115 Wis. 90 | Wis. | 1902
Lead Opinion
The following opinion was filed June 19, 1902:
This action pertains to the settlement of the estate of Sherburn S. Merrill, deceased. The county court having jurisdiction of the subject matter thereof had full original jurisdiction to hear all questions and make all orders necessary to a complete adjustment of the rights of all the-parties interested. By a judicial rule, and by statute as well, that jurisdiction was exclusive, precluding the legitimate commencement of this suit in the circuit court unless .jurisdiction by the latter court existed under some of the exceptions to such rule. Catlin v. Wheeler, 49 Wis. 507, 5 N. W. 935; Meyer v. Garthwaite, 92 Wis. 571, 66 N. W. 704; Burnham v. Norton, 100 Wis. 13, 75 N. W. 304; ch. 5, Laws of 1899. Counsel for appellants claim that the circuit court had jurisdiction, first, because the purpose of the suit was to “construe a will;” second, because the object of the suit, in part, was “to affect or pass the title to- real property;” and third, because .“the county court could not afford a remedy as adequate, complete, prompt or efficient as the circuit court.” We do not depm it necessary to consider any of those grounds of jurisdiction except the last. Whether this suit can be
It is said in Meyer v. Garthwaite that by the phrase “adequate and complete remedy” is meant a remedy “as practicable and efficient to the ends of justice and its prompt administration as the remedy in equity.” That is explained. by saying that the term has reference, among other things, to time and expense. That idea, as we have shown, was embodied in the act of 1809. Probably the mere economy of time in reaching a final result is not sufficient to warrant the circuit court in taking jurisdiction of a matter that can readily be settled in the county court. The element of time, however, is material when, by reason of peculiar circumstances, the speedy settlement of a controversy, that can only be determined by judicial remedies, is rendered of more than ordinary importance. In that view it is provided in the law of 1899, as before indicated, that an executor may be sued in
If the sixth clause of the will be valid, there is little or no ground for claiming that either the complaint, or the answer of Marion Merrill Ohe.ster, states a good cause for relief.
Does the sixth clause of the will offend against the statute-prohibiting restraints upon the power to alienate real estate ? At the outset, on that question, we should look to the statute-itself, determine its scope and purpose, and not, as some courts have done, and textwriters as well, assume that the-legislative policy embodied therein was intended to be in harmony with the common law on the subject of perpetuities as a whole, and give effect thereto accordingly.
There is much want of harmony in the decisions of courts and the writings of textwriters regarding statutes similar to-ours, as to their being aimed, primarily, at the prevention of perpetuities, when, by the plain reading thereof, their object is to prevent restraints upon the power to convey real estate— to prevent absolutely taking the title thereto out of the field of business for a longer period than that named therein.. There are two distinct ruling ideas found in the authorities:: one, that restraint on the power to alienate realty is primarily to prevent perpetuities, so that, though absolute power to convey the title may rest in persons in being, if the converted' fund arising from such conveyance must remain upon trust for a longer term than the power to alienate the realty could' lawfully be suspended, the whole scheme offends against the statute; and one that the primary object of the statute is not to prevent the tying up of property in the broad sense of the-term, but to prevent unduly suspending the power to absolutely alienate title to realty, — that such power not being restrained in contravention of the express words of the statute, restraint upon the ownership of property, regardless of its form, must depend upon some other provision of law. The-dividing line between the two theories, under statutes like-ours, would probably always have been distinct and well
Our statutes on the subject under discussion have been modified somewhat since the will was drawn. Sec. 2039, E. S. 1878, was then in force, and is as follows:
“The absolute power of alienation shall not be suspended, by any limitation or condition whatever, for a longer period than during the continuance of two lives in being at the creation of the estate.”
If the term “absolute power of alienation” could be considered ambiguous in any view of it, or the purpose of the statute, standing alone, could be reasonably said to aim at the tying up of property in a general sensé, in harmony with the common-law doctrine not established in England till 1881, in London & S. W. R. Co. v. Gomm, 20 Ch. Div. 562, we would be prevented from adopting it by the legislative exposition of the statute in the following language contained in sec. 2038, E. S. 1878:
“Such power of alienation is suspended when there are no persons in being by whom an absolute fee in possession can be conveyed.”
Before the origin of the system in Yew York, from which our statutes were modeled, as to real estate, these two ideas received attention in the English decisions: first, no future estate in land which can be released is too remote, as regards the land itself, to offend against the law prohibiting per-petuities ; second, a future interest in land is too remote notwithstanding the title thereto is not tied up so as to prevent dealing therewith if it be in a trust required to be carried beyond the period of limitation fixed by law, as regards per-
“A perpetuity is where, if all that have interest join, and yet cannot bar or pass the estate. But if by the concurrence of all having the estate tail may be barred, it is no perpetuity.”
In London & S. W. R. Co. v. Gomm, supra, after reviewing the whole field of judicial history from the time of Wash-bourn v. Downes, the conclusion was reached that decisions based thereon were contrary to the true policy of the law and wrong; that restraints upon alienation are aimed primarily at tire prevention of perpetuities; that a trust in real estate, tying up the estate itself,'may be within the limitations of tire rule against perpetuities, notwithstanding there are persons in being competent to convey a full title in possession to the realty. When the view which finds its first definite expression in Washbourn v. Downes — that so long as there are persons in being, no matter how numerous they may be, who by joining can convey a full title in possession to the realty, there is no offense against the doctrine of perpetuities — was supposed to be the law of England, the statutes of New York were framed; and that idea was made a part thereof so plainly that there is no good reason for going astray in respect thereto. Mr. Gi’ay, in his work on Perpetuities (sec. 747), while insisting that the doctrine is wrong, states that it has been unmistakably engrafted upon the New York statutes and those
“A perpetuity is where, if all that have interest join, and yet cannot bar or pass the estate. But if by the concurrence of all having the estate tail may be barred, it is no perpetuity.”
