62 Md. 33 | Md. | 1884
Lead Opinion
delivered the opinion of the Court.
The bill in this case was filed by some of the grandchildren of Kennedy Long, deceased, claiming as devisees in remainder under the will of their grandfather ; and they pray for partition or sale of the property devised to them and others, and also for an account of rents and profits of the property from the parties in possession thereof.
Kennedy Long, the testator, made his will in 1823, and died in 1824. He left six children surviving him, named Andrew K. Long, J ames H. Long, Thomas J. Long, Eliza, who had married Dr. Balfour, (and who was a widow at the time of the death of her father,) Mary Jane Long, who afterwards married Moses L. Knapp, and Amelia Jane Long, who subsequently married Thomas Worthington. The testator also left a widow, Elizabeth Long, who survived until June, 1850. At the time of the death of the
As some of the questions in the case depend, to a large extent, upon the nature and quality of the estates devised, it is material to state, somewhat at large, the provisions of the will.
After directing the payment of his debts and funeral expenses, and making some few specific bequests, the testator proceeded to give directions to his executors, after-wards named, as to how they should dispose, of and administer his personal property, and he then bequeathed to his widow an equal share in all the remainder of his personal ■estate. And as to all the rest of his personal estate, and as to all his real estate, of every kind and description, he devised and bequeathed the same to his friends, James Hutton, James Wilson, John Wilson, and his brother, Henry Long, “ and the survivors and survivor of them, ■and the heirs, executors, and administrators of such survivor, in trust and special confidence, nevertheless, for the benefit of, and to be equally divided between, all and ■every the children I now have, and the child or children I may hereafter have, and their descendants, in manner, upon the conditions and subject to the limitations and restrictions hereinafter mentioned, that is to say:"
That his son, Andrew K., during the term of his natural life, and no longer, should receive the income of his share; “and from and immediately after his decease, the principal of his share or proportion shall descend to, and be equally divided between all and every the child or children •of him, the said Andrew K., their heirs, executors, administrators and assigns, in equal proportions, as tenants in common, share and share alike.”
That his sons Thomas and James, respectively, until the latter should attain the age of twenty-four years,
That his daughters, Eliza Balfour, Mary Jane Long,, and Amelia J. Long, should, during their respective lives,, take, receive and enjoy, or have applied to their several uses and benefits, the dividends, rents, issues, profits and income of their respective portions or shares, free from the control and liability for the debts of their husbands “and from and immediately after the decease of my said daughters, respectively, the principal share or portion of her so dying, shall descend to, and be equally divided between all and every her child or children, their heirs, executors, administrators and assigns, forever, as tenants in common, in equal proportions, share and share alike. And in the event of the decease of any of my children under age, and without lawful issue, the share or proportion of him, her or them, so dying, shall descend to and become the estate and property of the survivors or survivor of them, my said children.”
The testator further provided and declared, that it was. his will and desire, and he' so ordered and directed, that his “dwelling place” be rented out as soon as his executors might think proper, for the benefit of his children; “and I do expressly forbid that any part or parcel of that property be either sold or leased until after the decease of my beloved wife, or until my youngest child is of age and it is also my desire that my children live with their mother, provided she reside in Baltimore, during her widowhood, or as long afterwards as my executors approve of their treatment, and that she be reasonably compensated from the income arising from their respective parts of my estate, for her trouble and attention to them.”
The widow renounced the provisions of the will in her favor, and elected to take what the law allowed her instead. James Hutton and the two Wilsons declined to act as executors, and though there is no formal evidence of disclaimer, it does not appear that they ever accepted the trust conferred upon them by the will, or that they ever interfered with the estate in any way whatever, and all the circumstances of the case concur in making it clear beyond doubt that they never did in fact accept the trust.
