Disbrow v. Disbrow

61 N.Y.S. 614
Appellate Division of the Supreme Court of the State of New York·Decided December 15, 1899·Published·Cited by 2 cases

Opinions

McLAUGHLIN, j.

This action was brought to remove the defendants Griffin and George Disbrow as trustees, and for an accounting by them, and to have a trustee appointed in their place.

Prior to November 1, 1893, Benjamin D. Disbrow died, leaving, him surviving, this plaintiff, his widow, and four sons, the defendants, Griffin B., Charles A., Robert N., and George A. Disbrow, his only heirs at law and next of kin. He left a will in and by which he devised all of his property to his son Robert, and just prior to his death he also executed and delivered to Robert a deed conveying to him all of his real estate. The probate of the will was contested, and, after a trial, had, probate was refused. Subsequently an action was brought to set aside the deed, and, while this action was pending, a compromise was effected between all of the parties interested, whereby the defendant Robert N. Disbrow and wife executed a trust deed, in and by which the defendants Griffin and George were appointed as trustees to take charge and to care for the real estate described in the deed to Robert, and to pay to the plaintiff, during her lifetime, the net .income therefrom. At her death the property was to be sold, and after paying to Griffin the sum of [616]*616$7,148, and to Charles the sum of $500, sums which their father was owing them, respectively, at the time of Ms death, the payment of which was postponed by consent until the death of the plaintiff, the balance was to be divided equally between Griffin, George, Robert, and Charles. In pursuance of this deed, the defendants Griffin and George entered upon the execution of a trust committed to them. Thereafter, in the management of the property, ill feeling sprang up between the two trustees, and the defendant Griffin and tile plaintiff, which finally culminated in the plaintiff bringing this action to remove both trustees, and to have another trustee substituted in their place. The learned justice, sitting at special term, after a trial had, reached the conclusion, as appears from his opinion, that the trust had been improperly administered because of the “feeling of hostility between the two trustees,” and for that reason, if no other, they should be removed.

After a careful consideration of the record before us, we are entirely satisfied that the conclusion reached by the learned justice is right. The defendant Griffin, in the discharge of his duties as trustee, acted in not only an arbitrary and offensive manner with his co-trustee, but he failed to treat his mother, this plaintiff, with the respect due her, not only as his mother, but as one having the principal interest in the trust property. He took the entire management of the property into his own hands, and treated with contempt reasonable requests made by his co-trustee and the plaintiff in reference to what he was doing. His acts were such that it is not at all surprising that the plaintiff became suspicious of him, doubted his integrity, and finally asked for his removal. Neither is it at all surprising that bitter feeling was engendered between him and Ms co-trustee. The co-trustee, under the trust deed, had the same power and authority as to the property that he had, and he could not treat him in the manner disclosed in this record without subjecting himself to the liability of being removed for this cause alone.

There is no doubt but that the supreme court has the power to . remove, when a sufficient cause exists, trustees from the management of trust estates, and the exercise of this power does not necessarily depend upon proof of actual mismanagement, misconduct, or dishonesty of the trustees. Whenever the court can see that inharmonious or unfriendly relations exist between the trustees, or between them and the cestm que trust, and that by reason of such inharmonious and unfriendly relations material injury may and is likely to result to the trust estate, it will exercise the power which it has, and, to prevent that injury, it will remove one, or, if the interest of the estate requires it, all, of the trustees. . This principle is very clearly stated by Mr. Justice Gray in the opinion delivered by him in May v. May, 167 U. S. 310, 17 Sup. Ct. 824, 42 L. Ed. 179. He said:

“The power of a court of equity to remove a trustee, and to substitute another in his place, is incidental to its paramount duty to see that trusts are properly executed, and may properly be exercised whenever said state of ill feeling, growing out of his behavior, exists between the trustees, or between the trustee in question and the beneficiaries, that his continuance in office would be detrimental to the execution of che trust, even if for no other reason [617]*617than that human infirmity would prevent the co-trustee or the beneficiaries-from working in harmony with him, and although charges of misconduct against him are either not made out or are greatly exaggerated.”

In Quackenboss v. Southwick, 41 N. Y. 117, Judge Grover, in speaking of a trustee who had been removed, as a. person unsuitable to execute the trust, said:

“If this ground is sustained, it must be on account of the personal relations of the two acting executors and trustees, and of the relations of the appellant to those interested in the estate, and not upon the ground of any defect of capacity or integrity, as there is no charge of the latter. The case shows that there have been differences of opinion between the trustees, relative to selling certain portions of the real estate. These differences of opinion furnish no more ground for the removal of one than of the other, and I think none for the removal of either. * * But it does appear that the relations between the appellant and his co-trustee (Quackenboss) are such that they will not, probably, co-operate in closing the trust beneficially to those interested in the estate. It is not very material to inquire how such relations originated or by whose fault, unless such inquiry should, of itself, disclose that the conduct ■ of one had been such as to render him disqualified to act as trustee. It is sufficient to ascertain the fact to warrant the removal of one and the appointment of another in his place, to secure the faithful performance of the trust.”

See, also, Scott v. Rand, 118 Mass. 215; Wilson v. Wilson, 145 Mass; 490, 14 N. E. 521; 2 Story, Eq. Jur. § 1288.

The evidence introduced upon the trial discloses that hostility to a marked degree exists between Griffin and George, and also between Griffin and this plaintiff, and it is apparent that this feeling is such as to prevent the hearty co-operation between the two trustees which should be present in order that they may properly manage property committed to them. To permit them to act as trustees would tend, in no small degree, to jeopardize the trust estate, and to defeat the object of the trust. The trial court, therefore, properly exercised the power which it had by removing both of the trustees, and appointing another in their place.

We are, however, of the opinion that the account of Griffin was erroneously surcharged with certain items:

(1) Certain sums paid for insurance the referee refused to allow, on the ground that the property was insured for more than its selling value, and that Griffin was personally liable, he having effected the insurance for the excessive premium paid, to the amount of $15.57.

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Disbrow v. Disbrow, 61 N.Y.S. 614 (N.Y. Ct. App. 1899).

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