Bowles v. R. G. Dun-Bradstreet Corp.

12 A.2d 392, 25 Del. Ch. 32, 1940 Del. Ch. LEXIS 36
CourtCourt of Chancery of Delaware
DecidedApril 18, 1940
StatusPublished
Cited by11 cases

This text of 12 A.2d 392 (Bowles v. R. G. Dun-Bradstreet Corp.) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowles v. R. G. Dun-Bradstreet Corp., 12 A.2d 392, 25 Del. Ch. 32, 1940 Del. Ch. LEXIS 36 (Del. Ct. App. 1940).

Opinion

The Chancellor :

This case is before the court on general and special demurrers to the complainant’s bill; and on a motion to vacate the service of process on Ralph Hayes, as executor and trustee under the last will and testament, and the codicils thereto, of Lucy Wortham James, deceased.

The R. G. Dun-Bradstreet Corporation is a corporation of the State of Delaware, and the complainant seeks injunctive and other relief against some of the defendants, with respect to the stock issued by that corporation to Lucy Wortham James during her life time. The relief sought against The Dun-Bradstreet Corporation is, however, merely of an injunctive nature. Mrs. James died in the City of New York on January 19th, 1938, but was then domicil[36]*36ed in, and a legal resident of the City of Newport, Rhode Island. Prior to her death, she had executed a paper, purporting to be her last will and testament, and two codicils thereto, in which she named the Fulton Trust Company of New York, William Greenough, also of New York, and Ralph Hayes, of Wilmington, Delaware, as executors and trustees. The decedent left a considerable personal estate; some $33,000 of which was located in the City of New York. On February 3rd, 1938, her will and the codicils thereto were filed for probate in the Surrogate’s Court- in the City and County óf New York. On November 12th, 1938, they were duly probated as such by that court, and letters testamentary thereon were granted to the said Fulton Trust Company, William Greenough and Ralph Hayes. It appeared from the probate proceedings that the decedent was a resident of the City of Newport, Rhode. Island, and that such' proceedings were, therefore of an ancillary nature. At the time of the death of the said Lucy Wortham James she was the record owner of 51,672 shares of common stock and 7,036 shares of the cumulative preferred stock of The R. G. Dun-Bradstreet Corporation, one of the defendants, which said stock had a value in excess of $2,000,000.00. The certificates evidencing that stock were then in the possession of William Greenough, in New York City, and were subsequently delivered by him to the said Fulton Trust Company, also one of the executors named in the will of the decedent. On June 16th, 1939, the executors of ,Lucy Wortham James filed an intermediate account on. her estate in the Surrogate’s Court in the City and County of New York. The complainant, one of the alleged heirs at law and next of kin of Mrs. James, has made repeated efforts to have her original will transmitted to Rhode Island for probate in that State, but, when this bill was filed, had not succeeded in having that done, and the only administration on her estate at that time was in the Surrogate’s Court in New York. An application for the grant ofiletters on her estate in Rhode Island was, however, pending. On September 1st, 1939, the New [37]*37York Surrogate’s Court entered an order directing the executors of Lucy Wortham James to “proceed in the usual course with the administration of the estate of the said decedent in New York and proceed to sell the common capital stock of The R. G. Dun-Bradstreet Corporation,” which, as has already been stated, is a corporation of the State of Delaware. All of these facts are alleged in the bill.'

The bill also alleges:

1. That the executors of Lucy Wortham James “have and are continuing to dispose of said stock and are proceeding with the administration of the said decedent’s entire estate as though a primary original domiciliary administration existed in the State of New York.”

2. That the executors of Lucy Wortham James are about to sell and transfer The R. G. Dun-Bradstreet Corporation stock in question “in accordance with the order of the New York Surrogate’s Court.”

3. That such sale by the executors named in the will of the decedent will render any decree, that may be entered, by the court of Rhode Island, in which State Lucy Wortham James was domiciled at the time of her death, a mere nullity, and will result in irreparable injury to the complainant.

Any and all relief sought against the defendants relates to shares of stock issued by The R. G. Dun-Bradstreet Corporation, which stood in the name of Lucy Wortham James at the time of her death, and which were, therefore, an asset of her estate; but it does not appear that the stock in question, or any part thereof, was bequeathed to the compainant by the will of Mrs. James, or by any of the codicils thereto.

It is elementary law that the complainant’s interest in the subject-matter of a bill in equity must clearly appear from its allegations. No such interest, or injury to his rights, appear here; and that omission is fatal to his case. 1 Whitehouse Eq. Pr., § 89.

[38]*38The complainant’s theory, apparently, is that as the will of the decedent was not probated in Rhode Island, the State of her domicile, she is “deemed to have died intestate,” as "to property located in any State, other than New York; and the bill so alleges. Applying this theory, it, also, alleges that title to all personal property belonging to Lucy Wortham James, at the time of her death, vested, by operation at law, in her heirs and next of kin “subject only to the rights and interests with respect to creditors of said decedent, if any, of an administrator appointed by an appropriate court of the State of Rhode Island.” Had the decedent actually died intestate, the complainant, as one of her next of kin, would have had some interest in her personal property located in this State. But, in view of the fact that she left a will, which was subsequently probated, as such, in the State of New York, no such claim can be made.

But even if it be conceded, for the sake of argument, that it appears from the allegations of the bill that the complainant has some right or interest in the stock in question, there are other reasons why he is not entitled to the relief prayed for against the defendants, or any of them, including The R. G. Dun-Bradstreet Corporation.

It is not denied that stock, issued by a corporation, is personal property. Section 2048, Revised Code 1935. Nor is it denied that the real situs or location of stock, issued by a Delaware corporation, is in this State. In this connection, our statute provides:

“For all purposes of title, action, attachment, garnishment and jurisdiction of all courts held in this State, but not for the purpose of taxation, the situs of the ownership of the capital stock of all corporations existing under the laws of this State, whether organized under this Chapter, or otherwise, shall be regarded as in this State.” Rev. Code 1935, § 2105.

The complainant contends that the will of Lucy Wortham James should have been probated' in the State of Rhode Island, the place of her domicile, and letters thereon granted in that State; that the probate proceedings and let[39]*39ters testamentary granted in the State of New York were of a mere ancillary or subordinate nature which gave the executors, who qualified there, authority to administer on property located in that State, but gave them no right to administer on property located in the State of Delaware. He further contends that, applying that rule, the Dun-Bradstreet Corporation could not recognize or act on transfers of its stock made by the New York executors of the decedent.

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Bluebook (online)
12 A.2d 392, 25 Del. Ch. 32, 1940 Del. Ch. LEXIS 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowles-v-r-g-dun-bradstreet-corp-delch-1940.