Davidson, Exrx. v. Bright

110 A. 301, 267 Pa. 580, 1920 Pa. LEXIS 915
CourtSupreme Court of Pennsylvania
DecidedMay 17, 1920
DocketAppeal, No. 225
StatusPublished
Cited by43 cases

This text of 110 A. 301 (Davidson, Exrx. v. Bright) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davidson, Exrx. v. Bright, 110 A. 301, 267 Pa. 580, 1920 Pa. LEXIS 915 (Pa. 1920).

Opinion

Opinion by

Mr. Justice Kephart,

Unless we hold that a direction “to pay all my just debts and funeral expenses” in one item of a will, and in another the power “I hereby authorize my executors to make sale of any of my real estate,” work a conversion at the moment of testator’s death, breaking the descent and vesting the entire estate as personalty, or that section 30 of the Fiduciaries Act of 1917 controls, we are bound to reverse this judgment. The question before us arose in a very simple manner. The executor of such a will, within a year of testator’s death, made a contract to sell real estate of decedent “free from all encumbrances”; in an action to recover the purchase price, defense was made that he could not convey the land [583]*583“free from all encumbrances” because it was subject to the lien of general or unscheduled debts of testator. There were many such debts and some had been indexed in the prothonotary’s office as provided by law. There were no liens, judgments or mortgages.

Equitable conversion is a fiction, — wherein money directed to be employed in the purchase of land is treated as land, and land directed to be sold is treated as money, — created to sustain and carry out the intention of the testator or parties; and, for certain purposes of devolution and transfer, it is sometimes necessary to regard the property in its changed condition, although the change has not absolutely taken place. As to the circumstances under which conversion will take place, and the legal principles governing, we need but refer to the opinion of our present Chief Justice in Cooper’s Est., 206 Pa. 628, 630, 631, wherein is collected, in brief epigrammatic style, the leading cases on the subject: “If, as was said in Hunt’s and Lehman’s Appeals, 105 Pa. 128, and subsequently repeated in Irwin et al. v. Patchen et al., 164 Pa. 51, anything ought to be settled by this time, it is that, in order to work a conversion of a testator’s land into money from the time of his death, there must be either, ‘1st. A positive direction to sell, or, 2d. An absolute necessity to sell in order to execute the will; or 3d. Such a blending of real and personal estate by the testator in his will, as to clearly show that he intended to create a fund out of both real and personal estate, and to bequeath the said fund as money.’ ‘The direction to sell must be absolute and unconditional’ : Stoner v. Zimmerman, 21 Pa. 394. ‘To establish a conversion, the will must direct it absolutely, or out and out, irrespective of all contingencies’: Anewalt’s App., 42 Pa. 414; and, ‘unless there be an imperative direction to sell, irrespective of contingencies and independent of discretion, conversion will not take place until the sale is actually made: Anewalt’s App., 6 Wright 414; Henry v. McCloskey, 9 Watts 145’; Peterson’s [584]*584App., 88 Pa. 397. ‘It must not rest in the discretion of the executor, nor depend upon contingencies’: Jones v. Caldwell, 97 Pa. 42. ‘It must be imperative, not contingent or discretionary merely, or a conversion does not take place until the sale is actually made’: Mellon v. Reed, 123 Pa. 1.”

Tested by this language, we find nothing in this will upon which could be predicated a positive direction to sell or a necessity to sell to execute the will, nor such blending of real and personal property as would create a fund to devolute as personalty.

The law does not favor conversions and it is not to be regarded as a formal rule of law without regard to its real purpose. Land should be regarded as land and personalty as personalty, and creditors advancing on the basis of either should not run the chance of being deceived. Conversions will be presumed only so far as necessary to carry out the intention of testator. Land passes as land unless there is a conversion and, where such is testator’s intention, the general rule is that the conversion takes place from the death of the testator, but when there is no intention to convert out and out and the power is discretionary in the executors or trustees, the course of descent is not broken; the land is still land, the heir at law takes, he may intermeddle with the estate and collect the rents and profits thereof. In such case, by force of the law of this State (see Judge Simpson’s opinion in Kirk v. Van Horn, 265 Pa. 549), at the moment of testator’s death the lien of the unscheduled debts attach, to be released only in the manner provided by law, i. e., by judicial sale, or other appropriate remedy. It has been held that where there is an absolute direction to sell for the payment of debts, the purchaser is bound to see to the payment of the recorded debts, but he is not bound to see to the payment of general debts, as they became payable in the ordinary course of administration: Cadbury v. Duval, 10 Pa. 265; but where the power of sale is discretionary, as in [585]*585this case, conversion takes place when the land is sold. In the meantime, and from the moment of testator’s death, general debts have acquired a lien which can only be continued or divested in the mode provided by statute: See Seeds v. Burk, 181 Pa. 281 at 288; Hunt’s App., 105 Pa. 128; Darlington v. Darlington, 160 Pa. 65; Chamberlain’s Est., 257 Pa. 113. The law has determined the status of the general debts against the land: Henszey’s Est., 220 Pa. 212; or, as said in Taylor v. Haskell, 178 Pa. 111, “until the exercise of the power, ......the estate remains land.” Where land is sold under a discretionary power more than two years after testator’s death, his unrecorded debts have lost their lien, our present Chief Justice in Cooper’s Est., supra, saying, “it was held that the limitation annexed to the lien of a debt of the decedent on his lands was not exclusively for the security of purchasers, but that heirs and devisees were equally the objects of the act’s protection ; and, in reannouncing this rule, there is no reason why it should not include the legatees of the proceeds of land sold after the liens of the debts of the decedent upon it had expired; for if, as owners of the unconverted land, it could not be taken from them, they ought not, in reason, to be deprived of the proceeds of it when converted into money.”

The mere blending of real and personal estate without a clear and indubitable intent to create a common fund and bequeath it as money, will not constitute a conversion : Lindley’s App., 102 Pa. 235; Chamberlain’s Est., supra. “When it is manifest that each and every provision of the will can be carried out without a sale of the real estate and the effort is to derive an intention to convert from the fact of blending of the real and personal estate, such inference cannot be supported except as it rests on something more than a mere failure on the part of the testator to distinguish between two kinds of property in directing that his estate be divided into shares and sold and distributed”: Martin v. Provident Life and Trust Co., 235 Pa. 281, 286.

[586]*586Does section 30 of the Fiduciaries Act of 1917, P. L. 447, 498, as follows, “Whenever any person seized of real estate.......having........made his last will....... wherein said executors.......are authorized to make sale of said real estate......and distribute the proceeds of such sale or sales......or hold the same in trust for any particular purpose, or for the use of any particular person or persons named in said last will and testament, the person or persons purchasing the real estate.......

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110 A. 301, 267 Pa. 580, 1920 Pa. LEXIS 915, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davidson-exrx-v-bright-pa-1920.