Henry Long, therefore, became the sole trustee, and also the sole executor. And the principle is clear that where some of the trustees disclaim or decline to accept, in a case like the present, the remaining trustees or trustee will take not only the entire legal estate devised or granted, but also all the powers and authorities intended that they should exercise as trustees, and which are requisite for the execution of the trust. Small vs. Marwood, 9 B. &
As sole executor Henry Long proceeded in the settle-, ment of the personal estate, and the distributive share of each child was ascertained to he about $1200. The only remaining property subject to the trusts of the will was the “dwelling place,” which the testator had forbidden to he sold or leased, until after the death of his wife, or until his youngest child should come of age. As long as Henry Long remained in the State he superintended this property as executor and trustee; hut shortly after the settlement of the persoual estate he removed to the State of Illinois, where he became a permanent resident. From the time of his removal there was no person present to exercise supervision over the property, and it was suffering serious detriment for the want of proper management.
In this state of things in March, 1833, the widow, and all the children of the testator, the devisees under the 'will, except Amelia J. Long, who was still under age, joined in a petition to the County Court of Baltimore County, a Court of general equity jurisdiction, representing the facts of the case, and praying that Henry Long, the trustee, be removed, that some other person he appointed in his stead, and that the “dwelling place,” the only real estate left by the testator, be sold, and that the proceeds of sale he paid to the parties entitled; and the will of the testator was made an exhibit with the petition. Amelia Jane Long, the infant, and Henry Long, the trustee, were made parties defendants. Henry Long answered, admitting the facts alleged, and consented to his own removal, and the appointment of some other person in his place. He did not, however, join in the application for the sale of the property, nor did he admit that a sale was wise or proper. He was silent upon the subject. The infant defendant answered by her guardian, admitting
Mrs. Knapp died in 1863, leaving six. children, and all of them received their proportions of the share of the proceeds of the sale of the property invested for their mother for life, under the order of Court, as appears from certain entries of the trustee, and releases to him dated in 1863 and 1868. Andrew K. Long died in 1866, leaving six children, and the share of the proceeds of the property sold that was invested for him for life, has been divided and paid over to his children by the trustee, as is evidenced by the receipts and releases to the trustee, dated in 1810. Mrs. Balfour died in 1810, without issue, and the share of the proceeds of sale Invested for her during life, has been paid over, so far as shown, to those entitled to receive it. Mrs. Worthington died in 1881, since the filing
The bill in this case was filed the 1st of June, 1880, by the children of Andrew K. Long; the children of Mrs. Knapp and of Mrs. Worthington being made defendants; but after the death of Mrs. Worthington her children were joined as plaintiffs.
The bill proceeds upon the theory and assumption that the estates limited in remainder to the children of Andrew K. Long, Mrs. Knapp, and Mrs. Worthington, in the property described as the “dwelling place,” were not disposed of or in any manner converted, by the sale under the decree of Baltimore County Court, in 1833; and those -children are now claiming their respective interests in that property as if no sale had ever been made.
The numerous defendants, being owners and occupants -of the property, by their answers, have set up various defences ; first, that the decree and sale of 1833, operated upon, and transferred to the purchaser, the entire right and estate, of which the testator died seized, in the property sold; secondly, that the claim of the plaintiffs is barred by the Statute of Limitations; third, that the claim is barred by lapse of time and laches; and fourth, that the claim on the part of the children of Andrew K. Long and Mrs. Knapp is entirely concluded by acquiesence and ratification.
