death. They are “to lease or rent the lots,” “cultivate the plantations,” “collect the rents,” “pay the annuities,” “invest the moneys,” and, “in fine, do all acts necessary to its full and perfect management, according to the will ¿ ’’¿Ahe. will of the testator being “that no part of the general estate, or revenue from rents arising from said general estate',‘shall go into the hands of the corporate authorities of the said cities, but that the said authorities should have forever the supervision of it.”
The testator designed the joint management of the agents of the cities, and the joint supervision of théir authorities over the estate, to be perpetual. He forbids the cities to vary, by agreement, or by any compromise, the relations he has established between them in regard to it. They must make no sale of their interests; no traffic with their powers of control; no surrender,
The testator having provided for the perpetuity of the MeDonogh estate, and the destination of its revenues, proceeds to develop a minute and detailed scheme for its management, improvement, and the expenditure of its income. ■ He appropriates one eighth part of‘its annual revenue, for forty years, for colonizing the free people of color, to the American Colonization Society, the sum not to exceed $25,000 per annum; one eighth part for the erection, in New Orleans, of an asylum for the poor of all ages, castes, and colors; one eighth part to an incorporated society for the relief of orphan boys in New Orleans; and one eighth part for the establishment of a school farm in Maryland. The money appropriated to the asylum, school farm, and orphan boys, he requires to be-invested as capital in real estate, and the rents only to be subject to the uses of the donees. The capital of the asylum and school farm is to be entirely collected, before any appropriation takes place for their use; and for the one the capital is to be $3,000,000, and for the other $600,000. The remaining four eighths of the income of the general estate, for the present, and the whole, after'the objects above mentioned are fulfilled, are destined “ for the education of the poor, without the cost of a cent to them, in the cities of New Orleans and Baltimore, and' their respective suburbs, in such a manner that every poor child and youth, of every color, in those places, may receive a common English education — based, however, be it particularly understood, on. a moral and religious one;” the whole of the general estate “-to form a fund in real estate which shall never be sold or alienated, but be held and remain forever sacred.”
To .carry his purposes into effect, he directs the selection of boards of managers for the different establishments, and suggests that acts ■ of incorporation may become necessary to facilitate their operations.
Their argument is, that although he makes in the commencement of his will a formal gift to- the cities; although the cities are designated as his legatees in several clauses of the will, in precise terms; although the property is described as property “willed and bequeathed to the cities,” that the testator has sedulously contrived to withdraw from them the seisin and possession of the whole estate, and has committed them to an uncertain and fluctuating board, for the selection of which he has provided; that the dominion and use of this property, in so fax as he has permitted either, has been confided to this board of managers, but that this board is held servilely to a code of regulations he has dictated, the aim of which is to hold the “McDonogh estate” together in. perpetuity; that by these restrictive regulations the donations to the cities have become nugatory and unavailing. .
This conclusion was adopted by the Circuit Court, whose decree is under revisal, and has been sustained in the argument at the bar of this court with great power and ability.
We may remark of the will of the testator, that it indicates his imagination.to have become greatly disturbed by along and earnest contemplation of plans which he says “ had actuated and filled his soul from early boyhood with a désire t-o acquire a fortune, and which then occupied his whole soul, desires, and affections.” In the effort to accomplish these cherished hopes he has overstepped the . limits which the laws have imposed upon the powers of ownership, overlooked the practical difficulties which surround the execution of complex arrangements for the administration of property, gréatly exaggerated the value of his estate; and unfolded plans far beyond its resources to effect; and' has forgotten that false calculations, mismanagement, or unfaithfulness might occur to postpone or prevent their attainment. Holding and declaring a firm faith in the interposition of Providence to render his enterprise successful, he'apparently abandons himself, without apprehension or misgiving, to the contemplation of the “ McDonoh estate,” as existing through all time, without any waste or alienation, but improving and enlarging, “ extending the blessings of education to the poor through every city,' town, and hamlet ” of the State where he was born, and the State in which he had lived and was to, die; “ rescuing from ignorance and idleness, vice and ignominy, millions upon millions of the destitute youth of- the cities,” and “ serving to bind communities and States in the bonds of brotherly love and affection forever.”
