Hunter v. Conrad

94 F. 11, 1899 U.S. App. LEXIS 3042
CourtU.S. Circuit Court for the District of Rhode Island
DecidedApril 7, 1899
DocketNo. 2,544
StatusPublished
Cited by10 cases

This text of 94 F. 11 (Hunter v. Conrad) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hunter v. Conrad, 94 F. 11, 1899 U.S. App. LEXIS 3042 (circtdri 1899).

Opinion

BROWN, District Judge.

This case is on demurrer to a creditors’ Mil seeking to charge trust funds in the hands of the trustees under the will of J. B. Burnaby, late of Providence, R. I. A judgment at law was obtained in the state of Montana against the respondent Mabel B. Conrad, daughter of said Barnaby, and her former husband. John H. Conrad, upon a promissory note made at Chicago, Ill., and signed by said Mabel B. Conrad and John II. Conrad & Co. (a firm composed of said John IT. Conrad and S. 0. Hunter). The note was dated March 12,1893, and payable in four months. January 12, 1895. the respondent Mabel B. Conrad was divorced from her said husband, and since then has rema ined unmarried. On November 6, 1895, after the divorce, action was begun on the note in the state of Montana, due service being had in that slate. March 23, 189(1, judgment was [12]*12obtained. November 21, 1896, execution thereunder was returned unsatisfied.

The will, after placing property in the hands of trustees, provides:

“And, thirdly, all the residue of said net income of said trust estate and property to pay in equal shares, and in quarterly payments from the date of my death, to my said two daughters during their respective lives for their own sole and separate uses, and their personal receipts to he at all times sufficient discharge therefor; hut neither of my said daughters shall have any power to assign or otherwise alienate or anticipate the same or any part thereof before the same becomes payable to her as aforesaid.”

As Mrs. Conrad’s interest in the trust fund is restricted to the income, and as the devises over place the corpus of the estate entirely out of her control, it seems clear that there is no ground for the creditors claiming more than the income.

The complainant relies upon Tillinghast v. Bradford, 5 R. I. 208. In this case, Ames, O. J., says:

“The nature of the debtor’s interest in the trust property, under his father’s will, was an equitable estate for life, with a power of disposing of the remainder in fee by will; in default of such disposition, such remainder to be conveyed to his heirs p.t law; there being also a clause in the will against anticipation and alienation of the rents and profits during the debtor’s life. It is quite clear that it was the intention of the testator to make an alimentary provision for his son during life, which should give him all the advantages of an estate in fee, without the legal incidents of such an estate, — alienability, unless by will, and subjectiveness to the payment of the son’s debts. Such restraints, however, are so opposed to the nature of property — and, so far as subjectiveness to debts is concerned, to the honest policy of the law — as to be totally void, unless, indeed (which is not the case here), in the event of its being attempted to be aliened, or seized for debts, it is given over by the testator to some one else. This has been the settled doctrine of a court of chancery, at least since Brandon v. Robinson, 18 Ves. 429; and, in application to such a case as this, is so honest and just that we would not change it if we could. Certainly, no man should have an estate to live on, but not an estate to pay his debts with. Certainly, property available for the purposes . of pleasure or profit should be also amenable to the demands of justice.”

In Stone v. Westcott, 18 R. I. 685, 29 Atl. 838, it was said:

“The question raised for decision is whether the respondent * * * has any right in the fund, or the income of it, which he can enforce against the executors. If so, his creditor can also enforce it, and the bill can be sustained; otherwise, it cannot.”

See Ryder v. Sisson, 7 R. I. 341, 344; Bank v. Chase, 16 R. I. 37, 39, 12 Atl. 233. We cannot doubt that this has been regarded as the settled law of Rhode Island where the cestui que trust was not a married woman under coverture. In the present case, however, we have to consider whether this doctrine is applicable under circumstances novel in character. To the general rule of policy that makes invalid restraints on alienation there is a well-recognized exception in the case of a married woman. Gray, Restr. Alien. Prop. §§ 140-142, 269, 277. At the date of the execution of the will and of probate, Mrs. Conrad was under coverture. Though no Rhode Island case has been cited on the point I have no reason to doubt that in Rhode Island the exception in favor of married women existed, and that the restraints upon alienation and anticipation imposed by the will upon Mrs. Conrad were then valid. So, also, at the time of the execution of the note, [13]*13which does not appear to have been in any way for the benefit of her separate estate, she was under coverture. There was, then, nothing in the policy of the law invalidating the provision of the will that forbade this married woman to alienate or anticipate her separate estate. It. would seem, therefore, that, though a married woman was sui juris in the state of Illinois at the date of making the note, she might under the law of Rhode Island be lawfully restrained from charging her equitable estate by her contracts.

The equity of the creditor, under the allegations of the present bill, rests upon a contract made by Mrs. Conrad at a time when she had no power, under the laws of Rhode Island, to charge her equitable estate. How is it possible to bold the restraint on alienation or anticipation valid at the time of making the note, and yet to hold that the making of the noie did charge her equitable estate? The language of James, L. J., in Pike v. Fitzgibbon, 17 Ch. Div. 454, seems quite in point:

“Twist it in any way you like, the conclusion which the vice chancellor arrived at. and which wc are asked to arrive at, is that a married woman restrained from anticipation can anticipate. That is the. result, if it is put into plain English, because whether it is done by deed or by loiter, or by the creation of a debt which in the result operates to charge the property, it is an anticipation of the property, by which the lady deprives herself of something which she would otherwise receive. That this is anticipating her future income v oulci seem to me to he too plain a proposition to be seriously contested.”

Cotton, L. J., said:

“Tlieir contention must amount to this: that the married woman unde.r the trusts of the will was prevented only from doing any act which would prevent her from enjoying during- the coverture the income of this property, and that she could do ads even during- coverture which might intercept the income of the property after the death of her husband. The express terms of the trust are that she shall have no power while under coverture to dispose of the property by way of anticipation. Would not a disposition to take effect after the death'of her husband he an anticipation just as much as if it was to take place in the year after that in which the disposition was made? It is almost a reductio aci absurdum to say that, although she could not anticipate by an express charge on the property, yet she could dispose of it by way of anticipation by contracting during the coverture a debt not directly charging the property, but giving the plaintiffs a right to claim it.”

See, also, Roberts v. Watkins, 46 Law J. Q. B. 552; In re Sykes’ Trusts, 2 Johns. & H. 415.

Tt is contended by the complainant, however, that the following reasons prevent Mrs. Conrad from receiving the benefit of any exception to the rule stated in Tillinghast v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
94 F. 11, 1899 U.S. App. LEXIS 3042, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunter-v-conrad-circtdri-1899.