1. With respect to the jurisdiction and power of the County Court to pass the decree, under which the sale was made, we can entertain no doubt. The clause of the will forbidding the sale or lease of the property until the occurrence of certain events, did not affect the jurisdiction of the Court. The Court was one of general equity juris
The decree, therefore, of the County Court, made in 1833, hound all the parties to the cause, to the full extent of their rights and interests in the property, whether legal or equitable, and the sale and the conveyance hy the trustee transferred to the purchaser all the right, estate and claim of the parties to the cause, existing at the date of the decree. It was with the entire interests and estates of the parties that the decree dealt, and hence the trustee was directed to sell and convey the property and estate “free, clear, and discharged from all claim of the parties, and those claiming by, from or under them, or either of them.” The devise to Mrs. Balfour was for her life only, with remainder to her children, and in the event of her death under age and without lawful issue, the share so devised was given over to the surviving children or child of the testator; hut there was no disposition made of this share in the event of the devisee for life dying after attaining age and without issue. And as Mrs. Balfour was over twenty-one years of age at the time of the application for sale, and died in 1870, without issue, it follows that there was an intestacy in respect to this share, and a reversion in fee vested in the heirs-at-law of the testator at the time of his death ; and as all these heirs-at-law were parties to the cause in which the decree passed,
But the most material question in this case is, whether the children of Andrew K. Long, Mrs. Knapp and Mrs. Worthington, entitled in remainder under their grandfather’s will, were substantially and legally represented, ■so as to be bound thereby, in the proceedings that resulted in a decree and sale of the property, though they were not in esse at the time. To determine this question, we must ascertain what estates were given by the will, and their connection and dependence the one upon the other.
Looking to the context and the whole scheme of the will, it would seem to be quite manifest that the testator intended that his son Andrew K. Long, and his three daughters, should take equitable life estates only, and that the trustees should hold the legal estate during the respective lives of these children of the testator. The use therefore was executed in the trustee and his heirs, during the respective lives of these life tenants, and not in the life tenants themselves. Ware vs. Richardson, 3 Md., 505; Griffith vs. Plummer, 32 Md., 74; Hapland vs. Smith, 1 Bro. C. C., 75; Doe vs. Hicks, 7 T. Rep., 433, 437; 1 Perry on Trusts, sec. 305. But with respect to the devises in remainder to the grandchildren, it is declared that from and immediately after the death of the parent, the equitable life tenant, the principal of his or her share shall descend to and be equally divided between all and ■every the child or children of such life tenant, their heirs, executors, administrators and assigns, in equal proportions, ■as tenants in common, share and share alike. This language gives an absolute, uncontrolled estate, and it does not import that the children were to take through their parents by descent, but they take as purchasers by way of ■devise. And such being the case, it would seem to be ■clear that the devisees in remainder take legal estates,
Nor can the powers confided to the same persons as executors as those to whom the estate was devised in trust, be invoked to enlarge the estate or powers of the trustees. The fact that the same party is both trustee and executor cannot operate to enlarge his powers in either capacity, nor can it work any transfer or interchange of powers. In such case the will must be construed as if the respective offices and duties had been .conferred upon different persons. Keplinger vs. Maccubbin, 58 Md., 203. In this case the powers conferred upon the executors, of partition or sale, were never attempted to be exercised; and, of course, no title can be derived or supported through such powers.
Now, seeing that the trustee held the estate in trust only for the lives of the first devisees, the question is, how were the devisees of the legal estate in remainder represented in the proceedings for the sale ? As before stated, they were not theniw esse, and therefore the estates devised to them were but contingent remainders. The Court, and the parties before the Court, proceeded as if it was a right and proper thing to do for the interest of all concerned, to convert the estate into money, and to let the fund stand .in the place of the property sold. If, however, that was done without warrant or authority of law, as to parties ultimately entitled, and the estate of such parties has been illegally sold by a judicial proceeding to which they were no parties, and had no legal representation therein of their interests, then, though it may operate a great surprise and hardship upon innocent parties, the Courts have no alternative but to uphold the rights of
What we have said in regard to the want of representation in the sale of the property, only applies to the real estate as such, and not to any personal or leasehold estate. In regard to the latter, the trustee held the legal estate until the trust was ended by the termination of the lives-of the life tenants ; and he was the sole representative of that estate. Being a party to the decree whereby the leasehold interest was ordered to he converted into money, those entitled in remainder, especially as they were not in esse at the time, are hound and concluded by the decree. 1 Perry on Trusts, secs. 311, 318, and 330, and cases cited.
2. Having disposed of the question as to the effect of the decree and sale upon the interests of the parties claiming in remainder, we come next to the defence of the Statute of Limitations relied on by the defendants.