“Such power of alienation is suspended when there are no persons in being by whom an absolute fee in possession can be conveyed.”
The New York courts, before the adoption of its system as regards real estate here, took the view above expressed. Hawley v. James, 16 Wend. 176. In Robert v. Corning, 89 N. Y. 225, in harmony with a long line of New York decisions, and in treating a situation precisely the same as the one we have here, the following language was used:
“The mere creation of a trust does not, ipso facto, suspend the power of alienation. It is only suspended by such a trust where a trust term is created, either expressly or by implication, during the existence of which a sale by the trustee would be in contravention of the trust. Where the trustee is empowered to sell the land without restriction as to time, the power of alienation is not suspended, although the alienation in fact may be postponed by the nonaction of the trustee, or in consequence of a discretion reposed in him by the creator of the trust. The statute of perpetuities is pointed only to the suspension of the power of alienation, and not at all to the time of its actual exercise.”
Eightly understood, we venture to say all the New York authorities, with unimportant exceptions1, axe in harmony with Robert v. Corning. Norris v. Beyea, 13 N. Y. 273, 279; Genet v. Hunt, 113 N. Y. 158, 172, 21 N. E. 91; Nellis v. Nellis, 99 N. Y. 505, 516, 3 N. E. 59; Gott v. Cook, 7 Paige, 521; Williams v. Montgomery, 148 N. Y. 519, 43 N. E. 57. The early English rule, in almost the exact language used to express it in the cases which were condemned in London & S.
“The test of alienability of real or personal property is that there are persons in being who can give a perfect title. Where there are living parties who have unitedly the entire right of ownership, the statute has no application. The ownership is absolute whether the power to sell resides in one individual or several. If there is a present right to dispose of the entire interest, even if its exercise depends upon the consent of many persons, there is no unlawful suspension of the power of alienation.”
The point is made that so long as there is a trust term in real estate, with a mere discretionary right to sell which may or may not be exercised within the limits set by the statute for the suspension of the absolute power of alienation, the trust will fail; that to tahe the case out of the statutory rule, the exercise of the power of sale must be peremptory; that there must be persons in being who can compel such exercise within the statutory period. Bolles, Suspension of Power of Alienation, § 68, so states the law, but he does not support the same by any reference to judicial or other authority. The text is merely the author’s view of what the law is or ought to be. He states, in effect, at sec. 67, that it is not in harmony, fully, with the language of Robert v. Corning, 89 N. Y. 225. He seems to have been governed more by the general statutory policy of New York as to perpetuities, under which a trust term in realty with power of sale must be susceptible of being closed, both as to the realty and the converted funds, within the limitation upon the right to suspend the absolute power of alienation as to realty, the limitations being the same as to one kind of property as to the other.
It may well be that, where a limitation is placed by law upon the right to suspend the absolute power to pass the title to realty, and also upon the right to tie up the ownership of personal property, a trust term in the former, with power to convert the same into the latter, is void if, upon the exercise
“I cannot accede to the proposition ‘that the absolute power of alienation is not suspended when the instrument gives the trustees power to dispose of property at their option. When power is given to convey the trust estate, the absolute power of alienation can in no possible way be said to be suspended/ Doubtless the proposition is true, as applied to the alienation of any particular property, but it seems the object and purpose of the law was not kept in view in the opinion (speaking of the opinion in Thatcher v. Wardens). The fact that there is a power of sale of the trust property can have no bearing upon determining the validity of the trust as postponing the ultimate vesting of the trust estate in the beneficiary. If the trust estate is tied up1 longer than the law allows, it is void.”
To fully understand that, it must be kept in mind that the Michigan statute as to realty is the same as that of this state, while the common law prevails as to personalty. Justice ChampliN, it will be seen, treated the common-law rule against perpetuities and the statute in respect to alienation as parts of an entire system preventing the tying up of estates, and as if the purpose of every part of the system was primarily to guard against unduly withdrawing estates from the beneficiaries. He regarded a trust with power of sale as invalid, if not subject to be closed till a time subsequent to that beyond which power to alienate the land held under the trust could be suspended. -His reasoning forms the basis of the decision in Niles v. Mason, 126 Mich. 482, 85 N. W. 1100, repudiating the doctrine that the statute, as to the alienability of realty, is aimed primarily at the subject expressed therein, and holding that it goes' to' the prevention of the tying up of estates; that an estate in land under a trust term, with power of sale thereof, is governed by the
“Such power of alienation is suspended when there are no persons in being by whom an absolute fee in possession can be conveyed.”
It is difficult to see why a repiudiation of the rule upon which the statute is based is not a judicial nullification of the statute itself. We entertain great respect for the Michigan court, but cannot see our way clear to follow its lead. It seems that if the history of the statute had been fully understood, the court would have considered that the judicial function did not extend so far as to permit it to follow the later English doctrine, and it would have adhered to the decision in Thatcher v. Wardens, 31 Mich. 264.
It is considered that the proposition that a trust in land with, power of sale may offend against the law prohibiting perpetuities if, upon the execution of the power of sale, the converted fund is left fettered by a trust, is true only in case that trust is invalid — a trust contravening some law on the subject as to the converted fund. Penjield v. Tower, 1 N. D. 216, 46 N. W. 413, decided by the supreme court of North Dakota, upon which counsel for appellants rely, is in perfect harmony with that doctrine. In that state there is a statute as to realty similar to ours, and a statute as to per
“The suspension of all power to alienate the subject of a trust, other than a power to exchange it for other property to be held upon the same trust, • or to sell and invest the proceeds to be held upon the same trust, is a suspension of the power of alienation, within the meaning of section 2717.” Sec. 2744, Comp. Laws N. D.