The exaggeration which is apparent in the scheme he projects,
His ruling purpose had no connection with the poor of any one generation. His desire was to establish a foundation to exist for all time — a perpetuity.
He knew that to attain this purpose a succession of persons, animated with a corresponding aim, must be obtained, and that the legal capacities of voluntary associations, even if he could hope to find such to enter into his plans, were wholly unfitted for his design; nor did he hope to effectually combine such persons by any power or prayer of his own. Hence, he selected as his devisees bodies corporate, endowed with the faculties of acquiring and holding property, having determinate ends and abiding agencies to be employed in accomplishing them. These were all requisite for the full attainment of the purposes he has declared.
He excludes, it is true, the municipal authorities from the particular management of the estate, or the application of its revenues.
But, the municipal officers are not his legatees. They are themselves but agents clothed with a temporary authority ; nor do the officers perform their executive duties, except by the interposition of agents subordinate to their control and subject to their, supervision. Had the testator confined himself to an unconditional donation of the general estate to the cities; for the use of public schools, it would scarcely have fallen under the personal management of the corporate authorities. They would
The will, through every part, discloses that the cities are the ■ particular objects of his interest; and the poor of the cities of. his providence and bounty. His will designates the cities, by their corporate name, as his legatees, in definite and legal language. His plan of administration is to be executed through agents, selected by their corporate authorities, and to the end of conveying to the poor of the cities, perpetually, the fruits of his property. ■ We should violate authoritative rules of legal interpretation, were we to disinherit the cities under these circumstances, and to substitute for them “ an ideal being ” called the “ general estate,” having no legal capacity, nor juridical character, and whose recognition, therefore, could have no result but' to overturn the will of the testator. C. C. 1706; 1 Spence, Eq. J. 529, 530; 5 Ann. R. 557.
Having thus determined that the legacy is to the cities by a universal title, and, having extracted from the will the leading and controlling intention' of the testator, the next inquiry is, whether a legacy given for such objects is valid.
The Roman jurisprudence, upon which that of Louisiana is founded, seems originally to have denied to cities a capacity, to
A century later, there was a direct inhibition upon grants to cities, boroughs, and others, which have a perpetual commonalty, and others .“which have offices perpetual,” and, therefore, “ be as perpetual as people of religion.” The English statutes of mortmain forfeit to the king or superior lord the estates granted, which right is to be exerted by entry; a license, therefore, from the king severs the forfeiture. The legal history of the Continent on this subject does not materially vary from that of England. The same alternations of favor, encouragement, jealousy, restraint, and prohibition, are discernible. The Code Napoleon, maintaining the spirit of the ordinances of the monarchy, in 1731, 1749, 1762, provides “ that donations, during life or by will, for the benefit .of hospitals of the poor of a commune, or of establishments of public utility, shall not take effect, except so far as they shall be authorized by an ordinance of the government.”
The learned Savigny, writing for Germany, says: “ If modern legislation, for reasons of policy or political economy, have restrained conveyances in mortmain, that those restrictions formed ho part of the common law.” The laws of Spain
This legislation of Europe was directed to check the wealth and influence of juridical persons who had existed for centuries there, some of whom had outlived the necessities which had led to their organization and endowment. Political reasons entered largely into the motives for this legislation — reasons which never have extended their influence to this continent, and, consequently, it has not been introduced into our systems of jurisprudence. 2 Kent’s Com. 282, 283; Whicker v. Hume, 14 Beav. 509.
