— This matter comes before the court upon a rule for judgment upon answers
In that opinion, without reference to the answers to the interrogatories, we held the corpus and income of the trust attachable. In studying the answers, we find an averment that the setting up of the trust did not render defendant insolvent. Furthermore, as stated in said opinion, in all of the cases oited by plaintiff the settlor had retained the right to dispose of the remainder by appointment, hence retaining some control over the corpus, whereas in this case he has irrevocably divested himself of all control over the corpus and has even imposed a spendthrift trust upon his own life estate.
It is conceivable that, if the establishment of such a trust left the settlor in a strong financial condition and he had irrevocably surrendered all title to and right of disposition of the corpus, in that case only the life estate retained by him would be subject to his debts.
In view of the fact, however, that the trust is specifically made “subject to any of the present debts of me, the said Joseph H. Stopp”, we need not decide whether the obiter dicta of Mackason’s Appeal, 42 Pa. 330, and Nolan v. Nolan, 218 Pa. 135, control this situation, as well as the one in which control over the corpus has been retained.
Since the former opinion was rendered, the Superior Court, in Shallcross et al., Receivers, v. North Branch-Sedgwick B. & L. Assn., 123 Pa. Superior Ct. 593, has held the Deficiency Judgments Act of July 1,1935, P. L. 503,21 PS §808, unconstitutional and, therefore, the stay of execution as to other real estate of a mortgagor pending sale of the mortgaged premises is inoperative, and,
There still remain two problems: (1) The amount due plaintiff; and (2) the nature of the garnishee’s responsibility to plaintiff.
The principal question as to the amount due plaintiff concerns the reasonableness of the attorney’s commission of 5 percent. This commission is somewhat less than the commission provided for in the minimum fee bill in force among the bar of Lehigh County for the collection of commercial claims, but is considerably more than the amount currently being paid for the foreclosure of mortgages. By reason of the unusual procedure and the necessity of establishing the legal principles which entitle plaintiff to recover out of this trust fund and any future difficulties which may be encountered in realizing the amount out of the assets of the trust estate, we feel that the figure of 2 percent allowed upon smaller claims in Daly v. Maitland, 88 Pa. 384, and in Warwick Iron Co. v. Morton, 148 Pa. 72, should be doubled in this case. We, therefore, find that a commission of 4 percent upon the overdue principal and interest is reasonable and fix the attorney’s commission at that figure.
The parties have submitted a statement of rents collected, for the net amount of which plaintiff admits a credit on its judgment. There is no serious dispute as to these items, and the court finds defendant entitled to a credit as of January 2, 1937, of $390.75, with rent due from the mortgaged premises from December 1,1936, and taxes paid in full up to the year 1933, and unpaid from that date.
To recapitulate, there is due and owing to plaintiff the amount of its judgment, $23,187.57, less the reduction in commission from 5 to 4 percent of $220.43, or a balance of $22,967.08, with interest thereon from August 19, 1936, the date of the entry of the judgment. Defendant is entitled to a further credit for rents collected, in the amount
While the trust assets seem ample to provide funds for the satisfaction of plaintiff’s judgment, this court cannot appraise them and hold the trustee personally responsible for the amount of plaintiff’s judgment. This court can only declare that certain assets are subject to execution for the satisfaction of plaintiff’s debt and enter an order permitting plaintiff to satisfy his judgment out of such goods: Bonnaffon, etc., v. Thompson, 83 Pa. 460; Longwell v. Hartwell, 164 Pa. 533.
Since plaintiff has asked for judgment upon the answers, we are bound by the facts therein stated as to the value of such assets: Lancaster County Bank, for use, v. Gross et al., 50 Pa. 224.
We are here faced by another problem. Accepting the truth of these answers, defendant, Joseph H. Stopp, was solvent at the time this trust was set up and after, and therefore the trust was not fraudulent and prevails against the world, excepting as to existing creditors. The succeeding life and remainder interests under the trusts are vested in the respective beneficiaries; the trustee is obliged to protect such interests to the best of its ability, and such interests deserve consideration from this court': Potter v. Fidelity Insurance Trust & Safe Deposit Co. (No. 1), 199 Pa. 360.
In order to serve the interests of all parties, therefore, execution should be stayed to give the garnishee an opportunity to realize the amount due plaintiff. There is ample authority for this procedure, where the assets in a garnishee’s hands are of doubtful value: Allen v. The Erie City Bank, 57 Pa. 129; where security is ample: Augustine, to use, v. Augustine, 291 Pa. 15; where a hardship would result: Anstead et al. v. Cook, 291 Pa. 335; and where a public interest is involved: Sinking Fund Commissioners of Phila. v. Philadelphia et al., 324 Pa. 129. Practically all of these elements appear in this case. While there is no public interest, there is the interest of
Since this is a voluntary trust and expressly provides that it is subject to the then existing debts of the settlor, satisfaction of plaintiff’s claim should be made out of corpus rather than out of income.
The attorney for the garnishee has asked the court to fix an attorney fee in accordance with the Act of April 22, 1863, P. L. 527, sec. 1, 12 PS §2999. The attorney had to prepare and file a complicated answer and to determine the legal liability of the trust estate for plaintiff’s claim. We believe a fee of $200 would be reasonable for such services.
Since third parties are interested in this trust, and since assets of the trust estate are being used to satisfy a debt upon a property specifically excluded from the trust estate (apparently because held as tenants by entireties), the trustee should be subrogated to the rights of plaintiff, and upon satisfaction of plaintiff’s claim in full is entitled to an assignment to it of the bond and mortgage to become an asset of the trust estate. Since the trust estate is subject to this debt, the obligors shall not be held personally liable for the payment of the mortgage debt as between the settlor, his wife or the remaindermen. For the protection of the remaindermen, however, no income from the mortgaged premises should be paid the obligors but should be devoted to the payment of overdue taxes, interest and costs and to the reduction of the mortgage to a point satisfactory for investment in a trust estate.
Now, January 25, 1937, the rule to show cause why judgment should not be entered upon answers filed to the
