AMERICAN SECURITY AND TRUST COMPANY v. Cramer

175 F. Supp. 367, 1959 U.S. Dist. LEXIS 2955
CourtDistrict Court, District of Columbia
DecidedJuly 7, 1959
DocketCiv. A. 3987-55
StatusPublished
Cited by6 cases

This text of 175 F. Supp. 367 (AMERICAN SECURITY AND TRUST COMPANY v. Cramer) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AMERICAN SECURITY AND TRUST COMPANY v. Cramer, 175 F. Supp. 367, 1959 U.S. Dist. LEXIS 2955 (D.D.C. 1959).

Opinion

YOUNGDAHL, District Judge.

Six of the eleven 1 defendants before the Court have moved for summary judgment. A hearing has been held and memoranda of points and authorities have been submitted. Plaintiff, trustee of a testamentary trust, is a stakeholder in this controversy among competing heirs. Since all the material facts have been stipulated, 2 the Court is free to render summary judgment.

Abraham D. Hazen, a resident of the District of Columbia, died in the District on December 4, 1901. His will, executed on October 16, 1900, was admitted to probate on March 11, 1902.

Testator was survived by Hannah E. Duffey, who is referred to in his will as his “adopted daughter”. At the time of the testator’s death, Hannah had two *369 children: Mary Hazen Duffey [now Cramer], born November 12, 1897, and Hugh Clarence Duffey, born July 3 11, 1899. After the testator’s death, Hannah gave birth to two more children: Depue Hazen Duffey, born October 9, 1903, and Horace Duffey, born July 8, 1908.

The will provided for the payment of debts and certain specific bequests and then provided that the residue of the estate be put in trust for the benefit of testator’s wife for life. At her death, one-half of the corpus was to be, and has been, given to testator’s sister and brothers ; 4 the other half, composed of realty, remained in trust for Hannah for life. At Hannah’s death, the income was to go to the children of Hannah “then living or the issue of such of them as may then be dead leaving issue surviving” Hannah, and then “upon the death of each the share of the one so dying shall go absolutely to the persons who shall then be her or his heirs at law according to the laws of descent now in force in the said District of Columbia”. 5

Testator’s widow died on October 31, 1916; Hannah died on May 21, 1915.

On October 5, 1917, the heirs of the testator brought an action in equity to have the provisions of the seventh paragraph of the will stricken as being in violation of the rule against perpetuities. The Supreme Court of the District of Columbia held that the interests of Hannah’s children under the will were valid and the Court of Appeals affirmed. Hazen v. American Security & Trust Co., 1920, 49 App.D.C. 297, 265 F. 447. 6 The *370 validity of the remainders over, after the death of each child, was expressly not ruled upon as the life estates were not “so intimately connected with the gift over as to require us now to determine the validity of such gifts.” 7

Hugh, one of the four life tenants after the death of the widow and Hannah, died on December 19, 1928 and shortly thereafter the trustee brought a bill for instructions ; this time the validity of the remainder over to Hugh’s heirs was in issue. On January 2, 1930, Judge Bailey ruled that “the remainder provided by the will after his [Hugh’s] death to the persons who shall then be his heirs at law became vested within the period prescribed by law and is valid.” 8

On December 13, 1954, Depue died and for the fourth time a suit concerning this trust was started in this court. The trustees desired instructions as to the disposition of Depue’s one-sixth share. While this action was pending, on December 18, 1957, Horace died. A supplemental bill was then filed, asking for instructions as to the disposition of this one-sixth share as well. The remainder over after the death of the sole living life tenant, Mary, cannot yet take effect; however, due to the request of all the parties concerned, and in order to save both the time of this court and the needless expense it would otherwise cost the estate, the Court will also pass on the validity of this remainder.

The law that governs the questions here involved is the law in effect at the time of the testator’s death: December^, 1901. 9

The common-law rule against perpetuities, as stated by Professor Gray, is as follows: *371 The effect of the rule is to invalidate ab initio certain future interests that might otherwise remain in existence for a period of time considered inimicable to society’s interest in having reasonable limits to dead-hand control and in facilitating the marketability of property. The policy of the law is to permit a person to control the devolution of his property but only for a human lifetime plus twenty-one years and actual periods of gestation. With careful planning, this period could be as long as one hundred years — and this is long enough.

*370 “No interest is good unless it must vest, if at all, not later than twenty-one years after some life in being at the creation of the interest.” 10

*371 A gift to a class is a gift of an aggregate amount of property to persons who are collectively described and whose individual share will depend upon the number of persons ultimately constituting the class. Evans v. Ockershausen, 1938, 69 App.D.C. 285, 292, 100 F.2d 695, 702, 128 A.L.R. 177. The members of the class must be finally determined within a life or lives in being plus twenty-one years and actual periods of gestation, or the gift will fail. Put another way, the class must close within the period of the rule against perpetuities, if the class gift is to be valid. Unless a contrary intent is indicated by the testator, the class will close when any member of the class is entitled to immediate possession and enjoyment of his share of the class gift. Applying these basic principles to the trust here involved, it is seen that the life estates to Hannah’s children had to vest, if at all, at the termination of the preceding life estates of the widow and Hannah. Since Hannah’s children had to be born within Hannah’s lifetime, and since Hannah was a life in being, the class (Hannah’s children) physiologically had to close within the period of the rule. 11 This has already been so held. Hazen v. American Security & Trust Co., supra, at note 6. Furthermore, the remainder over at Hugh’s death has been held valid. The Court now holds that the remainder limited to the heirs of Mary is valid. Both Hugh and Mary were lives in being at the testator’s death; the remainders limited to their heirs had to vest, if at all, within the period of the rule. Horace and Depue were born after the testator died; the remainders over at their deaths are invalid.

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Bluebook (online)
175 F. Supp. 367, 1959 U.S. Dist. LEXIS 2955, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-security-and-trust-company-v-cramer-dcd-1959.