The precise result of the legislation is, that corporations, there, with the capacity of acquiring property, must derive their capacity from the sovereign authority, and the practice is, to limit that general capacity within narrow limits, or to subject each acquisition to the revisal of the sovereign. We have ex> amined the legislation of the European states, so as better to appreciate that of Louisiana. No corporation can exist in Louisiana, have a public character, appear in courts of justice, exercise rights as a political body, except by legislative authority ; and each may be dissolved, when deemed necessary or convenient to the public interest. Corporations created by law áre permitted to possess' an estate, receive donations arid legacies, make valid obligations and' contracts, and manage their own business. Civil Code, tit. 10, c. 1, 2, 3, art. 418, et seq.
• The privileges which thus belong to corporations legally existing, have been granted to the inhabitants of New Orleans in various legislative acts. The authorities of the city have, besides, received powers of government extending to all subjects áffecting their order, tranquillity, and improvement. It is agreed, that these powers are limited to the objects for which they are granted, and cannot be employed for ends foreign to the corporation. 1 Paige, 214; 15 New H. 317; 4 S. & S. C. R. 156; 3 Ann. 294.
But there ean be no question as to the degree of appreciation in which the subject of education is held in Louisiana. The constitution of the State imposes upon the legislature the duty ■ of providing public schools for gratuitous education; ánd various acts attest the zeal of that department in performing that public duty. Among these, there is one which authorizes and requires the corporate authorities of the city of New Orleans to establish them in that city, and to enact ordinances for their organization, government,. and discipline; they are likewise.
' We shall now examine the devise to the cities, in connection with the various conditions annexed to it. The appellees insist it is a disposition reprobated by-law, for that it' contains “ substitutions and fidei commissa,” which are prohibited by article 1507 of the code, and which annul the donation in which they are found.
We shall not inquire whether the prohibition extends to donations in favor of corporations, and for objects of public utility, though this seems to have been a question in France. ■ Lefeb. des Don. Pieuses, 31, 33.
We shall limit' the inquiry to the nature of the prohibited estates, to determine whether they exist in this legacy. The terms are of Roman origin, and were applied to modes of donation by will, common during its empire, and from thence were transferred to the derivative systems of law in use upon the continent of Europe. The substitute was a person appointed by the testator to take the inheritance, in case of the incapacity or refusal of the- instituted heir. A pater familias was authorized to make the will of his son during his nonage, or lunacy, or other incapacity to perform the act; and in the case of his death, under such circumstances, the appointee took the succession. This was a mode of substitution.
The fidei commissum originated in a prayer, petition, or request, of a testator upon his instituted heir, to deliver the inheritance, or some portion of it, to a designated person. Every testament being originally a law of succession, proposed by the testator, and consented to by the Roman people, the language of legislation, that is, of mandate and authority, was essential to its validity. Precatory words were insufficient to raise an obligation upon the heir, or to vest property in the donee. This was afterwards changed, and words of request then imposed a charge upon the heir, to maintain the faith in which the testator had confided. Afterwards, the distinctions between words of mandate and of request became obsolete, and both were considered with reference to their significance of the intentions of
The conjunction of the fidei commissum with the substitution would then.become a natural mode of settlement of property. The instituted heir might be charged to hold and enjoy the succession for his life, and at his death that it should go to another, (his heir,) and that heir might in -turn become a gravatus, for the benefit of another successor, and so from generation to generation.
Such a substitution might be properly called a “ substitutionfidei commissaire,” or an “ oblique substitution.” This mode of limiting estates from degree to degree, and generation to generation, was much employed on the continent of Europe, and served to accumulate wealth in a few families at the expense of the interests of the community. The vices of the system were freely exposed by the political writers of the last century, and a’ general antipathy awakened against it. Substitutions having this object were prohibited during the revolution in France, and that prohibition was continued in the Code Napoleon,, whose authors have exposed with masterly ability the evils which accompanied them. Motifs et Dis. 375.
- . This prohibition was' transferred to the code of Louisiana, with the addition of the fidei commissa. These terms imply a disposition of property through a succession of donees. The substitution of the article 1507 of the code being an estate for ' life, to be followed by a continuing estate in another by the appointment of 'the testator.
