Howard Savings Institution v. Trustees of Amherst College

160 A.2d 177, 61 N.J. Super. 119, 1960 N.J. Super. LEXIS 500
CourtNew Jersey Superior Court Appellate Division
DecidedApril 14, 1960
StatusPublished
Cited by3 cases

This text of 160 A.2d 177 (Howard Savings Institution v. Trustees of Amherst College) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Howard Savings Institution v. Trustees of Amherst College, 160 A.2d 177, 61 N.J. Super. 119, 1960 N.J. Super. LEXIS 500 (N.J. Ct. App. 1960).

Opinion

Pindar, J. S. C.

Plaintiff as executor under the last will and testament of C. Edward McKinney, Jr., deceased, files this complaint for construction of certain paragraphs of the said will and for instructions directing the administration of the estate respecting the provisions of paragraphs Thirtieth and Thirty-third thereof. The testator died on October 21, 1957, a resident of Essex County, New Jersey, and his will and codicil were probated on November 6, 1957 in said county with letters testamentary issued to the plaintiff, who undertook administration and continues as executor.

The pertinent paragraphs are fully set forth below:

“THIRTIETH: I give and bequeath the sum- of Fifty Thousand Dollars ($50,000.) to Amherst College, an institution of learning, situate at Amherst, Massachusetts, to be held in, trust to be used as a scholarship loan fund for deserving American born, Protestant, Gentile boys of good moral repute, not given to gambling, smoking, drinking or similar acts. (It being my thought that if a young man has enough funds to allow the waste of smoking, he certainly does not need help.) The money loaned from said fund is to be repaid to the fund at the earliest moment so that others may benefit from its use.
* * t'fi s¡: * * * *
THIRTY-THIRD: All the rest, residue and remainder of my estate, real, personal and mixed, of whatsoever kind and wheresoever situate, of which I shall die seized or possessed, I give devise and bequeath unto Amherst College aforesaid to be held on the same trusts as mentioned in paragraph Thirtieth aforesaid.” (Italics added)

Named as defendants herein are The Trustees of Amherst College (called Amherst hereafter), the Attorney General of the State of New Jersey (called State hereafter), Alice J. Stevens, Florence Peep and Albert Iiughey (called Kinfolk hereafter).

Plaintiff’s action has direct concern with a forced dilemmatic involution caused by an assumed interpretation on the part of Amherst under Section 6 of its charter in language as follows:

“Sec. 6. And be it further enacted, That no Instructor in said College shall ever be required by the Trustees to profess any par[123]*123tieular religious opinions, as a test of office; and no student shall he refused admission to, or denied any of the privileges, honors, or degrees of said College, on account of the religious opinions he may entertain.” (Italics added.)

By virtue of the aforestated provision Amherst adopted the following resolution:

“RESOLVED, that Amherst College declines to accept the legacy and the residue under the will of C. Edward McKinney, Jr., upon conditions which will prevent the use of the scholarship loan fund for the benefit of any of its students on religious grounds; but it will accept the same if it will not be so restricted in the use of the fund.”

In the light of the aforementioned position Amherst by its answer seeks an adjudication that the classifying words, “Protestant” and “Gentile,” be excluded as being discriminatory by statute (N. J. S. A. 18:25-1 et seq.), or as being contrary to public policy. In such event said defendant purposes that the court invoke the cy. pres doctrine with favorable effect to award the pertinent trust bequests to Amherst to be functioned in all other respects as declared by the testator.

State as an indispensible party to a cause involving eleemosynary institutions, by its answer, joins with plaintiff for such judicial construction and direction which will best serve the public interest respecting the bequests herein.

Kinfolk by answer, likewise acceding to the necessity of judicial action as aforesaid, urge that the declination by Amherst effectuates a failure of the testamentary trust with the result that plaintiff’s testator died intestate as to the questioned funds which should become their property by way of descent and distribution under N. J. 8. 3A :4^h.

It should be noted here that at the hearing it was shown defendants Albert Hughey and Florence Peep are brother and sister and first cousins of testator, being children of a sister of testator’s father; and that defendant Alice J. Stevens is a cousin once removed, being a first cousin of testator’s mother. In the light of the aforesaid degree of [124]*124kindred it was stipulated that Alice J. Stevens had no statutory right to any share of the controversial trust funds.

The related diversified positions of the parties require consideration of their respective contentions in the selected order hereinafter set forth.

Initially, it will be shown that the funds in question must be regarded as a charitable trust. So classified it should not lose its manifest beneficial use. Instead, every manner for the purposive intent of the testator must be preserved. In the case of Morristown Trust Co. v. Protestant Episcopal Church, 1 N. J. Super. 418, at page 421 (Ch. Div. 1948), the court said:

“When a gift for charitable uses can no longer be administered in exact accordance with the intention of the donor, this Court has the undoubted power, under its general equity jurisdiction, to direct that the gift be administered cy pres — that is, as nearly as possible in conformity with the intention of the donor. [Citing cases]”

The issue of an established charitable trust was fully reviewed and determined by our Supreme Court in the case of Wilber v. Owens, 2 N. J. 167 (1949), affirming Wilber v. Asbury Park National Bank & Trust Co., 142 N. J. Eq. 99 (Ch. 1948). That case involved a beneficial trust to continue and publish for popular understanding certain “researches” set forth in the manuscripts of testator. Alternative trustees were named upon certain conditions which were not acceptable. Princeton University, the last listed trustee, likewise declined but in a manner stated willingness to accept if the testamentary bequest passed to Princeton by application of the cy pres doctrine with permission for study use in its department of philosophy for purposes considered akin to the research of the testator. A decree to that effect was affirmed on appeal. At 2 N. J. 174, the court said:

“A general charitable intention is outstanding in these provisions. The design of the trust created by the tenth paragraph is the advancement of education and learning, and therefore' it is a- charitable trust. Trusts for the advancement of knowledge by research or otherwise are charitable.”

[125]*125Continuing, the court said at page 177:

“The trust does not fail because it is impossible or impracticable to carry out the particular charitable purpose. The judicial power of cy pres is invocable to effectuate the more general intention to devote the property to charitable uses. The words ‘cy pres’ are Norman French meaning ‘so near’ or ‘as near’; and the term itself suggests the limitations of the principle. Cy pres is ‘the doctrine of nearness or approximation.’ MacKenzie v. Trustees of Presbytery of Jersey City, supra (67 N. J. Eq. 652 (E. & A. 1905)); Crane v. Morristown School Foundation, supra (120 N. J. Eq. 583 (E. & A. 1936)).

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Howard Sav. Inst. v. TRUSTEES, AMHERST COLLEGE
160 A.2d 177 (New Jersey Superior Court App Division, 1960)

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Bluebook (online)
160 A.2d 177, 61 N.J. Super. 119, 1960 N.J. Super. LEXIS 500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/howard-savings-institution-v-trustees-of-amherst-college-njsuperctappdiv-1960.