Jones v. Vermont Asbestos Corp.

182 A. 291, 108 Vt. 79, 1936 Vt. LEXIS 154
Supreme Court of Vermont·Decided January 10, 1936·Published·Cited by 7 cases

Opinion

Moulton, J.

This is a petition for a declaratory judgment, brought to the court of chancery for Lamoille County, pursuant to the provisions of Chapter 68 of the Public Laws (P. L. 1589 et seq.). The defendants severally demurred, and the chancellor by a pro forma ruling overruled the demurrers. The de fendants thereupon appealed to this court.

This is what is alleged in the petition: The charter of the town of Belvidere granted by the State in 1791 contains the followdng: ‘ ‘ excepting & reserving to ourselves all gold and silver Mines—And also reserving for public uses the usual quantity of Land reserved in other Townships, chartered by this State, to be laid out at the place of Beginning.” These public uses included the right for the support of a college or seminary, the “town school right” and the so-called “gospel rights,” and upon the survey of the township and the allotment thereof lots 162 to 169 inclusive were set apart for these uses, and held in common for them until on or about September 1, 1862. The University of Vermont, a private eleemosynary corporation, was created by an act of the General Assembly, approved November 3, 1791, and by virtue of an act approved November 10, 1802, became vested with full power, right and authority to take charge of, lease, rent and appropriate to its use and benefit all *85 such lands as had been granted and reserved by the authority of the State for the benefit of a college or seminary, until further order of the Legislature. By a subsequent act, approved November 2, 1810, these rights were confirmed to the University forever.

On September 1, 1862, a committee, acting under authority of an act approved November 2, 1861, divided and set apart the lots 162 to 169 inclusive to the several uses, as follows: To the University of Vermont a “parcel of land bounded Easterly by the Easterly line of lot number 162, and extending westerly therefrom ninety rods” in uniform width; “To the Gospel right a parcel of land next Westerly of the parcel last mentioned and ninety rods in width, being a part of lots 162 and 163,” fifty rods thereof being in lot 162 and forty rods being in lot 163 ; “To the town School right a parcel of land next Westerly from the parcel last mentioned and one hundred rods in width, being a part of lot 163. ’ ’

By legislative enactments of 1864 and 1865 a public corporation under the name of the Vermont Agricultural College was created, and by the latter act provision was made for its union with the University of Vermont, both corporations continuing their existence, but together forming a public corporation under the name of University of Vermont and State Agricultural College, which, upon the consent of the constituted corporations, should have and enjoy the property rights of each of them, including all rights with respect to the rents and uses from the college lands theretofore granted to, or acquired by, the University of Vermont. Consent was given and the University of Vermont and State Agricultural College (which for convenience we will hereafter call the University) became and now is vested with the rights to the college lands conferred upon the University of Vermont by the Acts of 1802 and 1810.

By No. 13 of the Acts of 1831 a part, of the town of Belvidere, including lots 162 and 163 was set and annexed to the town of Eden, but neither by this Act or otherwise has the former town been divested of its title to the gospel and school right lands, nor have the rights with respect to the beneficial use thereof been altered, except as will hereinafter appear.

By the terms of No. 65 of the Acts of 1935, the University, as an educational corporation within the purview of the act, is *86 authorized, upon certain conditions, to convey the college lots by deed in fee simple, to the holders of the perpetual leases thereof. By the terms of No. 239 of the Acts of 1935, the town of Belvidere is authorized, upon certain conditions, to sell and convey to the Vermont Asbestos Corporation by deed in fee simple all or any part of the lands aforesaid reserved for gospel and town school rights.

The Asbestos Corporation is in possession, as lessee under durable leases, of lots 162 and 163, which it holds in perpetuity subject to small annual rents. These lots contain, or are supposed to contain, asbestos bearing rock of great value, and the University and the town of Belvidere have each for good consideration executed and delivered to the Asbestos Corporation an option and right, subject to the authority of the General Assembly and the validity of the two Acts of 1935 above mentioned, to purchase the legal title in fee simple to the college, gospel and school lots now in the possession of the Asbestos Corporation. The price to be paid to the University for the conveyance of the college land is $25,000 less $500 paid for the option; and the price to be paid to the town of Belvidere for the conveyance of the gospel and town school land is $50,000 less $500 paid for the option. The annual rent now paid by the Asbestos Corporation under the durable leases is $25 to the University for the college land, $17.50 to the town of Belvidere for the gospel land, and $17.50 to the town of Belvidere for the town school land.

It is asserted that these lots and each of them “were originally sequestered to a permanent public use for the benefit of a specified class of unidentified individuals and the right to the use and avails of said lots vested in said class irrevocably, that the Legislature is without right or authority to divest the said rights, title, and interest so vested for the benefit of said class, or to alter, amend, or modify the form in which the corpus of said trust is represented, but on the contrary the beneficiaries of said trust are entitled to have it maintained and preserved in the form in which it was originally granted, and diversion of said corpus of said trust or control thereof constitutes an impairment of the grant and the taking of property for a private use and deprives said beneficiaries of their property, without due process of law.” Hence it is claimed that No. 65 and *87 No. 239 of the Acts of 1935 are invalid and inoperative, and that the University and the town of Belvidere are without right or lawful power to convey the fee or absolute title of the land free and discharge from the trust imposed for the indicated beneficiaries. It is admitted that the rents under the present conveyances cannot be increased, and that the present income is less than would be received from the investment of funds realized from the proposed sales under the options, if properly safeguarded ; but it is alleged that such funds would be less secure than the ownership of the rents and uses of the land, and that the two Acts of 1935 above mentioned do not make adequate provision for the proper control and preservation of avails of the sale.

The petitioner represents that as Attorney General of the State of Vermont, he is entrusted with the protection of, and is hound to assert the rights of the undetermined beneficiaries of the trust. Wherefore he prays for a decree which shall declare: (1) That the General Assembly has no power or right to authorize the conveyance of the fee simple in the college, gospel and town school lands, or any of them, in manner and form as provided in Nos.

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Jones v. Vermont Asbestos Corp., 182 A. 291, 108 Vt. 79, 1936 Vt. LEXIS 154 (Vt. 1936).

182 A. 291 (Jones v. Vermont Asbestos Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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