In that situation the court was compelled to hold that absolute power, resting somewhere, to pass a full title in possession to real estate held in trust, will not satisfy the statute prohibiting the suspension of the power to pass the title to the subject of the trust.
The Minnesota statute as to real estate is the same as ours, while as to personalty the common-law rule probably prevails. In In re Tower’s Estate, 49 Minn. 371, 52 N. W. 27, much discussed in the briefs of counsel, the court held, in harmony with the views we have expressed, that the primary object of the statute is to prevent restraints upon alienation, and, when that is not violated in a trust of realty, the trust is valid unless it unduly suspends the ownership of personal property under the rule on that subject. The court cited and followed Robert v. Corning, 89 N. Y. 225, and Thatcher v. Wardens, 37 Mich. 264. We can best record here the full scope of the decision by the following quotation from the syllabus written by the court:
“Where a single trust embraces both personal and real property, and it does not offend against the rule as to1 perpe-tuities in respect to personalty, and by the instrument creating the trust an unconditional power of sale is given to the trustees, under which they may at any time convey the lands, and the converted fund is subject to a valid trust, the power of alienation is not suspended and the trust is not in contravention of the statute.”
' That seems to touch this case at all points on the subject under discussion.
Counsel for appellant point to Ford v. Ford, 10 Wis. 19, 33 N. W. 188, as significantly out of harmony with the views above expressed. The following language is referred to:
“The necessity of the corpus of the estate being held by a trastee during such several periods and awaiting such several contingencies and possibilities, seems to be absolute. Such trustee or executor is directed to sell some lands and buy others, but he has no authority under the will to pervert or alienate any portion of the estate, in contravention of the trust.*116 In other words, the corpus of the estate is inalienable during the continuance of the trust.” 70 Wis. 59, 33 N. W. 201.
We perceive no difficulty in that when it is read in connection with the subject to which it relates. The court was talking about restraint upon the power of alienation of realty. The corpus of the'estate was regarded all the time as composed of realty under the scheme 'of the will. Since by sec. 2089, R. S. 1878, beneficial interests in a trust for the receipt of rents and profits of land were not assignable, it was said that beneficiaries of such interests could not join with the trustee holding the legal title and pass the title absolutely in possession, and therefore a trust involving such interests, which may or must continue beyond the limit of time for the suspension of the absolute power of alienation, offends against the statute on that subject, and is void. By the terms of tire will the property spoken of as the corpus of the estate was realty, and made inalienable under any circumstances when sec. 2089, R. S. 1878, was read into the will. In those circumstances, nothing said by the court about the trust being invalid because it tied up the corpus of the estate beyond the statutory limitation upon the suspension of the absolute power of alienation as to realty can be legitimately invoked to defeat the trust in question in this case.
There was no1 equitable conversion of the real estate into personal property. That proposition — though presented for consideration by appellants’ counsel and ably discussed in the briefs of counsel upon both sides as one liable to be the vital point in the case — in view of the conclusion we have reached, might be passed over. But it is deemed better to consider and decide it. The general principles to be satisfied in determining whether equitable conversion of personal property into realty or realty into personalty was wrought in any given case, are too well understood to call for any extensive discussion of them. Equity deems that done which ought to be done. Therefore, if a testator, in a valid testa
“When a will contains a power of sale, not in mandatory terms, but it is apparent, from the general scope and tenor of the will, that the testator intended all his realty to be sold, the power of sale will be held imperative, and the doctrine of equitable conversion applied.”
Probably that cannot be much improved upon if at all. If it has any infirmity, it is in not indicating the necessary degree of certainty with which the intention of the testator should be manifested in his will. In some jurisdictions it is said that the power of sale without an express direction will not work a conversion unless there is “an. absolute necessity to sell to execute the will; or such a blending of the real and personal estate by the testator in his will as to clearly show that he intended to create a fund out of both real and personal estate, and to bequeath the said fund as money;” and that in either ease the intent to convert will be deemed as conclusively indicated as if expressed in words, and the doctrine of equitable conversion will be applied. Appeal of Hunt, 105 Pa. St. 128. In Hobson v. Hale, 95 N. Y. 588, Justice hliLLER, speaking for the court, said that the testator’s desire to have his realty turned into personal property should be so certain as to leave no question in regard to it,
We must determine, by established rules for judicial construction more than by precedents, whether, in framing the sixth clause of his will, the testator purposed having the residue of his estate therein mentioned administered as personal property. Precedents help as regards the rules to be applied, but very little otherwise. It was truly said by Justice WiLMOT, in Keiley v. Fowler, Wilm. Opi 319, that it will not do to tie to precedents in determining the meaning of a will:
“Every case stands upon the evidence of the testator’s intention arising out" of each will. In questions of intention, cases, unless they coincide in word's and every other circumstance, never assist, but perplex the exposition. A will is the picture of a man’s mind; and one may as well look at the picture of one man to know the person of another, as look at the will of one mind to know the mind of another.”
In the light of the foregoing we will turn to the language to be construed, assuming without discussion that it is open to construction. The great bulk of the testators property was disposed of under the sixth or residuary clause. It consisted mainly of real estate. There was upwards of half a million dollars in value of realty, and we may assume that much of it was noivineome-paying property and was not susceptible of division and subdivision into many interests in severalty without converting the same into money. The executors were imperatively directed, “as soon as convenient” after the death of the testator, to divide what, in their judgment, would be equivalent to the residue of the estate, into four equal parts. It is manifest that the word “equivalent” was not used with the idea that the property was to be
“The entire balance of said one-fourth shall be paid over or conveyed to my said son, Fred F. Merrill, five years after the last aforesaid -payment shall have been made, if in the judgment of my said executors such payment would be proper; but if his habits and mode of life at the expiration of said five years are such as in the judgment of my said executors will render such payment unsafe or improper, then they shall withhold the same until they shall deem such payment prudent.”
