Condit v. Bigalow

54 A. 160, 64 N.J. Eq. 504, 19 Dickinson 504, 1903 N.J. Ch. LEXIS 77
CourtNew Jersey Court of Chancery
DecidedFebruary 3, 1903
StatusPublished
Cited by21 cases

This text of 54 A. 160 (Condit v. Bigalow) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Condit v. Bigalow, 54 A. 160, 64 N.J. Eq. 504, 19 Dickinson 504, 1903 N.J. Ch. LEXIS 77 (N.J. Ct. App. 1903).

Opinion

Emeky, Y. C.

The object of this bill is to establish a resulting trust in lands which were conveyed in fee to William C. H. Waddell, under whom defendants claim title. The complainants claim under the wife of Waddell, and allege that the conveyance to Waddell was made for the purpose of a partition or division between the ■devisees of one Lemuel Cobb, the father of Mrs..Waddell,, of [506]*506some of the lands devised by him to Mrs. Waddell and others, and that the husband, on taking the conveyance of these lands in his name, must be held to have taken the conveyance as trustee for his wife. The legal title of the husband at the time of the conveyance was that of tenant by the curtesy initiate in the undivided interest (one-third) of the lands to which his wife was entitled. If the transaction in which the conveyance to the husband was made was, in fact, a partition or division by deed between the tenants in common of the fee, it is claimed that the deed should have been made to the wife, and that, if made.to the husband, he will (for the interest therein beyond his life estate) hol'd the legal estate conveyed by the deed as trustee for the wife. That a trust results in favor of the wife is the settled rule where the wife’s money or separate estate pays for land in which the husband takes title. Lathrop v. Gilbert, 2 Stock. 344 (Chancellor Williamson, 1855); City National Bank v. Hamilton, 7 Stew. Eq. 158 (Vice-Chancellor Van Fleet, 1881); Irick v. Clement, 4 Dick. Ch. Rep. 590 (Errors and Appeals, 1892). And the same rule applies on a partition or division of lands where the wife, as one of the tenants in common, is entitled to the conveyance and her husband takes title to her share. Weeks v. Haas, 3 Watts & S. 520; 39 Am. Dec. 39 (Chief-Justice Gibson, 1842); Freem. Co-ten. & P. § 406. On this branch of the case the defendants raise the question whether the transaction is to be treated as a partition among the devisees, and claim that, by reason of the directions of the will, it is not to be treated as a partition. The lands were part of the residue of Lemuel Cobb’s-estate, as to which his will was as follows:

“Third. I divide all the residue of my real and personal estate into four-equal parts or shares, one share thereof I give and bequeath to Benjamin Howell, of Troy, the husband of 'my daughter Elizabeth; one other share I give and bequeath to Walter Kirkpatrick, nevertheless in trust for Eugene Kirkpatrick, the. only son of my daughter Maria 0. Kirkpatrick, one other share I give and bequeath to my daughter Julia Ann [Mrs. Waddell] and the remaining share X give and bequeath to my son Andrew B. Oobb—to have and to hold to each of them their heirs and assigns forever. I do hereby nominate, constitute' and appoint my son Andrew B. Cobb, Walter Kirkpatrick and Benjamin Howell Executors to this my Testament and Last Will. I do hereby order and direct my executors hereinabove named or a majority or the survivor or survivors of them, to-[507]*507grant, bargain and sell all or any part of the residue of my estate called the third item & divide the moneys arising therefrom among the legatees therein mentioned.”

It is claimed that this direction amounted to an equitable conversion of the residuary real estate, and that the partition of lands in question (which was the third partition between the devisees) should be considered in equity as a division of the proceeds of sale, and that the husband being, at the time of the partition (1838), absolutely entitled to the wife’s personal estate, he should bo considered as holding the lands as proceeds of sale and as the proceeds of his own money.

The doctrine of equitable conversion is a branch of the general equitable doctrine of trusts, and has been adopted solely for the purpose of executing trusts, and it is essential to the application of the doctrine of conversion that the property should be subject to a trust or imperative direction for conversion. Where, as in this case, there is no devise of the legal estate to the executors, and their control over the legal estate, which is vested in others, is solely that of a power of sale, the question is, whether it is a mere naked power of sale, the exercise of which must be discretionary, or whether it is a power in trust, the exercise of which is imperative. The execution of powers in trust may be required in equity for the benefit of the beneficiaries entitled, but when the trustee of the power is clothed with a discretion as to its execution, the court will not control the discretion. Brown v. Higgs, 8 Ves. 561, 569 (1803); 2 Pom. Eq. Jur. § 1002, and cases cited; 2 Story Eq. Jur. § 1601. And, in order to give rise to an equitable or constructive conversion, the direction to convert must be imperative and the conversion must not be left to. the option of the donee or trustee. Cook’s Executor v. Cook’s Administrator, 5 C. E. Gr. 375, 379 (Chancellor Zabriskie, 1869). In this 'will there is, first, an absolute devise in fee of the legal estate to the devisees, then an appointment of executors, with a direction to sell following this appointment. The direction is not a direction to sell all his residuary estate, but all or any, and these words “or any” necessarily imply, as it seems to me, the power or option of selling or not selling some of the land, in their discretion. If the power be construed to be imperative, [508]*508it can only be upon the theory that all of the real estate must be sold by the executors. If as to any of the real estate the sale need not be made, then plainly an option as to conversion exists. Such option might be controlled by the court, in proper cases, for the benefit of the beneficiaries, but where an option or discretion to be exercised exists, the doctrine of constructive conversion is not applicable. Directions of most positive and imperative character would be required in this case to deprive the devisees •of the legal estate of the right to retain the land as land, because the proceeds of sale, if any sale be made, are, by the will, to go to the devisees of the land. It is the more rational conclusion, therefore, that the testator, by vesting an immediate fee-simple in all his lands in his devisees, by virtue of which they were entitled to immediate possession and enjoyment of the lands upon his death, intended them to have the lands, subject only to a power of sale of any of the lands if the executors (being three •of the four devisees) thought best for' the estate to sell, and, if such sale were made, the devisees, and no other persons, should receive the proceeds. This construction of the power to sell as a •discretionary, and not an imperative, power makes the will and every word of it operative, and harmonizes with its general plan.

Another reason why the doctrine of constructive conversion •cannot be held effective in this ease to convert the land into money is that, by the partition, an equitable reconversion, as it is called, took place. “By such reconversion the prior constructive conversion is annulled, and the converted property is restored in equity to its original actual quality.” 3 Pom. Eq. Jur. § 1175. Mrs. Waddell and the legatees of the proceeds of sale joined in the series of releases and conveyances which released from the power of sale the shares of the lands devised to the trustees and to Mrs. Waddell.

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Bluebook (online)
54 A. 160, 64 N.J. Eq. 504, 19 Dickinson 504, 1903 N.J. Ch. LEXIS 77, Counsel Stack Legal Research, https://law.counselstack.com/opinion/condit-v-bigalow-njch-1903.