Newton v. Security National Bank

37 N.W.2d 130, 324 Mich. 344, 1949 Mich. LEXIS 440
CourtMichigan Supreme Court
DecidedApril 11, 1949
DocketDocket No. 41, Calendar No. 44,298.
StatusPublished
Cited by24 cases

This text of 37 N.W.2d 130 (Newton v. Security National Bank) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newton v. Security National Bank, 37 N.W.2d 130, 324 Mich. 344, 1949 Mich. LEXIS 440 (Mich. 1949).

Opinion

Boyles, J.

Plaintiff filed this bill of complaint in the circuit court for Calhoun county in chancery in *347 1948, challenging the validity of certain property provisions in a divorce decree entered in said court December 4, 1920, asking that the same be set aside and that plaintiff be decreed to be the owner of certain real estate and personal property adjudicated by said decree to belong to others. The circuit court dismissed the bill of complaint and plaintiff appeals. The facts and circumstances under which this case comes into court were amply and accurately set out in the opinion filed by the trial court and we quote the same:

“Circuit Judge William Newton, father of the plaintiff, died in 1903 at Flint, Michigan, leaving his estate in trust for plaintiff, William F. Newton, the principal of said trust estate to be distributed to plaintiff upon arriving at the age of 25 years. George W. Hubbard of Flint, Michigan, was named as testamentary trustee and served in that capacity until the principal of said trust estate was distributed to plaintiff on or about May 3, 1920, at which time plaintiff was 25 years of age. On December 30, 1917, plaintiff, who was then in the military service of the United States, married defendant, Frances W. Newton. A son, William Hubbard Newton, was born of said marriage August 10, 1919. Upon the distribution of the trust estate to him, amounting to around $150,000, plaintiff executed a power of attorney to said George W. Hubbard, leaving the control and management of said property in the hands of Mr. Hubbard. Defendant, Frances W. Newton, as plaintiff’s wife, joined in the execution of said power of attorney.
“On July 20,1920, defendant, Frances W. Newton, filed a bill for divorce in Calhoun county against plaintiff, William F. Newton, on the grounds of extreme cruelty. George W. Hubbard, as custodian of William F. Newton’s property, was joined as a party defendant. William F. Newton entered Ms appearance in the divorce proceedings by his attorney, George W. Cook, of Flint, Michigan, and *348 while he did not file an answer, he was actively represented by said attorney throughout the course of said proceedings. While the divorce suit was pending, the parties thereto, together with their respective attorneys, executed a stipulation and property settlement agreement dated August 26, 1920. Said property settlement agreement provided that one-third of William F. Newton’s property should be retained by him free of all marital rights; one-third should be transferred to his wife, Frances W. Newton; and the remaining one-third to be transferred to a trustee to be designated by the court to be held in trust for said William Hubbard Newton, then one year of age. The income of the trust fund to be paid to the guardian of said William Hubbard Newton for his support, care and education until he attained the age of 21 years, and thereafter the income from said trust fund to be paid direct to William Hubbard Newton until be attained the age of 30 years, the principal to be turned over to him upon his attaining the age of 30 years. The agreement, also, provided that if William Hubbard Newton dies before attaining the age of 30 years, the trust will terminate and the trust property shall be distributed to William Hubbard Newton’s issue, but, if there be no issue, the trust property shall be distributed in equal shares to William F. Newton and Frances W. Newton.
“The defaults of defendants William F. Newton and George W. Hubbard for failure to answer plaintiff’s bill of complaint, were duly entered on October 22, 1920. On December 4, 1920, after the taking of proofs, Honorable Walter H. North, then circuit judge of Calhoun county, entered a decree in said divorce suit granting Frances W. Newton a divorce from the bonds of matrimony, approving said property settlement agreement and incorporating it in the decree in accordance with the provisions of the agreement, and naming William E. Martin, of Flint, as trustee of said trust for the infant child, William Hubbard Newton. Said William F. Newton and *349 Frances W. Newton each signed a consent at the foot of the decree, consenting' to it, ‘so far as property rights are concerned.’ By the terms of the property settlement agreement and the decree, defendant, Frances W. Newton, gave up all of her rights in and to the property of plaintiff, and assumed the custody and care of the infant son, William Hubbard Newton. Following said divorce, plaintiff, William F. Newton, remarried and has a son by his second marriage.
“Shortly after said decree was entered plaintiff, William F. Newton, personally and by his attorney in fact, George W. Hubbard, transferred one-third of his estate in not less than the sum of $50,000 to the trustees, in accordance with said property settlement agreement and this court’s decree. Defendant, Security National Bank of Battle Creek, is now serving as trustee of said trust. Since 1920 plaintiff, William F. Newton, has appeared personally or by attorney on more than one occasion in proceedings affecting the administration of said trust. Said trust has now continued for over 27 years. On August 10, 1949, defendant, William Hubbard Newton, the beneficiary of the trust, will reach 30 years of age and will become entitled to receive the corpus of the trust.
“The plaintiff contends that the court sitting in the divorce case of Newton v. Newton had no jurisdiction over the subject matter, so as to give it power to establish the so-called trust of plaintiff’s property, distributable to his son after reaching the age of majority. That power and jurisdiction cannot be conferred by consent. That said portions of the decree, seeking to convey plaintiff’s property to the son after the age of majority, are absolutely null and void and may be attacked collaterally. * * *
“Frances W. Newton agreed that the property settlement would extinguish her inchoate right of dower in real estate thus owned or thereafter acquired by William F. Newton, and that the property settlement would also extinguish any and all claims *350 growing ont of the marital relations, including temporary support money for both herself and the child.
■ “The property settlement was adopted by the court. No alimony was awarded. The property settlement was fully executed nearly 28 years ago, and has been acquiesced in by both parties throughout that period until this suit was commenced February 13, 1948.
“When the property settlement was made, and when the decree approving it was entered, William F. Newton was a man of 26 years of age, of sufficient mental and physical ability to serve in the United States Army. He signed the property settlement agreement and approved in writing at the foot of the decree the property provisions of the decree. Now, after more than 27 years, he attacks the trust provided in both instruments to his son. In the meantime he has repeatedly acquiesced expressly in steps incidental .to administration of the trust.
“Nothing in thé property settlement or in the decree provides for a review or for revocation of the trust. The trust is of the type classified as ‘irrevocable.’ ”

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Bluebook (online)
37 N.W.2d 130, 324 Mich. 344, 1949 Mich. LEXIS 440, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newton-v-security-national-bank-mich-1949.