Harris v. Audubon Society of Rhode Island

468 A.2d 258, 43 A.L.R. 4th 1005, 1983 R.I. LEXIS 1109
CourtSupreme Court of Rhode Island
DecidedNovember 2, 1983
Docket81-102-Appeal
StatusPublished

This text of 468 A.2d 258 (Harris v. Audubon Society of Rhode Island) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris v. Audubon Society of Rhode Island, 468 A.2d 258, 43 A.L.R. 4th 1005, 1983 R.I. LEXIS 1109 (R.I. 1983).

Opinion

OPINION

SHEA, Justice.

This case is before us on appeal by the plaintiffs from a judgment entered in the Superior Court against them after a jury-waived trial in an action for declaratory judgment.1 We affirm.

The plaintiff, Helen G. Harris, is the life tenant under the will of her late husband of certain real estate located in Scituate, Rho-de Island. The defendant, the Audubon Society of Rhode Island, is the remainder-man of the property under the will.

The issue presented to the Superior Court concerns the responsibility, if any, of the remainderman for the cost of improvements to the property ordered by the Department of Health of the State of Rhode Island. The improvements are to the physical plant of a commercial kennel that is being operated on a small section of the leased property.

After considering the agreed statement of facts, the arguments, and the written memoranda of counsel, the Superior Court justice ruled that the remainderman had no liability for the cost of improvements.

Ralph W. Harris died testate on December 28, 1976. In his will and first codicil, which were duly admitted to probate, he devised the real estate in question, a sixty-acre parcel, to his wife, Helen G. Harris, for the duration of her life. On her death, the remainder was to pass to the Audubon Society to be used as “a wildlife refuge and bird sanctuary to be known as ‘The Alice 0. Harris Memorial Wildlife Refuge’ ” (Alice 0. Harris was the testator’s first wife). Harris further provided that the Audubon Society could, in its discretion, from time to time sell part or all of the land, provided the funds realized from the sale were held and invested in a separate fund known as “The Alice 0. Harris Memorial Fund,” the income of which would be used for Audubon Society purposes. The principal and accumulated income of the fund would be used only for the purchase of land for the society. It was Harris’s specific intention that there would be at all times either an “Alice 0. Harris Memorial Fund” or an “Alice 0. Harris Memorial Wildlife Refuge.”

On a small section of the property there is a commercially operated kennel for cats and dogs known as the Peeptoad Kennels. The testator himself had operated the kennel at one time and later leased it to a third party. Helen G. Harris, the life tenant, and Robert L. Harris, executor under the will, have continued to lease the kennel to a third party. This lease produces about $3,600 a year in rental income for the life tenant.

[260]*260In 1977, less than a year after the testator’s death, the Rhode Island Department of Health inspected the kennel and ordered improvements to the kennel facility as a condition of license renewal. The ordered improvements included installation of new plumbing and a septic system, an upgrading of the heating system, new fencing and a concrete surface to replace gravel for the exterior animal runs, and a remodeling of the interior of the buildings. The cost of these improvements is estimated at $28,570.

In his decision, the trial justice held that the life tenant and the estate of the testator should bear the full financial responsibility for the improvements ordered by the Department of Health. He acknowledged that there were exceptions to the general rule that the life tenant is responsible for routine maintenance expenditures and the cost of normal improvements. None of these exceptions, however, applied to this life tenant.

It is well settled that a life tenant who makes permanent improvements to property does not acquire a lien that is enforceable against the remainderman. Tillinghast v. Harrop, 63 R.I. 394, 414, 9 A.2d 28, 37 (1939). The life tenant should not be permitted to make improvements for the benefit of the life estate at the remain-derman’s expense which the remainderman does not desire.

There are, however, exceptions to this general rule which are equally well settled. Section 127 of 1 Restatement of the Law of Property (1936) provides:

“(1) The owner of an estate for life has a power to impose a lien upon the interests subsequent to the estate for life, for the portion of the cost of such improvement ascertained under the rule stated in Subsection (2), when such improvement is of a permanent character and
(a) such improvement was begun, by the owner of the estate which was later divided into the estate for life and the interests subsequent thereto, at a time prior to the beginning of the estate for life, and was completed by the owner of the estate for life, after his estate began and under circumstances making such completion reasonable conduct; or (b) the owner of the estate for life was compelled by governmental authority to make it.”

Subsection (a) of section 127 has no relevance. The proposed improvements in this case were not undertaken by the testator during his lifetime, nor were they required by the Department of Health until after his death. Clearly, the subsection has no application to the testator’s operation of the kennel.

The plaintiffs argue, however, that the facts of this case fall within the exception set forth in section 127(l)(b) of the restatement having to do with improvements mandated by the government. After examination of the cited cases that apply this exception, we conclude that plaintiffs are in error. That exception has been applied principally when the property has only one practical use, generally as a residence, and the modifications to the property, such as indoor plumbing and structural rehabilitation, are required by municipal regulations in order to obtain an occupancy permit. Two other facts common to those cases are that the property was received by the life tenant in an untenantable condition and that the improvements were found to benefit the remainderman.

In Eastman v. Peterson, 268 Cal.2d 169, 73 Cal.Rptr. 803 (1968), a life tenant had made substantial improvements to old and rather dilapidated property, which improvements made it livable and brought it in conformance with local regulations. The California court implied that the improvement costs would be reimbursable but remanded the case for further findings.

A majority of decisions cited by plaintiffs are in the same category. Furthermore, they apply the principle of trust law that holds that since the principal is benefited by the improvements, the effect of paying for the permanent repairs by charging the corpus of the trust or estate is merely a substi[261]*261tution of one form of principal for another. In Greene v. Greene, 19 R.I. 619, 625-26, 35 A. 1042, 1044-45 (1896), the cost of water closets, bathrooms, and sewerage connections was held chargeable to the principal. In In re Testamentary Trust of Shurtz, 242 Iowa 448, 455-56, 46 N.W.2d 559, 563-64 (1951), the cost of furnaces, toilets, and a water line making the property tenantable was charged to the corpus. The same result was reached in In re Estate of Dolch, 237 Iowa 1065, 1068-69, 24 N.W.2d 447, 449 (1946). Other cases cited by plaintiffs reach a similar result.2 In re Whitney, 75 Misc. 610, 136 N.Y.S. 633 (1912), did not involve residential property but rather a farm.

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Related

Eastman v. Peterson
268 Cal. App. 2d 169 (California Court of Appeal, 1968)
Wood v. Picillo
443 A.2d 1244 (Supreme Court of Rhode Island, 1982)
In Re Estate of Dolch
24 N.W.2d 447 (Supreme Court of Iowa, 1946)
Savings Investment Trust Co. v. Little
39 A.2d 392 (New Jersey Court of Chancery, 1944)
Longbotham's Estate
29 A.2d 481 (Supreme Court of Pennsylvania, 1942)
Greene v. Greene
35 L.R.A. 790 (Supreme Court of Rhode Island, 1896)
Tillinghast v. Harrop
9 A.2d 28 (Supreme Court of Rhode Island, 1939)
In re the Judicial Settlement of the Accounts of Whitney
9 Mills Surr. 111 (New York Surrogate's Court, 1912)
In re the Accounting of Collins
187 Misc. 188 (New York Surrogate's Court, 1946)

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468 A.2d 258, 43 A.L.R. 4th 1005, 1983 R.I. LEXIS 1109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-audubon-society-of-rhode-island-ri-1983.