. The fidei commissa of the Louisiana Code are. estates of a similar nature, implying a limitation over from one to another. They are the fidei commissa of the Spanish and French laws, in so far as those estates are not tolerated by other articles of the code. We shall not attempt to define them from an examination of the code and the reports of the Supreme Court of that State. It is not necessary for the decision of this case. We are unable to perceive any thing in the code to justify the supposition that the English system of trusts, whether in its limited signification as applied in conveyancing, or in its broad and Comprehensive import, as applied by. the courts of chancery, were within the purview of the authors of this code in framing
Our next inquiry will be, whether the testator is authorized to define the use and destination of his legacy. We have seen that donations to the cities of the Roman empire followed immediately upon the senatus consuHum which allowed them -to
The city of New Orleans holds its public squares, hospitals, levees, cemeteries, and libraries by such dedications. This eom^ says, (New Orleans v. United States, 10 Peters, 662,)
“ That property may be dedicated to public use, is a well-established principle of the common law. It is founded in public convenience, and has been sanctioned by the experience of ages. ‘ Indeed, without such a principle, it would be difficult, if not impracticable, for society, in a state of advanced civilization, to enjoy those advantages which belong to its condition, and which are essential to its accommodation.”
The Supreme Court of Louisiana, in a number of cases, have applied the principle contained in these citations with confi- . dence. DePontalba v. New Orleans, 3 An. 662; Will of Mary, 2 Rob. 440; Duke of Rich, v. Mylne, 17 La. 312; Maryland and Louisiana v. Roselius, MS.
The code of Louisiana provides that donations made for the benefit of an hospital, of the poor of the community, or of establishments of public utility, shall 'be accepted by the administrators of such establishments. C. C. 1536. It may be very true this article relates merely to the formal manner by which donations, inter vivos, for such 'objects may be perfected; but it will be observed that the requirement of the French Code of a government license for the gift is dispensed with in the frame of this article, and a strong implication arises from its terms! in favor of the validity of such gifts. An acceptance of such donations in a will is unnecessary. Nor do we see any ground for inferring a prohibition of donations by will, which are lawful, inter vivos, in the absence of any prohibitive article in the code. We are of the opinion,, therefore, that the testator ‘might declare the uses to which he destined his legacy to the cities; and the destination, being for purposes within the range of the powers and duties of its public authorities, is valid.
We shall now examine the question, whether the conditions annexed to this legacy, the prohibition to alienate or to divide the estate, or to separate in its management the interest of the cities, or their care and control, or to deviate from the testator’s. scheme, invalidate the bequest.
The appellees contend that the performance of these conditions is impossible; they are contrary to public policy; introduce tenures at variance with the laws; and would result in mischief
The argument on this point against the cities possesses great logical force. It is admitted that illegal or immoral conditions will vitiate a contract, (C. C. 2026); but the code provides that, “in all dispositions inter vivos and mortis causa, impossible conditions, those which are contrary to the laws or to morals, are reputed not written.” The authorities cited establish that, under the word “ conditions,” the various modes of appropriation, use, and destination attached to this legacy are included. Merlin says, “ Conditions take different.names according to their object; they are called in turn charges, destinations, motives, designations, terms. But although the conditions, charges, destinations, &c., &c., ought to be distinguished, nevertheless the word condition often serves to express them all.” Merlin’s Rep. Cond. § 2.
The signification of this article of the code becomes then an important inquiry. It is found in the Digest of Justinian, and from thence passed into the codes of France and Spain. Touil. 5, No. 255; 1 Escrich. Die. leg. 565. It was copied from the Code Napoleon into the Code of Louisiana. Savigny furnishes us with the history of the law as found in the Pandects. One of the schools into which the Roman jurisconsults was divided (Proeuleians) placed the construction of contracts and testaments, containing illegal or impossible conditions, on the same principle, and insisted that the whole disposition in each should be vitiated by them; another (Sabinians) changed the rule with reference to the instrument, and, while contracts were vitiated by the illegal or immoral conditions, in wills the conditions only were pronounced nugatory. Justinian adopted the opinion of the latter, which seems to have been preferred in practice before; and his adoption has been regarded as a legislative sanction of their rule in favor of testaments. Great authorities in France oppose this doctrine, and in Prussia it exists, but in a modified form, while it has been wholly rejected in Austria. 5 Tout., No. 247; Savig. Rom. Law, § 122-3-4.
