Kernan v. Carter

104 A. 530, 132 Md. 577, 1918 Md. LEXIS 87
CourtCourt of Appeals of Maryland
DecidedApril 4, 1918
StatusPublished
Cited by29 cases

This text of 104 A. 530 (Kernan v. Carter) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kernan v. Carter, 104 A. 530, 132 Md. 577, 1918 Md. LEXIS 87 (Md. 1918).

Opinion

Boyd, C. J.,

delivered the opinion of the Court.

This ease is before us on an appeal from an order sustaining a demurrer to and dismissing an amended bill filed by the appellant, and on another appeal from an order refusing to grant the appellant leave to amend that amended bill. The plaintiff, Eugenia L. Reman, is the widow of James L. Reman, who died on the 14th of December, 1912, leaving surviving him his widow and two* sons and a daughter’. In 1887 the plaintiff was upon an inquisition adjudicated a lunatic upon the petition of her husband, who was appointed by the Circuit Court of Baltimore City the committee of her person and estate. The finding still remains in force and she is confined in Mount Hope Retreat, where she has been for many years. The hill alleges that for many years prior to and ever since the death of her husband she “has'been and is non compos mentis and incapable of acting for and in her own behalf with respect to any business matters, propn erty rights or interests whatsoever, and incapable and dis.abled at all times, both at and since the death of her said husband, from making any election with respect to accepting or renouncing the provisions made for her in bis last will and testament” and that “she was and bad been and is still disabled and incapacitated from taking any steps whatsoever, from instituting any proceedings, or causing any steps to be taken or proceedings to be instituted, to question or deny the validity of” a deed of trust, a deed of assignment or a deed of conveyance, which will be later referred to in this opinion. That paragraph of the bill concludes, “and that her disability and incapacity in all the respects, aforesaid, have been caused by the fact that she has been at all *580 times bereft of her reason and of all understanding of her rights, interests and matters aforesaid.”

On the 20th of April, 1911, James L. Kernan executed a “deed of conveyance” to the James L. Kernan Company of Baltimore City, Incorporated, for a property which is therein described. The lot fronts partly on Howard street and partly on Eranklin street, and is improved by a hotel and theatre. The property is described as being in fee simple, except a portion of it which is subject to an annual rent of $04.00. That deed also included personal property, the businesses> franchises, good will, etc. The consideration is stated to be 5,000 shares, of preferred stock of the James. L. Keman Company, of the par value of $100.00 each, and 997 shares of the common stock of that company, of the same par value, all of which stock is said in the deed to' have been issued and certificates thereof delivered to said Kernan, in accordance with a resolution of the stockholders duly passed at a meeting held in Baltimore on the 15th of April, 1911, in compliance with the provisions of' section 35 of Article 23 of the Code. The deed also refers to a decree of the Circuit Court of Baltimore City, dated January 28th, 1887, being the proceeding in which the plaintiff was adjudicated a lunatic, and to section 13 of Article 45 of the Code, for the right of the grantor to sell and convey the real estate.

On the 20th of April, 1911, being the same day the deed of conveyance was made, a “deed of trust” was made by said Kernan, as party of the first part, to Frederick C. S'chanberger and Shirley Carter, parties of the second part, in which it is recited, that, whereas the party of the first part had granted and assigned to the parties of the second part, upon the trusts therein set out, the 5,000 shares of preferred stock, and he was about to cause the same to be transferred to them on the books of the company, and desired to have the trust upon which they were granted and assigned fully set out in that instrument of writing, so that the same might be recorded, therefore, in consideration of the premises and *581 of tlie sum of $10.00, he granted, bargained and sold, asr signed, transferred' and confirmed unto the parties of the second part, and the survivor of them, and the successors of the survivor of them, as therein provided for, the 5,000 shares of preferred stock in trust for the purposes therein, set forth. They were to hold the said shares of stock, collect the dividends and income, and pay over the net dividends and income therefrom to the said Keman during his life, and after his death to hold Said shares for the following purposes: to collect and pay over the net dividends and income from 3,400 shares of that stock to the James Lawrence Ker-’ nan Hospital and Industrial School of Maryland for Crippled Children, during the joint lives of the trustees, and upon the death of either of them, the survivor to transfer and assign the said 3,400 shares to said hospital and industrial school. It- was then provided that of the remaining 1,600 shares of preferred stock they were to hold 534 shares for each of his two sons and 532 shares for his daughter. The provisions of the trusts for each of them are set out at length, and under certain contingencies the share left to a son or daughter was to go to St. Agnes’ Hospital.

On the 22nd of April, 1911, he made what is spoken of as a “deed of assignment,” in which he stated that he had assigned to Frederick C. Schanherger 385 shares of the common stock of the James L. Keman Company, absolutely, and to Shirley Carter 165 shares of said stock, absolutely, and to himself 447 shares for life, with remainder as to 315 of them to said Schanherger, and as to 132 shares to said Carter, and ho desired to have said transactions evidenced by that deed so that it could he duly recorded. The deed then, in consideration of $5.00, assigned and transferred said stock according, to what was stated in the preamble. All of the deeds were promptly put on record.

On the 24th of June, 1911, James L. Kernan executed his last will and testament, by which he gave to Bernard Carter and Shirley Carter, and to the survivor' of them, $20,000 in trust to invest and reinvest the same from time to time, to *582 collect the income therefrom, and apply the net income, or soi much thereof as shall he necessary, to the proper maintenance and support of his wife, for and during the term of her natural life, and from and after the death of his wife, and after the payment of her funeral expenses, to divide the corpus of said $20,000100 and any accrued income therefrom, into two equal shares, and to pay one share absolutely to- St. Agnes Hospital and the other to the Institute of Mission Helpers of Baltimore City, to be applied by it to the education and care of the deaf and dumb or otherwise afflicted children under its care. He then left $3,000 to each of his two sons-, and said he did not make a bequest to his daughter because he had his life insured and held the- policy for her benefit. He made the James L. Kernan Company of Baltimore City his residuary legatee and devisee. He appointed Messrs. Bernard Carter and Shirley Carter, and the survivor of them, executors, of his will, which was probated on December 18th, 1912, and letters testamentary were- granted to Shirley Carter, the survivor.

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Bluebook (online)
104 A. 530, 132 Md. 577, 1918 Md. LEXIS 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kernan-v-carter-md-1918.