Jones v. McPhillips

82 Ala. 102
CourtSupreme Court of Alabama
DecidedDecember 15, 1886
StatusPublished
Cited by15 cases

This text of 82 Ala. 102 (Jones v. McPhillips) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. McPhillips, 82 Ala. 102 (Ala. 1886).

Opinion

STONE, C. J.

— This cause was before us at a former term. — Jones v. McPhillips, 77 Ala. 314. It was before us then on the demurrer to the original bill for want of equity) and the chancellor’s ruling thereon, overruling the demurrer, and taking jurisdiction of the trust. Accompanying the original bill, and made also a part of its prayer, was an application to the Chancery Court to remove Jones as assignee, and to place the trust and its administration in the hands of a receiver. This part of the prayer was denied by the chancellor, and, as we have said, he overruled the demurrer to the bill, and made a decretal order, that the trust be administered in the- Chancery Court. From that decretal order the appeal was taken to this court. The error assigned was, the granting of the order by the chancellor taking jurisdiction of the trust, on the averments as they appeared in the original bill.

The averments of the original bill are fully set out in the opinion of the court delivered on the former appeal (77 Ala. 314), and need not be here repeated. The assignment was executed July 8, 1884, and the bill in this case was filed the next day. The gravamen of its charges was directed against the capacity and fitness of the assignee, Jones, to administer the trust; and it presented no question of complication in the accounts, or of actual or apprehended error in the administration of the trust, which called for instructions from the Chancery Court. The only charge looking in that direction is the following : “ That the said trust is, from its very nature and terms, one 1 which can not be effectually managed and discharged, and dividends duly declared, except under the jurisdiction and direction of a court of equity.” The assignment was a general one, made for the benefit of all the creditors, without specifying who- they were, and without describing the property conveyed, .or any part of it. We there said; “It should require a strong [108]*108case — much stronger than is here shown — to justify the court in interfering with the trustee’s administration of the trust, at the very threshold of his duties. Dishonesty, faithlessness, fraud, incompetency, or inefficiency, sufficiently averred in its constituent facts, would justify the displacement of the trustee or assignee, and the transfer of the trust to the Chancery Court. Without a cause shown sufficient to remove or displace the trustee or assignee named in the assignment, a bill, filed as this was, is without equity, unless it sets forth, with proper averment of facts, some special equitable ground, why the trustee shall not proceed without instructions from the Chancery Court, and shows further that the trustee persists in the execution of the trust, without invoking such instructions. There are many cases of questionable interpretation, in which it is both the privilege and duty of the assignee to obtain the court’s instructions. Refusing to do so, and assuming to act on his own unaided judgment, we will not say a beneficiary, who shows himself injured by the erroneous judgment of such assignee, may not himself, at any stage of the administration, invoke and obtain a decree of the Chancery Court, correcting such erroneous judgment of the assignee, and properly administering the trust. Of course, such bill by a dissatisfied beneficiary would be at the risk and peril of establishing and fastening error on the assignee, and should not be resorted to, except in cases of threatened injury, for which there is no other adequate means of redress or prevention.” We added : “It is not our purpose, however, to decide the question last discussed.” In that case we held, that the demurrer to the bill should have been sustained ; and we “ remanded the cause, that the bill be dismissed in the court below, unless so amended as to cure the defects in the present bill.”

It will be discovered in what is stated above, and in the statements of our former opinion, that the original bill in this case had one controlling purpose — the removal of Jones, the assignee, from the trust. It set forth some grounds why he should be removed ; but both the chancellor and this court held the grounds insufficient. The bill also prayed that the Chancery Court take jurisdiction of the trust, and direct its administration, but no special ground was averred why such order should be made. This branch of relief was prayed, on the erroneous postulate, that the court of chancery will take jurisdiction of the administration of a trust, such as this, at any stage of the proceeding, and without special grounds therefor. Our ruling was, that the bill was fatally insufficient in each of these aspects, and [109]*109that it showed no ground why the assignee should be removed, nor why the Chancery Court should take jurisdiction of the trust and its administration. We consequently directed the bill to be dismissed, unless it was so amended as to cure its defects. We adhere to the legal principles we then announced, in reference to the right of a beneficiary to have the administration of a trust, in which he has an interest, placed under the direction of the Chancery Court. Jones R. R. Securities, §§ 432, 436; 2 Pom. Eq. § 1062, and note 2; Coal Co. v. Blatchford, 11 Wall. 172, 177; Campbell v. R. R. Co., 1 Woods, 369; Richards v. Ohio R. R. Co., 1 Hughes, 28.

As we have heretofore stated, the Bank of Mobile made its assignment July 8, 1884. The original bill in this case' was filed July 9, 1884. The chancellor’s order, refusing to appoint a receiver, or to remove Jones as assignee, bears date August 30, 1884, and was received and filed by the register September 1, 1884. That order overruled the demurrer to the original bill, and contains this clause : “The bill is for the purpose of bringing the administration into this court; and whether Winston Jones is permitted to go on with the trust, or whether another trustee or receiver is appointed, this court will take jurisdiction of the trust, and require the trustee to execute it under the direction of the court.” On July 8, 1885, this court rendered its decree on the interlocutory ruling of the chancellor, and therein employed the language hereinbefore copied, pronouncing the bill insufficient. — 77 Ala. 314. The order of this court was certified to the Chancery Court July 9, 1885, and was received and filed by the register July 10,1885. The amended bill was filed in this cause August, 1885. It sets forth several grounds, which fully justify the transfer of the trust and its administration to the Chancery Court, if moved for by the assignee. Have the complainants in this cause— beneficiaries under the deed of assignment — brought themselves within the rule which allows them to become actors ?

The amended bill, as we have said, sets forth matters of complication and difficulty, which justify, if they do not require, the interpretation and direction of the Chancery Court in their administration. It does not aver that the assignee is committing, or is about to commit, any errors in the execution of the trust; or that he is disregarding, or about to disregard, any duty enjoined on him by the assignment. It does not charge the assignee with any neglect, unreasonable delay, or failure to execute the trust properly, or failure to render proper account, or make proper distribution. It not only fails to aver that the assignee had [110]*110been requested to seek and obtain instructions as to Ms duties from tlie Chancery Court, but it utterly fails to negative or deny that he had done so. There is a demurrer to the amended bill, on many grounds.

It is contended that the case of Wilson v. Brown, 12 N. J. Eq.

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Bluebook (online)
82 Ala. 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-mcphillips-ala-1886.