The common-law rule depends upon the fact, whether the performance of the illegal, immoral, or impossible condition is prescribed as precedent or subsequent to the vesting of the estate of the devisee. In the former case, no estate exists till
The. conditions in the case before us, which impose restraints upon alienation and partition, and exact a particular management through agents of a specified description, are conditions subsequent, and would not, by the rule of the common law, divest the estate, if pronounced to be illegal or immoral. 3 Pet. S. C. R. 377; 1 Sim. R. N. S. 464; 7 E. L. & Eq. 179; 2 J. C. Scott, C. B. R. 883; 2 Zabriskie R. 117; 10 Ala. R. 702.
These conditions belong, too, to the class that are reprobated as repugnant to the legal rights which the law attaches to ownership. The common law pronounces such conditions void, in consequence of that repugnancy, and the civil law treats-them as recommendations and counsel, not designed to control the will of the donee. 1 Rop. Leg. 785; 4 Kent’s Com. 130; Toul. 5, No. 51; Id. No. 405; Dalloz. Dic. tit. Cond. 96; 10 E. L. & E. R. 23.
Our' opinion upon the article of the code we have cited is, that it does not prescribe a rule of interpretation, to aid the understanding of the courts in finding the intention of the testator, but that it is a peremptory enactment of the legislative authority, applicable to the subject-matter in all cases, without reference to any declared or presumed intentions of the author of a particular donation. The code treats such conditions in contracts as the wrong of both the parties, and annuls the act. In the case of the testament, while it refuses to allow the condition, it saves to the innocent legatee the disposition in his favor. It may be that this is done on the. presumption that, independent of the condition, the legatee is the favorite of the testator, or' from a consideration of the legatee alone. Savigny Rom. Law, § 122, et seq.
We have thus far treated the cities as occupying an equal position, and have considered the case with reference to the city of New Orleans alone.
The city of Baltimore is legally incorporated, and endowed with the powers usually granted to populous and improving cities. The General Assembly of Maryland, in 1825, authorized the city to establish public schools, and to collect taxes for their support; and, in 1842, it was. empowered to receive in trust, and to control for the purposes of the trusts, any property which
, The code declares, “.that all persons may dispose of or. receive by donations,-¿wier vivos or mortis cama, except such as the law declares expressly incapable.” C. C. 1456. There is no distinction between corporations and natural persons in the power to receive by.donation; nor do we find any discrimination between domestic and foreign corporations, except, perhaps in a single article. “ Donations may be made in favor of a stranger, when the laws of hisr country do not prohibit similar dispositions in favor of a citizen-of this State.” C. C. 1477.
We greatly doubt,whether this article applies to all the citizens or corporations of the States of the Union. The constitutional relations between the citizens of the different States are those of equality, in reference to the subject of this article. This court, in the case of the Bank of Augusta v. Earle, (13 Pet. 520,) said, “ that by the law. of comity- among nations, a corporation - created by one sovereignty ■ is - permitted to make contracts in another, and to sue in its courts; and that the same law of comity prevails among the several sovereignties of the Union. This co .ity is presumed from the silent acquiescence of the State. Whenever, a State sufficiently indicates that contracts which derive validity from its comity are repugnant to its policy, or are considered as injurious to its interests, the presumption in favor of its adoption can no longer be made.
These principles were applied to a purchase of lands by the corporation of one State in another. Runyon v. Coster, 14 Pet. 122
The principles of these cases have been adopted in Louisiana, 4 Rob. La. R. 517; 17 La. R. 46, 312.