Such significant use of the word “payment,” which ordinarily conveys the idea of the movement of money or of something near akin thereto, as securities of some kind, has uniformly been regarded as indicating a purpose that realty shall be administered as personalty. In some eases it has been regarded as controlling. Dodge v. Williams, 46 Wis. 10, 96, 1 N. W. 92, 50 N. W. 1103; Clarke v. Clarke, 46 S. C. 230, 24 S. E. 202; Webster v. Morris, 66 Wis. 366, 28 N. W. 353; Going v. Emery, 16 Pick. 107; Delafield v. Barlow, 107 N. Y. 535, 539, 14 N. E. 498; Salisbury v. Slade, 160 N. Y. 278, 287, 54 N. E. 741. On the whole it appears to us that the sixth clause of the will satisfies the test laid down in Dodge v. Williams, supra, as regards equitable conversion, and also the much more severe test required by other authorities to which we have referred. It would be imprac-’; ticable to carry out the testator’s plan without treating the;' residuary estate as money. There were serious dangers to be apprehended at the time the will was drawn, in tying up the estate as was done, in any other view than that it was' to be treated as money. The details of the plan in all particulars are consistent with the idea that four separate funds were to be created out of the residuary estate and administered and disposed of as such. Some of the most significant details are inconsistent with any other theory than that they refer to personal property in the form of money or securities
While, as we have said, precedents are not very valuable in a case of this kind, we think those found here in principle justify our conclusion. Appeal of Chandler, 34 Wis. 505; Dodge v. Williams, 46 Wis. 70, 50 N. W. 1103, 1 N. W. 92; Gould v. Taylor Orphan Asylum,, 46 Wis. 106, 50 N. W. 422; Ford v. Ford, 70 Wis. 19, 33 N. W. 188; Harrington v. Pier, 105 Wis. 485, 82 N. W. 345. The precedents that might be cited from other courts are too numerous to warrant any attempt to do more than to refer to a few of the more important of them particularly applicable to the facts of this case. Phelps’s Ex’r v. Pond, 23 N. Y. 69; Delafield v. Barlow, 107 N. Y. 535, 14 N. E. 498; Salisbury v. Slade, 160 N. Y. 278, 54 N. E. 741; Asche v. Asche, 113 N. Y. 232, 21 N. E. 70; Clarice v. Clarice, 46 S. C. 230, 24 S. E. 202; Power v. Cassidy, 54 How. Pr. 4; Vanness’s Ex’rs v. Jacobus, 17 N. J. Eq. 153; Forsyth v. Forsyth, 46 N. J. Eq. 400, 19 Atl. 119; Appeal of Dundas, 64 Pa. St. 325; Green v. Johnson, 4 Bush, 164; Appeal of Paist (Pa.) 17 Atl. 6; In re Marshall’s Estate, 147 Pa. St. 77, 23 Atl. 391; Davenport v. Kirkland, 156 Ill. 169, 40 N. E. 304; Fahnestock v. Fahnestock, 152 Pa. St. 56, 25 Atl. 313; Phelps v. Phelps, 28 Barb. 121; Morse v. Morse, 85 N. Y. 53. In Phelps v. Phelps, 28 Barb. 121, the controlling feature of the will was the necessity, at the expiration, of ten years> to “divide up” the residue of the estate, consisting largely of realty, into as many “equal shares” as the testator might then have children and grandchildren, the probable number of such shares being
“It seems too clear to require argument that the provisions for the children raise of necessity an implied trust to sell. . It was impossible for the executors and trustees to carry out the provisions of this will without selling the property.”
In re Marshall's Estate, 147 Pa. St. 77, 23 Atl. 391, decided by the supreme court of Pennsylvania in 1892, and other cases to which we have referred, are of the same de
Does the sixth clause of the will offend against any law of this state as to perpetuities respecting personal property? We have seen in the discussion of the proposition respecting whether it unduly suspends the absolute power of alienation of realty, that the statute on that subject cannot be invoked to limit, primarily, or incidentally, power to tie up a fund derived from the sale of realty; and that if it were otherwise, the statute would not apply, because the trust property was, as we have seen, from the death of the testator, impressed with the character of personalty. Counsel for appellant contend that even in that view the trust is invalid because, though we have no statute on the subject, the common law is in force here, and condemns the trust because it involves possible interests that may not vest till after the termination of the period allowed by such rule. The conclusion which we have reached, as to whether the trust offends against such common-law rule, which will be hereafter stated, would enable us to fully dispose of this case without deciding the proposition suggested at the head of this paragraph; but if there be any doubt as to how it ought to be decided, it is considered that the subject is of such vast importance to> the state that this court ought not to be responsible for permitting that doubt to continue longer. If there is one thing more than any other, respecting property rights, which the court should firmly establish so far as responsibility therefor rests with it, and carefully guard against changes and uncertainties by judicial decisions or dicta, or obiter remarks in judicial dei-■eisions, it is the system governing title to property; and yet we are confronted with the suggestion, in this fifty-fourth year of our judicial history, that there is such serious doubt, •as to whether 'the common-law rule as to perpetuities respect
In Dodge v. Williams, 46 Wis. 70, 1 N. W. 92, 50 N. W. 1103, decided ‘in 1879, it was at least proper to decide whether the common law as to perpetuities respecting personal property was in force in this state. A conclusion in regard thereto was reached and duly promulgated. It was ■one of the grounds upon which the judgment of the court was pronounced. There is no legitimate reason, that we can perceive, by a careful study of the case, for referring to what the court said on that occasion as mere obiter or as anything less significant than its deliberate judgment. That, as between the parties to the litigation, the decision on that point was res judicata by all rules on that subject, seems clear. It cannot properly be said that the conclusion of a court upon a minor point is mere judicial dicta because the ultimate decision arrived at might have been bottomed upon some other minor conclusion or conclusions also reached in the case. Otherwise, obviously, it would be easy to avoid the effect, as regards judicial rules, of the most solemn decision of the court in any case when supported by more than one independent and sufficient ground. The general rule is that every proposition assumed or decided, leading up to the final conclusion reached in a case, and upon which such conclusion is based, whether it be the sole or only one of several independent and sufficient grounds for such final conclusion, is
“The statute limiting the rule against perpetuities to realty, manifestly abrogates the English doctrine as applicable to personalty.”
