City Bank Farmers Trust Co. v. Whiteing

136 Misc. 416, 241 N.Y.S. 398, 1930 N.Y. Misc. LEXIS 1196
New York Supreme Court·Decided April 1, 1930·Published·Cited by 4 cases

Opinion

McCook, J.

Motion for judgment upon the pleadings, which show the following state of facts: On December 29, 1869, Helen Watson Harris of New York and Richard Whiteing of England entered into an agreement by way of marriage settlement, with Eliza Harris of New York as trustee, which suspended the absolute ownership of certain property in the State of New York during the lives of the intended husband and wife, income payable meantime to them or the survivor of them, principal to be paid upon the death of such survivor to their issue then living, and, in default of such issue, as Helen Watson Harris might by will appoint. Plaintiff is successor trustee under this agreement. Helen Watson Harris and Richard Whiteing subsequently intermarried and had one child, Richard Clifford Whiteing. Helen Watson (Harris) Whiteing died in 1921, domiciled in England; her son, Richard Clifford Whiteing, in 1923; her husband, Richard Whiteing, in 1928. Upon the death of her husband Richard the trust terminated with default of issue, thereby rendering effective, if it has become effective, the power of appointment under the marriage settlement. This power had meanwhile been exercised by Helen under a will, dated June 18, 1916, admitted after her death to probate by the Probate Division of the High Court of Justice of England. It further appears that Richard Clifford left surviving him no issue, but a wife, Ellen Marie Louise Whiteing, also known as Nellie Du Maurier Whiteing, one of the defendants, to whom he gave and bequeathed under his will his entire estate. Nellie, who was born subsequent to the date of the marriage agreement, appears to have assigned and conveyed her rights, if any, to one Garnett, a defendant, before the [418]*418death of her father-in-law Richard, though after the death of her husband, Richard Clifford. She was Mrs. Richard Whiteing’s only-daughter-in-law; she is living, has not married again and has no children.

Mrs. Helen Watson Whiteing’s will reads in part as follows: “ I leave to my son Richard Clifford Whiteing and in case of his death to his wife Nellie Du Maurier Whiteing all my earthly possessions consisting of moneys invested in the United States of America and in care of Joseph Bird, trustee * * *. In the event of my daughter-in-law dying without children I desire the whole capital to go to my sister’s children.” The testatrix had but one sister, Kate Cramer Roberts, who left surviving her seven children; six of these and the children of the seventh are joined as defendants.

The issue of law, which relates principally to the Helen Watson Whiteing will, is between Nellie Du Marnier (Ellen Marie Louise) Whiteing, claiming under both wills, together with her assignee Gar-nett, individually and as executor of Richard Clifford Whiteing, on the one side, and the hens and next of kin of Kate Cramer Roberts on the other. The former group claim that the words “ in case of his death ” in the will of Helen Watson Whiteing must be read to mean “in case-of his death before me,” so that, as Richard Clifford Whiteing died after his mother, the testatrix, the provision for his wife Nellie under his mother’s will never took effect. The latter group contend that, even if the earlier clause makes a gift to the daughter-in-law of the testatrix, the later clause in favor of the sister’s children must control in the event the two clauses are found inconsistent. They argue that, although the daughter-in-law is still alive, she cannot have children who would be the “ children ” contemplated’ by the testatrix in the later clause, and that when she dies the situation foreseen by the testatrix will come to pass; so that they should be determined remaindermen, subject at most to a life interest in the property to the daughter-in-law.

The plaintiff stands aloof from this controversy, merely discussing the various possible constructions of the will, and praying that after the questions of law have been determined and the opinion of the court has been published, an interlocutory judgment be dispensed with and the matter be allowed to proceed immediately to final judgment, judicially settling and allowing its account as trustee. Although the construction contended for by the Whiteing-Garnett interests involves the interpolation or assumption of the explanatory words “ before me ” it appears to the court a natural and even necessary one, because upon acceptance of it any ambiguity at once disappears and no construction equally persuasive has been discovered. If the testatrix intended her daughter-in-law to take the [419]*419property only in case Bichard Clifford should predecease his mother, Nellie Whiteing obviously received nothing under the will of her mother-in-law, and in that event no occasion for the alternative provision in favor of the children of testatrix’s sister ever arose. The two clauses would under such a construction be neither inconsistent, repugnant nor irreconcilable; on the contrary, they would be supplementary to one another and consistent with the simply and briefly expressed wishes of the testatrix.

No difference as applied to this conclusion is found between the law of England and that of the State of New York. In sharp contrast with this result are the ambiguities and complexities involved in a different construction. It might at first sight seem possible since the will mentions the trust fund of which plaintiff is trustee (as successor to Eliza Harris and her successor, Joseph Bird, among others), to construe the earlier clause as intending a gift to Richard Clifford Whiteing, only to take effect should he be living when the trust fund becomes distributable, viz., at the time of his surviving parent’s death, and thus further intending the provision for Nellie’s benefit to become effective in the event of his death before such time. If this construction is to be adopted, we must of course go further and examine the later clause. Does the sentence In the event of my daughter-in-law dying -without children,” etc., transform her otherwise absolute gift into a fife estate? If so, since Nellie was not born in 1869, a suspension of ownership by way of power of appointment for her fife is invalid, because such power must be read into and then will become part of the original instrument which created it, and no suspension can be validly directed save for the life of a person in being at the time of executing the instrument which suspends it. This is true equally under New York and English law. Moreover, the construction rests ultimately upon what must be regarded as a New York contract because of the domicile of the trustee and the situs of the trust property. It would, therefore, in case of conflict, be the New York and not the English authorities which control. (Matter of Harriman, 124 Misc. 320, and cases cited, opinion by Foley, S.; affd., without opinion, 217 App. Div. 733.)

Assuming so much, can the defect be cured, as, for example, by accelerating the provisions in remainder after the death of Nellie so as to take effect at once? Vested remainders are sometimes accelerated after an intermediate life estate, contingent remainders never. (Kalish v. Kalish, 166 N. Y. 368; Matter of Hitchcock, 222 id. 57; Dana v. Murray, 122 id. 604.) The gift to my sister’s children ” is doubly contingent. It is conditioned upon “ my daughter-in-law dying without children.” The will does mot say [420]*420children by my son Richard Clifford,” and the Roberts heirs’ contention that it means his children only cannot be sustained, since she might remarry and leave issue by another husband.

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City Bank Farmers Trust Co. v. Whiteing, 136 Misc. 416, 241 N.Y.S. 398, 1930 N.Y. Misc. LEXIS 1196 (N.Y. Super. Ct. 1930).

136 Misc. 416 (City Bank Farmers Trust Co. v. Whiteing) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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