du Pont v. du Pont

159 A. 841, 18 Del. Ch. 316, 1932 Del. Ch. LEXIS 29
CourtCourt of Chancery of Delaware
DecidedApril 14, 1932
StatusPublished
Cited by8 cases

This text of 159 A. 841 (du Pont v. du Pont) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
du Pont v. du Pont, 159 A. 841, 18 Del. Ch. 316, 1932 Del. Ch. LEXIS 29 (Del. Ct. App. 1932).

Opinion

The Chancellor:

A question has been raised with respect to parties—whether the cause can proceed to a decree because unborn contingent remaindermen cannot be bound by it, and second, if so, whether the living issue of Eugene du Pont, Anne du Pont Peyton and Julia S. du Pont Andrews should be made parties to the bill. The interests of the living issue just referred to are purely contingent. They depend for their vesting first upon the absence of issue on the part of Amy E. du Pont, next (subject to the failure of Miss du Pont to exercise the power of appointment) upon their surviving both her and their parents who are given a prior interest, which in the case of Eugene du Pont, if his vests, is an absolute one and in the cases of Mrs. Peyton and Mrs. Andrews is an equitable one for life remainder to their surviving issue.

Miss du Pont is unmarried. The law, however, regardless of her age presumes that she may marry and may bear children. Taylor v. Crosson, 11 Del. Ch. 145, 98 A. 375. Here is a class, then, having no living representative —her possible children or their issue—who have an interest under the trust in case any such should come into being and survive Miss du Pont. Since it cannot be known until after Miss du Font’s death whether she will leave issue living, the question arises of whether this cause can now proceed. The same question arises also because it cannot be now known whether any, and if any who, among the living or future issue of her brother and sisters will survive both her and their respective ancestors and thus become entitled to vested rights. Thus those who are ultimately to receive the stock which is in the trust, cannot be certainly identified. All interests after Miss du Font’s are contingent ones. Should this circumstance serve to prevent her from pressing her alleged right to a termination of the trust to a final decree? I think not.

[318]*318If such parties can be brought before the court as will sufficiently represent all possible interests, it is conceded that the decree to be entered will be conclusive upon all. The bill is filed by the trustees, seeking instructions. Its filing was made necessary by the act of Miss du Pont in executing her deed of revocation and demanding a surrender to her of the trust property. I regard the suit, therefore, as one in which Miss du Pont is attacking the trust. The trustees as a matter of fact are actively and vigorously seeking to sustain it. Notwithstanding the position of the parties on the record, the substance of the matter is that Miss du Pont is the aggressor in seeking to strike down the trust and the trustees are defensively striving to uphold it. It should be emphasized that such is the nature of the case and what ensues with respect to the question of parties is applied to a case which in every essential is one of attack upon the existence of the trust.

Now that being the situation, the first question that arises with respect to parties is—do not the trustees sustain such a character as to make them representative of all the interests, so that when the trustees are before the court, all persons who may be interested in the trust whether in esse or in futuro, are vicariously present? The authorities appear to answer this question in the affirmative.

In Kerr v. Couper, 5 Del. Ch. 507, the Chancellor decreed the revocation of a voluntary trust on a bill filed by the settlor in which the trustee alone was defendant. The trust was to pay the income to the settlor for life and after his death to convey the corpus to the settlor’s heirs at law. Unless the Chancellor considered that the trustee fully represented all future interests, it is difficult to justify his decree.

In Everitt v. Everitt, L. R. 10 Eq. 405, the case was one where an unmarried woman executed a voluntary trust under which income was payable to her for life and the corpus in default of appointment was to be paid to her children or if none to her next of kin. The settlor had not [319]*319married. She was the complainant and the trustee' was the only party defendant. The Vice-Chancellor, with only those parties before him, refused, after final hearing, to sustain the trust on behalf of the future children, if any, and on behalf of the next of kin.

In Kerrison, Assignee, v. Stewart, et al., 93 U. S. 155, 160, 23 L. Ed. 843, an active trustee for the benefit of creditors, constituted such by deed, was held to represent all parties entitled to the benefit of the trust to the extent that they, though not present, would be concluded by the decree in a suit by a stranger to defeat the trust. In that case the court observed that the trustee appeared and vigorously resisted the decree, as have the trustees in the instant case. The Supreme • Court, however, recognized the propriety in some cases of making the beneficiaries parties. It said— “Undoubtedly cases may arise in which it would be proper to have before the court the beneficiaries themselves, or some one other than the trustee to represent their interests. They then become proper parties, and may be brought in or not, as the court in the exercise of its judicial discretion may determine.”

The following cases are to the same effect: Tucker v. Zimmermam, 61 Ga. 599; Winslow v. Minnesota & Pacific Railroad Co., et al., 4 Minn. 313 (Gil. 230), 77 Am. Dec. 519; Rogers v. Rogers, 3 Paige (N. Y.) 379; Wakeman v. Grover, 4 Paige (N. Y.) 23.

In Temple, et al., v. Scott, et al., 143 Ill. 290, 32 N. E. 366, it was held that in a suit to set aside a trust deed as having been executed in fraud of creditors, contingent remaindermen were held to have been represented by the trustee alone and were accordingly barred by the decree, and this was held notwithstanding the class was represented by two persons in being who were not joined as parties.

The general statement is made in 21 C. J. at page 290 that “in the case of trust relations, the doctrine of representation is very clearly applicable, for such relations are created for the very purpose of furnishing a representative [320]*320for the cestuis que trustent. Accordingly in many but not all cases, trustees sufficiently represent their beneficiaries, either as plaintiffs or defendants, and the latter are therefore not necessary parties.”

Under the principle of these authorities, no person other than the trustee is a necessary party in order that all the contingent interests might be concluded by the decree. But it may be well not to rest the question of parties upon this view alone. While no persons other than the trustees might be necessary as indispensable parties, yet if there are others in being who are interested it is wise, I think, to join them. I say this because the joining of such persons is calculated to buttress the decree to the extent at least of adding the weight of their individual as well as their representative capacity to that of the trustees as parties.

The complainants filed the bill as trustees. Besides the settlor they have joined her brother and two sisters, the persons who are next contingently entitled after the death' of Miss du Pont without issue. There is of course no issue of Miss du Pont. If she leaves any to survive her, such issue would take to the exclusion of all others. Next in right, in the absence of issue on her part, as just stated, would be her brother and sisters.

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Bluebook (online)
159 A. 841, 18 Del. Ch. 316, 1932 Del. Ch. LEXIS 29, Counsel Stack Legal Research, https://law.counselstack.com/opinion/du-pont-v-du-pont-delch-1932.