Hazlett v. Moore

23 N.E.2d 57, 372 Ill. 192
CourtIllinois Supreme Court
DecidedOctober 13, 1939
DocketNo. 25214. Decree affirmed.
StatusPublished
Cited by7 cases

This text of 23 N.E.2d 57 (Hazlett v. Moore) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hazlett v. Moore, 23 N.E.2d 57, 372 Ill. 192 (Ill. 1939).

Opinion

Mr. Chief Justice Wilson

delivered the opinion of the court:

Minnie A. Hazlett and I. Newton Peasley filed in the circuit" court of McLean county a complaint asking for the partition of 431 acres of land located in that county. The land in question had been the property of Isaac N. Peasley, the father of the plaintiffs and certain of the defendants. He died intestate leaving no widow surviving but seven children as his only heirs-at-law. Luther J. Moore, husband of one of the defendant heirs, upon the death of Peasley was named as administrator of the estate. Shortly after the death of Peasley and after letters of administration were granted to Moore, a deed was executed signed by the heirs which recited therein that it was made for the purpose of conveying to the grantee, Moore, the full legal title thereto. Moore executed a declaration of trust to the heirs. It recited that the deed from the heirs to him was not as a purchaser in his own right but in trust to execute certain oral suggestions and agreements which the instrument stated were concurred in by the grantors named in the deed, and that of his own volition and in consideration of the execution and delivery to him of the deed mentioned he proposed to carry out the terms and conditions of the trust. The conditions, in substance, were that the grantee named was to manage and control the real estate during his ownership for the use and benefit of the heirs; that he was to apply the rents, issues and profits to the payment of the mortgage liens against the real estate, pay the just debts and funeral expenses of Isaac N. Peasley, deceased, and the costs of administering the estate. The grantee agreed to sell and convey the real estate as soon as a satisfactory price, agreeable to the heirs, could be obtained, and, as administrator, should distribute the net proceeds among the heirs according to their respective interests. The declaration of trust recited that the several heirs and their spouses had agreed that, by the delivery of the deed to Moore, they parted with all their title to the real estate and had agreed in lieu thereof to accept in cash their respective shares of the net proceeds of the sale thereof, less the amount required for certain mortgage liens, debts and deductions. Evidence was heard by a master in chancery who made a report to the court, to which objections were filed and stood as exceptions. The court sustained the exceptions and entered a decree in favor of the plaintiffs. The defendants appealed from the decree.

Certain testimony was offered tending to explain the circumstances leading up to the execution of the deed and declaration of trust, but was thereafter withdrawn, and is not before us. The two instruments were introduced in evidence. They were dated the same day but copies of the declaration of' trust were not delivered to the heirs until some days thereafter. Moore was discharged as administrator but had a small amount of cash in his possession undistributed. He continued in the management of the land after his discharge as administrator and filed a report as trustee and has asked for trustee’s and attorney’s fees. The master concluded from the record that there was an equitable conversion of the real estate; that the heirs had conveyed all of their title to Moore which he held under an active trust, and that by their agreement the plaintiffs were estopped from having partition, and he recommended the dismissal of the complaint for want of equity. The chancellor held that as there was no definite time within which the real estate should be sold and as the price for which it was to be sold was to be determined by the heirs, that they were the equitable owners of the land and had the right to have the trust terminated and the land partitioned. The legal effect of the acts of the parties in the execution of the instruments mentioned and the incidental questions passed upon by the master and chancellor are now before this court for determination.

Counsel for the defendants state that this is a fitting case for the application of the doctrine that equity considers that done which ought to be done. To create an equitable conversion requires a clear and imperative direction. (Lockner v. VanBebber, 364 Ill. 636.) While the declaration of trust recited that the heirs had parted with all their title to the real estate and had agreed in lieu thereof to accept in cash their respective shares of the net proceeds of a sale thereof none of the heirs had signed the instrument. The deed was evidence that the heirs had parted with their legal title. The declaration of trust purported to explain the purpose of the execution of the deed. The character of personalty, however, was not impressed upon the real estate conveyed by the deed to Moore and the heirs executed no other instrument to that effect. The declaration of trust did not create in the trustee discretion to determine the amount of the sale price of the land, but the price was to be agreed upon by the beneficiaries. Counsel for the defendants say the fact that the beneficiaries were given discretion with respect to the time of sale would not prevent conversion, and cite 13 Corpus Juris, page 868, section 37. Two cases are cited in that volume in support of the text. In one, Crane v. Bolles, 49 N. J. Eq. 373, there was a provision in a will empowering the testator’s executors, upon the request or by the consent of the majority of his children, to sell certain land upon the terms and for the price the executors should deem proper. The court held that it was apparent from the will that the sale imperatively was to be made within a short time or during the lifetime of the testator’s widow. The executors had complete dominion over the real estate. In the other case (Mellon v. Reed, 123 Pa. 1) there was a question whether there was an equitable conversion of realty into personalty. The widow was given a right by the testator’s will to “detain” a sale, but the power to sell was not contingent or conditioned upon her consent and it was held there was an equitable conversion. In this case there was no unconditional duty imposed upon the trustee to make a sale until the heirs agreed upon the price, and there was no definite time provided for the sale or for the termination of the trust. If any inference as to a definite time for the termination of the trust is justified from the language of the declaration of trust it is that the trust should exist only during the administration of the estate. The net proceeds of a sale, when made, were to be distributed by Moore “as administrator.” Moore signed the instrument as “Administrator of the Estate of Isaac N. Peasley, deceased, and Trustee to make sale of his real estate.” Upon his discharge as administrator of the estate, he held only as trustee. The only interest in the property which Moore had was an inchoate right of dower as the husband of Lurena Moore, one of the heirs. The heirs were the owners of the land upon the death of their father, and their conveyance to Moore was one of convenience for their own benefit. If the trust was not to be executed within the period of administration then there is no time fixed for its termination.

In Fox v. Fox, 250 Ill. 384, wherein a declaration of trust provided that the trustee should hold the title in trust for the heirs until such time as a sale could be made, the opinion, after reciting certain facts with respect to the acts of the trustee, states: “It is clear from the terms of the trust as set out in the answer of the trustee that no definite time was set when the property should be sold and the trust terminated.

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Bluebook (online)
23 N.E.2d 57, 372 Ill. 192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hazlett-v-moore-ill-1939.