Language could not well be plainer than that. In editing the case for the official reports of the decisions of the court, the headnote to the case was written as follows:
“Our statutes prohibiting perpetuities and regulating uses and trusts are expressly limited to realty; and the English doctrine as to perpetuity as applicable to personalty was thus abrogated.”
No reference to the subject was made in any decision after Dodge v. Williams until De Wolf v. Lawson, 61 Wis. 469, 21 N. W. 615, decided in 1884, where Cole, O. J., — the subject of legal l’estraint upon the absolute ownership of personal property not being involved — said, his remarks; we may properly say, being, for the reason stated, plainly obiter:
“The late distinguished chief justice obsetrved in Dodge v. Williams, 46 Wis. 96, 50 N. W. 1106, that these provisions, limiting the rule against perpetuities to realty, manifestly abrogate the English doctrine as applicable to personalty. There can be no question but the statute refers to real estate alone. It may, however, admit of doubt whether the remark of the chief justice is strictly accurate in saying that it abolishes the common rule of perpetuities as to personalty when applied to private trusts.”
Further along in the opinion the obiter character of the quoted remark is indicated by the following:
“This common rule of perpetuity as to personalty may be unaffected by our statute. However that may be, the above clauses of the will plainly refer to real estate.”
Row we have gone over the history in this state of the subject of whether we have the common-law rule as to perpetuities respecting personalty, and have seen that, instead of a mere passing remark or individual expression of opinion by the chief justice in Dodge v. Williams, on the subject, we have the deliberate judgment of the court, establishing the law for. this state. It has stood as so established, though somewhat clouded, it is true, by intimations indicating that the way was open for a reconsideration of the matter, without ehange for twenty-three years, — long enough to be regarded as a rule of property and safe from danger of change except .by legislative enactment. Whether the decision was right or wrong, to disturb it now by mere judicial power would be a far greater mistake than the making thereof, if it were clearly erroneous. When such a question has been so long settled as to have become firmly impressed upon property, the maxim, Blare decisis, et non quieta movere, should be regarded as a governing principle in respect thereto. Harrington v. Pier, 105 Wis. 493, 82 N. W. 345.
That textwriters should have fallen into some confusion respecting the situation in this state, on the subject above discussed, is not to be wondered at. In 18 Am. & Eng. Ency. •of Law' (1st ed.) 379, it is said that the rule against per-petuities has been held to be abolished in Wisconsin so far as .it relates to personalty, citing Dodge v. Williams and De Wolf v. Lawson. In 2 Woemer,_Administi’ation, § 427, it is said ■that there is no statute in Wisconsin on the subject of per-petuities respecting personal property, and in mentioning the .•states where the common-law rule prevails on the subject, 'Wisconsin is not mentioned. In Gray’s work on Perpetuities, iin the note to sec. 266, the statement is made that the rule against perpetuities prevails in Wisconsin, no authority being
Neither by the foregoing conclusion, nor by anything said in reaching it, do we intend, expressly or inferentially, to give any opinion as to whether the correct conclusion was ' reached in Dodge v. Williams. That case may not have been correctly decided. There were good reasons, perhaps, for saying that it was not, when the De Wolf Gase was decided; but it seems that it was an inadvertence to refer to what was said as the “observation” of the justice who wrote the opinion, and possibly not the law. In states having a statutory situation similar to ours, it has been held that the common law is in force. It is by no means improbable that, if we were permitted to deal with the subject as an original matter, we would so hold. The question was new when it was decided here. It had not, therefore, been considered, so far as we are able to find, in any jurisdiction, under conditions similar to ours. We have come to the conclusion, upon the most careful consideration of the matter, that whether it was here decided right or wrong, the decision has remained undisturbed so long that it ought to be given th# force of a statute, leaving any change of policy that may be desired to be effected by the legislature.
If the conclusion were different as to the last subject discussed, the final result would be the same, because the next proposition submitted must be answered favorably to the respondents. . This is the proposition: If the 'trust were to be tested by the common-law rule as to perpetuities, would it fail ? That depends upon whether the twenty-one years of the rule is a gross term and an existing period of gestation, or whether the term refers to and is limited by existing infancy. There can be no reasonable controversy at this late
“Under the old law alienation might be suspended for any number of lives in being and twenty-one years, and of course for twenty-one years as a distinct period independent of lives. This was settled in Cadell v. Palmer, 1 Cl. & F. 372; S. C. 10 Bing. 140. This decision was not made until several years after the adoption of the New York Revised Statutes, although its principle was previously regarded as generally received.”
