In Re Estate of Hendrickson

736 A.2d 540, 324 N.J. Super. 538
CourtNew Jersey Superior Court Appellate Division
DecidedMay 19, 1999
StatusPublished

This text of 736 A.2d 540 (In Re Estate of Hendrickson) 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
In Re Estate of Hendrickson, 736 A.2d 540, 324 N.J. Super. 538 (N.J. Ct. App. 1999).

Opinion

736 A.2d 540 (1999)
324 N.J. Super. 538

In the Matter of the ESTATE OF Earle HENDRICKSON, Decedent.

Superior Court of New Jersey, Chancery Division, Probate Part, Monmouth County.

Decided May 19, 1999.

*541 Turp, Coates, Essl & Driggers, P.C., Hightstown (David H. Coates, appearing), attorneys for plaintiff Fleet Bank, N.A., Trustee for the Trust created under the Last Will and Testament of Wycoff Hendrickson, deceased.

Cerrato, Dawes, Collins, Saker & Brown, Freehold (John I. Dawes, appearing), attorneys for defendants Elizabeth S. Corson, Kathryn Deacon and Marie Field Sharbaugh.

Richard O. Venino, Jr., Sea Girt, for defendants Carol Lynn Gasslein, Bonnie Joyce Weaver and Robert H. Weaver.

Ronald J. Geck, Allentown, for defendants Elizabeth A. Olson and Nancy L. Nicholson.

FISHER, P.J.Ch.

It seems unimaginable that a court, near the end of this millennium, would be asked to consider the application of the long-abolished "Rule in Shelley's Case." Yet, this anachronistic doctrine—like Banquo's Ghost—has raised its hoary head and must be addressed not as an academic puzzle but as the key to a very real and substantial property dispute.

Wycoff Hendrickson ("Wycoff") died in 1928. His will, executed eight years earlier, states in part:

I give and devise to my son Earle W. Hendrickson, my farm (known as Mulberry Hill Farm) situated near Imlaystown, in the County of Monmouth and State of New Jersey during the term of his natural life, he to have the right to occupy, possess and enjoy the same and receive the rents, issues and profits, he to pay the taxes and keep said farm up during his life time and after the decease of my said son I give and devise the said farm to such person or persons as shall be his sole heir or heirs in land in fee simple.

Verified Complaint, ¶ 2 (emphasis added). Earle Hendrickson ("Earle") died on May 31, 1997 setting in motion—after the passage of nearly 70 years—a dispute as to whether Wycoff, by this language, conveyed to Earle a fee simple (if the Rule in Shelley's Case applies) or merely a life estate (if it does not). If the former, defendants Elizabeth A. Olson and Nancy L. Nicholson ("Earle's devisees") are entitled to the property[1] if the latter, then the property passes to those who were Earle's *542 heirs at the time of his death, namely, defendants Elizabeth S. Corson, Kathryn Deacon, Marie Field Sharbaugh, Carol Lynn Gasslein, Bonnie Joyce Weaver and Robert Weaver ("Earle's heirs").[2]

Consideration of the Rule in Shelley's Case[3] seems odd because its place in the common law was abrogated in this State in 1934. But our Legislature then declared only that the "rule of the common law, know as the Rule in Shelley's Case, shall not be applicable to any interest in property created by any instrument to take effect hereafter." N.J.S.A. 46:3-14. Because Wycoff's will was probated in 1928, it remains unaffected by N.J.S.A. 46:3-14. See, Trenton Trust Company v. Gane, 125 N.J.Eq. 389, 403, 6 A.2d 112 (Ch.1939), aff'd 126 N.J.Eq. 273, 8 A.2d 708 (E. & A.1939). Legislation prior to 1934 also deprived the Rule in Shelley's Case of some of its ancient vitality. In 1846, our Legislature declared its application barred when the life tenant died with surviving lineal descendants. Since Earle died without children, this legislatively-created exception to the Rule in Shelley's Case does not attach to the present circumstances. Thus the potential exists for the application of the Rule in Shelley's Case to Wycoff's will notwithstanding these legislative events.

