Garrison Estate

137 A.2d 321, 391 Pa. 234, 1958 Pa. LEXIS 523
CourtSupreme Court of Pennsylvania
DecidedJanuary 8, 1958
DocketAppeals, 365 and 382
StatusPublished
Cited by21 cases

This text of 137 A.2d 321 (Garrison Estate) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garrison Estate, 137 A.2d 321, 391 Pa. 234, 1958 Pa. LEXIS 523 (Pa. 1958).

Opinion

Opinion by

Mr. Justice Benjamin B. Jones,

This appeal arises from the refusal of an Orphans’ Court to appoint an additional trustee, resident in Pennsylvania, to serve with a non-resident testamentary trustee to handle and expend funds of the trust for certain community purposes.

Forest L.- Garrison, a resident of West Virginia, died testate, on November 26, 1934. Under his will he appointed the Kanawha Banking and Trust Company of Charleston, West Virginia, as trustee “to carry out all of the provisions of [his]- will’’. The pertinent provisions of the Will are as follows: “The residue of the income from my estate . .'. shall be-disposed of as follows: Twenty per cent (20%) shall be ■retained by the Trustee and reinvested- for the, -estate. Eighty per- cent-. (8-0%). shall be paid-to the First National Bank of Shickshinny, .-Pennsylvania, to be judicially expended for the sole use and benefit of the Borough of - Shickshinny, Pennsylvania,.- as may be agréed upon by the Board of Directors of the-; said *236 First National Bank of Shickshinny, Pennsylvania, and the Town Council of said Borough of Shickshinny, Pennsylvania. In case a sum of ten thousand Dollars ($10,000.00) accumulates in said Bank and the directors and Town Council above referred to, fail to agree upon the expenditure: Said amount shall be forfeited to said Borough and be paid to the County Poor District in which the Borough of Shickshinny is located.”

For twenty-three years the West Virginia trustee has annually paid the stated income to the appellant bank and the income has been expended in the manner and mode agreed upon by appellant’s directors and the Shickshinny Town Council.

On April 10, 1957 the appellant bank presented a petition to the Orphans’ Court of Luzerne County requesting that it be appointed “a resident trustee within the Commonwealth of Pennsylvania to act in conjunction with the non-resident trustee in the management and disposition of said trust, and to act as an additional trustee within the Commonwealth of Pennsylvania to serve with the non-resident trustee . . .”. The court then granted a rule to show cause why the appointment should not be made. The Borough of Shickshinny was given notice of the proceedings and filed an answer in the nature of a demurrer which set up, inter alia, that no legaí or factual reason was averred why a trustee should be appointed, that the court had no jurisdiction over this out-of-state trust, that the Shickshinny Bank was a mere depository of funds and expenditures from the funds were not by the bank as such, but b-y its directors and the Shickshinny Town Council and, lastly, if the bank were appointed trustee the borough also should be appointed trustee. Neither the County Poor District, nor its successor, nor the Attorney General whs given notice of this petition'.

*237 The court below refused to appoint the bank as trustee and from its decree this appeal was taken.

The statute authorizing the appointment of trustees — applicable as of the date of decedent’s death— provides: “When the trustee or trustees of any estate shall reside out of this Commonwealth, and any part of the trust estate, property, or fund is situated within this State, the proper orphans’ court may, on the petition of any of the parties interested in said trust property, appoint one or more trustees, resident within this Commonwealth, to act in conjunction with said nonresident trustee or trustees in the management and disposition of said trust; and the said court shall have the same power over said trustee or trustees, so appointed, that it has in other cases of trust”: The Fiduciaries Act of June 7, 1917, P. L. 447, §57(b), 20 PS Ch. 3, App. §992. (Emphasis supplied) The Fiduciaries Act of April 18, 1949, P. L. 512, art. IX, §903, 20 PS §320.903 — applicable at the time of the present petition — provides: “Resident co-trustee. When no trustee shall be a resident of the Commonwealth, the court, after such notice as it shall direct, may appoint one or more additional trustees resident within the Commonwealth to serve with the nonresident trustee or trustees”. (Emphasis supplied)

The expressed wording of these statutes makes the appointment of a trustee a matter within the discretion of the court; therefore, our only area of review is the determination whether the court below committed an abuse of discx’etion in its refusal to appoint a eo-txuxstee.

