220 Pa. 82 | Pa. | 1908
Lead Opinion
Opinion by
This is a bill filed in the court below for the partition of 120 acres of land and the undivided one-seventh interest in another tract of sixty acres situate in Buffalo township, Butler county. George W. Painter died seized of the land on May 22, 1899, leaving to survive him a widow, Mary E., and two daughters, Minnie R. and Helen M., and, as brothers and sisters, the plaintiffs and Peter Painter, the defendant in the bill. By his last will, George W. Painter directed an appraisement and sale of his personal property and the application of the proceeds to his debts and funeral expenses, and then provided as follows : “I give and bequeath to my beloved wife, Mary E. Painter, the farm on which we now reside situate in Buffalo Township, Butler county and state of Pennsylvania, containing one hundred and twenty-two acres less or more. She to have the use and occupancy of said farm so long as she
Minnie R. Painter died on June 27, 1901, intestate, unmarried and Avithout issue, leaving to survive her her mother and sister. Helen M. Painter married J. L. M. Halstead, and died November 29, 1903, intestate, and Avithout issue, leaving to survive her, her husband, J. L.' M. Halstead, and her mother, Mary E. Painter. The latter died June 17,1905.
This bill Avas filed by the brothers and sisters of George W. Painter, Avho claim that on the death of his AvidoAv and daughters the land descended to them and their brother Peter Painter, one of the defendants. Halstead, the husband of Helen M. Painter, and the two sisters of Mary E. Pa inter, the Avidow, intervened and became defendants in the action, and claim that the Avill of George W. Painter Avorked an equitable conversion of the land into personalty; that it vested in his daughters as such; and that on the death of Minnie R., intestate and Avithout issue, her share vested in her mother, Mary E. Painter, absolutely, and at the latter’s death, intestate, it vested in her tAvo sisters. Halstead, for the same reason, claims the interest of his Avife, Helen M., the other daughter of George W. Painter. The right, therefore; of the plaintiffs to maintain this bill and have the real estate in question partitioned depends upon whether the will of George W. Painter worked an equitable conversion of the land into personalty. If it did, the bill cannot be maintained; if it did not, the real estate descended to the brothers and sisters of George W. Painter, and they have the right to have it partitioned.
Mr. Justice Shabswood states the rule with its limitations in Foster’s Appeal, 74 Pa. 391. In delivering the opinion of the court he says (p. 397): “ Conversion is altogether a doctrine
In Lorillard v. Coster, 5 Paige Ch. 172, Chancellor Walworth, delivering the opinion of the court, said (p. 218): “ Upon the principles of equitable conversion, money directed by the testator to be employed in the purchase of land, or land directed to be sold and turned into money, is, in this court, for all the purposes of the will, considered as that species of property into which it is directed to be converted, so far as the purposes for which such conversion is directed to be made are legal and can be carried into effect.”
While the doctrine of equitable conversion is well settled on principle and reason, and is recognized in numerous cases determined by this court, the sphere or limitation of its application is equally well established and should be observed. The sole purpose of the doctrine, in the case of a will, being to effectuate the intention of the testator, it cannot be invoked when his intention fails or is incapable of accomplishment. The reason of the rule then ceases, and the rule itself no longer obtains. This principle is as well settled, on reason and authority, as the doctrine of equitable conversion itself. It is the logical consequence of the doctrine which cannot be applied-unless there is an existing purpose of the testator to be carried into effect. The testator’s intention in regard to the disposition of his property, as declared in his will, having failed, an alternative, undisclosed intention cannot take its place, and the doctrine of equitable conversion be invoked to carry it into effect. The court is not at liberty to surmise what the intention of the testator would have been, and what disposition he would have made of his property if he had anticipated the failure of the disposition which he makes in his will. He is dead, and no one can speak for him and declare an alternative intent in the disposition of his property. Any
This limitation upon the doctrine of equitable conversion is settled by a uniform current of decisions in this country and in England. In Rudy’s Estate, 185 Pa. 359, a life interest in land was given the widow, and at her death the executors were to sell and divide the proceeds of sale equally between his son and daughter, “ if they be living, or the issue of such of them as may then be deceased.” The son died before the testator, the daughter after the testator but before the life tenant, leaving a husband and two children, one of whom died before the life tenant. It was held that the surviving child of the daughter, subject to the life interests of the widow and father, took the lapsed share as heir, and the residue as sole devisee. In the opinion of the court below in that case, which we adopted, it is said (p. 361): “ But the intention to effect a sale was auxiliary to another and paramount intention- — -to effect a convenient transmission of testator’s property to the devisees. The one intent affected the means, and the other the end, and if, for any reason, the means were useless towards attaining the end, the lesser intent should be discarded. The purpose of a sale, and therefore of a conversion, was that the estate might be divided; if there was no necessity for a division the purpose fell and the estate remained unconverted.”
