Holloway v. Safe Deposit & Trust Co.

90 A. 95, 122 Md. 620
CourtCourt of Appeals of Maryland
DecidedFebruary 12, 1914
StatusPublished
Cited by4 cases

This text of 90 A. 95 (Holloway v. Safe Deposit & Trust Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holloway v. Safe Deposit & Trust Co., 90 A. 95, 122 Md. 620 (Md. 1914).

Opinion

Constable, J.,

delivered the opinion of the Court.

John Q. A. Holloway died, seized of a large estate, leaving surviving him a widow, three sons and one daughter. By his last will he created what is commonly called a spendthrift trust, for the benefit of his son, John E. Holloway, and named the Safe Deposit and Trust Company of Baltimore trustee thereof. By the terms of the will the trustee was to hold the estate in trust for the son for his life, and thereafter for the benefit of the descendants of the son, but in default whereof, at his death, the principal was to- pass to, or be held in trust for, other children of the testator surviving, subject to the retention by the trustee of $100,000.00 thereof, for the benefit for the life, or widowhood, of any widow of the said John EHollowav. The fund was to< be augmented at the death of the widow of the testator, and to< further augmentation, contingent upon the death, without issue, of other children of the testator, during the lifetime of the said John E. Holloway. It- was declared, in said will, to be the desire of the testator that the trusts created should be administered under the supervision of a Court of Equity. Accordingly, upon petition for that purpose, Circuit Court No. 2 of Baltimore City-assumed jurisdiction over the administration of said trusts.

*622 Later Anne M. Holloway filed in t-fie cause a petition, setting forth, that she was the wife of the said John E. Holloway, but, because of certain differences between them, they bad entered into a formal agreement of separation, wherein it was provided that the trustee should pay to the petitioner, out of the trust income of her husband under said will, the sum of two hundred and seventy-five dollars monthly, until the death of the widow of the said testator, and from and after the death of said widow, during the joint lives of the petitioner and John E. Holloway, one-half of the whole net income accruing from the entire trust fund, which might them he held by the trustee in trust for John E. Holloway. The petitioner called the Court’s attention to the spendthrift clause of the will, and prayed that the trustee might he required to disburse the trust income in conformity with the said agreement. John E. Holloway filed an answer to this petition, through a solicitor, consenting to the passage of such decree as might he right and proper, and united in the prayer of the petition. There was filed with the answer a letter from John E. Holloway to his solicitor, authorizing him to appear for him, of which the following is a material part:

“It may, hy reason of the especial provisions of my father’s will or' otherwise, he necessary to have this agreement confirmed hy decree of court, so that the separate allowance which I am seeking to secure my wife hy this agreement between us may he decided judicially to he a reasonable alimony to her payable out of my revenue.
“I desire you to represent me professional^ in the premises, and I request and direct you to apnear in mv behalf to any proceeding which may he taken hy either my wife or the trustee, looking to the confirmation hv the court of the terms of the agreement of this date, or the obtaining of a decree in her favor for the allowance of m-oper alimonv to her: and I further request and instruct yon to take all such steps in my *623 behalf as may, in your opinion, be expedient or necessary for the full effectuation of my intention and the allowance of proper alimony to her.”

The trustee also filed an answer, and in it especially called the attention of the Court to the spendthrift clause of the will, by setting it out in full; and in these words concluded: “The trustee now leaves, however, absolutely to the Court the true interpretation of said will and the determination of the validity of said agreement to affect the trust income, and submits to the passage of such decree as may to the Court seem right and proper.”

The Court on the 29th day of May, 1911, passed a decree, ratifying and confirming the agreement “in accordance with the prayer of the petition and the answer1 thereto' of said John E. Holloway,” and directing the trustee to pay to the petitioner the portions of the income according to the terms of the agreement.

On the 2nd day of June, 1913, John E. Holloway filed in the cause a bill of review, seeking to have annulled and set aside the decree of May 29th, 1911, and afterwards, on the 21st day of July, 1913, by leave of Court, filed an amended bill for the same purpose.

The bill, which is a lengthy one, substantially alleges the aforegoing facts, and, in addition, alleges that the agreement of separation was prepared by and at the suggestion of George Whiteloclc, Esq., a member of the Maryland Bar, while on a visit to his wife at Biarritz, France, and that thei latter, authorizing his solicitor to appear for him, was also prepared by the said George Whitelock; that while the execution of the said agreement, and the selection of a solicitor to represent him, were the unconstrained acts of the complainant, he did not have the benefit of independent legal advice. The seventeenth paragraph of the bill is as follows:

“And your complainant herein does further aver that, although he knew the text of the provisions of *624 the said last will and testament of his said father, he was not aware, until the third day of April, 1913, that the making of the said agreement and the consenting to the entering of the said decree, was in violation of the terms thereof, nor that the decretal order of the said Court when so passed did not divest him of his right to revoke such direction to the said trustee, and to demand and receive of the said trustee all payments thereafter accruing to him under the terms of said will, the said decretal order of the court to the contrary notwithstanding.”

And further charges that the Court was without power or authority to pass the decree, and that the same is void,- and prays that the proceeding's may he reviewed and the decree annulled.

After the Court had overruled a demurrer to the bill filed by Anne M. Holloway, the trustee and Anne M. Holloway filed separate answers. The trustee answered that it had paid certain amounts to Anne M. Holloway in pursuance of the decree of May 29th, 1911, until served with the nisi order of Court of June 2nd, 1913, suspending payments until the further order of'Court. Answering the 17th paragraph of the bill, set out above, the trustee said it had no knowledge of the facts therein contained, further than disclosed by the proceedings, except it had received from John E. Holloway under date of February 7th, 1911, the following letter:

“TJnder the terms of the trust, is it possible to pay to my wife, Anne M. Holloway, any part of my income? The same to be sent direct to her by the Safe Deposit and Trust Company. If such an arrangement is possible, I wish you to pay to her four thousand dollars per annum, and the balance of the income, of course, to be paid to me. I want to make some arrangement for Mrs. Holloway as I expect shortly to leave Biarritz for some time and want to be sure that she will be in funds during my absence.”

*625

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Bluebook (online)
90 A. 95, 122 Md. 620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holloway-v-safe-deposit-trust-co-md-1914.