That remark is borne out by Barnitz v. Casey, 7 Cranch, 456, 469; Odell v. Odell, 10 Allen, 1, 5. See, also, Chilcott v. Hart, 23 Colo. 40, 45 Pac. 391; Rhoads v. Rhoads, 43 Ill. 239 ; Waldo v. Cummings, 45 Ill. 421. The entire roll of the elementary writers, with one exception, might be success
notwithstanding suggestions to the contrary, we are unable to read out of the trust clause any possible contingency that can arise that will suspend the absolute vesting of any part of the trust estate beyond twenty-one years from the termination of lives in being at the death of the testator. The plan of the will clearly is that the trust shall, at the end of such period, absolutely terminate, and the absolute title to the entire property pass from the trustees to persons then ascertainable.
“To come within the rule of the common law against per-petuities the estate . . . must be one which, according to the terms of the grant or devise, is to vest upon the happening of a contingency which may t>y possibility not take place within a life or lives in being (treating a child in its mother’s womb as in being) and twenty-one years afterwards.” McArthur v. Scott, 113 U. S. 340, 381.
It is suggested that the persons who will be entitled to the trust estate, from the necessities of the case, cannot be ascertained till a time subsequent to the termination of the twenty-one year period, and that such feature of the trust condemns it by the common-law rule against perpetuities. We are not familiar with any authority for the proposition that the identity of all the persons entitled to participate in the distribution of a trust estate must be ascertained within the time limited by such rule. If the vesting of the estate cannot, by the terms of the trust, be postponed to a period too remote,
A further suggestion is made that the trust does not satisfy sec. 2071, Stats. 1898, in that it is not fully expressed and clearly defined upon the face of the instrument. Suffice it to say, on that point, that we have carefully considered counsel’s argument and are unable to see the uncertainties suggested. That is not uncertain which may readily be made certain by some definite test provided in the trust when the time shall have arrived for action. That simple proposition seems to amply answer all the suggestions made in support of this point.
We have now disctissed all of the more important questions submitted for consideration, including. several, as indicated, that might have been omitted but which it was deemed best not to pass over, since a legitimate occasion was presented for deciding them, and the decision thereof seemed important to the end that the judicial policy of the state may be definitely known regarding property rights. The trust clause of the
By the Court. — So ordered.
Concurrence Opinion
The following opinion was filed July 5,1902:
I fully concur in the affirmance of the several orders from which the appeals are taken. The will expressly gave full power at all times to sell and convey the real estate and any part thereof, and to convert the same into personal property. The general scheme and purpose of the will is in harmony with its express language, and by necessary implication requires the real estate to be converted into personal property and to be administered and finally disposed of as such. Under the well-established doctrine of equitable conversion which this court has repeatedly recognized and enforced, the whole estate in question must, for the purpose of determining the validity of the will, be regarded, in equity, as personal property — as abundantly shown in the opinion of my brother Maeshall, filed herein. This being so, it is very obvious that our statutes, which were in force at the time of the death of the testator, and which prohibited the suspension of the absolute power of alienation of real estate for a longer period than “the continuance of two lives in being at the creation of the estate,” have no application to the estate in question. Sees. 2038, 2039, R. S. 1878. Such statutory prohibitions relate entirely to real estate and have no reference to personal estate.
The most important question in the case is whether the provisions of the will are repugnant to the common-law rule against perpetuities as to personal property. That rule was
“That the limitation of a term to several persons in remainder, one after the other, if such persons be all in being ■and particularly named, can in no wise tend to the entail of a chattel or creating of a perpetuity, but the limiting of it to a person not in being doth.” Goring v. Bickerstaffe, Poll. 31, 32.
That is believed to be the first case extending the rule to a number of lives in being at the time of the creation of the •estate. Soon after, the same learned Lord Chancellor followed the same ruling in the Duke of Norfolk’s Case, Poll. 223; 3 Cas. Oh. 1; 2 Freem. 12. To the same effect: Love v. Windham, 2 Keb. 631; Love v. Wyndham, 1 Mod. 50; Taylor v. Biddall, 2 Mod. 289. Several of the eases cited were decided nearly 100 years before Blaekstone was written. That standard work declared, nearly 150 years ago, that:
“Courts of justice will not indulge .even wills, so as to ■create a perpetuity, which the law abhors; because by per-petuities (or the settlement of an interest, which shall go in the succession prescribed, without any power of alienation), estates are made incapable of answering those ends of social commerce, and providing for the sudden contingencies of private life, for which property was at first established. The 'utmost length that has been hitherto allowed for the contingency of an executory devise of either kind to happen in is that of a life or lives in being, and one and twenty years after-wards. . . . That though such remainders may be lim*138 ited to as many persons successively as the devisor thinks proper, yet they must all be in esse during the life of the first devisee; for then all the candles are lighted and are consuming together, and the ultimate remainder is in reality only to that remainderman who happens to survive the rest; and it was also settled that such remainder may not be limited to take effect, unless upon such contingency as must happen, if at all, during the life of the first devisee.” 2 Cooley, Bl. Go mm. (4th ed.) 174,175.
This was expressly approved and substantially held by the House of Lords, with Lord Chancellor Beougham presiding, in Cadell v. Palmer, 1 Clark & F. 372, 411-423; 7 Bligh, 202, 229-240; 21 Eng. Rul. Cas. 100, 120-129. Mr. Perry states the several advances made in the common law. 1 Perry, Trusts (4th ed.) § 379. The case of Gadell v. Palmar, supra, was decided long before this state was admitted into the Union, and is referred to in the opinion filed herein as correctly stating the common law against perpetuities; and it is therein argued at great length, and, as I understand, in effect held, that the will in question does not offend against such common-law rule; and I fully concur in that construction of tire will.
