Farmers' Loan & Trust Co. v. Ferris

67 A.D. 1, 73 N.Y.S. 475
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 1, 1901
StatusPublished
Cited by14 cases

This text of 67 A.D. 1 (Farmers' Loan & Trust Co. v. Ferris) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers' Loan & Trust Co. v. Ferris, 67 A.D. 1, 73 N.Y.S. 475 (N.Y. Ct. App. 1901).

Opinion

Laughlin, J.:

This action was commenced on the 27th day of May, 1899, by the Farmers’ Loan and Trust Company for a judicial settlement of its accounts as trustee under the will of James S. Gibbes, Sr., and to obtain a construction of certain provisions of the will. The testator was a resident of Charleston, S. C., and died in that city on the 26th day of April, 1888. His will with codicils annexed was duly .admitted to probate by the Probate Court of the county of Charleston on the 1st day of May, 1888. At the time of making the will, the testator had a wife, two sons, James S. and George E. and a grandson, J ames Gibbes Haile. The testator left him surviving his widow and his son James S. and said grandson, as his only heirs at law and next of kin, the son George E. having previously died. The widow died on the 2d day of May, 1888. The entire estate was of the value of about $600,000.

By the 7th section of the will the executors were directed to forthwith transfer and deliver unto the plaintiff as trustee securities amounting at their face value to the sum of $100,000 in trust, to pay the income thereof to the testator’s son James S. during his life. The 8th and 9th sections respectively contained similar directions with reference to the delivery of a like amount to plaintiff as trustee to pay the income of $100,000 to testator’s son George E. during his life, and of another $100,000 to testator’s said grandson. Upon the death of either of the sons or grandson leaving issue [5]*5him surviving, such issue was to take the $100,000 principal. Upon the death of one of these three specified descendants of the testator without issue, the survivors were to take in equal shares the income of the fund set apart for his benefit, and upon the death of two, the survivor was to take the entire income. In the event of the death of any of them without issue, the principal, of which he received the income, was to go to the issue of the survivors per stirpes in equal shares; but in case of the death of the -sons and grandson of the testator without issue, the entire principal fund of $300,000 was. to be held by the plaintiff and applied as provided in the 29th section of the will.

After making certain bequests and leaving part of his estate In trust for the benefit of his wife, the testator provided in the 23d section of his will that the executors should transfer and deliver the rest, residue and remainder of his estate to the plaintiff as trustee to hold and pay the income thereof to each of his said children and grandchild during their lives respectively, and the income and principal thereof to be held in all other respects subject to the uses, trusts, purposes and limitations prescribed in said 7th, 8th and 9th clauses of the will respectively.

The testator’s surviving son and grandson both died without issue prior to the commencement of this action. We must, therefore, look to the 29th clause of the will to ascertain who are entitled to share in this residue of the estate, as that is the question presented.

At the outset the jurisdiction of the courts of this State over the ■ subject-matter of the litigation is challenged. It appears that all the parties have been personally served or have voluntarily appeared, and the appellant Amelia J. Emanuel is the only one who raises the jurisdictional question. She has appeared generally and answered. Her interest is as a beneficiary for life of one-third of the income of the residue after the payment of certain legacies. As already stated, the trustee is a domestic corporation and the fund is within this State. The trustee received the fund by virtue of the will of the testator, although it was delivered under an order of the court made in an action brought by the executors in South Carolina for instructions with reference to their turning the funds over to plaintiff as directed in the will. The order was in accordance with the clause of the will and contained no additional condition. The courts of [6]*6.South Carolina cannot obtain jurisdiction over the plaintiff except by its voluntary appearance. . The trust fund and its administration being here, the trustee being a corporation of this State, and the court having obtained jurisdiction of the parties, it may properly exercise jurisdiction and direct how the fund shall be distributed, and its decree, when complied with by the plaintiff, will relieve it from further liability. (Cross v. U. S. T. Co., 131 N. Y. 330.)

The 1st, 2d, 5th and 6th subdivisions of section 29 of the will provided for the payment from said residue of certain legacies which have been paid and are not in controversy. The 3d subdivision directed that $5,000 of said residue should go to Dr. Henry P. Gribbes, a son of testator’s uncle Reeves Gibbes, and the 4th that $50,000 should go to John Haile, testator’s son-in-law.

The first question relating to the construction of the will arises concerning these legacies. These legatees survived, the testator, but died before the happening of the contingency upon which they were to take under the 29tli section of the will. It is contended that these legacies, therefore, lapsed ; but the administrators of the legatees are parties to the action, and their claim is that the legatees took a contingent legacy upon the death of the testator which passed to them on the death of the legatees. It will be observed that neither at the time of the death of the testator nor at any time since was there any one in being as the issue of his children or his grandson in whom'this estate vested under either the 7th, 8th, 9tli or 22d sections of the will. We are, therefore, of opinion that the learned trial justice was right in holding that upon the death of the testator a contingent estate vested in the legatees, and inasmuch as no' issue was born to either of testator’s sons or his grandson it never became divested. (Clark v. Cammann, 160 N. Y. 315.)

The second question of construction presented by the trustee is as to the validity of the 7th subdivision of the 29th section of the will as subsequently modified or superseded by section 4 of a codicil duly made on the 12th day of May, 1885. This 7th subdivision is as follows:

“ To Charles O. Witte, Henry A. M. Smith and such person as may at the time be Mayor of the City of Charleston, seventy-five thousand dollars, to have and to hold the same in trust, for the [7]*7erection and endowment of an Art Gallery and Ladies’ Library in Charleston, and I empower said trustees to provide as they see fit and practicable for the future regulation and perpetuation of the same. Should any arrangement be hereafter made during my lifetime, whereby a building shall be erected on the lot on the northeast corner of Meeting and George Streets by the Art Union Association for its purposes, then I direct the said seventy-five thousand dollars to be by said trustees transferred to said Association under such agreement, for its future use and application to the purposes aforesaid as shall be sufficient and suitable.”

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Bluebook (online)
67 A.D. 1, 73 N.Y.S. 475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-loan-trust-co-v-ferris-nyappdiv-1901.