In Morrow v. Brenizer, 2 Rawle, 185, Mr. Justice Huston, speaking of the admitted limitations or qualifications of the doctrine of equitable conversion, said (p. 193): “ The rule does not apply where the object for which the sale was to be made ceases. The power to sell is then at an end, and lands continue lands. The power to sell ceases when the object ceases. It ceases when the right to the money and the land unite in the same person. It always ceases where one of the devisees dies, so that the legacy lapses; and so far the heir takes. And where the money to be raised is to go to the heir, the descent is never broken for a moment.”
In Luffberry’s Appeal, 125 Pa. 513, the bequest to the charities in the will failed by reason of the testator’s death within one calendar month after the execution of the will. For this reason, it was held that the power to sell to pay these bequests became inoperative and the land remained unconverted and descended to the testator’s heirs-at-law. In that case, it is said in the opinion of the court below, approved by this court, that “ conversion, as is well settled, is an equitable doctrine and founded upon some good and sufficient reason for declaring land to be money and money land. Where this fails to apply, the doctrine is inapplicable and equity refuses its aid because it would be unreasonable and consequently inequitable.”
In Lindsay v. Pleasants, 4 Iredell’s Equity, 320, Mr. Justice Daniel, delivering the opinion of the supreme court of North Carolina, said (p. 323): “ It is a clear rule in equity, that, where real estate is directed to be converted into personal for any express purpose, which fails, to consider the disappointed interest as realty (although the land has been sold), and resulting to the heir. The rule equally applies to cases where the real proceeds are blended and bequeathed with the personalty (after answering particular objects), and the context of the will affords no manifestation of the testator’s intention to convert the real into personal estate, out and out.” And in Wood v. Cone, 7 Paige Ch. 471, Chancellor Walwobti-i says (p. 4Y6): “ Upon the principles of equitable conversion, the proceeds of the real estate directed by the testator to be sold is only considered as converted into personalty for the purposes of the will. And if any estate or interest in the con
Judge Hake in his notes to Ackroyd v. Smithson in 1 White & Tudor’s Leading Cases in Equity, 1171, says, after a review of the numerous authorities on the subject: “ It may be regarded as well settled, that a direction to sell, for a particular object, or with a view of a contingent event, will not work a conversion, if the object cannot be accomplished, or the contingency does not happen, unless the testator plainly intended that the sale should be an end, and not merely a means.”
The supreme court of the United States recognizes the same limitation of the doctrine of equitable conversion. In an elaborate opinion in Craig v. Leslie, 3 Wheaton, 563, Mr. Justice Washington says (p. 582): “The whole of this doctrine proceeds upon a principle which is incontrovertible, that where the testator merely directs the real estate to'be converted into money, for the purposes directed in his will, so much of the estate, or the money arising from it, as is not effectually disposed of by the will (whether it arise from some omission or defect in the will itself, or from any subsequent accident, which prevents the devise from taking effect), results to the heir at law, as the old use not disposed of.”
In England the limitation upon the doctrine is well settled. The leading case is Ackroyd v. Smithson, 1 Bro. C. C. 503, 1 Wh. & T. Lead Cas. in Equity, 1171. The elaborate argument of Mr. Scott, afterwards Lord Eldon, convinced Lord Chancellor Thurlow and firmly settled the doctrine in that jurisdiction, that where a testator directs his real estate to-be sold and the proceeds to be applied to a special purpose, which wholly or partially fails, the undisposed of beneficial interest will go to his heir at law and not to his next of kin, although the land may have been actually converted into money. In Ripley v. Waterworth, 7 Ves. Jr. 425 (1852), the court says (p. 435): “ There is an obvious difference from all the cases, which establish this general principle, that where a person dealing with his own property only has directed a conversion for a particular special purpose, or out and out, but the produce to be applied to a particular purpose, when the purpose fails, the intention fails; and this court regards him as not
The same rule prevails in New York, and is announced in Read v. Williams, 125 N. Y. 560, 21 Am. St. Rep. 743, where Andrews, C. L, speaking for the court, observes (p. 752): “ The case falls within the general principle in many cases, that a power of sale in a will, however peremptory in form, if it can be seen that it was inserted in aid of a particular purpose of the testator, or to accomplish his general scheme of distribution, does' not operate as a conversion, where the scheme or purpose fails by reason of illegalit}’, lapse or other cause. In that case the property retains its original character, and it goes to the heir or next of kin as real estate or person^ alty, as the case may be.”
