Louisa T. York Orphan Asylum v. Erwin

281 A.2d 453, 1971 Me. LEXIS 254
CourtSupreme Judicial Court of Maine
DecidedSeptember 28, 1971
StatusPublished
Cited by2 cases

This text of 281 A.2d 453 (Louisa T. York Orphan Asylum v. Erwin) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisa T. York Orphan Asylum v. Erwin, 281 A.2d 453, 1971 Me. LEXIS 254 (Me. 1971).

Opinion

WEATHERBEE, Justice.

This action for a declaratory judgment is before us on report by agreement of the parties pursuant to M.R.C.P. Rule 72(a). The Plaintiff, the Louisa T. York Orphan Asylum, asks the Court:

“1. To enter its declaratory judgment that the charitable purposes of the Plaintiff corporation encompass (i) the aiding of other charitable agencies and institutions in their work of supporting, maintaining, instructing or employing children, and (ii) the granting of scholarships aid to children in financial need for their post-high-school education;
2. To instruct the Plaintiff corporation as to the scope of its purposes and powers under its Certificate of Organization ; * * * ”

One Defendant, the Attorney General of the State, in his capacity as guardian of public charities, has in his answer joined in the request and prays that the terms of the declaratory judgment will provide that the funds of the trust be applied in such a manner to prevent a breach of trust in their administration. The other three Defendants are personal representatives of the three heirs-at-law of the testator whose will named the Plaintiff as devisee, in trust, of the residue of his estate. These Defendants pray that Plaintiff’s request for declaratory relief be denied and, in their counterclaim, ask that the Court declare that a resulting trust has arisen for their benefit.

The Agreed Statement of Facts and the exhibits present the following situation:

On October 30, 1906 the Louisa T. York Orphan Asylum, the Plaintiff charitable corporation, was organized at the grain store of Asa F. York in Yarmouth, Maine. Asa F. York was not named as an organizer nor as an officer of the new corporation but Louisa T. York, at that time deceased, had been his wife.

The purpose of the Plaintiff charitable corporation, as set forth in its Certificate of Organization, is and has been at all times since Plaintiff’s incorporation, “the benevolent purpose of supporting, maintaining, instructing and employing children, especially orphan children”.

The Bylaws of the corporation, which were adopted at the organizational meeting, reiterate the general benevolent purposes of the Certificate of Organization and contain the following Article:

“ARTICLE VI.
ADMISSION
In admissions to the home, preference shall be first given to the children whose parents are, or were in their lifetime, residents of the Town of Yarmouth, in the County of Cumberland and State of Maine, and among such children to those who have lost both parents in preference to those who have lost one parent and, in the event that the accommodations of the home are sufficient for the care and support of other children than those already named, children whose parents are, or were in their lifetime, residents of the towns of North Yarmouth, Pownal and Cumberland may be admitted to the home in the order named, and in the same order of precedence as to parentage as is provided herein as to children whose parents are or have been residents of Yarmouth.
*455 Other regulations for the admission of children not inconsistent herewith shall be made from time to time by the Board of Trustees.”

On November 6, 1911 Asa F. York executed a will in which a bequest to the Plaintiff corporation was made:

“I give, bequeath and devise all the rest, residue and remainder of my estate real, personal or mixed, wheresoever situated, of which I shall die seized and possessed or to which I shall be entitled at time of my decease, unto said Louisa T. York Orphan Asylum and its successors and assigns forever, in trust nevertheless, to manage and control, invest and reinvest, and the income thereof to use for the purposes of said corporation.”

Mr. York died on January 14, 1913 and when his will was probated that year the bequest to the Plaintiff amounted to $37,-049.45. The Plaintiff has no other assets except the proceeds of this bequest which at the time of argument has grown to an approximate value of $471,432.76. Plaintiff has never built or operated any orphanage or other institution and has not spent any of the funds derived from Mr. York’s will for benevolent or any other purposes.

Plaintiff’s Trustees have, however, on several occasions considered means by which to employ the income from the trust and they now propose to pay annually from the income of the trust fund the sum of $1,000 (or such other sum as the Trustees deem meet and proper) to assist in the work of Opportunity Farm, a home for destitute boys. Plaintiff’s Trustees have also resolved to pay the annual sum of $5,000 or such other sum as the Trustees in their sound discretion may deem meet and proper to an educational fund for scholarships to finance education beyond the high school level for children in financial need. The execution of these two resolutions and the further implementation of Plaintiff’s proposed charitable and benevolent program have been suspended pending a declaration by this Court of the purposes and powers of Plaintiff corporation under its Certificate of Organization and under the will of Asa F. York.

The two issues presented for determination in this case are:

1. Does the record require the finding of a reverter or a resulting trust in favor of the Defendant heirs ?

2. Under its corporate purpose of supporting, maintaining, instructing and employing children, and under the will of Asa F. York, does the Plaintiff have power and authority to use its funds in trust under the will of Asa F. York to:

(a) aid other established charitable organizations in their work of supporting, maintaining, instructing or employing children by making grants to such organizations, and
(b) establish a fund for scholarship aid to children in financial need for post-high school education;

and if not, what is the scope of Plaintiff’s power and authority under its corporate charter and the will of Asa F. York?

In deciding the issues presented, this Court must consider the intent and purpose of Asa F. York when he left the residue of his estate in trust to the Plaintiff corporation.

It is the contention of the heirs that the bequest in issue was in trust for a particular charitable purpose — the operation of an orphan asylum — and that the failure of Plaintiff to carry out such a purpose for more than half a century and the present impossibility or, at least, impracticality of Plaintiff’s providing such a home requires the Court, in the absence of a gift over or alternate disposition, to declare a resulting trust in favor of the heirs.

In Gorham v. Chadwick, 135 Me. 479, 200 A. 500 (1938) this Court stated the primary rule for the interpretation of wills:

“The cardinal rule for the interpretation of wills is that they shall be con *456 strued to give effect to the intention of the testator * * *. Although a will speaks only from the maker’s death, the language used in the testament must be construed as of the date of its execution and in light of the then surrounding circumstances.”

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

Related

State v. Rand
366 A.2d 183 (Supreme Judicial Court of Maine, 1976)
Robert W. Traip Academy v. Staples
317 A.2d 816 (Supreme Judicial Court of Maine, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
281 A.2d 453, 1971 Me. LEXIS 254, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisa-t-york-orphan-asylum-v-erwin-me-1971.