We know of no departure from these principles in Maryland, and do not doubt that the corporations of Louisiana would take in the same manner as those of Maryland in that State.
The question remains to be considered, whether the destination of the legacy to public uses in the city of Baltimore affects the valid operation of the bequest. All the property of a corporation like Baltimore is held for public uses, and when the capacity is conferred or acknowledged to it to hold property, its destination to a public use is necessarily implied. Nor can we perceive why a designation of the particular use, if within the general objects of the corporation, can affect the result; nor is there
Neither do we concede that the uses, being in a degree foreign to the State of Louisiana, impair the effect of the will. It is well settled that, where property is conveyed to a use which would be protected, if to be executed at home, in the absence of a prohibition, the conveyance would be valid if the execution were ordered to take place abroad. This question was considered by Mr. Justice Story, in the opinion prepared by him for the case of the Baptist Association v. Smith, published in 3 Pet. 486, 500.
He. says, “ there is no statute of Virginia making such bequests void; and, therefore, if -against her policy, it can only be because it would be against the general policy of all States governed by the Common; Law.” He concludes: “ there is no solid objection to the bequest, founded upon the objects being foreign to the State of Virginia.” In the late case of Whicker v. Hume, (14 Beav. 509,) on appeal, (16 Jur. 391,) a bequest to trustees* to be appropriated in their absolute and uncontrolled discretion, for the benefit and advancement and propagation of learning in every part of the world, as far as circumstances will permit,” was pronounced, valid. We find nothing in the Code of Louisiana indicating a spirit less comprehensive or catholic; we shall not, therefore* infer the existence of a restriction where none has been declared. We are of the opinion, that the uses for which the testator has devised his estate to the city of Baltimore, are approved alike in the legislation of Louisiana and Maryland, and that the execution of them may be enforced in their court's.
We have considered the legacy without a reference to . the annuities which the testator has charged upon it. It is only necessary for us to determíne a single question in regard to them. Are the heirs at law interested in the question of their legality ?
The Civil Code (C. C. 1697) declares “that legatees under a Universal title, and legatees under a particular title, benefit by ,- the failure of those particular legacies, which they are bound to discharge.”
It wifi be seen that all the annuitants, having a distinct character from the cities, have a claim upon them for their annual allowance. Should these annuities be invalid this charge would be removed, and the cities relieved. Such was the decision of the Supreme Court of Louisiana, (Prevost v. Martel, 10 Rob. 512,) and such the conclusion of the Court of Cassation, in Hanaire v. Tandon, the report-of whose judgment is appended to one. of the briefs of the appellants.
We shall not express any decided opinion in reference to either of, the annuities, but leave the question of their validity tobe settled by the persons interested, or by the tribunals to whose jurisdiction they appropriately belong.
We have considered it to be our duty to examine the several questions which arise upon the record,' so that the important interests involved in them maybe relieved from further embarrassment and controversy. In our opinion, the failure of the devise to the cities would not have benefited the appellees; for that the limitation over to the States of Maryland and Louisiana would have been operative in that event.
We close our opinion with expressing our acknowledgments for the aid we have received from the able arguments at the bar, and the profound discussions in the Supreme Court of Louisiana, with whose judgment we have concurred. .
The decree of the Circuit Court for the Eastern District of Louisiana is reversed, and the cause remanded to that court, with directions to dismiss the bill of the plaintiffs with costs.
Order.
This cause came on to be heard on the, transcript of the record iron the Circuit Court of the United States for the Eastern District of Louisiana, and was argued by counsel. On. consideration whereof, it is now here ordered; adjudged, and decreed by this court, that the decree of the said.Circuit Court in this' cause be, and the same is hereby, reversed, with costs; and that this cause be,.and the same is hereby, remanded to the said Circuit. Court, with directions to that court to dismiss the bill of the complainants, with costs in that court. .