If this were an action at law, as perhaps properly it should he, instead of a hill in equity, it is very clear that the Statute of Limitations as a technical bar could have no application as against the right to recover the estate itself, though it would have against the claim for rents and profits. The supposition that the legal fee of the estate remained in the trustee, and that the holding, of the defendants was adverse to him as the representative of the
3. The defendants also rely upon laches and lapse of time, as distinct from the defence of the Statute of Limitations, as against the claims of the children of Andrew K. Long and those of Mrs. Knapp. But we do not think, ■on the facts of this case, that that defence, standing alone, •ought to prevail. Lapse of time, however, may have a very considerable influence when considered in connection with the defence made in this case, of estoppel and ratification, next to he noticed.
4. The defendants have produced the account of the •trustee, Mr. Pennington, showing the state of the family
It is contended for the pláintiffs that before these receipts and releases should be allowed to have the effect claimed for them, the Court should be satisfied that the money was received and the releases were given with full knowledge of all the facts, and with an understanding by the parties of their legal rights in respect to the subject-
As to the claim of Mrs. Hageman, one of the children of Mrs. Knapp, while there is no formal release exhibited from her, it is admitted that she has received her proportion of the share of the proceeds of sale set apart to her mother for life ; and there is no reason why she should not be equally estopped as the other of her sisters. Even if she never did execute a formal release, she and her husband were competent to become parties to a proceeding for the sale and conversion of the property; and if they thought proper to adopt a previous sale and to take the proceeds in lieu of the property itself, they were at liberty to do so, and their election will bind them. Kempe vs. Pintard, 32 Miss., 324; Hunter vs. Hatton, 4 Gill, 124.
But with respect to Moses L. Knapp, the minor son of Mrs. Knapp, he having died in 1874, before he attained age, the case is different. He was not competent himself to do any act that would have the effect to ratify the sale; nor could any one else ratify it for him during his minority. No act done or sanctioned by his guardian, especially a foreign guardian, could have the effect to ratify the sale or conversion so as to bind him, except at his election after he became of age. And having died a minor, leaving his interest in the real estate unaffected by ratification of the sale made under the decree in 1833, that interest devolved upon his five sisters, and such devolution of interest was long after the receipts and releases by the sisters for their respective shares of the fund in the hands of the trustee. Such surviving sisters therefore of Moses L. Knapp are
It has been suggested on the part of the complainants, that the payment by the trustee of the share or portion due to William St. Clair Long, one of the children of Andrew K. Long, deceased, and the release to the trustee by the curator of the estate of the devisee, could not have the effect of ratifying or confirming the sale of 1833, because William St. Clair Long was a minor, under twenty-one years of age, at the time of such payment by and release to the trustee; and this would be correct were it not for the lapse of time since the devisee, William St. Clair Long, attained the age of majority. The payment and release were both made in 1870, and William St. Clair Long attained the age of twenty-one years in
There being no question of estoppel or ratification aa to the children of Mrs. Worthington, they, or those representing them, are entitled to one-sixth part of the real estate sold under the decree. They have received no-part of the proceeds of sale, and have positively refused to recognize the validity of the proceedings under which the sale was made.
The bill prays for an account of rents and profits. The Statute of Limitations is relied on as a bar to that relief; and as to the one-sixth of one-sixth interest, to which alone the statute can have any application, the account will be confined to the period of three years prior to the filing the bill, and down to tbe time of accounting; and as to the one-sixth interest the account will be taken from the time of the death of Mrs. Worthington.
The defendants who claim and hold the property under the decree and sale of 1833, being innocent bona fide holders and possessors of the property in controversy, supposing that they held a good and sufficient title thereto by virtue of a judicial sale, will be entitled, upon well established principles, to a proportionate allowance for the value of all beneficial permanent improvements of the property, according to its present improved condition. They will also be entitled to a proportionate allowance for all such taxes and insurance as may have been paid by them, for the time during which they are required to account for rents and profits. This right to allowance we do not understand to be controverted. Indeed, it is conceded that such would be the consequence of a decree for the plaintiffs.
