Green v. Brooks

25 Ark. 318
CourtSupreme Court of Arkansas
DecidedJune 15, 1869
StatusPublished
Cited by4 cases

This text of 25 Ark. 318 (Green v. Brooks) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Green v. Brooks, 25 Ark. 318 (Ark. 1869).

Opinion

"WILSHIRJ8, C. J.

This case may be briefly stated as follows : The complainant, Mary R. Brooks, late Mary R. Jackson, formerly Mary R. Scales, was one of the heirs and legatees of one Joseph H. Scales, late of Tennessee, deceased; that she, .and her then husband, Robert H. Jackson, together with the other legatee's of Joseph II. Scales, at the April term, 1867, of the .chancery court of the State of Tennessee, for the district composed of the county of Williamson, filed their bill to have the will and codicils thereto, of their said ancestors, construed, and the rights of the several legatees thereunder declared and settled, and to have trustees appointed for such of the legatees as required trustees under the will, among whom was the complainant, Mary R.; that that chancery court, in accordance with the prayer of the bill, ascertained and declared the rights of the .several legatees, under the will of Scalps, and appointed Robert II. Jackson, then the husband of Mary R., her trustee, to receive and hold in trust, for her and her children, the share she was entitled to under the will of her ancestor, and the income, interest and proceeds arising therefrom, to be applied to the support of her and her children ; that Jackson accepted such trust, and received the share of said Mary R., of the estate of her ancestor, Scales, consisting of one negro man, valued at $900, and the aggregate sum of $3,309‡^ in cash. Subsequently, Jackson died, and his widow, the complainant, Mary R., intermarried with her present husband, and complainant, Wm. Brooks.

The complainants allege that said Jackson, in his lifetime, as the trustee of Mary B., &e., in violation of his trust, appropriated the whole of the trust fund and property to his own use, and that the same had been incorporated into and become a part of his estate ; and they prayed that, in addition to general relief, their claim against Jackson be declared to be paramount to the claim of any creditor of said Jackson, and that the appellant be decreed to pay the- same to complainants accordingly, &c.

The defendant answered, admitting some of the allegations of the bill, but denied, in as positive..a .manner as defendants acting in a fiduciary capacity can do,, two allegations, namely: That alleging’the receipt by Jackson of the trust, fund and property, and the allegation charging the.appropriation of the trust fund .by Jackson, and the ■ incorporation thereof, into his own estate; to which answer the complainants replied in short upon the record. . .

At the hearing,, the defendant moved the court to dismiss the bill for want of the affidavit of the justness of their claim, required by law. The .court below overruled the motion to dismiss, made by the.defendant, and entered a final decree against the defendant, requiring him to pay to the complainants, out of the general assets of the estate of Jackson, in his hands.,, as other debts, the sum of $4,844^, in due course of the administration by him of said estate. The defendant appealed to this court, and assigned, as. principal error, that. ..the court below erred in overruling his motion to dismiss for want of the statutory affidavit.

Before discussing the question presented by the principal error assigned, we deem it necessary to inquire into the. nature and character of the claim set up by the appellees in' the court below, and which they sought, by their bill, to have declared by the decree of that court; a claim in the nature of a specialty debt against the estate of Jackson, to be paid out of the assets of his estate, prior to, and to the exclusion of, the other creditors of his estate.

■ There is, perhaps, 110 better settled doctrine in the equity jurisprudence of this country than that a breach of trust creates but a simple contract debt. In England, before the statute of 3 and 4 Will., 4, where, in the creation of a trust, the trustee bound himself, by deed, to apply the trust fund in a particular manner, that would create a specialty debt against him, and, after his death, against his estate; but, since that statute, the distinction between simple contract debts and specialty debts, in that country, seems to have become of but little practical importance. We find that the high court of chancery of that country, in the case of Adey v. Arnold, 15 Eng. L. and Eq., 268, where, by deed of indorsement under seal, appointing new trustees, and executed by them, a trust fund was assigned to the new trustees “ to hold unto them, their executors, &c., as their own money, property and effects; but nevertheless upon the trusts and for the ends and purposes declared by the indenture,” &c., it was held, by Lord Chancellor St. Leonards, that there was, in that case, no declaration of trust by the new trustees, and that the breach of trust did not constitute a specialty debt. That learned Chancellor, bringing various authorities in review on- the subject, said, “there is no better established general proposition than that a breach of trust does not constitute a specialty debt, but that it is equally clear that when there is a deed executed by the trustee, containing a declaration by him that he will apply the trust fund in a particular manner, but which he had misapplied, that such a breach would constitute a specialty debt, because be had declared, under seal, that he would not apply the fund as he ultimately did apply it,” citing the cases of Verron v. Vandry, 2 Atk., 119; Cox v. Bateman, 2 Ves., sen., 19.

Though it will be observed, that in England, where there has been given a priority, in some instances, to specialty debts, created by deed under seal, over simple contract debts, the. courts have been slow to imply a covenant from wmr’ds that do not import one; but -where the words of the deed, executed by the trustee, are clearly to the effect that the trustee undertook to apply the fund in the mode prescribed by the deed, and the deed was executed by him, it would be tantamount to a covenant ; but, as we have seen, in the case of Adey v. Arnold, it was held that where there were no words contained in the instrument creating the trust, signed by the trustee, Avhich could by any possibility raise a covenant, the breach is a simple breach of trust, and forms only a simple contract debt.

But in the United States, as in England, real estate is now assets for the payment of all debts, whether by specialty or simple contract, and in many of the American States, and particularly in this State, as we will presently see, the distinction between specialty debts and simple contract debts, in the administration and settlement of the estates of deceased persons, is abolished. By our statute, Gould’s Digest, chap. 4, sec. 99, it is provided that the priority of claims against the estates of deceased persons, are declared to be: “ 1. Euneral expenses; 2. Expenses of last sickness, wages of servants and demands for medicine, and medical attendance during last sickness; 3. Judgment rendered against the deceased, in his lifetime, and which are liens on the lands of the deceased, &c.; 4. All demands, without regard to quality, which shall be exhibited to the executor or administrator, properly authenticated, within one year after the first granting of letters on the estate,” &c.

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Bluebook (online)
25 Ark. 318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-v-brooks-ark-1869.