In re the Final Accounting of the Chase Manhattan Bank

15 A.D.2d 131, 222 N.Y.S.2d 219, 1961 N.Y. App. Div. LEXIS 7188
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 12, 1961
StatusPublished
Cited by1 cases

This text of 15 A.D.2d 131 (In re the Final Accounting of the Chase Manhattan Bank) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Final Accounting of the Chase Manhattan Bank, 15 A.D.2d 131, 222 N.Y.S.2d 219, 1961 N.Y. App. Div. LEXIS 7188 (N.Y. Ct. App. 1961).

Opinions

Steuer, J.

The proceeding is the final accounting of the successor trustee of an inter vivos trust created by John D. Rockefeller as settlor in 1917. The trust has fallen in with the death of Muriel McCormick Hubbard, the final life beneficiary. The issue upon the accounting is the disposition of the corpus of the trust, the question being whether the same shall pass to certain infants who claim to be the adopted children of the life beneficiary, or whether it shall pass to certain charities named in accordance with the provisions of the trust indenture. The charities and the Attorney-General have filed amended answers to the petition and the three orders here under review result from applications made by the representatives of the said minor children in regard to the answers submitted on behalf of the charities and the Attorney-General.

[133]*133The answers raise three issues. The first is whether the settlor intended to include adopted children in the designation in the instrument describing possible remaindermen. All parties conceded that this will be an issue and the allegations in the charities’ answer which seek to raise it are not attacked. The second issue is whether the infant parties were legally adopted by the life beneficiary. The third issue is whether, assuming the two prior issues to have been determined in favor of the infants, they are still barred from receiving the corpus of the trust by virtue of section 117 (formerly § 115) of the Domestic Relations Law. It is the allegations in the answer which seek to raise the two latter issues that are under attack in the orders which are before this court for review.

The answers, in disputing the validity of the adoptions of the several infants, plead that these adoptions took place in various sister States of the Union and were accomplished by the decrees of various courts in the said States. In each instance it is alleged that the court lacked jurisdiction by virtue of the non-residence of the life beneficiary who was the party seeldng the adoptions. The allegation of nonresidence is not challenged. In addition, the answers contain various allegations in regard to the proceedings which seek to question the validity of the adoptions. These allegations were stricken at Special Term and the order so providing is the first here on appeal.

As it is alleged that the adoptions are the result of court orders, these orders may not be attacked collaterally and are entitled to full faith and credit in this State (New York Life Ins. & Trust Co. v. Viele, 161 N. Y. 11). It would follow that any challenge short of calling into question the jurisdiction of the court making the order of adoption would be ineffective, and a claim to that effect could not be heard. It would naturally follow that the allegations should be stricken.

The charities do not seriously dispute the above. However, they claim that the facts alleged would be admissible to establish their contentions in regard to section 117 of the Domestic Relations Law. They do not dispute, however, that, as presently pleaded, the issue is not properly or directly raised. In this situation they sought leave to amend their answers. This raises the question of what constitutes a proper pleading in connection with section 117, and whether the proposed amended answers would come within that classification.

The fourth paragraph of section 117 reads as follows: “ As respects the passing and limitation over of real or personal property dependent under the provisions of any instrument on the foster parent dying without heirs, the foster child is not [134]*134deemed the child of the foster parent so as to defeat the rights of remaindermen.”

This statute, though of very long standing (originally L. 1896, ch. 272), has not often been employed as the grounds of decision. In view of the other paragraphs of the section, which define the rights of adopted children and place them on a footing of virtual equality with natural children, it has been held that the paragraph has application only in the specific situation to which it refers (Matter of Walter, 270 N. Y. 201). So that it becomes a canon of interpretation—if an instrument leaves a remainder to designated persons on condition that the life tenant die without heirs, adopted children are not to be considered, although natural children would, of course, defeat the remainderman’s right to succeed to the property. However, as a canon of interpretation rather than a statute directly governing descent and distribution, it has been made to yield to positive proof of a contrary intent of the grantor. Thus where the grantor was aware of an adoption which antedated the instrument and where he approved of the adoption and regarded the child as the natural child of the foster parents, the statute did not prevent the adopted child from taking in preference to remaindermen (Matter of Upjohn, 304 N. Y. 366). Even where the adoption succeeded the instrument in time a similar result was reached where it was shown that the testator had urged such of her children as were without natural issue to adopt children (Matter of Ward, 9 N Y 2d 722). Nor was the quoted paragraph invoked where such evidence was lacking. A result unfavorable to the adopted child was reached by interpretation of the language of the instrument to exclude adopted children (Matter of Leask, 197 N. Y. 193). This provided a line of authority (collated in the opinion of Valente, J., in Matter of Ricks, 12 A D 2d 395) which established that unless the language employed indicated affirmatively that adopted children were included, they were excluded, thus giving the statute effect without invoking it.

So that it was said that the underlying rationale of the statute was clear (Matter of Upjohn, supra, p. 378). That rationale was to prevent frustration of the grantor’s intent by an adoption designed to divert the passage of the remainder from the destination that the settlor meant it to reach (see Matter of Horn, 256 N. Y. 294, 297). And an adoption for that purpose is styled fraud ” (Matter of Upjohn, supra, p. 378; Matter of Walter, supra, p. 205). These expressions would put limits to the applicability of the statute so as to render it virtually nugatory and [135]*135raise questions virtually insoluble. Must the fraudulent purpose of the foster parents be the sole inducing cause for the adoption, or the major inducement, or does such a purpose coupled with other, worthier motives destroy the right of succession where it otherwise would exist? How is it possible to establish among the myriad motives that prompt human actions in so delicate an area that an intent so extraordinary was the factor that induced the act of adoption? Suffice it to say that in the 65 years that the statute has been on the books no decision records an instance of a litigant coming into court offering to make such proof.

The answer is that the impression gathered from the above expressions does not correctly define the law and the arrival of the precise question shows that the path of the law is not lost in the mazes to which it appeared heading. The situations which the statute controls are of wider scope than was believed. Where the grantor fails to show an intent to include adopted children in the words used in the instrument and no competent proof of such an intent dehors the instrument is forthcoming, the statute operates as a bar (Matter of Ricks, 10 N Y 2d 231

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

Related

In re the Estate of Lawrence
86 Misc. 579 (New York Surrogate's Court, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
15 A.D.2d 131, 222 N.Y.S.2d 219, 1961 N.Y. App. Div. LEXIS 7188, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-final-accounting-of-the-chase-manhattan-bank-nyappdiv-1961.