1 have briefly referred to tire history of the rule as bearing upon a question about to be considered. Had my brethren been content to rest the decision in this case upon such conclusion, there would have been no occasion for writing this separate opinion. But they have gone further, and expressly declared that: “The• common-law rule as to perpetuities respecting personal property is not in force in this state.” In other words, the declaration is that in Wisconsin personal estate may become inalienable and tied up for all time. And yet, as declared in the quotation from Blackstone, the law abhors perpetuities as being contrary to the purpose “for which property was at first established.” Infringements of the common-law rule against perpetuities have uniformly been held void on the ground that they are “repugnant to the policy
“Such parts of the common law as are now in force in the territory of Wisconsin, hot inconsistent with this constitution, shall be and continue part of the law of this state, until altered or suspended by the legislature.” Sec. 13, art. XIY.
There is no pretense that there has ever been any statute in this state purporting to change such common-law rule as to personal property. The ruling in this case upon the question here being considered is based wholly upon an assertion of Eyan, O. J., in Dodge v. Williams, 46 Wis. 96, 50 N. W. 1106. He there states that:
“The statute limiting the rule against peipetuities to realty manifestly abrogates the English doctrine as applicable to personalty. Expressio unius, exclusio alterius.”
There are several reasons why that assertion should not be given the force of law: (1) Eo authority is cited by the learned chief justice in support of it. Eo authority is cited in support of it in the lengthy opinion filed in this case unless the quotation of it, without protest by way of argument by my brother Maesiiall, speabing for the majority of the court in Harrington v. Pier, 105 Wis. 507, 82 N. W. 345, is to be
“Section 1. The absolute ownership of personal property shall not be suspended by any limitation or condition whatever, for a longer period than during the continuance and*141 until the termination of not more than, two lives in being at the date of the instrument containing such limitation or condition ; or if such instrument be a will, for not more than two lives in being at the death of the testator.
“Section 2. In all other respects, limitations of future or contingent interests in personal property, shall be subject to the rules prescribed in the first chapter of this act, in relation to future estates in lands.” Id. p. 127.
Thus, it appears that the legislature of this state simply adopted certain sections of the Yew York statutes limiting the rule against perpetuities as to real estate, but made no reference to such New York statutes as to personal property,— much less as to the common-law rule against perpetuities as to personal estate. In adopting the sections mentioned they were not legislating in respect to the common law, but in respect to existing statutory law. This being so, how is it possible that the maxim, Expressio unius est exclusio alter-ius — ’mentioned by the learned chief justice — operated to “abrogate the English doctrine” of perpetuities “as applicable to personalty” ? As stated by an eminent English judge, that maxim
“is often a valuable servant, but a dangerous master to follow in the construction of statutes or documents. The exclusio is often the result of inadvertence or accident, and the maxim ought not to be applied when its application, having regard to the subject matter to which it is to be applied, leads to inconsistency or injustice.” Colquhoun v. Brooks, 21 Q. B. Div. 52, 65.
To hold that the adoption of a statute of ISTew York which materially shortened the common-law period during which the absolute power of alienation of real estate might be suspended, operated, by virtue of that maxim, to “abrogate the English doctrine” of perpetuities as to personal property, is, to my mind, simply absurd. The claim that such shortening of the period of suspension as to real estate operated to lengthen the time during which the absolute power of alienation of personal property might be suspended indefinitely and
In each of our sister states of Minnesota and Michigan, the legislature adopted the New York statute as to real estate, mentioned, but not as to personal property, the same as was done in this state by the Revised Statutes of 1849. The question here being considered was squarely presented for adjudication in each of those states. The Minnesota court expressly held that:
“In this state the absolute power of alienation, as respects real estate, cannot be lawfully suspended by the creation of a trust for more than two lives in being. But as to personal property the common-law rale still prevails, and a trust therein may continue for one or more lives in being at the death of a testator, and twenty-one years and a fraction.” In re Tower's Estate, 49 Minn. 371, 52 N. W. 27.
The same conclusion was reached by the supreme court of Michigan. Palms v. Palms, 68 Mich. 355, 363, 370, 36 N. W. 419, 434. On this last page it is said by the court that:
“The personal property coming within the trusts is governed in this state by the common-law rule, which limits the suspension of the power of alienation to the period of any life or lives in being and twenty-one years afterwards.”
If these two decisions are right in the particular mentioned, .then the assertion of Chief Justice Ryaw, quoted, is wholly without foundation. That they are right, I apprehend, will not be disputed by any one who appreciates that the adoption of a particular statute simply displaces the common law to the extent that it is inconsistent with it. Chippewa Falls v. Hopkins, 109 Wis. 616, 617, 85 N. W. 553.
If a contrary rule, like the one announced in the opinion filed, is to prevail, then many of the decisions of this and other
“Neither by the foregoing conclusion, nor by anything said in reaching it, do we intend, expressly or inferentially, to give any opinion as to whether the correct conclusion was reached, in Dodge v. Williams. That case may not have been correctly decided. There were good reasons, perhaps, for saying that it was not, when the De Wolf Case was decided. In states having a statutory situation similar to ours, it has been held that the common law is in force. It is by no means improbable that, if we were permitted to deal with the subject as an original matter, we would so hold.” But the decision, whether right or wrong, ought now “to be given the force of a statute.”
Thus it is, in effect, admitted that the assertion of the learned chief justice was wrong and without any foundation, and for that reason, in my judgment, it ought not to be sanctioned, — much less “to be given the force of a statute.”
“This is not a mere question of practice nor the construction of a local statute long acquiesced in, but is a question of general equity jurisprudence; and it is very important to the people of the state that this court should, at least on such •questions, adhere to the principles of the common.law so well •established as to become elementary.” Nonotuck Silk Co. v. Flanders, 87 Wis. 243, 244, 58 N. W. 383.
