Colson v. Pelgram

235 A.D. 137, 256 N.Y.S. 640, 1932 N.Y. App. Div. LEXIS 7908
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 15, 1932
StatusPublished
Cited by3 cases

This text of 235 A.D. 137 (Colson v. Pelgram) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colson v. Pelgram, 235 A.D. 137, 256 N.Y.S. 640, 1932 N.Y. App. Div. LEXIS 7908 (N.Y. Ct. App. 1932).

Opinion

Martin, J.

The appointment of a trustee to fill a vacancy caused by the death of one of two trustees is the principal question involved in this controversy. To decide that question it is necessary to construe the “ tenth ” clause of the will of Eliza M. Pelgram, which reads as follows: “ I nominate, constitute and appoint my brother, George H. Balleray, and my son, Charles R. Pelgram, Executors and Trustees of this my last Will and Testament and of the trust therein contained, and direct that they shall not be required to give bonds, either in the State of New York or elsewhere. On the death, resignation, removal or failure to qualify of either of them, the surviving or sole qualifying or sole remaining Trustee may name the successor to be appointed to fill such vacancy and such appointed party shall have the full powers conferred upon the Trustees named in this Will. Failure to qualify or accept the trust herein imposed on any Executor or Trustee named in this Will or designated by the survivor or his resignation or removal, shall not derogate against any interest such party may receive hereunder as legatee. My said Executors and Trustees shall each receive only a single commission for acting as such Executors and Trustees.”

Important questions incidental to and arising out of the construction of the above clause are also presented for consideration. Although it is true that the Surrogate’s Court, New York county, might dispose of one or more of the questions involved, the parties would eventually be compelled to resort to an action in the Supreme Court to obtain a complete adjudication of all the matters in dispute. When there is a doubt as to the jurisdiction of the Surrogate’s Court the parties are justified in submitting the matter for decision of the Supreme Court."

Eliza M. Pelgram died on April 9, 1910, leaving a last will and testament, which was admitted to probate in the Surrogate’s Court, New York county, on April 20, 1910. The executors and trustees named in the will by paragraph tenth ” thereof were the testator’s brother, George H. Balleray, and the testator’s son, [139]*139Charles R. Pelgram. Mr. Balleray renounced his appointment. Charles R. Pelgram qualified, and, pursuant to the express power granted in the will, duly designated as coexecutor and cotrustee his sister, Caroline M. Fleming, in the place of Mr. Balleray.

Mrs. Caroline M. Fleming, the mother of the appellants Elizabeth Fleming Stone and Raoul Pelgram Fleming, duly qualified as coexecutor and cotrustee. After the death of Mr. Pelgram on January 11, 1926, Mrs. Fleming moved promptly for the appointment of his successor. On March 12, 1926, an order was made appointing Alfred E. Ommen as Mr. Pelgram’s successor. Mr. Ommen was the first and only trustee who was not a member of testator’s family and who was not directly interested in the estate. He is an attorney at law and had been associated with his predecessor, Mr. Pelgram, in the practice of law, and had knowledge of the affairs of the trust estate.

Prior to his appointment as cotrustee, Mr. Ommen advised Mrs. Fleming that, in his opimon, the power of appointment of a cotrustee by a surviving trustee was exhausted when your brother appointed you,” and that she should “ present a petition to the Surrogate upon notice to all the parties.”

On December 2, 1927, Caroline M. Fleming died, leaving the defendant Ommen as the sole surviving trustee. He is of the opimon that he is not empowered by paragraph tenth ” of the will to appoint a successor to Mrs. Fleming, but has taken the position that it is discretionary with him, regardless of the wishes of the beneficiaries of the trust, whether the court shall be asked to appoint a cotrustee. In other words, the defendant Ommen’s attitude is that whether he shall have a cotrustee is purely optional with him. The contention of all the other parties is that two trustees are required and that the vacancy must be filled at once.

On November 29, 1929, about two years after the death of their mother, the appellants Elizabeth Fleming Stone and Raoul Pelgram Fleming, who reside in Westchester county, duly instituted in the Supreme Court, Westchester county, a proceeding for the appointment of a successor trustee to their mother. On December 17, 1929, the plaintiff Ethel M. Colson commenced this action in the Supreme Court, New York county, for a declaratory judgment and obtained an injunction pendente lite, restraining these appellants from prosecuting the Westchester county proceeding. (135 Mise. 833.) An appeal was taken from that injunction and the order was affirmed by the Appellate Division (229 App. Div. 704).

The case then proceeded to trial and a declaratory judgment was granted which restrained the plaintiffs in the Westchester county action from prosecuting any action or proceeding for the appointment [140]*140of a trustee to fill the vacancy caused by the death of said Caroline M. Fleming, but decreed that there was a power imposed upon the defendant Mr. Ommen to fill the vacancy caused by the death of Caroline M. Fleming and also granted other relief.

The first question here for review is the jurisdiction of the Supreme Court to appoint a trustee. There appears to be no doubt that the Supreme Court has complete jurisdiction to dispose of this entire controversy, including a construction of paragraph tenth ” of the will of the testatrix. The power of the Supreme Court to appoint a trustee to fill the vacancy caused by the death of Caroline M. Fleming is beyond question.

In Matter of Runk (200 N. Y. 447) the court said: “ * * * The Real Property Law and the Personal Property Law (§§ 111 and 20)* confer no new jurisdiction upon the Supreme Court, and the sections of the Code of Civil Procedure (§§ 2802-2820) take nothing from it. The Supreme Court, as the successor of the Court of Chancery, has always had, and still has, jurisdiction over all classes of trusts. The question is not whether that jurisdiction exists, but whether it is exclusive. Unquestionably it is exclusive in so far as it involves the exercise of equitable powers or duties which have not been given to Surrogates’ Courts. The Constitution has perpetuated the ancient equity powers of the Court of Chancery in and through the Supreme Court, but it has also given to the Legislature the right to invest Surrogates’ Courts with such jurisdiction as may be deemed wise or expedient (Art. 6, § 15). The powers thus delegated to the Surrogates’ Courts do not deprive the Supreme Court of any jurisdiction it has ever had. * * * Although it has the power to direct the administration of all trusts, it need not exercise it if the Legislature has given to other tribunals the requisite jurisdiction. That is precisely the condition presented by the case at bar. The Supreme Court, in the exercise of its undoubted power, appointed a successor to a deceased testamentary trustee.”

This action for a declaratory judgment was proper in view of the fact that complete or adequate relief could not be granted in the Surrogate’s Court. That court could not restrain the parties from prosecuting the action in the Supreme Court of Westchester county.

In Lawrence v. Littlefield (215 N. Y. 561) the court said: Lastly, [141]*141it is urged as a bar to and defect in the cause of action stated in the complaint that adequate relief could be obtained in the Surrogate’s Court and that, therefore, the Supreme Court should not entertain jurisdiction of the action.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re the Estate of Fishman
115 Misc. 2d 871 (New York Surrogate's Court, 1982)
In re the Estate of Janowitz
164 Misc. 936 (New York Surrogate's Court, 1937)
In re Colson
239 A.D. 18 (Appellate Division of the Supreme Court of New York, 1933)

Cite This Page — Counsel Stack

Bluebook (online)
235 A.D. 137, 256 N.Y.S. 640, 1932 N.Y. App. Div. LEXIS 7908, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colson-v-pelgram-nyappdiv-1932.