Carter v. Board of Education of Presbyterian Church of United States

23 N.Y.S. 95, 75 N.Y. Sup. Ct. 435, 52 N.Y. St. Rep. 672, 68 Hun 435
CourtNew York Supreme Court
DecidedApril 14, 1893
StatusPublished
Cited by2 cases

This text of 23 N.Y.S. 95 (Carter v. Board of Education of Presbyterian Church of United States) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carter v. Board of Education of Presbyterian Church of United States, 23 N.Y.S. 95, 75 N.Y. Sup. Ct. 435, 52 N.Y. St. Rep. 672, 68 Hun 435 (N.Y. Super. Ct. 1893).

Opinions

O’BRIEhT, J.

John Spaulding, the testator, executed Ms will March 21, 1889. He died March 30, 1889. He left surviving him no issue or widow, father, or mother, tint did leave certain next of Mn and heirs at law, brothers and sisters, nephews and nieces, all parties to this action. At the time of his death he was seised and possessed of real and personal property situate within this state to the value of $45,000. By his wül he directed Ms executors to convert his estate into money as soon as convenient, and to pay and dispose of the proceeds as directed: Board of Home Missions, [98]*98$3,000. There is no controversy as to this. Board of. Foreign Missions, $3,000. There is no controversy as to this. Board of Education, $3,000. Declared to be invalid. Board of Relief for Disabled Ministers, etc., $3,000. Declared to be invalid. The will ■then proceeded:

“And whatsoever moneys may remain in the hands of my said executors after the payment of the foregoing bequests I hereby direct my said executors to divide into three equal parts, and to pay one third thereof to the American Seaman’s Friend Society, one third thereof to the Board of Church Erection Fund, and one third thereof to the Board of Aid for Colleges.”

This clause was held by the court below to be a specific residuary clause, and therefore the amount of the invalid legacies passed to the next of kin as undisposed of by the will. The different appeals bring up these three points: (1) That it was error to allow the plaintiff to recover back the amounts he had paid on account of the legacies now found to be void; brought up by the appeals of the Board of Relief and the Board of Education. (2) That it was error to adjudge void the legacy to the Board of Education; brought up by the appeal of that board. (3) That it was error to hold that the void legacies, if any, did not fall into the residuum, and pass to the residuary legatees; brought up by the appeals of the Board of Church Erection and Board of Aid for Colleges..

To sustain the contention that it was error to allow the plaintiff to recover back the amounts he had paid on account of the void legacies, it is insisted that there was no evidence to support the finding that the executor made these payments under a mistake of fact; and that, even though there had been, nevertheless it was error to conclude as a matter of law that these boards must refundió the executor the amounts already paid by him on account of their legacies. Appellants invoke the well-settled rule that, to warrant a court of equity to relieve against mistake of fact, it must be the mutual mistake of both parties, or there must be the mistake of one and the fraud of the other in taking advantage of . it; and another rule, equally well settled, that where the executor .volunteers to pay the whole or any portion of a legacy, and it subsequently appears that the assets are not sufficient to justify a payment to that extent, the loss must fall upon the executor, and he cannot compel the legatee to refund. This last rule we.do not think can apply to a case such as this, where the payment is not made voluntarily, and upon an assumption that there are assets sufficient, which assumption subsequently turns out to be erroneous. Here the executor, under the terms of the will, was directed and required to pay these legacies," and, having no reason to believe that the legacies themselves were void, it was "in the discharge of his duty as executor that the payments were made. The legacies themselves, however, having, by the judgment, been declared void, we can think of no principle that would protect the legatees from being obliged to refund the amounts thus paid to them. The right to require such a payment is in no way affected by the fact that the executor would be protected from personal liability for such payments made by him. In other words, the exemption from lia[99]*99Mlity with which the law might clothe the executor for payments made in good faith could not be extended so as to preclude him from recovering back from the parties to whom the money was paid without right, or invest such parties with the title to such moneys. The analogy sought to be drawn between a payment made by an executor of a legacy held to be void and a payment made by an assignee under the terms of an assignment held to be void is illusory, as the distinction between the two makes clearly evident. In the case of an assignment subsequently held to be void, a payment by the assignee to a preferred or general bona fide creditor before action brought to attack the assignment would not make the assignee responsible for such payment. But is there any doubt as to the right of the assignee to recover back moneys paid to a supposed creditor, whether general or preferred, who, after such payment, is shown never to have had any valid or legal claim against the assigned estate? Undoubtedly the assignee, who made the payment in good faith before action brought to determine the validity of such a claim, would be protected, as he would in the case of a payment made to a preferred creditor, although the assignment should be subsequently set aside and adjudged to be fraudulent and void. With respect to a valid claim, the ground upon which it could be urged that the assignee could not recover back a payment made to a bona fide creditor could be sustained, as it has been, by the view that the creditor received but his due out of the debtor’s property; but with respect to an invalid claim, just as here, in the case of a void legacy, the determination being that the party never had any claim against the estate, the right to compel a repayment seems, in the absence of any authority to the contrary, reasonably free from doubt.

The point that it was error to adjudge void the legacy to the Board of Education we regard as equally untenable. Upon this question we agree with the conclusion of the learned trial judge in holding that the cases of Kerr v. Dougherty, 79 N. Y. 327, and Hollis v. Seminary, 95 N. Y. 166, are direct authorities, and controlling.

The remaining question is whether the void legacies .passed to the residuary legatees, or are to be regarded as so much of the estate of the testator remaining undisposed of, and which descends to his next of Mn. In passing upon this question it becomes necessary to examine the language of the will in order to determine whether the residuary clause is general or specific and restricted. After a direction to his executors to convert his property into money, and “to' páy and dispose rof the proceeds thereof as herein directed,” the testator gives four legacies of $3,000 each, and then directs as follows:

“And whatever moneys may remain in the hands of my executors after the payment of the foregoing bequests I hereby direct my executors to divide into three equal parts.”

Then follows the designation of the three legatees, each of whom was to receive one third. The question is, did the testator by this [100]*100language intend to make a general residuary disposition of ¿¿is property? If he did, then the law is well settled that in a will of personal property the general residuary clause carries whatever is not -otherwise legally disposed of; or, otherwise stated, a general residuary clause includes not only what is not specifically given, but also what is ill given, or whatever fails by lapse, indefiniteness, or invalidity. The canons of construction to determine whether a residuary clause is general or not are thus stated in Lamb v. Lamb, 131 N. Y. 227, 30 N. E. Rep. 133:

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Bluebook (online)
23 N.Y.S. 95, 75 N.Y. Sup. Ct. 435, 52 N.Y. St. Rep. 672, 68 Hun 435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carter-v-board-of-education-of-presbyterian-church-of-united-states-nysupct-1893.