Davies v. Harrison

3 Pa. D. & C. 481, 1923 Pa. Dist. & Cnty. Dec. LEXIS 8
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedJuly 17, 1923
DocketNo. 566
StatusPublished
Cited by2 cases

This text of 3 Pa. D. & C. 481 (Davies v. Harrison) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davies v. Harrison, 3 Pa. D. & C. 481, 1923 Pa. Dist. & Cnty. Dec. LEXIS 8 (Pa. Super. Ct. 1923).

Opinion

McCullen, J.,

The plaintiff, La Verne Davies, instituted in this court an action of foreign attachment against Alfred C. Harrison, Jr., defendant, upon the record of an unsatisfied judgment for $150,000 obtained by the plaintiff against the defendant in 1919 in the Supreme Court of New York County, in the State of New York. Under the writ, the plaintiff seeks to attach the property and interests, if any, of the defendant in the possession of The Pennsylvania Company for Insurances on Lives and Granting Annuities, the surviving trustee under a certain deed .of trust executed May 3, 1917, by Alfred C. Harrison, the father of the defendant.

On July 24, 1922, in this foreign attachment proceeding judgment was entered against the defendant for want of an appearance, and damages were assessed at $178,250.

On the same day interrogatories were filed, addressed to said garnishee.

Answers thereto (with an amendment) were filed, wherein the garnishee admitted it had in its possession certain income arising under said deed of trust, and payable, in accordance with the terms and provisions thereof, to the defendant, Alfred C. Harrison, Jr.; and contended that because of the spendthrift trust provisions of the deed, this income was not subject to the writ of attachment.

A rule for judgment against the garnishee for want of sufficient answers was discharged after argument.

The garnishee thereupon filed a plea of nulla bona, and the cause came on for trial.

At the trial, the plaintiff offered in evidence against the garnishee the interrogatories and answers filed.

The evidence being closed, the garnishee presented a point for binding instructions in its favor. This point was affirmed, and the trial judge, ruling as a matter of law that the income in the possession of the garnishee was not subject to the plaintiff’s attachment, directed a verdict for the garnishee.

The plaintiff moves for a new trial.

The deed of trust (a copy of which is annexed to the garnishee’s answers filed) was executed by Alfred C. Harrison, the father of the defendant, as settlor or grantor, unto The Pennsylvania Company for Insurances on Lives and Granting Annuities and Arthur E. Newbold as trustees. Therein the settlor assigned, transferred and set over unto the trustees certain bonds and [482]*482securities, in trust, to collect the income thereof and to pay such income in quarterly or other convenient payments to his son, Alfred C. Harrison, Jr., “for and during the term of his natural life as the same accrue and not hy way of anticipation, and so that they shall not be liable for his debts, contracts or engagements,” and upon the death of his said son to transfer, assign and deliver the principal of the trust estate to the lawful issue of his said son as in said deed is set forth.

The trust being an executed one, with its limitations fully and perfectly declared, the plaintiff argues that the legal operation thereof is to be determined solely from the language in the instrument creating the trust — that the word “debts,” used by the settlor, is to be interpreted in its strict technical sense and with limited meaning, so as to exclude all liabilities originating in torts, and, hence, that the plaintiff’s claim in the present instance having arisen out of a tort of the defendant for which the original judgment in New York State was recovered, the funds in the possession of the garnishee are subject to the attachment.

It is conceded to be the established law of this State that one by a trust under a deed or will may so settle his property for the benefit of another for life that the bounty conferred1 shall not be liable for the debts or obligations of such beneficiary. The plaintiff, however,' in arguing that such trusts ought not to be viewed with much favor, because “they are in derogation of the common law right of a creditor to apply by appropriate legal process the property of his debtor to the satisfaction of his debts,” overlooks the fact that such trusts are supported, not out of regard for, nor with the desire to aid, the beneficiary in escaping payment of his just obligations, but solely to protect the donor’s right of property. This is announced with clearness and force in Morgan’s Estate, No. 1, 223 Pa. 228, as follows: “The law rests its protection of what is known as a spendthrift trust fundamentally on the principle of cujus est dare, ejus est disponere. It allows the donor to condition his bounty as suits himself, so long as he violates no law in so doing. When a trust of this kind has been created, the law holds that the donor has an individual right of property in the execution of the trust, and to deprime him of it would he a fraud on his generosity. For the law to appropriate a gift to a person not intended would he an invasion of the donor’s dominion: Holdship v. Patterson, 7 Watts, 547. It is always to be remembered that consideration for the beneficiary does not even in the remotest way- enter into the policy of the law; it has regard solely to the rights of the donor. Spendthrift trusts can have no other justification than is to be found in considerations affecting the donor alone. They allow the donor to so control his bounty, through the creation of the trust, that it may be exempt from liability for the donee’s debts, not because the law is concerned to keep the donee from wasting it, but because it is concerned to protect the donor’s right of property.”

In Patrick v. Bingaman, 2 Pa. Superior Ct. 113 (118), the court said: “As the estate in the settlor’s hands was not liable to creditors of the beneficiary, it is no fraud to deny them recourse to it in the hands of the trustee.”

It is true that “debt,” as a technical expression, is defined by Blackstone (3 Blackstone’s Commentaries, 154) as meaning “a sum of money due by certain and express agreement.”

This, however, is not the only meaning of the word. In 17 Corpus Juris, 1371, it is said: “Judicial definitions of the term ‘debt’ are numerous. It is a common law word of technical meaning. It has not, however, a fixed or invariable signification, but has several recognized meanings, which vary greatly, according to the subject-matter and the language in connection with [483]*483which the word is used. It is used in different statutes and constitutions in senses varying from a very restricted to a very general one. In a purely technical sense, it is that for which an action of debt or indebitatus assumpsit will lie: a sum of money due by certain and express agreement, etc., etc.”

It is not necessary to quote at length from the various dictionaries or lexicons in indication of the comprehensive meaning of the term. In Bouvier’s Law Dictionary, “debt” is defined to be “all that is due a man under any form of obligation or promise;” and in Brooke v. Philadelphia, 162 Pa. 123, the accepted definition is “that which one person is bound to pay or perform for another.”

Conceding that an unliquidated liability for a tort is not technically a debt, nevertheless, a debt arises when the liability becomes liquidated and is reduced to judgment. It then becomes a “debt of record,” which is said to be “a contract of the highest nature, it being established' by the evidence of a court of judicature, . . .

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Cite This Page — Counsel Stack

Bluebook (online)
3 Pa. D. & C. 481, 1923 Pa. Dist. & Cnty. Dec. LEXIS 8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davies-v-harrison-pactcomplphilad-1923.