Ferguson v. Rippel

92 A.2d 647, 23 N.J. Super. 132
New Jersey Superior Court Appellate Division·Decided November 21, 1952·Published·Cited by 5 cases

Opinion

23 N.J. Super. 132 (1952)
92 A.2d 647

FRANK C. FERGUSON, PLAINTIFF-APPELLANT,
v.
JULIUS A. RIPPEL AND THE NATIONAL STATE BANK OF NEWARK, ET ALS., DEFENDANTS-RESPONDENTS, AND FRED G. STICKEL, JR., DEFENDANT-APPELLANT.

Superior Court of New Jersey, Appellate Division.

Argued October 27, 1952.
Decided November 21, 1952.

*134 Before Judges EASTWOOD, GOLDMANN and FRANCIS.

Mr. John Milton, Sr., argued the cause for plaintiff-appellant (Messrs. Milton, McNulty & Augelli, attorneys).

Mr. John E. Toolan argued the cause for defendants-respondents (Messrs. Toolan, Haney & Romond, attorneys).

Mr. Halsey W. Stickel argued the cause for defendant-appellant (Messrs. Stickel & Stickel, attorneys).

The opinion of the court was delivered by FRANCIS, J.C.C. (temporarily assigned).

This action was brought to construe the will of Julius S. Rippel who died on December 9, 1950, a resident of Newark, New Jersey. Two of the respondents, Julius A. Rippel and the National State Bank of Newark, are the duly qualified executors of the estate.

Among other things the will directed that a corporate charitable foundation be created and that the residue of the testator's large estate be turned over to it for administration in accordance with certain express purposes.

*135 The intervention of the court was sought because of a controversy arising out of the 35th article of the will under which the foundation is established. This article, so far as pertinent, provides as follows:

"THIRTY-FIFTH: All the rest, residue and remainder of my estate, both real and personal, of whatsoever kind and nature and wheresoever situate, of which I may die seized or possessed, or to which I may be entitled at the time of my death, hereinafter referred to as my Trust Estate, I give, devise and bequeath to my Executors, hereinafter named, and the survivor of them, in trust nevertheless, for the following uses and purposes:

(a) I direct and instruct my said Executors together with such of the following persons as may survive me and be willing to act, namely: FRANK C. FERGUSON, FRANK H. SOMMER and FRED G. STICKEL, Jr. and also together with such other person or persons my said Executors may desire to associate with them, as soon after my decease as is practicable to incorporate or cause to be incorporated under Title 15 of the Revised Statutes of New Jersey, a corporation not for pecuniary profit to be operated exclusively for charitable purposes, to be known as "FANNIE E. RIPPEL FOUNDATION" in memory of my wife. The Foundation shall have authority among other powers as may be conferred upon it to take and hold property absolutely and/or in trust, and administer, invest and reinvest the same and to devote the income therefrom as well as principal thereof, if need be, to the following objects and purposes of the Foundation:

* * * * * * * *

(c) I leave to the uncontrolled discretion of the incorporators and trustees of the Foundation the details of organization, maintenance and operation of the Foundation together with the adoption of by-laws, rules and regulations concerning the conduct of the Foundation.

* * * * * * * *

(e) It is my request that FRANK C. FERGUSON, FRANK H. SOMMER, JULIUS A. RIPPEL and FRED G. STICKEL, Jr. be members and trustees of the said Foundation and that they act as such trustees for at least the first year of existence of the Foundation and so long thereafter as they shall be elected and may be willing to serve. I further desire that the charter of said Foundation shall provide that the members of the Foundation shall also be the trustees thereof, but the number of members and trustees I leave to the discretion of the incorporators so long as the number shall be not less than three. I further desire that the charter of the Foundation shall provide that in the event of the death, resignation or inability to serve of any of the members or trustees of the Foundation, the members or trustees then in office shall have the power to appoint or elect a successor."

*136 On August 31, 1951 the executors notified Messrs. Ferguson, Stickel, and Dean Sommer that pursuant to paragraph 35 (a) they had decided to have five additional persons, whom they named, associated with them as incorporators of the foundation. Ferguson, Stickel, and Sommer objected, claiming that since five incorporators were available, namely, themselves and the executors, and since such number were sufficient under the statute (R.S. 15:1-1), there was neither need nor power to add additional persons.

Thereafter the executors caused a certificate of incorporation of the foundation to be prepared for signature by nine incorporators, that is, Ferguson, Stickel and Sommer, the individual executor, Julius A. Rippel, and the five persons chosen by the executors. The certificate likewise named these nine persons as the trustees for the first year of corporate existence. A meeting of the incorporators was then called for the purpose of forming the foundation and each was given a copy of the proposed charter for "consideration and comment."

Two days before the scheduled meeting Ferguson filed this action seeking an interpretation of the will and instructions to the executors. The executors, additional incorporators, Stickel and Sommer were named defendants. Primarily the relief sought was a declaration by the court, (1) that proper construction of article 35 (a) precluded the addition of further incorporators so long as the executors and Ferguson, Stickel and Sommer were willing and able to act, and (2) that in any event the language of 35 (e) limited the number of trustees for the first year of the foundation to the four persons named specifically therein.

Both the appellant, Ferguson, and the executors-respondents moved for summary judgment on the pleadings and a certain stipulation of facts. Among other things the stipulation disclosed that at the time of death decedent, either directly or through wholly owned corporations, owned 52-plus percent of the capital stock of the bank executor, that certain correspondence had been engaged in between decedent *137 and Dean Sommer largely on the subject of another charitable foundation which had been created by the decedent about a year before his death but to which he had given no funds because of concern over the tax problem involved. And it was agreed also that the testator, Sommer, Julius A. Rippel, Ferguson and Stickel were the trustees of that foundation for the first year of its life. With respect to the correspondence, while its authenticity was admitted by the stipulation, an objection to its relevancy and competency was reserved.

The trial court entered summary judgment for the defendants and denied counsel fee allowances except to the executors. The opinion exhibited a finding that the language of the will was clear and unambiguous and clearly sanctioned the course pursued by the executors with respect to the proposed organization of the foundation. Ferguson and Stickel appealed; Dean Sommer did not.

The first problem presented is whether the executors had authority to call the five additional persons into association with them for purposes of organizing the foundation. To determine this, attention must be given first to the will itself. On doing so the primary examination is of the words the testator employed to accomplish his wishes. At this point the inquiry is not what he intended to say but what he did say.

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Ferguson v. Rippel, 92 A.2d 647, 23 N.J. Super. 132 (N.J. Ct. App. 1952).

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