Hays's Estate

134 A. 402, 286 Pa. 520, 1926 Pa. LEXIS 587
CourtSupreme Court of Pennsylvania
DecidedMay 11, 1926
DocketAppeal, 54
StatusPublished
Cited by8 cases

This text of 134 A. 402 (Hays's 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
Hays's Estate, 134 A. 402, 286 Pa. 520, 1926 Pa. LEXIS 587 (Pa. 1926).

Opinion

Opinion by

Mr. Justice Sadler,

Charles Hays died in 1902, and by his will bequeathed and devised his residuary estate to an unmarried daughter for her sole and separate use “with the power to appoint among her children or their issue, if any she have, and, in default of issue,” the same was given to others named. A trustee was designated with power to sell the real estate and reinvest the proceeds, but he declined to act, and no substitute has been appointed. Since the decease of the father, the real estate has been held by the daughter, who, at the time of his death, was single. Later, she married, and joined with her husband, Dilworth, in an agreement to sell the property now in question, claiming to have acquired a fee therein. The separate use trust intended by the testator was ineffective, there being no coverture when the will took effect, and none in contemplation: Yarnall’s App., 70 Pa. 335. Eliminating this feature, it was insisted that the words used, importing an indefinite failure of issue, gave to the daughter a fee tail, which became an abso *524 lute estate by the Act of 1855, and that the limitation over was without effect. Prior to the passage of the Act of 1897 (July 9, P. L. 213), the result contended for would doubtless have been upheld. A different construction is now reached, and the language employed must be held to indicate a definite failure of issue, in the absence of a clear expression of intention showing that the contrary was intended. The court so held when the question was brought before it on a case stated to determine the marketability of the title, the proposed vendee of the Dilworths declining to carry out a contract to purchase, on the ground that the wife possessed only a life estate, and a fee could not be conveyed. On appeal, the judgment for defendant was affirmed: Dilworth v. Schuylkill Imp. Land Co., 219 Pa. 527.

Some years later, the husband died, the widow remarried, and one son has been born of this union. In 1921, a new agreement of sale was entered into by Mr. and Mrs. Craig with the then tenant of the property, who later assigned his rights to Paul Whitcomb, present appellant. By this contract, recorded in 1922, the consideration was fixed at $100,000, with certain stipulations as to payment of taxes and improvements, making its value to the vendors as of 1925, when this proceeding was instituted, $127,500. The conveyance was subject to approval by the orphans’ court, the vendee to be reimbursed if this could not be obtained. Though the purchaser, or his assignee, went into possession of the property, no application was made for leave to sell until 1925, four and one-half years later. Then the petition of Mrs. Craig was presented, based evidently on the Revised Price Act of 1917, averring that she was possessed of the life estate. It set forth that the conversion of the real estate would be to the interest and advantage of all concerned, and that the sum offered was “a fair, full, just and adequate price, and a better price than could be obtained” if the premises were exposed at public sale.

*525 A guardian ad litem for the minor, as well as “trustee for the children in posse of Carrie Hays Craig, for the purpose of representing the interests of said minor and said children,” was appointed. Later a hearing was had, at which time it was insisted that the approval of the sale was a matter of right, since the daughter had become, by reason of the birth of issue, the owner of an absolute estate, and, even if this was not so, that a private sale should be sanctioned, since it was for the benefit of all interested. The value of the property was fixed as of the date of the agreement to convey in 1921 at $100,000, the price to be paid being in fact greater than this sum, as already noticed, in view of additional outlays assumed by the purchaser. The People’s Savings & Trust Company, tenant of the' proposed vendee, offered to pay $185,000, and the court, in the exercise of its discretion, refused to approve the private sale to Whitcomb, on the ground that the proposed transfer was manifestly for a sum less than could be obtained, and therefore not to the advantage of the estate. The latter excepted to this order, and he is the one who now appeals.

It is contended that Mrs. Craig became the absolute owner of the estate when a child was born to her. Admittedly, under the former decision construing the same instrument (Dilworth v. Schuylkill Imp. Land Co., supra, followed in English’s Est., 270 Pa. 1), the will of testator gave to her but a life estate, since, by reason of the Act of 1897, the language employed must be construed as referring to a definite, rather than an indefinite, failure of issue. The argument of appellant rests on the interpretation of certain words used in that statute. In part it provides, if the will uses the words “have no issue, or any other words which may import either a failure or want of issue óf any person in his lifetime or at the time of his death, or. an indefinite failure of his issue, [these words] shall- be construed to mean a want or failure of his issue in the lifetime or at *526 the death of such person.” The conclusion is drawn that the rule of construction fixed by the act becomes inoperative if there be any children born during life. In commenting upon the suggestion, the learned court below pertinently remarked: “It is argued the birth of issue has turned that which was a life estate into a fee; but the possibility of issue was present when the case was decided [before], and if a birth was to change the legal status, the argument of the opinion would not have been based solely on the interpretation of the statute, which converted that which, before the statute was passed, would be a fee, into a life estate, regardless of whether issue had been born or not.”

In the earlier litigation referred to, involving the same will, it was held the words “in default of issue of my said daughter,” import either a definite or indefinite failure of issue, either “a failure of issue of the daughter at her death, or an indefinite failure of issue” (p. 531). The phrase in question was long used interchangeably with “die without issue,” or “leaving no issue,” and before 1897 would have been held in law to mean an indefinite failure (Vaughan v. Dickes, 20 Pa. 509; Kay v. Scates, 37 Pa. 31; George v. Margan, 16 Pa. 95; Robinson’s Est., 149 Pa. 418), but that interpretation, where such language appears, is no longer to be followed. Since that time it has been said the words in question mean “at the death” (Smith v. Piper, 231 Pa. 378), though the case just cited is to be differentiated from the one at bar, because of other provisions not appearing here. The word “or” as used in the clause “in the lifetime or at the death,” appearing in the Act of 1897, and relied upon by appellant, is evidently intended as a conjunctive, and the failure of issue is to be determined as of the date when the first taker dies. The statutory rule is applicable, and the daughter took an interest for life only, as heretofore held, though a child has been born to her.

*527 It is further urged that if Mrs. Craig had but a life estate, her power of appointment could be exercised, a son being now existent, and the realty converted by her into cash, the proceeds to be held in lieu thereof for the benefit of all interested.

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Bluebook (online)
134 A. 402, 286 Pa. 520, 1926 Pa. LEXIS 587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hayss-estate-pa-1926.