62 N.J. Eq. 14 | New York Court of Chancery | 1901
This cause was brought to hearing on the pleadings and proofs, and a decree made thereon February 23d, 1892. The opinion of the late chancellor is reported in Perrine v. Newell, 4 Dick. Ch. Rep. 57.
The decree xecited that the mortgage sought to be enforced upon the lands described in the bill was a lien upon the interest of the defendant Charles B. Newell, and of the defendant Charles W. B. Newell therein, and those defendants were foreclosed of a right to redeem. It charged upon the interest of the defendant Eliza A. Bradway and the defendant Deborah Tufts, in the same lands, a debt due the complainants upon a bond belonging to the complainants and intended to be secured by the said mortgage. It referred the cause to Master Acton, to ascertain and report the amount due complainant upon the said bond and the mortgage intended to secure it, and also to ascertain and report the amount due to William Newell and Elijah W. Dunn, trustees under the will of James W. Newell, deceased, for advances made by them upon the said premises, to be ascertained under rules laid down in the opinion of the chancellor.
The facts on which the judicial action proceeded sufficiently appear in the chancellor’s opinion above referred to. His conclusions were that the trustees under the will of James W. Newell, deceased, held title to the lands in question for the life
The master to whom the matter was referred made a report December 17th, 1896. He found that $2,058.17 was due to the complainants, who are the-executors of Sarah Perrine, who was the complainant at the time the decree was made. In respect to the amount claimed to be due the trustees for advances made by them, he reports that in order to ascertain what expenditures should be allowed the trustees, he needs to have further instruction in relation to certain items of their claims.
The matter has been presented as if on a motion for further instructions to the master. If the opinion of the late chancellor sufficiently indicates the rule which should govern the master, no such instructions would be proper; but if the changed circumstances indicate that instructions are proper, they should be given, or if the master’s report enables a proper decree to be made without further reference, such a decree should be made.
The master, by his report, specially refers to expenditures claimed to have been made by the trustees in respect to which
The first two items relate to the expenditures made by the trustees in respect to the trust estate during the life of the cestui que trust, Charles B. Newell. The opinion, and the decree made thereon, clearly indicated that such expenditures, if properly made for the benefit of their trust, could be imposed upon the interest of their cestui que trust in the lands in question. The decree directed the ascertainment of the amount of such expenditures for the purpose primarily of imposing them upon the life interest of Charles B. Newell. At the time the decree was made Charles B. Newell was living. He died June 10th, 1892, and at the time the master made his report the estate of the trustees in the lands in question had ceased to exist. Hnder the will of James W. Newell they held the land for the lifetime of Charles B. Newell, and upon his death their interest ceased, and the life estate of Charles was terminated. There was, therefore, no purpose to be served, so far as concerned the life interest of Charles, in determining what the expenditures had been.
Some part of the master’s report, respecting the third item as to which he finds difficulty, seems designed to elicit the view1 of the court in respect to a matter which was left undetermined at the time of the decree. The opinion of the learned chancellor, after expressing the view that the proper expenditures of the trustees were chargeable upon the interest of their cestui que trust, and that they would be permitted to hold the lands during his life until they reimbursed themselves for such expenditures, added: “I do not mean to be understood by that
It is clear that the learned chancellor did not intend to declare that the expenditures of the trustees were chargeable upon the remaindermen. In respect to them, he made no determination, but directed the master, in accounting, to take testimony explaining the nature of the trustees’ disbursements, so that the court might be able to determine whether any part of them should be charged upon the remaindermen after the expiration of the life estate'of Charles B. Newell. The question which the learned chancellor thus intentionally left open should now be decided. It becomes necessary to determine whether the expenditures made by the trustees, or any part of them, can ■be imposed upon the interest of the children of Charles B. Newell, whose estate was a vested remainder in fee, subject to the life interest in the trustees for the benefit of their father, which life interest is now determined by his death.
The expenditures of the trustees, reported by the master, fall •into two classes: one class includes expenditures made by them in running the farm during the life of the cestui que trust; the other class includes expenditures of the following character: A large portion of the land in question .adjoined the Delaware river and was below high tide. Before the death of James W. Newell the owners of that land, and other lands similarly situated, had united in the formation of a company under the provisions of the act entitled "An act to enable the owners of the tide swamps and marshes to improve the same, and the owners of meadows already banked in and held by different persons to keep the same in good repair,” passed November 29th, 1788, and the various amendments and supplements to the said act. Gen. Stat. p. 2022. During the life of Charles B. Newell, and while the trustees had title to the said lands for
With respect to the first class of expenditures, I think no possible question can be made but that the remaindermen cannot be liable to have the trustees reimbursed therefor out of their estate. The expenses of running the farm were expenditures for the benefit of the life estate and properly chargeable only upon it. 'If Charles B. Newell had been a life tenant, such •expenditures made by him could not be imposed upon the remaindermen, and the trustees who held the estate for his life encountered, in making such expenditures, a similar restriction.
The contention, however, is that the expenditures for assessments for the reparation of the banks which preserved the meadows were of. a different sort, and that in making them the trustees were benefiting the estate and the interests of the remaindermen, so that such expenditures should be properly chargeable to the remaindermen as a lien upon , their estate. The question is whether the trustees in paying the sums assessed upon this farm for such reparation, and in thus preventing a "renting out” of the same for a term of years, may be subrogated for such payment to the rights of the meadow company •or such person as the meadow company might have conveyed the land to, if the assessment had not been paid by the trustees. I do not think it open to question that the trustees owed no duty in this respect to the remaindermen. Their estate was an estate pur autre vie. There was no relation of trust or con
It may be added that if these expenditures are charged upon the remaindermen, they will be burdened with them although not made by themselves, nor by those who were their authorized agents, and which have been absolutely of no value to them, for it appears from the testimony taken by the master that the bank's of those meadows have been entirely broken down and the land is comparatively valueless.
Th result is that I do not find any ground upon which the trustees can impose upon the lands in question any part of their expenditures. The mortgagee is, therefore, entitled to enforce his remedy by a sale of the property, and it will be unnecessary to return the report to the master for any further proceedings.