Culross v. . Gibbons

29 N.E. 839, 130 N.Y. 447, 42 N.Y. St. Rep. 527, 85 Sickels 447, 1892 N.Y. LEXIS 947
CourtNew York Court of Appeals
DecidedJanuary 20, 1892
StatusPublished
Cited by39 cases

This text of 29 N.E. 839 (Culross v. . Gibbons) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Culross v. . Gibbons, 29 N.E. 839, 130 N.Y. 447, 42 N.Y. St. Rep. 527, 85 Sickels 447, 1892 N.Y. LEXIS 947 (N.Y. 1892).

Opinion

Parker, J.

By this suit in equity, it. was sought to compel the defendant Arthur J. Gibbons, to convey to the plaintiff certain real estate, the legal estate of which was vested in him under the following circumstances:

Prior to the 13th of December, 1876, James B. Culross, the husband of the plaintiff, was the owner of the major portion of such real estate, and by deed of that date, in which his wife joined, he quit-claimed it to Thomas P. O’Kelley, an *450 ¡attorney .at law.; O’Kelley quit-claimed the same premises to the plaintiff by deed dated the fourteenth of the same month; the plaintiff, by deed of the same date, quit-claimed such premises to the defendant Arthur J. Gibbons; and Gibbons •executed an instrument in writing, bearing date the fifteenth of the same month, in which it was declared that he held said premises upon .certain trusts therein expressed.

These several instruments were drafted by O’Kelley ; subscribed at his office; acknowledged on the 15th day of December, 1876:,; and recorded in the proper county clerk’s office at the same ¡minute of time. At the time of the execution of ¡these instruments, J ames K. Culross had a family, consisting ,. of his wife and several children, among whom was his daughter .Minnie, then as now the wife of the defendant Gibbons.

•.Culross had become so irregular in his habits as to excite -apprehension in the minds of several of the members of his family that he might squander his property, which was then of the value of about $40,000. These apprehensions were made known to Mr. Culross, to whom a wish was also expressed, that he make some disposition of his property to the end that it might be saved from waste. He readily acquiesced in the ¡suggestion, and the result was the execution of the instruments .already referred to.

In the declaration executed by Gibbons it was declared that be held .the premises in trust, the terms of which may be briefly stated, as follows . (1) To collect the rents and profits •■of the real estate, and after payment of taxes, insurance and ' ¡other liens, apply the balance to the support and maintenance ¡of the plaintiff during her life. (2) In the event of her death before that of her husband, to apply such balance for his benefit during life. (3) After their deaths, and after paying all liens, and incumbrances-on the property to divide the premises or the avails thereof within eighteen months, equally between their children; the descendants of any deceased child to take bis or her share. (4) Reserving to the trustee power to mort-gage or otherwise dispose of the premises for the benefit of the trust.

*451 Immediately after the execution of the instrument drawn by O’Kelley, Gibbons took charge of the real estate and cared for the financial affairs of the business in which Mr. Culross was engaged.

September 1, 1884, Gibbons purchased certain real estate on Ambrose street, in the city of Rochester, paying a part of the consideration from the. surplus income and executing mortgages upon such property for the remainder. The title he took in his own name, and on the same day executed an instrument in writing purporting to enlarge the trust created December 15, 1876, so as to bring such property within it, and this instrument was also executed by the plaintiff, and each of her children, except David J. Culross. Thereafter Gibbons managed the Ambrose street property, as he did the property first conveyed to him.

Subsequently and on the 8th of June, 1887, pursuant to a petition presented by Gibbons, all the parties to this action, and the sons of the plaintiff (who have since assigned their interests to her) consenting, the court made an order declaring the allegations in the petition to be true; settling his accounts as trustee; removing him and relieving him from the trusts, and directing that he should not interfere further with the same, or either of them. On the same day, and on the application of the plaintiff, the court by an order duly made, appointed Alexander B. Crooks “ trustee of all the real estate described in said petition, with all the powers and duties contained in a certain declaration of trusts, dated on the 15th day of December, 1876.”

It will be observed that ás a result of the orders of June eighth, Crooks became trustee in the place of Gibbons, removed, but the legal estate remained in him, and he was enjoined from further interference.

As we have already remarked, the plaintiff seeks to have any trust that may have been created, canceled, and the property restored to her. She assigns in support of her position the following grounds: (1) That the deed from her to Gibbons was fraudulently procured. (2) If it be otherwise determined, *452 then that the trusts sought to be created are invalid. (3) If valid, then the trusts having been created by the plaintiff, and being voluntary, may be revoked because the grantor did not understand that she was putting the property beyond her control.

Her contention, with reference to the Ambrose street property purchased subsequently, rests on somewhat different grounds, and will be considered later.

. As to the first ground, it is sufficient to say that the learned referee found as a fact that the plaintiff acted understandingly and freely, and that no fraud, deception, undue influence or abuse of confidence was practiced upon her.

As to the second ground it is apparent that an attempt was made to create a trust, providing for the collection of the rents and profits of the real estate, and their application in payment of insurance, taxes and other charges on the property, and to use the remainder in the support and maintenance of the plaintiff during her life, and for the benefit of her husband after her death. (2) To divide the premises or the avails thereof among the issue of plaintiff after her death and that of her husband. (3) To mortgage the property or dispose of it if it should appear to be for the benefit of the trust.

The trust first mentioned is conceded to be valid, and whether the other two attempted trusts, while invalid as trusts may be valid as powers in trust, and employed as aids to the execution of the valid trusts, as contended by one side and denied by the other, need not be considered, for they are so easily separable from the valid trust that it may be upheld without doing injustice to the intention of the creator of the trust.

Indeed it would be in furtherance of the trust maker’s general scheme to do so, should the latter two be held illegal, and the court would so decree. (Underwood v. Curtis, 127 N. Y. 523.)

The third ground is based on the assumption that the plaintiff was the creator of the trusts, and if that assumption could be allowed the, appellant would in this court be confronted *453 with the difficulty that the record contains a finding of fact controlling here that the plaintiff acted understandingly.

But the learned referee was of the opinion, and he found the fact to he, that the several instruments by which the transfer of title was effected, including the declaration of trust, were drawn pursuant to the direction of James It.

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Bluebook (online)
29 N.E. 839, 130 N.Y. 447, 42 N.Y. St. Rep. 527, 85 Sickels 447, 1892 N.Y. LEXIS 947, Counsel Stack Legal Research, https://law.counselstack.com/opinion/culross-v-gibbons-ny-1892.