Kline v. Citizens National Trust & Savings Bank

32 P.2d 677, 138 Cal. App. 514, 1934 Cal. App. LEXIS 736
CourtCalifornia Court of Appeal
DecidedMay 14, 1934
DocketCiv. No. 9580
StatusPublished
Cited by36 cases

This text of 32 P.2d 677 (Kline v. Citizens National Trust & Savings Bank) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kline v. Citizens National Trust & Savings Bank, 32 P.2d 677, 138 Cal. App. 514, 1934 Cal. App. LEXIS 736 (Cal. Ct. App. 1934).

Opinion

HOUSER, J.

In this matter it appears that one Joseph L. Kline died leaving a last will that included the following provision with reference to the disposition of the residue of his estate, to wit:

“All of the rest and remaining net income received and derived from the trust estate, and after the death of Charles S. Kline and/or Carrie -Pedder the income to which he or she would be entitled, if living, shall go and be paid, used and/or disbursed by my said Trustee to such persons, charitable organizations and/or corporations situated in the City of Los Angeles, County of Los Angeles, State of California, organized for the purpose of aiding and for the betterment of crippled children, the persons, charities or organizations that shall receive the benefit of this charitable trust to be selected by my said Trustee in its absolute and uncontrolled discretion. This trust is created perpetual and is to be known as the Joseph L. and Minnie S. Kline Charitable Trust for Crippled Children in the City and/or County of Los Angeles, State of California.”

In due course, two of the natural heirs of the deceased presented their petition, and one of such heirs presented his separate petition, to the superior court, wherein it was prayed that said court place its construction particularly upon that provision of the will by which the residue of the estate of the deceased was directed to be paid “to such persons, charitable organizations and/or corporations . . . organized for the purpose of aiding and for the betterment of crippled children, the persons, charities or organizations that shall receive the benefit of this charitable trust to be selected by my said trustee in its absolute and uncontrolled discretion.”

At the same time, by likewise separate petitions to said court, the said petitioners also prayed for distribution to each of them of a legacy of the sum of $1,000 left to each of them by the said testator in his said will.

After answering the allegations contained within each of such petitions, the executor of1 the will pleaded a separate provision of the will of said deceased wherein in substance [517]*517it was provided that should any devisee or legatee named in such will seek “to impair, invalidate or set aside its provisions”, etc., such devisee or legatee should receive the sum of one dollar and no more; and thereupon the executor prayed that because of the fact that the petitioners had sought to have the terms of the will construed by the court as aforesaid, it be decreed that such petitioners had forfeited all rights and benefits which otherwise would have accrued to them, save and except the sum of one dollar.

After a hearing on said petitions, the court construed the paragraph of the will in question and in effect ruled that a charitable trust was thereby created for the purpose of aiding, and for the betterment of, crippled children. In effect, the court also ruled that by having instituted the judicial inquiry with reference to the construction of such paragraph, each of the petitioners therein had forfeited his legacy of $1,000 and was entitled to receive the sum of one dollar and no more. It is from each of the ensuing separate orders or decrees rendered by the court that the instant appeals are taken.

It is conceded by the parties that, unless the words of the will to which attention has been directed are sufficient to create a valid charitable trust, the rule against perpetuities will prevent the operation of the instrument as a will in that regard. ' In that connection, the issue is clearly recognized by the respondent in its brief wherein it makes the declaration that: “Appellants assert, and we do not deny, that if the income from a perpetual trust may, without violating the terms of the trust, be used either for charitable or noneharitable purposes, the entire trust is void under the constitutional prohibition against perpetuities except for eleemosynary purposes. The sole question here involved is, does the will permit any of the income of said trust to bé used for noneharitable purposes?”

By the provisions of a written stipulation filed by the respective parties to the inquiry at the time when the several petitions came on for hearing before the court, in substance it appears that at the date of the execution of the will, and continuously thereafter, there were within the city of Los Angeles certain organizations of persons specializing for profit in the “aiding and betterment of crippled children”; and likewise during all of said time, within the [518]*518said city at least one incorporated organization, to wit: Societe Francaise de Bienfaisanee Mutuelle de Los Angeles (familiarly known as the French Hospital), that operated without profit in “aiding and bettering” those crippled children only who were members of said corporation. By said stipulation it also was agreed by the parties that the said corporation “is not a charitable institution but is the same corporation mentioned in the Estate of Dol, 182 Cal. 159 [187 Pac. 428], and was organized and operated at all times as in said decision set forth”."

Reverting to the particular language of the provision of the will in question, it will be noted that, as of first impression, the designated beneficiaries of the proposed trust are: (1) persons; (2) charitable organizations; and (3) [charitable] corporations; or (4) unclassified corporations. But in effect it is argued by the respondent that such language should be construed to mean that each of such beneficiaries is “charitable”; which conclusion is reached in consequence of the suggestion that the word “charitable”, which follows the word “persons” and which immediately precedes the word “organizations”, should be held to apply to and modify each of the other designated proposed beneficiaries, to wit: “persons, and/or corporations”.

Although certain rules of construction and authorities generally are cited by each of the parties herein which to some extent furnish a guide for a correct decision of the question here at issue,—in none of such authorities was language used in a will that is either identical with or analogous to the language here under consideration. To refer to such cases and to attempt to distinguish each of them from the instant case would serve no useful purpose. It may suffice to state that in none of them was a word therein placed as is the word “charitable” herein held to apply either to a word placed like “persons” which precedes the proposed (modifying) adjective, or to words which follow such qualifying word that are immediately preceded by the word “or”. No rule of construction to which the attention of this court has been directed either requires that the word “persons” be modified by the word “charitable”, / or even admits of the word “persons” being so modified. As to the words and character “and/or corporations”, which follow the words “charitable organizations”, it may be that [519]*519if the word “or” had been omitted, the word “charitable” might be held to designate the kind of corporations that were intended; but considering the use of the disjunctive “or”, it becomes obvious that a class of corporations other than charitable and which are unauthorized by law to take charitable bequests or devises, was included as a possible beneficiary of the trust.

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Bluebook (online)
32 P.2d 677, 138 Cal. App. 514, 1934 Cal. App. LEXIS 736, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kline-v-citizens-national-trust-savings-bank-calctapp-1934.