American Brass Co. v. Hauser

278 N.W. 816, 284 Mich. 194, 115 A.L.R. 1464, 1938 Mich. LEXIS 483
CourtMichigan Supreme Court
DecidedApril 4, 1938
DocketDocket No. 120, Calendar No. 39,834.
StatusPublished
Cited by4 cases

This text of 278 N.W. 816 (American Brass Co. v. Hauser) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Brass Co. v. Hauser, 278 N.W. 816, 284 Mich. 194, 115 A.L.R. 1464, 1938 Mich. LEXIS 483 (Mich. 1938).

Opinion

Chandler, J.

Gothard Hauser died testate, March 11, 1911, his will containing, among others, the following provisions:

' “I give, devise and bequeath to my beloved wife Natalie Hauser all the real estate of which I may die possessed for her use during the remainder of her life and hereby give to my wife the power and authority to dispose of by her last will of my said real estate to my children in such proportions or portions to each of them as to her may seem just.
“I hereby direct and will, that if after my decease my said wife should consider it desirable or necessary to sell any or all of my said real estate she is hereby empowered so to do provided, she have the consent of such of my children as shall then have attained the age of 21 years. I hereby direct that the money so derived from the sale of such real estate be held by my said wife in trust for my chil *196 dren to be disposed of by the last will of my said wife the same as my real estate remaining unsold, and the income derived from such money during the life of my said wife is to belong to her absolutely.
‘ ‘ This will is made by me having in mind my children Frank Hauser, Otto Hauser, Albert Hauser and Charles Hauser, none of whom are forgotten or omitted by mistake from participation in my estate under this my will. ’ ’

He was survived by his wife, Natalie, who died intestate in 1931, and four sons, Charles, Frank, Otto and Albert. Albert died August 30, 1927, leaving him surviving his widow, Ida M. Hauser, intervenerappellant. Otto Hauser survived his mother, having died on December 25, 1935, leaving his widow the defendant, Ethel Hauser, and a minor daughter, Loriean Marie Hauser, who were the beneficiaries under his will.

At the time of his death, Gothard Hauser owned a parcel of real estate located at the corner of Mc-Kinstry and west Jefferson avenues in the city of Detroit. On January 12, 1937, Charles Hauser and Frank Hauser, and their respective wives, and Ethel Hauser, the widow of Otto, individually and as guardian for Loriean Marie Hauser, the minor, claiming to be the owners of said premises, executed an option agreement thereon, plaintiff being the assignee of the optionee named in said agreement. The agreement gave the exclusive option to purchase for the sum of $15,000 at any time within 30 days from the date thereof.

On February 8, 1937, the optionee sought to exercise the option and tendered the down payment prescribed by its terms. On March 2, 1937, Charles F. Hauser notified the optionee, on behalf of himself and others executing the agreement, that they were unwilling to perform for the reason that Ida Hauser, *197 widow of Albert, claimed an interest in the premises, and not having been a party to the agreement, refused to enter into the proposed sale. A formal demand for performance was made on April 9,1937, which was refused. Whereupon, a bill for specific performance was filed. Ida Hauser, was granted leave to intervene and file answer to plaintiff’s bill of complaint. Upon hearing, the trial court determined the rights of all parties, finding that by the will of Gothard Hauser a power in trust was created in his wife Natalie, and not having been executed by her, would be executed by a court of equity equally in favor of the three children of Gothard Hauser who survived her. The court decreed specific performance of the agreement as to Frank J. and Charles F. Hauser and their respective wives, and Ethel Hauser, and directed a reference to determine the value of the interest of Ethel in one-third of the purchase price, she having a life interest under the will of her deceased husband.

All parties agree that under the provisions of Gothard Hauser’s will, quoted supra, his widow Natalie became the grantee or donee of a special power in trust within the meaning of 3 Comp. Laws 1929, § 13017 (Stat. Ann. § 26.113), and that upon default of execution thereof by the grantee, the same will be executed by a court of equity under 3 Comp. Laws 1929, §13018 (Stat. Ann. §26.114), for the benefit equally of all persons designated as objects of the trust as provided by 3 Comp. Laws 1929, § 13022 (Stat. Ann. § 26.118).

The power, not having been executed by the grantee, the question presented is, for whose benefit will execution be ordered by the court. Ida M. Hauser, intervener-appellant, contends that it shall be executed for the benefit of all the children of Gothard Hauser living at his death, thus giving her an inter *198 est as beneficiary under the will of her husband. Appellees contend it shall be executed only for the benefit of those children surviving the wife Natalie, the grantee of the power.

No attempt will be made to review all of the authorities. Numerous English cases are cited, including Kennedy v. Kingston, 2 Jac. & W. 431 (37 Eng. Rep. 692) in which there was a bequest to A for life, “and at her decease to divide it in portions as she should choose, to her children.” It was there held that inasmuch as the power was to be executed at the death of the donee, only those children then living were entitled to take under an exercise of the power. And to a like effect is Walsh v. Wallinger, 2 Russ. & M. 78 (39 Eng. Rep. 324) wherein the testator gave the residue of his personalty to his wife for fife with power to “give and bequeath the same to her children by him in such manner as she should appoint. ’ ’ Of this the court said:

“The power here was plainly testamentary, and could be executed only in favor of children who could take by will; and the part unappointed must be divided between the children who were living at the mother’s death. ’ ’

See, also, Woodcock v. Renneck, 4 Beav. 190 (11 L. J. Ch. 110, 49 Eng. Rep. 311); Reid v. Reid, 25 Beav. 469 (53 Eng. Rep. 716); Cruwys v. Colman, 9 Ves. Jr. 319 (32 Eng. Rep. 626); Brown v. Popcock, 6 Sim. 257 (58 Eng. Rep. 590); Winn v. Fenwick, 11 Beav. 438 (18 L. J. Ch. 337, 50 Eng. Rep. 886).

In Daniel v. Brown, 156 Va. 563 (159 S. E. 209, 75 A. L. R. 1377), the testator’s will provided: “All the rest and residue of my real estate, I give and devise to my said wife, Jane C. Jackson, for life, with power to her to give, by last will, said real estate, to such of my nephews and nieces, and in such proportions as she may choose.” In exercising the *199 power an attempt was made to give property to the issue of deceased nephews and nieces. Of this the court said:

“The donee could execute this power only by will. She was limited in her selection to the members of a certain class, who were to take only at her death. If all the objects of the power had died in the lifetime of the donee there could have been no valid appointment by the donee.

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Bluebook (online)
278 N.W. 816, 284 Mich. 194, 115 A.L.R. 1464, 1938 Mich. LEXIS 483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-brass-co-v-hauser-mich-1938.