At the outset it is obvious that this trust is for a charitable purpose, — the welfare of the Borough of Shickshinny — rand, is propexdy a charitable trust. 1 Be *238 ing a charitable trust notice of these proceedings should have been given to the public’s representative, the Attorney General of the Commonwealth. 2 This Court has recently said in Pruner Estate, 390 Pa. 529, 531; 136 A. 2d 107: “In Curry Appeal, 390 Pa. 105, 108, 134 A. 2d 497 (1957), we reaffirmed the principle that unless a court has all parties in interest before it, by appearance or service of process, it cannot proceed to a binding decree. In this proceeding we are satisfied that no relief could have been granted the appellant because an indispensable party — the public— had not been given notice and brought upon the record through its representative and spokesman, the attorney general.

“The beneficiary of charitable trusts is the general public to whom the social and economic advantages of the trusts accrue. But because the public is the object of the settlors’ benefactions, private parties have insufficient financial interest in charitable trusts to oversee their enforcement. Consequently, the Commonwealth itself must perform this function if charitable trusts are to be properly supervised. The responsibility for public supervision traditionally has been delegated to the attorney general to be performed as an exercise of his parens patriae powers. See Commonwealth ex rel. Minerd v. Margiotti, 325 Pa. 17, 23, 188 Atl. 524 (1936). These are the ancient powers of guardianship over persons under disability and of protectorship of the public interest which originally were held, by the Crown of England as the ‘father of the country,’ 3 Blackstone, Commentaries 47; Fontain v. *239 Ravenel, 58 U. S. (17 How.) 369 (1855), and:which as part of the common law devolved upon the states and federal government. Fontain v. Ravenel, supra. Specifically, these powers permitted the sovereign, wherever necessary, to see to the proper establishment of charities through his officer, the attorney general, and to exercise supervisory jurisdiction over all charitable trusts. 3 Blackstone, Commentaries 427. . .

“Our legislature recognized the historic interest of the attorney general in charitable trusts, as well, as-the benefits to be gained from his appearance in litigation affecting them, by requiring that he be given notice of proceedings for the application of cy pres . Act of April 24, 1947, P.L. 100, §10, 20 P.S. ,§301.10. This enactment did not enlarge the powers' of. the attorney general in cy pres proceedings, but rather statutorily affirmed his responsibility in such actions.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Denver Foundation v. Wells Fargo Bank, N.A.
163 P.3d 1116 (Supreme Court of Colorado, 2007)
Cain Estate
16 Pa. D. & C.3d 50 (Delaware County Court of Common Pleas, 1980)
In re Pew Memorial Trust No. 2
5 Pa. D. & C.3d 698 (Philadelphia County Court of Common Pleas, 1977)
Musical Fund Society
73 Pa. D. & C.2d 115 (Philadelphia County Court of Common Pleas, 1975)
Glenmede Trust Company v. Dow Chemical Company
384 F. Supp. 423 (E.D. Pennsylvania, 1974)
Coleman Estate
317 A.2d 631 (Supreme Court of Pennsylvania, 1974)
Fenstermacher Estate
51 Pa. D. & C.2d 701 (Montgomery County Court of Common Pleas, 1969)
Commonwealth of Pennsylvania v. Brown
260 F. Supp. 323 (E.D. Pennsylvania, 1966)
Weidman Estate
39 Pa. D. & C.2d 466 (Lancaster County Orphans' Court, 1965)
Gerhart Estate
34 Pa. D. & C.2d 39 (Lancaster County Orphans' Court, 1964)
Hicks Estate
199 A.2d 283 (Supreme Court of Pennsylvania, 1964)
Nevil Estate
199 A.2d 419 (Supreme Court of Pennsylvania, 1964)
Fraiman Estate
25 Pa. D. & C.2d 131 (Montgomery County Orphans' Court, 1961)
Little Estate
170 A.2d 106 (Supreme Court of Pennsylvania, 1961)
Chester Monthly Meeting Petition
23 Pa. D. & C.2d 728 (Delaware County Court of Quarter Sessions, 1961)
Frank Trust
162 A.2d 680 (Supreme Court of Pennsylvania, 1960)
Commonwealth v. Barnes Foundation
159 A.2d 500 (Supreme Court of Pennsylvania, 1960)
Voegtly Estate
151 A.2d 593 (Supreme Court of Pennsylvania, 1959)
Bennet Estate
18 Pa. D. & C.2d 595 (Luzerne County Orphans' Court, 1959)

Cite This Page — Counsel Stack

Bluebook (online)
137 A.2d 321, 391 Pa. 234, 1958 Pa. LEXIS 523, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garrison-estate-pa-1958.