Caine v. Payne

182 F.2d 246, 20 A.L.R. 2d 823, 86 U.S. App. D.C. 404, 1950 U.S. App. LEXIS 2770
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 8, 1950
Docket10391
StatusPublished
Cited by12 cases

This text of 182 F.2d 246 (Caine v. Payne) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caine v. Payne, 182 F.2d 246, 20 A.L.R. 2d 823, 86 U.S. App. D.C. 404, 1950 U.S. App. LEXIS 2770 (D.C. Cir. 1950).

Opinion

FAHY, Circuit Judge.

' The case is before us on appeal from an order of the United States District Court for the District of Columbia construing the will of the late David A. Gourick. The will devised and bequeathed his residuary estate to the National Savings and Trust Company in trust as follows:

“One. To hold, manage, invest and reinvest the same, to keep the same invested, with full power to change and alter investments thereof, to collect the income therefrom and to pay three-fourths of the net income thereof unto my sister, Anna S. Payne, and the remaining one-fourth of the net income thereof unto my niece, Estella Caine, for and during their lifetimes, respectively. From and after the death of either, the entire net income shall be paid unto the survivor during the rest of her natural life.
“Two. Upon the death of the survivor of said Anna S. Payne and Estella Caine, the trusts herein created shall cease and determine and my said Trustee shall pay, set over, assign, convey and deliver my entire estate and property then in its possession, absolutely and in fee simple, share and share alike, unto my nephews, Edwin D. Payne, Edward O. Caine and Bertram Caine, or the survivors or survivor of them.”

The trustee petitioned the District Court for instructions as to the meaning of the survivorship clause regarding the nephews; that is, as to how the estate should be distributed at the termination of the trust. Upon his death in 1925, testator was survived by his sister Anna S. Payne and by his niece Estella Caine. The sister and niece accordingly received their respective life interests in the income of the estate.. *247 The sister predeceased the niece who then received the full income until her death in 1948, Subsequent to the death of the testator and prior to the death of the niece, Edwin D. Payne and Edward O. Caine, two of the three nephews, died. Of the three nephews only Bertram Caine survived the ending of the trust upon the death of the niece. The deceased nephews Edwin and Edward at that time were survived by their respective widows as next of kin. They are appellees.

The District Court held that the nephews each acquired a vested interest in the corpus of the trust estate and that the interests of Edwin D. Payne and Edward O. Caine were not divested by their failure to survive the niece. The court accordingly instructed that the residuary estate in the hands of the trustee at the time of the death of the niece should be distributed one-third to the surviving nephew Bertram Caine, one-third to the executor or administrator of the estate of the deceased nephew Edwin D. Payne, and the remaining one-third to the executor or administrator of the estate of the deceased nephew Edward O. Caine.

Bertram Caine appeals. He contends that only the nephews or nephew who should survive the trust would take the estate then in the hands of the trustee. Since he alone so survived he contends that he alone should now receive the estate from the trustee. We agree that this was the intention of the testator and that it should be given effect. Each of the nephews took a vested remainder upon the death of the testator. 1 But such remainders were thereafter divested in the case of the two nephews who died before the end of the trust. We recently dealt inter alia with a vested interest where its owner took nothing by failure to survive a precedent life estate. Scott v. Powell, - U.S.App.D.C. —, 182 F.2d 75. The case demonstrates that the answer to the question now before us does not lie in the fact that each of the nephews took a vested remainder upon the death of the testator. Failure of two of them to survive the trust estate left the nephew living at its termination to take all that would have been shared among the three had all survived or between two had but two survived. This was the intent of the testator as we construe his will. He used the word “survivor” three times in the provisions above set forth. Twice his meaning is quite clear from the context. The third use of the expression, upon which our decision turns, is not quite so clear. But it should be given the same meaning as in the two instances when the context leaves no doubt, namely, that the time of survival is related to the termination of the other interest referred to and not to the time of testator’s own death. The first use of the word in paragraph One, supra, is that the entire net income of the residuary trust estate shall be paid for life “unto the survivor” of testator’s sister and niece. Here it is obvious from the context that the time of survivorship is the death of the sister or niece, not of himself. He then states that upon the death of “the survivor” of said sister and niece, where the meaning of the word is again clear, the trust shall end and the entire estate then in possession of the trustee shall go “unto my nephews, Edwin D. Payne, Edward O. Caine and Bertram Caine, or the survivors or survivor of them”. Following the natural tenor of the language we think that this last use of the words “survivors” and “survivor” refers not to survival at the time of testator’s own death but means survivorship among the nephews at the time of the death of the sister or niece, the immediately precedent beneficiary in point of time. This being the meaning which we draw from the language of the will and there being no rule of law to prevent giving effect to it we must construe *248 the will so that this intent of testator as to the disposition of 'his estate will have vitality.

It is well said .in Pyne v. Pyne, 1946, 81 U.S.App.D.C. 11, 14, 154 F.2d 297, 300: “The basic, always controlling, rule in the construction of wills is the intent of the testator. If that intent can be discerned in the language of the will, read, of course, in the light of the surrounding circumstances, there is an end to the matter. If it cannot be so discerned, the testator must be presumed to have intended the result which the law has theretofore attached to the language which he chose to use.”

We recognize that a construction which might lead to intestacy is not favored, Bunker v. Jones, - U.S.App.D.C. -, 181 F.2d 619 and that our construction would have resulted in some intestacy if all nephews had died .before the trust terminated. We realize also that there is a strong line of authority, including O’Brien v. Dougherty, 1893, 1 App.D.C. 148, which would relate the time of survivorship, unless a contrary meaning is clear, to the testator’s death, thus irrevocably vesting the interest as of that time. The discussion in O’Brien v. Dougherty develops the reasons for such a rule of construction. But we do not feel called upon to invoke rules designed to resolve ambiguity since the intention of the testator is sufficiently clear. It might not be thought to be absolutely clear. Differences of opinion are not altogether unreasonable. But it is clear enough to furnish the basis of decision without need to invoke canons of construction designed to lead to a result favored by the law in the absence of a clear indication of intention by the testator.

O’Brien v. Dougherty merits some further consideration.

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182 F.2d 246, 20 A.L.R. 2d 823, 86 U.S. App. D.C. 404, 1950 U.S. App. LEXIS 2770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caine-v-payne-cadc-1950.