Arnold v. Alden

50 N.E. 704, 173 Ill. 229
CourtIllinois Supreme Court
DecidedApril 21, 1898
StatusPublished
Cited by44 cases

This text of 50 N.E. 704 (Arnold v. Alden) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arnold v. Alden, 50 N.E. 704, 173 Ill. 229 (Ill. 1898).

Opinion

Mr. Justice Magruder

delivered the opinion of the court:

First—The first question in this case is, whether the court below decided correctly, that the trustees were entitled to compensation, under the provisions of the act of June 17, 1891, for services, rendered as trustees since July 1, 1891. The-act of June 17, 1891, entitled “An act concerning compensation of trustees" is as follows: “that, where a trustee or trustees shall hereafter act under any power or appointment given or created by any will, testament, or codicil, and in such will, testament or codicil, except in case of trusts for charitable, religious or educational purposes, shall be contained no provision respecting the compensation to be allowed or paid such trustee or trustees, a reasonable compensation may be charged and allowed, demanded and collected therefor.”

In the case at bar, the trustees had acted as executors and trustees under the will for nearly eight years before the act of 1891 went into effect. The will contained no provision allowing them any compensation, and they received no compensation for their services as trustees prior to July 1, 1891. When they accepted the trust under the will, and entered upon their duties as such, there was no law in this State, which entitled them to compensation for their services. The rule, laid down in the text books and established by the courts of equity in England, is that a trustee is not entitled to compensation for his services. Prior to the passage of the act of 1891, we de.cided in several cases that the English rule is formally established in the jurisprudence of this State. (Buckingham v. Morrison, 136 Ill. 437; Cook v. Gilmore, 133 id. 139).

Counsel for appellants contend that, inasmuch as the trustees here began their services under the will, as trustees for the estate, under the old rule which allowed them no compensation, they cannot receive compensation for services rendered since the passage of the act of 1891. In support of this contention, the well known rule is invoked that the legislature has no power to pass an act, impairing the obligation of contracts. It is said that, by assuming the trust when no compensation was allowed, they thereby agreed to complete the trust without compensation. The validity of this contention depends upon the further question, whether the original assumption of the duties of trustees under the will, without the right to receive any compensation under existing law, involved in it any element of contract.

The reason, given in the authorities for not allowing compensation to trustees at common law, was based upon grounds of public policjr. The rule was based upon the principle, that the trustee should execute the trust for the benefit of the beneficiary alone, and should derive no profit by reason of the trust! The authorities do not intimate that the relation of trustee and cestui que trust, or the relation between the creator of the trust and the trustee, is one of contract. The act refers to trustees, who “shall hereafter act” under any power created by will. There is no statement that the trustees are those, who shall thereafter act under wills to be thereafter executed, or whose appointment, or entry upon the discharge of their duties, shall take place after the passage of the act of 1891. The language refers to future action by trustees, whether under existing wills, or under wills to be executed in the future.

It has been held, that the recovery of costs is controlled by statutes in force at the time the right to costs accrues, and that it is competent for the legislature, at any time during the progress of a suit, to create an allowance for services not before provided for, and to increase or diminish or wholly abolish such allowance as existed at the beginning of the suit. (Supervisors v. Briggs, 3 Denio, 173).

“A person who accepts an office to which no compensation is attached is presumed to undertake to serve gratuitously, and he cannot recover anything upon the ground of any implied contract to pay what the service is worth.” (Mechem on Public Office and Officers, sec. 856). In the absence of a constitutional provision, and when an office is created by statute, there is no contract for the permanence of the compensation. Such an office is wholly within the control of the legislature creating it, and the compensation of the official holding it may be altered or diminished or terminated altogether, during his term of office. (Ibid. sec. 857; People v. Lippincott, 67 Ill. 333; Hoboken v. Gear, 27 N. J. L. 265).

The question of the compensation of a trustee under a will, under such facts as exist in the present case, would seem to come within the doctrine thus announced in relation to costs in litigation, and in relation to the compensation of public officers. In New York it has been held, that the commissions of testamentary trustees are governed by the law in force at the time of the settlement of their accounts. In that State, where an accounting went back to 1883 and an act of the legislature was passed in 1892, changingthe rate of compensation of testamentary trustees, it was held that such trustees were entitled to full commissions under the act of 1892, not only as to income received and disbursed after the passage of the act, but also as to income received and disbursed prior to the passage of the act. (Naylor v. Gale, 73 Hun, 53; Savage v. Shirman, 24 id. 307; Same v. Same, 87 N. Y. 283; Dakin v. Demming, 6 Paige, 95). We do not hold, nor is it necessary to hold, that the trustees here are entitled to compensation for any services rendered before the passage of the act of 1891, because no compensation for such services is demanded. In Alabama, where an act had been passed on February 18,1867, to increase the compensation of executors, an accounting was had after the passage of that act for services beginning in 1861, and it was held that the executors were entitled to the rate of compensation, provided by the act of 1867, for services rendered after the passage of the act. (Key v. Jones, 52 Ala. 238; Gould v. Hayes, 19 id. 438). The fact that the trustee has received compensation as executor or administrator does not necessarily deprive him of his right to compensation for services rendered as trustee provided the duties are separate. (27 Am. & Eng. Ency. of Law, p. 191).

We are of the opinion that the court below committed no error in allowing to appellees herein compensation for their services as trustees after July 1, 1891.

Second•—-The next question, which arises in this case, grows out of the controversy between the appellants, Abbey J. Harrison, Clara W. Hayden and Charles H. Waterman, who are the children of Sarah E. Waterman, deceased, on the one hand, and the appellants, Sarah Arnold, Charles F. Arnold, Eva J. Burley, Minnie Scott and Arthur Rowley, who are the grandchildren of said Sarah E. Waterman, on the other hand. When Sarah E. Waterman, sister of the testator, died on June 7,1894, she left the three children and the five grandchildren above named, the latter being the children of daughters of Sarah E. Waterman, who died before Sarah E. Waterman died. It is claimed by said children, that they are entitled to take the whole of the share, which their mother, Sarah E. Waterman, would have taken if she had lived, to the exclusion of said grandchildren. It is claimed by said grandchildren, that they are entitled to take per stirpes the shares that their respective mothers, Mary C. Arnold and Frances A.

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Bluebook (online)
50 N.E. 704, 173 Ill. 229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arnold-v-alden-ill-1898.