In re Bruns

156 Misc. 873, 282 N.Y.S. 617, 1935 N.Y. Misc. LEXIS 1462
CourtNew York Supreme Court
DecidedOctober 4, 1935
StatusPublished
Cited by5 cases

This text of 156 Misc. 873 (In re Bruns) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Bruns, 156 Misc. 873, 282 N.Y.S. 617, 1935 N.Y. Misc. LEXIS 1462 (N.Y. Super. Ct. 1935).

Opinion

Dowling, J.

Petitioner, Kate V. K. Bruns, is the widow of Frederick V. Bruns, who died in Syracuse, N. Y., February 27, 1935, leaving him surviving four children, Frijs Anne Bruns Eaton, John F. Bruns, Katherine V. Bruns and Richard von Kloster Bruns. The three last named are infants between the ages of fourteen and twenty-one years.

On May 31, 1928, Frederick V. Bruns entered into a life insurance trust agreement with the City Bank and Trust. Company of Syracuse, N. Y., as trustee, wherein and whereby the said Frederick V. Bruns deposited with said trustee certain policies of life insurance with the provision that the proceeds thereof, upon the death of the grantor or upon maturity of said policies, be invested by the trasteé and the income thereof paid over in quarterly installments each year, together with so much of the principal as the trustee should deem necessary for the support and maintenance of petitioner and, upon the death of petitioner, the trust fund was to be divided into four equal shares to be distributed to the children of Frederick V. Bruns in accordance with the terms contained in said agreement.

[874]*874Upon the death of Frederick V. Brans, respondent First Trust and Deposit Company, as successor to the City Bank and Trust .Company, as trustee under said trust agreement, collected the sum of $73,386.72 as the proceeds from the life insurance policies deposited with said trustee by Mr. Bruns.

Frederick Y. Brims, at the time of his death, was indebted to the First Trust and Deposit Company, directly and indirectly, in the .sum of approximately $65,873.47, and First Trust and Deposit Company claims to hold an assignment, executed by Frederick Y. Bruns, of the proceeds of said Ufe insurance policies in an amount equal to the indebtedness of Mr. Bruns to First Trust and Deposit Company. Said claim and assignment are in dispute and an action is now pending in the Supreme Court of Onondaga county relative to the claim of the First Trust and Deposit Company.

The First Trust and Deposit Company, as trustee, has in its possession the sum of $7,513.25, which it is holding under the terms of said trust agreement, and which sum is not subject to any claim by said trustee or any other person.

Petitioner is the sole support of the above infants, except John Bruns, who is partly self-supporting. Said infants reside with petitioner in the city of Syracuse, N. Y. Petitioner receives $100 per month as president of Bruns Co., Inc., an insurance agency in Syracuse, and $11 per month from the trustee herein. Petitioner has no other property or source of income.

Petitioner alleges that to properly support herself and dependent children, it is essential that she receive from the trustee herein $250 per month.

Prior to August 28, 1935, petitioner requested the trustee to pay her, out of the trust estate, the sum of $250 per month for the purpose aforesaid, which the trustee refused to do.

Subdivision (a) of paragraph third of the trust agreement provides that, in the event the income from the trust fund is not sufficient to adequately provide for the proper care and maintenance of said Kate Y. K. Bruns, taking into consideration her other resources, the trustee shall pay over to her, from the principal of said trust fund, so much thereof as the trustee in its discretion shall deem to be necessary for that purpose.

Upon the refusal of the trustee to comply with petitioner’s .demand, and on August 28, 1935, petitioner instituted this proceeding for an order directing and permitting the First Trust and Deposit Co., as trustee under the trust agreement entered into by Frederick Y. Bruns, dated May 31, 1928, to pay over to Kate Y. K. Brans the sum of Two Hundred and Fifty Dollars ($250.00) monthly from the principal of said life insurance trust fund now in the [875]*875possession of said trustee and for such other and further relief as may be just and equitable in the premises.”

The matter came on for hearing September 16,1935. The infants appeared by special guardian, appointed by Hon. Edward L. Robertson, Justice of Supreme Court, September 21, 1935. The trustee appeared specially and- objected to the jurisdiction of the court and asked for a dismissal of the proceedings on the ground that the relief sought could be obtained, if at all, only by suit in equity. No answers or answering affidavits have been presented by the trustee or the special guardian. The allegations of the petition, therefore, must be accepted as true.

The trust before the court is an express trust.” (Kokusan Kisen Kabushiki Kaisha v. Argos Mercantile Corp., [C. C. A. N. Y.] 280 Fed. 700, 702; Central Trust Co. v. Gaffney, 157 App. Div. 501; Matter of Bogan, 129 Misc. 119.) The court had no part in the creation of the trust. It is a private affair. Only upon the happening of certain contingencies does the Supreme Court become interested as provided in section 20 of the Personal Property Law: When trust vests in supreme court. On the death of a last surviving or sole surviving trustee of an express trust, the trust estate does not pass to his next of kin or personal representative, but, if the trust be unexecuted, in the absence of a contrary direction on the part of the person creating the same, it vests in the supreme court and shall be executed by some person appointed by the court, whom the court may invest with all or any of the powers and duties of the original trustee or trustees.” This section does not authorize the court to interfere with the administration of such a trust while in the hands of the original trustee. Nor does article IV of the Real Property Law, which relates exclusively to express trusts involving realty, confer any such authority. This conclusion leads to the inquiry, when, if at all, the court may exercise jurisdiction over such trusts in relation to situations not provided for by section 20 of the Personal Property Law and how it will be moved to the exercise of such jurisdiction. The answer to this query can be made only by an analysis of the jurisdiction and powers conferred upon the Supreme Court and their source.

The Supreme Court had its origin in a statute passed by the Legislature of the Colony of New York, May 6, 1631, which provided: “ That there shall be held and kept a Supreame Court of Judicature * * * which Supream Court are hereby fully Impowered and Authorized to have Cognizance, of all pleas, Civill Criminall, and Mixt, as fully and amply to all Intents & purposes whatsoever, as the Courts of Kings Bench, Comon Pleas, & Exchequer within their Majestyes Kingdome of England, have [876]*876or ought to have.” This statute was continued by Colonial act or Royal ordinance until the adoption of the first Constitution of the State of New York. (Colonial Laws, vol. 1, chaps. 1-5; Matter of Steinway, 159 N. Y. 250.)

The Court of Chancery was created by the same act as the Supreme Court of the Colony of New York. The first Constitution of New York, 1777, recognized the existence of the Supreme Court and the Court of Chancery as did the second Constitution of New York. The Constitution of 1846 abolished the Court of Chancery and enacted that there should be a Supreme Court having general jurisdiction in law and equity, and such is the case under the present Constitution. Section 64 of the Civil Practice Act provides: General jurisdiction of supreme court.

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Bluebook (online)
156 Misc. 873, 282 N.Y.S. 617, 1935 N.Y. Misc. LEXIS 1462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-bruns-nysupct-1935.