Belcher v. Cobb

169 N.C. 689
Supreme Court of North Carolina·Decided October 20, 1915·Published·Cited by 11 cases

Opinion

BkowN, J.

This action is brought to recover certain funds belonging to the estate of "William Williams, deceased, in the possession of his administrator, and claimed by his codefendants, the heirs at law and dis-tributees of the intestate.

This property is claimed by plaintiffs as the beneficiaries and cestuis que trustent in a deed executed on 17 November, 1902, by William Williams to R. L. Joyner, trustee, conveying the real and personal estate of said Williams in trust to manage and invest the same and apply the income to the support of said Williams during his life, and after his death “to convey and deliver the balance of said estate to the following-named persons and in the following proportions, that is to say, he shall convey'and deliver to Eli Joyner, son of R. L. Joyner, one-half of the same, and to Lucy Flanagan, daughter of James Flanagan, the other half thereof, and if either shall die before the said William Williams leaving [691] no issue, tben tbe whole to be conveyed and delivered to tbe survivor.” Tbe said Eli and Lucy are plaintiffs in tbis action.

It appears that William Williams bas been declared an inebriate-lunatic by proceedings alleged to be irregular, and tbat J. R. Davis was appointed bis guardian, and tbat on 17 December, 1903, be instituted an action in tbe Superior Court- of Pitt County to declare void said deed to Joyner and to recover tbe estate of said Williams from Joyner’s possession.

Tbe trustee, Joyner, answered, and stated, among other things: “Tbat as trustee of tbe said William Williams nothing bas ever come into bis bands belonging to said estate, and tbat be will await an adjudication of tbis cause; but if tbe court shall be of tbe opinion tbat tbe said William Williams was fully competent to execute tbe trust made to tbis defendant, tben be is willing to accept said trusteeship and endeavor to carry out its provisions.”

Tbis action came on to be tried before Neal, judge, and a jury, at March Term, 1907, and- at tbe conclusion of tbe evidence a motion to nonsuit tbe plaintiff was sustained.

On 18 December, 1902, proceedings for partition were commenced in said county for division of tbe estate of Eli Williams among bis heirs at law, all of whom were parties. William Williams was an heir at law of said Eli and derived bis entire estate from him. In that proceeding it was adjudged, among other things, “that R. L. Joyner, trustee of William Williams, is the owner of an undivided one-balf interest in and to tbe lands described in tbe petition,” and directed tbe payment by tbe commissioner to said trustee of a certain part of tbe proceeds of tbe sale.

Judge Neal sustained tbe motion to nonsuit upon tbe ground tbat tbe aforesaid partition proceedings and decree were an estoppel upon tbe heirs, distributees, and representatives of William Williams, and confirmed tbe title of Joyner, trustee, under tbe deed. There is a judgment to tbat effect in tbe record, as follows:

North CaroliNA — -Pitt County.

Superior Court, March Term, 1907.

(Title of cause.)

Before Hon. W. H. Neal, judge presiding..

Tbis cáuse coming on for bearing, and at tbe conclusion of tbe evidence introduced on behalf of both tbe plaintiff and tbe defendants, bis Honor announced bis purpose to instruct tbe jury tbat tbe plaintiff was not entitled to recover of tbe defendants or either of them in tbis action for tbe reason tbat tbe record .of tbe proceedings in tbe suit of Edward Flanagan et als. v. W. W. Cobb et als., for tbe sale of tbe lands of Eli Williams, deceased, instituted before tbe clerk of the Superior Court of [692] said county on 18 December, 1902, together with all orders and decrees entered therein, constituted an estoppel of record against the plaintiff which precluded his recovery in this action both in respect to the sum of $2,150, one-half of the interest of William Williams in the proceeds of the sales of the lands of Eli Williams, deceased, paid each to Oscar Hooker, assignee, and R. L. Joyner, trustee, as alleged in paragraph 18 of the complaint, as well as the $5,000 or more, the interest of William Williams in the personal assets in the hands of the administrator of Eli Williams, whereupon, in consequence of such intimation of his Honor, the plaintiff was allowed to submit to a judgment of nonsuit, for the purpose of an appeal to the Supreme Court to test the correctness of his Honor’s rulings as aforesaid. It is further ordered and adjudged that the cost of this action be taxed against the plaintiff J. R. Davis, guardian of William Williams.

It is true that this judgment is unsigned at bottom, but that does not invalidate it. Keener v. Goodson, 89 N. C., 273. There is another formal judgment of nonsuit signed by Judge Neal, copied in appellants’ brief, that we fail to find set out in the record. It is admitted that the appeal to the Supreme Court by the plaintiff J. R. Davis, guardian, was never perfected, but was abandoned. Thereupon at April Term, 1907, Judge Lyon presiding, a judgment by consent of all parties, including R. L. Joyner, trustee, was entered, declaring the deed in trust of 17 November, 1902, null and void; that it be vacated and set aside, and that the plaintiff Davis, guardian, recover of Joyner, trustee, as well as of the administrators of Eli Williams, the entire estate of William Williams in their possession.

This consent judgment is pleaded as an estoppel in bar of this present action. The judge below sustained the plea and dismissed it. The correctness of this ruling is the only question before us.

It is contended that the consent judgment is void: (1) because it is admitted that the cestuis que trustent were not parties to the action; (2) because it is admitted that they were infants at the time, and, therefore, the consent judgment is void as to them, it appearing upon its face that the trustee made no defense, but wrongfully surrendered their rights.

As a general proposition, it is held that, it being the duty and within the power of the trustee to defend the estate committed to his care, he may institute or defend actions relating thereto without joining the cestuis que trustent as parties, and in the absence of fraud, they are bound by the judgment rendered therein. Accordingly it was held in Hancock v. Wooten, 107 N. C., 9, that in an action to set aside a fraudulent assignment, the cestuis que trustent are not necessary parties, and they will, in the absence of had faith on the part of the trustee, be bound by his acts. In that case the assignment was for the benefit of a large number of [693] creditors and tbe deed conferred many duties and powers upon the trustee. It may well be doubted if that principle will apply to such a trust as the one before us, which, so far as these plaintiffs are concerned, is a naked trust, the only duty imposed and the only power conferred upon the trustee being to convey and deliver to the plaintiffs, at Williams’ death, the property described in the deed. Mr. Perry holds that if the object of the action is to destroy or charge the estate of the cestui que trust, he is a necessary party. 2 Perry on Trusts, sec. 883. Put it is not necessary to decide that controversy now. We .are of opinion that the second ground upon which the plaintiffs rest their case is sound in law as well as in morals.

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Belcher v. Cobb, 169 N.C. 689 (N.C. 1915).

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