Holmesburg Building Ass'n v. Badger

144 Pa. Super. 65
CourtSuperior Court of Pennsylvania
DecidedFebruary 28, 1941
DocketAppeal, No. 276
StatusPublished
Cited by4 cases

This text of 144 Pa. Super. 65 (Holmesburg Building Ass'n v. Badger) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holmesburg Building Ass'n v. Badger, 144 Pa. Super. 65 (Pa. Ct. App. 1941).

Opinion

Opinion by

Rhodes, J.,

Mamie A. Badger died testate on April 7, 1939. In the third paragraph of her last will and testament she authorized and directed her executors to sell and dispose of certain real estate in Pennsylvania “at either public or private sale and for such price or prices and in such way or manner as to them may seem desirable and to pay over the proceeds of any such sale unto my daughter, Dora M. Watson and my sons Cecil PI. Badger and Ralph L. Badger, absolutely and in fee, share and share alike.”

The sixth paragraph of her will is as follows: “All the rest, residue and ' remainder of my estate I give, devise and bequeath, share and share alike, to my children Cecil PL Badger, Ralph L. Badger and Dora M. Watson.”

The seventh paragraph provides: “The interest of [67]*67any beneficiary named herein shall not be subject or liable to any attachment, execution or other legal process on the part of or by any creditor of any such beneficiary, or other person.”

In the eighth paragraph she appointed her son, Ralph L. Badger, and her daughter, Dora M. Watson, as executors.

The other provisions of the will do not affect the present controversy.

Ralph Lull Badger and Grace Hillis Badger, his wife, executed and delivered to plaintiff a bond and warrant of attorney accompanying a mortgage, dated October 9, 1930. On June 30, 1939, judgment was entered on the bond and warrant of attorney; damages were assessed in the sum of $2,250.49, and attachment execution issued directed to Ralph L. Badger and Dora M. Watson, executors of the estate of Mamie A. Badger, deceased, garnishees. By virtue of the attachment, plaintiff claims from the funds in the hands of the executors, to which Ralph L. Badger may be entitled, to the extent necessary to satisfy its claim.

In due course interrogatories were filed and served upon the garnishees. They answered that by virtue of the seventh paragraph of Mamie A. Badger’s will the amount which may be awarded to Ralph L. Badger was not attachable so long as the same remained in transit. Plaintiff then had issued a rule for judgment against the garnishees for want of sufficient answers to the interrogatories. The court below made the rule absolute and entered judgment against the garnishees “qua executors, in the sum of $2,250.49, with costs, and interest from June 30, 1939, to the extent that the same may become payable after due determination of the orphans court, out of the share or interest of Ralph Lull Badger, defendant, in the Estate of Mamie A. Badger, deceased.” From this judgment the garnishees have appealed.

Goe’s Estate, 146 Pa. 431, 23 A. 383, is, in our [68]*68opinion, applicable and controlling. In Goe’s Estate, supra, the testatrix bequeathed and devised to her nine children, including John S. Goe, all her estate, real, personal, and mixed, share and share alike. Her will contained the following clause (p. 433) : “It is my distinct will and desire that none of the effects, real, personal or mixed, as above devised and bequeathed to my children, or to either of them, can be seized upon or levied upon for any debt or claim whatsoever against my husband, Henry B. Goe, or against any one of my said children.” A portion of the estate of John S. Goe, one of the nine children legatees, was claimed by the Monongahela National Bank under an attachment execution issued on a judgment in favor of the bank against John S. Goe. On appeal to the Supreme Court the issue was whether the legacy given to John S. Goe by the testatrix was attachable by the bank in the hands of her executor. The Supreme Court said (p. 433) : “The testatrix has declared emphatically that the legacies to her children shall not be seized or levied upon for debt. She had a right to protect her estate against creditors of the children. She could have so protected it, even after they came into the beneficial enjoyment of it. She does not do this. She merely protects it in transit. After it reaches the hands of the children, it becomes their property absolutely, and liable to all the incidents of property, among which is that of execution and attachment.”

It is plaintiff’s contention that the will of Mamie A. Badger gave to the beneficiaries named therein absolute-interests in her estate, and that the seventh paragraph of the will, which provided that these interests should be free from attachment or execution, was therefore ineffective.

In Goe’s Estate, supra, Beck’s Estate, 133 Pa. 51, 19 A. 302, and the instant case, the interests of the legatees were similar. In Beck’s Estate, supra, the gift was upon the express condition that it should not be liable [69]*69for tlie debts of the legatee, but should “be paid directly to said Elizabeth Beck by my executor, without diminution for the payment of her said indebtedness.” The Supreme Court held that the executor was thus clothed with an express trust in regard to this share; and that the trust would end the moment the money was paid to the legatee, but during the transit, while the money remained in the hands of the executor, it was as much protected from creditors as if a separate trust had been created for that purpose.

In Goe’s Estate, supra, the Supreme Court recognized that the clause in the will of Elizabeth Beck (Beck’s Estate, supra) differed somewhat from the will of Catharine Goe (Goe’s Estate, supra), but held that the legal effect was the same.

In the present case, as in Beck’s Estate, supra, and in Goe’s Estate, supra, it was not necessary to raise up another trustee of the fund after it leaves the executors’ hands in order to make the trust effective and protect the fund from attachment' in transit. The fund is in the hands of Mrs. Badger’s executors, and they are clothed with a trust of Ralph L. Badger’s share under the clause in the will, in addition to the fact that all funds of the estate in their hands are trust funds.

The court below was also of the opinion that defendant legatee, Ralph L. Badger, was his own fiduciary, since he was an executor and beneficiary under the will of the testatrix; that he had full ownership of the interest involved; and that therefore the same was attachable. But Ralph L. Badger was but one of two coexecutors. That he is also one of the beneficiaries under the will does not militate against the validity of the provisions of the seventh paragraph of testatrix’ will. The custody and control of the property is in Ralph L. Badger and Dora M. Watson, jointly, as executors. See Hance’s Estate, 69 Pa. Superior Ct. 432, 434; Restatement, Trusts, §99, p. 269. This is not a case where one person has the legal title to property and [70]*70also the entire beneficial interest therein, and therefore holds it free of trust.

Keyser's Appeal, 57 Pa. 236, Kaufman v. Burgert, 195 Pa. 274, 45 A. 725, and Hays v. Viehmeier et al., 265 Pa. 268, 108 A. 526, referred to by the court below in its opinion, are cases involving real estate, and on their facts are different from the instant case. We are unable to agree with the court below that Goe’s Estate, supra, was badly decided, that the result reached is untenable, and that it cannot be distinguished from these cases. On the contrary, in our opinion, the principle enunciated in Beck’s Estate, supra, and in Goe’s Estate, supra, is the law, and very properly and logically so.

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Bluebook (online)
144 Pa. Super. 65, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holmesburg-building-assn-v-badger-pasuperct-1941.