Courts are instituted, not for the purpose of making laws, but for the purpose of declaring what the law is; and an
“Reason is the life of the law; nay the common law itself is nothing else but reason, which is to be understood of an artificial perfection of reason, gotten by long study, observation, and experience, and not of every man’s natural reason for nemo nascitur artifex. This legal reason est summa ratio. . . . No man (ont of his own private reason) ought to be wiser than the law, which is the perfection of reason. . . . The reason of the law is the life of the law; for though a man can tell the law, yet, if he know not the reason thereof, he shall soon forget his superficial knowledge.” 1 Thom. Coke, Litt. 1, 3.
Rut there is still another reason why the assertion of the chief justice should not have the force of law. It was, in my judgment, uncalled for in the case in which it was made, and was mere sajino-judicial dicta. This appears from the language of the chief justice in that case, where he said:
“The English doctrine of perpetuities . . . appears to have been applied to private trusts, but not to trusts for charitable uses, which usually are essentially and indefinitely permanent. The rule of public policy which forbids estates to be indefinitely inalienable in the hands of individuals does not apply to charities. These, being established for objects of public, general, and lasting benefit, are allowed by the law to be as permanent as any human institution can be, and courts will readily infer an intention in the donor that they should be perpetual. . . . If au alienation of the estate becomes essential to the beneficial administration of the charity, it may be authorized by a court of chancery. . .*145 But, were this otherwise, the statute limiting the rule against perpetuities to realty manifestly abrogates the English doctrine as applicable to personalty.” Bodge v. Williams, 46 Wis. 95, 96, 50 N. W. 1103.
That case was decided upon the theory that the bequest was for a charitable purpose and outside of the common-law rule of perpetuities. Thus it was said by my brother Marshall, in a recent case, that:
“It was plainly and correctly decided, in Bodge v. Williams, that the statutes of perpetuities and of uses and trusts have no application to gifts for charitable purposes. That was as far as the court was called upon to go on the facts in that case Harrington v. Pier, 105 Wis. 493, 494, 82 N. W. 345.
Besides, in my judgment, the court is not called upon to decide in this case whether the common-law rule as to per-petuities respecting personal property is in force in this state. This seems to be conceded in the opinion of my brother MaRshall, where it is said, in effect, that: “The conclusion which we have reached, as to whether the trust offends against such common-law rule, . . . would enable us to fully dispose of this case without deciding the proposition [just mentioned].” And again: “If the conclusion were different as to” that proposition, “the final result would be the same, because ... if the trust were to be tested by the common-law rule, as to perpetuities,” it would not fail. In the effort to give the assertion of the chief justice, quoted, “the force of a statute,” it is claimed that that assertion is res adjudicaia. In support of such claim, the opinion filed cites a case which holds that:
“A proposition assumed or decided by the court to be true, and which must he so assumed or decided, in order to establish another proposition, which expresses the conclusion of the court, is as effectually passed upon and settled in that court as the very matter directly decided.” School Trustees v. Stocker, 42 N. J. Law, 115.
“It has been held that not only is the judgment of a court conclusive on all questions actually and formally litigated, but likewise as to all questions within the issue, whether formally litigated or not; that is to say, all matters which are impliedly and necessarily within the issue joined, and the determination of which is necessai’ily included in the judgment.” Wells, Res Adjud. § 217.
This sufficiently appears from what has already been said. Chief Justice MaRShall tersely stated the true rule when he said “that the positive authority of a decision is co-extensive only with the facts on which it is made.” Ogden v. Saunders, 12 Wheat. 333; Evans v. Virgin, 72 Wis. 423, 39 N. W. 864.
4. There is one other reason why the assertion in question should not be given the force of law. Five years after that assertion was made, in an opinion by Oole, O. J., speaking for the whole court, four members of which participated in the decision of Dodge v. Williams, he stated the common-law rule of perpetuities as to personal property when applied- to private trusts, and among other things said: “This common-law rule of perpetuity as to personalty may be unaffected by our statute.” De Wolf v. Lawson, 61 Wis. 469, 473, 474, 21 N. W. 615. That was said after careful deliberation, in a case relating wholly to real estate, for the very purpose of preventing any one from being misled by such obiter remark of Chief Justice Ryan. The same was in substance repeated two years afterwards for the same purpose. Webster v. Morris, 66 Wis. 382, 28 N. W. 353. What Was said in those two cases, and subsequently in Lamberton v. Pereles, 87 Wis. 449, 457, 458, 58 N. W. 776, I had assumed, substantially disposed of the obiter remark of Chief Justice- Ryan in Dodge v. Williams. I had reached that conclusion because
While I have no doubt that my brethren have made the ruling here complained of, in pursuance of a sense of duty nevertheless I have been constrained to write this separate opinion, in which I have attempted, in a respectful manner, to expose what I regard as a legal monstrosity, in the hope that the legislature may do something to relieve the state of Wisconsin from being the only state in the Union where personal property may be given in trust for a private purpose and rendered inalienable for all time.
A motion to modify the judgment -yus denied September 23, 1902, and the following opinion was filed September 25, 1902:
We are asked to modify the judgment rendered here on these appeals so as to allow taxable costs in this court to the losing parties payable out of the tjust fund. The prevailing parties, by their respective counsel, consent to the making of such modification, and yet we are unable to come to the conclusion that it can properly be done. A definite rule has been established as to when a trust fund, held by an executor, can be depleted in the manner here requested in the absence of a statute so regulating the matter. In re Donges’s Estate, 103 Wis. 497, 79 N. W. 786. It is conceded that this action does not fall within the rule unless it should be viewed as one for the construction of a will. The court would not have gone so far as in the Donges Case had it not been for the previous decisions in respect to the subject, which we felt bound to follow. The whole practice
Notwithstanding the conclusion reached as to whether this case is one for the construction of or to set a will aside, strictly speaking, we have the proposition before us on the stipulation for the granting of the motions, as to whether a
By the Court. — The motions are denied.