Martzell v. Stauffer

3 Pen. & W. 398
CourtSupreme Court of Pennsylvania
DecidedMay 15, 1832
StatusPublished

This text of 3 Pen. & W. 398 (Martzell v. Stauffer) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martzell v. Stauffer, 3 Pen. & W. 398 (Pa. 1832).

Opinion

The opinion of the court was delivered by

Rogers, J.

Wendal Martzell, made his’last will and testament, and among other matters devised as follows: Item. It is my will that my two sons, John and Christian, shall buy a piece of land for my son Philip, with the necessary buildings, of the value not less than five hundred pounds, and with the said Philip's consent, and they shall help him with farming utensils, horses, cows, wagon, and such other articles, that he would want, to cultivate [400]*400the land, if bought; but the title, (if any land is bought,) shall be made to his children, and their heirs and assigns forever. He shall and may live on it, and draw all the income of it, during life, but no deed shall be made to him, as aforesaid.

Item. It is my will, that there shall be always, a certain person appointed by my executors, who shall have the sole care of him, and his property. Should it be considered, to be more advantageous for him and his children, not to buy land, then the money shall be put out upon interest, or my sons, John and Christian, may keep it upon interest, and pay him as much of the interest as may be necessary for his maintenance. Rut if my son Philip, should at any time after some years trial, shall appear a sober, industrious person, to the satisfaction of my sons, John and Christian, and the man so appointed to take care of him and his property, then they may pay his share to himself, or do as might be thought best. *

The testator appointed John Martzell and Abraham Riest executors. John Martzell and Christian Martzell the sons, are dead; Abraham Riest is the surviving executor. In pursuance of the power in the will, <and this we think a good execution of the power,) Abraham Riest, the surviving executor, appointed in the first instance Samuel Ensminger, guardian and trustee of the person and estate of Philip, and afterwards, by a subsequent arrangement, appointed" the defendant, Christian Stauffer. Christian Stauffer received in money and goods, (which the jury would have been warranted in finding, were afterwards converted into money,) two thousand three hundred and ninety dollars. The plaintiff offered to prove, (and in giving judgment in this cause we must take it proved,) that Christian Stauffer was in failing circumstances at the time suit was commenced, and that he afterwards assigned all his property for the benefit of certain preferred creditors. The plaintiff also proved, that Stauffer declared that he did not care much whether he gained the suit or not. He would keep it in court, until the whole estate was spent. No land was purchased by the sons for Philip’s use. It was fully proved, that Philip continued an habitual drunkard, until his death. This is an action of indebitus assumpsit, brought by the cestui que trust, against an insolvent and fraudulent trustee, and the question is, whether in Pennsylvania, the fund under such circumstances may be recovered. If we had a Court of Chancery, the remedy would be plain. It is a settled principle of that court, that an executor or other trustee, who mismanages or puts the assets in jeopardy by his insolvency existing or impending, should be prevented from further interfering with the estate, and that the funds should be withdrawn from his hands. Elmendorf v. Lansing, 4 John. C. R. 565. Monell v. Monell, 5 John. C. R. 296. [401]*401Batten v. Earnley, 2 P. Will. 162. Utterson v. Main, 3 P. Will. 334.4 Brown. 277. It is the common practice of the Court of Chancery, to compel the insolvent or fraudulent trustee, to give security, or to bring the money into court, and where that is done the court appoints a receiver. The fund in the hands of the receiver, abides the further order of the court. In a case such as the present, a Court of Chancery would, without hesitation, compel Stauffer tp bring the money into court. If the evidence is to be believed, he has grossly and fradulently mismanaged the fund, and has been guilty of a wanton and wilful breach of trust. In Batten v. Earnley, a case in some respects like the present, the Chancellor in the case of an executor, because he had expressed himself in words, threatening to defeat an annuity, directed the master to see a sufficient part of the personal estate, in the hands of an executor, set apart and assigned to a trustee, in trust to secure the annuity. All the cases show, and particularly the one just cited, the control which that court uses to prevent the mismanagement and abuse of trust, when there is good reason to believe that mismanagement or abuse is intended- As then, we have no Court of Chancery, we are obliged from necessity, and to prevent a failure of justice, to resort to our common law action, which, although a less direct and a more clumsy mode has been made effectual in many cases, to affect equitable relief. This suit can be sustained on equitable principles, and those principles, although we are destitute of a court, whose peculiar business it is to give them effect, have been recognized, and engrafted into our system of jurisprudence, from the earliest decisions of which any note has been taken. It is almost useless to enumerate instances of the kind. They are familiar to all in the least acquainted- with the jurisprudence of the state. Many of them have been mentioned in Bixler & wife v. Kunkle, 17 Serg. & Rawle, 298. These rules, as is there said by Justice Pod, who delivered the opinion of the court, have become rules of property. The principle I take to be this: Equitable relief has been invariably granted, when it can be done consistently with the forms known to the common lato.

, In Pennsylvania, says Chief Justice Tilghman, in Cope v. Smith’s executors, 8 Serg. & Rawle, 115, the court hold themselves bound to administer equity, in all cases, where the forms of law do not restrain them,. In the action of ejectment, for instance, which is very little trammeled by form, they consider that as done, which a court of equity would decree to be done. They will permit a purchaser of land to recover it from the seller, when he has paid all the purchase money, according to the contract or tendered it, and brings it into court. So in an action on, the bond, they will permit the obligor to make any plea which would entitle him to relief in equity. These principles have been engrafted in [402]*402the juridical code of this state, from time to time, and were, m truth, indispensable to prevenía failure of justice. Brown v. Furer, 4 Serg. & Rawle, 217. Here the action is indebitatus assumpsit, which is as little trammeled by form, as an ejectment. The remedy is in the nature of a bill in chancery, and may well be made a means of withdrawing a fund from a fraudulent trustee, without doing violence, either to the form or the principles of the action. Sir William Blackstone, in speaking of a Court of Chancery, says, in these early times, the chief judicial employment .of the Chancellor, must have been in devising new writs, directed to the Courts of Common Law, to give remedy in cases where none was before administered. And to quicken the diligence of the tílerks in Chancery, who were too much attached to ancient precedents, it is provided by Statute West. 2, 13 Eliz. 1. c.

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Related

Brown v. Furer
4 Serg. & Rawle 213 (Supreme Court of Pennsylvania, 1818)
Cope v. Smith
8 Serg. & Rawle 110 (Supreme Court of Pennsylvania, 1822)
Bixler v. Kunkle
17 Serg. & Rawle 298 (Supreme Court of Pennsylvania, 1828)

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Bluebook (online)
3 Pen. & W. 398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martzell-v-stauffer-pa-1832.