It follows that we must reverse the decree appealed from, and remand the cause that a decree may he made in accordance with the foregoing opinion.
Decree reversed, and cause remanded.
Dissenting Opinion
delivered the following dissenting opinion: The solicitors of the respective parties, filed in the Court below an agreement, waiving all objections to its jurisdiction to grant the relief prayed in this cause. It is, therefore, our duty to decide the questions presented by the record, even if we should think that they are more properly of legal cognizance. I purpose to consider the effect of the decree of Baltimore County Court, passed at April Term, 1833. The petition, on which the decree was founded, is aptly drawn according to the provisions of the Act of 1182, ch. *12, sec. 12, and is also embraced within the general jurisdiction of equity. Two of the parties to the proceeding, James H. Long and Thomas J. Long, had fee simples in their shares of the real estate in question; the other children of Kennedy Long had 'equitable life estates in their portions; and the widow had a dower interest in all of the fee simple property; while the reversion in fee descended to all the children of Kennedy Long as his heirs-at-law, subject to be defeated (so far as the portions were concerned which belonged to the equitable life tenants,) by the birth of children to them. Henry Long was also a party to the proceeding, appearing as a defendant. How Henry Long was the only one of the devisees in trust who accepted the trust, and the only one of the executors who took upon himself the execution of the will. Eor the reasons stated in the opinion of the Court, it is clear that as devisee he took only an estate per autre vie; but as acting executor, he
The decree distinctly appoints Josias Pennington to “execute the trusts created by said will.” It cannot be questioned that the “power and authority to sell” was a trust in the strictest and most technical sense. It was so considered by this Court in Keplinger’s Case; and it was there decided that previously to the Act of 1865, chapter 162, where an executor declined to execute such a power as this, it was competent for a Court of equity to sell and convey the property, according to the provisions of the fourth section of the Act of 1785, chapter 72. 58 Md., 211. That section is in these words: “That if any person hath died, or shall die, leaving real or personal estate to be
In this State the Court of Chancery has always had the power to convert the real estate of an infant into money, and it exercises this power for the infant’s benefit. The infant’s property is not taken from him; the change in the character of the property is made only when it will promote his benefit to make it. Dorsey vs. Gilbert, 11 Gill and Johnson, 87. The Act of 1785, chapter 72, section 12, provided for the exercise of this power, in cases where the infant had an interest in common with any other person ; and by that Act, whenever it was to the interest and advantage of the infant and the other owners of the property, the Court was required to order a sale. It will be seen that the right of the parties to have a sale, under the circumstances mentioned, was absolute and unqualified. Asale made with a reservation of a contingent interest would he effected under very disadvantageous circumstances; and in the present case would have operated with peculiar injustice against the widow, and the two children who had fee simples not subject to any future contingency. The shares of the property belonging to •these parties were not liable to be diminished by the birth of children; and justice required that they should have their due proportion of such sum as an unincumbered title would bring. It is a practical denial of justice to them, if the sale cannot be made, disincumbered of future contingent claims on the property. Nowit is argued that the interests of the contingent remaindermen could not be sold, because not being in esse they could not be made actual parties to the proceeding, and no one could represent them in the case. And in support of this position it is said that, no one is hound by a decree unless he is a party to the cause, either actual or by representation. The formal and technical terms in which a rule of law is enunciated, seldom give us much insight into its real mean
The result of Lord Redesdale’s decision, above quoted, was that the subsequent remainderman was entitled to
How when the petition for the sale of this property was filed in 1833, Baltimore County Court had the opportunity
But it has been argued that the Act of 1862, chapter 156, and the Act of 1868, chapter 273, show that in the opinion of the Legislature, previously to those Acts, a Court of equity had no power to hind by a decree of sale the contingent rights of persons not in esse. Let us examine these Acts. Previously to the Act of 1862, a Court of equity had no power, except in cases where it was necessary for the purpose of partition, to sell legal estates, on
The decision of the Court in this case will disturb a decree which has been regarded as a final adjudication for more than half a century. It will take from the appellees a large amount of property, which they have honestly