However, before turning to the problem which has haunted generations of law students, the court must consider the argument of Earle's heirs that the issue has been precluded by prior litigation. In 1955, Earle commenced an action in the Chancery Division against a tenant on the farm.[4] After a trial, then Judge (later Justice) Schettino determined that "[t]he interests of the owners of the particular future estates in said lands and premises require, and will be promoted by a sale thereof, and the prospective value thereof is such that it would be to the interest of the particular future estates, and to the interest of any person who might own the same in fee to sell the same." A judgment was entered on November 8, 1956 compelling the sale of the farm and the placing of the profits in trust. Earle's heirs claim the judicially-compelled sale of the farm was tantamount to a holding that Earle only possessed a life estate and not a fee simple as the Rule in Shelley's Case would, if applicable, suggest. In essence they argue the opportunity was previously presented in the 1955 action for a ruling on the applicability of the Rule in Shelley's Case and, because of that opportunity, the issue should now be deemed precluded. They are mistaken.

An issue will be viewed as having been precluded by prior litigation only when the issue was "actually litigated and determined." Hernandez v. Region Nine Housing Corp., 146 N.J. 645, 659, 684 A.2d 1385 (1996). It appears from a reading of the findings of fact and the judgment of Judge Schettino that the present issue was not resolved—but preserved—for future litigation. While it is true Judge Schettino then found the farm to be "held by [Earle] as life tenant," this conclusion was also expressly made "subject to the limitations of" Wycoff's Will. It is true the judgment commanded that "the sale of [the farm] as herein directed shall vest in a grantee a title free and clear of any limitations and *543 conditions as set forth in" Wycoff's Will. This conclusion, however, was reached so the purchaser of the farm could take title free and clear of any limitations on the conveyance Wycoff made to Earle and not to limit the rights of unknown future claimants. Notwithstanding those provisions, the proceeds of the sale of the farm were expressly ordered to be held in trust subject to the limitations in Wycoff's Will; in other words, whether the Rule in Shelley's Case applied was left to another day. That is the only fair reading to be given to the 1956 judgment. Indeed, Judge Schettino's findings of fact and conclusions of law make no mention of the Rule in Shelley's Case, let alone a determination that it did not apply to Wycoff's conveyance to Earle. It is abundantly clear that the court wisely left the present issue unresolved until such time as Earle's devisees, who were neither known nor represented in the 1955 litigation, could be heard on the question. It would be both unfair and inappropriate for this court to preclude Earle's devisees from an adjudication on that particular issue.[5]

The Rule in Shelley's Case provides that "where an instrument gave a man a freehold and, by the same instrument, the remainder was given to his `heirs,' the first taker had a fee simple if the remainder was to his heirs generally, and a fee tail if the remainder was to the heirs of his body." 4 Bowe-Parker, Page on Wills (1961), § 37.15 at p. 617; see also, the definitions contained in N.J.S.A. 46:3-14; Peer v. Hennion, 77 N.J.L. 693, 76 A. 1084 (E. & A.1909); Lippincott v. Davis, 59 N.J.L. 241, 28 A. 587 (E. & A.1896); Mazzola v. Malley, 5 N.J.Super. 562, 68 A.2d 655 (Ch.Div.1949).

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Related

Danelczyk v. Tynek
616 A.2d 1311 (New Jersey Superior Court App Division, 1992)
In Re the Estate of Englis
255 A.2d 242 (Supreme Court of New Jersey, 1969)
Hernandez v. Region Nine Housing Corp.
684 A.2d 1385 (Supreme Court of New Jersey, 1996)
In Re Klein's Estate
116 A.2d 53 (New Jersey Superior Court App Division, 1955)
Trenton Trust Co. v. Gane
6 A.2d 112 (New Jersey Court of Chancery, 1939)
Woodbridge v. Jarrard
138 A. 536 (New Jersey Court of Chancery, 1927)
In Re Forman
145 A. 867 (New Jersey Superior Court App Division, 1929)
Mazzola v. Malley
68 A.2d 655 (New Jersey Superior Court App Division, 1949)
Zane v. Weintz
55 A. 641 (New Jersey Court of Chancery, 1903)
Armour v. Murray
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Lippincott v. Davis
28 A. 587 (Supreme Court of New Jersey, 1896)
Peer v. Hennion
76 A. 1084 (Supreme Court of New Jersey, 1909)

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736 A.2d 540, 324 N.J. Super. 538, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-hendrickson-njsuperctappdiv-1999.