The same rule is universally recognized by text writers. Mr. Jarman (1 Jarman on Wills, 6th ed., 589), says: “Every conversion, however absolute in its terms, will be deemed to be
It is clear, therefore, that, under all the authorities, when the purpose of the testator, as disclosed by his will, has failed or is incapable of accomplishment the operation of the rule of equitable conversion ceases, the property retains its original character, and goes to the heir or next of kin, as the case may be. It is conceded, as held in Ackroyd v. Smithson, 1 Bro. C. C. 503, and Taylor v. Taylor, 3 De. G. M. & G. 190, that where real estate is directed to be sold and the proceeds to be paid to certain individuals, and one of the beneficiaries dies in the lifetime of the testator, that as to his share a conversion does not take place, and it goes to ‘the heir at law. We are unable to distinguish between such a case, and where the purpose fails subsequent to the death of the testator and prior to the time when tbe actual conversion can take place. The reason of the rule would clearly extend it to the one case as well as to the other. If the conversion fail, because the purpose of the testator fails and hence cannot be carried out, it logically follows, we think, that there is, no- conversion if the purpose of the testator fail prior to the time when the actual conversion of the property can take place. The doctrine is a fiction to aid the testator in the accomplishment of his purpose, and when the purpose ceases for any cause and at any time, it necessarily follows that the fiction becomes inoperative and cannot be invoked to accomplish something which cannot be done.
Our conclusion as to the application of the doctrine of equitable conversion does not impair or defeat the doctrine itself. It simply limits its enforcement to cases where the facts warrant its intervention. If the cause for invoking it in any particular case exists, that is, if its application is necessary to effectuate the intention of the testator or settlor, then it may be invoked. If such cause does exist but has ceased before the actual conversion takes place, then it cannot be applied.
The obvious intent which George W. Painter had in converting his real estate into money after his widow’s death was, as expressed in his will, that he might give it to his “two daughters, Minnie R. and Helen M. Painter to be equally divided between them share and share alike.” His widow was to retain possession of the land during her life, permitting, however, their two daughters to reside there while single ; and for the purpose of making a division between his two daughters after her death he directed the land to be converted, “ as my daughters, aforesaid, shall see proper.” The necessity for converting it for this purpose entirely failed upon the death of the two daughters prior to their mother’s death, when the
It may be argued that the construction we put upon the doctrine of equitable conversion will frequently defeat the rights of creditors. Equity, however, never enforces the doctrine for the protection of creditors. It acts solely in the interest of the testator or settlor, to carry out his intention, and can never be invoked for the purpose of placing title to property in anyone in order that his creditors may be benefited. It may be suggested in this connection that it is a well-established rule that a beneficiary may accept the property in its unconverted condition. This may and frequently does prevent the creditor of the beneficiary from enforcing his claim.
It follows from what has been said, that at the death of the survivor of the daughters of George W. Painter, the legatees to whom the proceeds of the real estate were to be distributed, the purpose for which the testator directed the conversion of Lhe real estate ceased, and that thereafter on the death of the widow, who had a life estate therein, it descended as real estate to the heirs of George W. Painter. They, therefore, being the owners of the real estate, have a right to have it partitioned among themselves.
The decree of the court below dismissing the bill is reversed, and the bill is reinstated with a procedendo.
Dissenting Opinion
dissenting :
The will in this case contains an imperative and unconditioned direction for the sale of testator’s real estate upon the death of the widow, to whom' a life estate is given. "With nothing to countervail or qualify this positive direction, the
The doctrine of equitable conversion is undoubtedly subject to the qualification here expressed. Whether the present case falls within the qualification is the determining question here. A conversion directed by a testator is a conversion only for the purposes of the will; when the purpose is limited and special the conversion takes place only so far as it may be consistent with and is related to the purpose indicated. It is universally allowed that when the purpose or object of the conversion fails, the estate remains unconverted to the extent of such failure. But what is meant by failure of purpose or failure of object? Both by text-writers and in the adjudicated cases these terms are used interchangeably, and each may be regarded as the other’s equivalent. We ean perhaps turn to no authoritative definition of either, yet an examination of the cases will show a fixed and definite meaning which has never been departed from. This much maybe safely affirmed, that in every adjudication where failure of purpose or object has been allowed to defeat a positive direction to sell, failure was held to mean failure in the gift itself by lapse or other certain avoidance, the payment of which was the object and purpose of the direction. In no case has the qualification been applied where the gift had become effective by the vesting in the donee. In the leading and initial case of Ackroyd v. Smithson, 1 Bro. C. C. 503, the disposition of money to arise from the sale of the real estate was originally completed, but lapse by the death of two of the residuary legatees in the lifetime of the testator caused the failure of the disposition as to their two shares, which, although actually converted into money, resulted to the heir at law as undisposed real estate. This case established the rule, since invariably followed, in cases
It is idle to contend that the decision in the present case does not mark a wide departure from long-established principles. The plain logic of it is, that notwithstanding a testator has directed in unequivocal and unconditional terms that his real estate be sold, that this direction is to be wholly disregarded if by reason of the happening of certain events after testator’s death a sale is unnecessary to effectuate a purpose, not expressed in the will, but one which to the judicial mind seems to have been the purpose the testator had in view in directing the sale.
If there be any authority for so conditioning the application of the doctrine of conversion my attention has not been directed to it.
' I dissent from the view expressed in the majority opinion in this case.