Oursler v. Armstrong

8 A.D.2d 194, 186 N.Y.S.2d 829, 1959 N.Y. App. Div. LEXIS 8358
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 4, 1959
StatusPublished
Cited by1 cases

This text of 8 A.D.2d 194 (Oursler v. Armstrong) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oursler v. Armstrong, 8 A.D.2d 194, 186 N.Y.S.2d 829, 1959 N.Y. App. Div. LEXIS 8358 (N.Y. Ct. App. 1959).

Opinions

Bergan, J.

On. March 16,1951 Fulton Oursler, a noted writer and editor, and hi© wife Grace executed wills at the same time and before the same attesting witnesses. In the testamentary dispositions with which we are concerned in this litigation, the wills were identical.

Fulton had been married previously. He had two children in his first marriage; he had two children in his marriage with Grace. His will provided that the residuary estate would go to Grace; but if he survived her it would go to the four children of both his marriages, or their children; the will of Grace provided that her residuary should go to Fulton, but if she .survived him, the property coming to her from Fulton would go to the same four children of both Fulton’s marriages, or to their children.

It is clear that in making these dispositions the husband and wife were dealing with the testamentary flow of Fulton’s property ; because Grace, who was also an author, made dispositions of her own property only to the two children of her marriage with Fulton. With these additional dispositions by her will we are not directly concerned.

Fulton died in 1952; Grace survived him. On January 21, 1955 she made a new will revoking her will of March 16, 1951. In the new will she left everything to her own two children by Fulton and nothing to the children of his first marriage. She died in December of 1955 and her last will was admitted to probate by the Surrogate of New York County on January 3, 1956.

This action by the children of the first marriage and their children seeks to impress a trust on the property received by Grace under Fulton’s will; and the court at Special Term after a trial has granted judgment for the plaintiffs imposing a constructive trust on the property which came to Grace under Fulton’s will in accordance with her will executed simultaneously with that of Fulton in 1951; and requires her executors and distributee© to act accordingly. Their appeals search the power of the Special Term to make such a judgment on this record.

It is clear that there is no remedy for plaintiffs to be laid in contract; they are unable to show either an enforcible contract by Grace to make a will to their benefit; or an enforcible contract by Grace to assume a trust in their interest.

A binding agreement to make mutual wills is not established by the fact alone that parties make reciprocal wills with cross-provisions in favor of the survivor (Edson v. Parsons, 155 N. Y. 555); and the New York Statute of Frauds, as amended in 1933, not only requires a contract to bequeath property or make a [197]*197testamentary provision ” to be in writing’, but imposes the same requirement for formalization in writing on “ a contract to establish a trust (Personal Property Law, § 31, subds. 7, 8, as added by L. 1933, ch. 616.)

The theory of constructive trust does not depend necessarily upon proof of the actual undertaking of a trust obligation by the party charged. He may have intended to become a trustee, and the proof of his undertaking either is barred by statutory or other rules of evidence, or direct proof of intent may be absent altogether. On the other hand he may have had no intention at all of becoming a trustee.

A constructive trust is not, therefore, merely a judicial creation in substitution for proof of an express trust. Although it may embrace situations where all reasonable probabilities point to an intended trust which cannot be proved, it embraces also situations in which equity spells out a trust not at all intended by the trustee. It is the weight of judicial power that imposes the constructive trust; it is a trust fashioned by the moral mandate of equity.

It will not, of course, be enough that honor and good conscience dictate the party having legal title act justly and fairly in its disposition. Neither in law nor in equity do courts sit to enforce mere moral obligations ” (Andrews, J., in Wood v. Rabe, 96 N. Y. 414, 421). The essence of the equitable doctrine upon which rests the constructive trust is that the court will exercise its remedial jurisdiction ” to prevent the abuse of confidence 1 when a person through the influence of a confidential relation acquires title to property, or obtains an advantage which he cannot conscientiously retain ” (p. 425).

The court was there dealing with property rights between a mother and her son, a relationship which ‘1 if not fiduciary in the strict sense, was nevertheless one ordinarily involving the greatest confidence on one side, and the greatest influence on the other ” (p. 426).

The Statute of Frauds has often been raised as a barrier both in policy and in formal proof to the fashioning of a constructive trust. But if the considerations which equity would bring within its cognizance were clear enough, considerations such as a relationship of confidence and a strongly implied agreement to take the legal title with an obligation to use it to discharge obligations arising from that relationship, the court in equity would not permit the statute to bar its decree imposing* a trust. Such relief would be deemed admissible although the Statute of Frauds would bar the showing of a clear case on which relief on the law side of the court would be available.

[198]*198‘ ‘ The court does not set aside the act of Parliament ’ ’, Lord Westbtjry once noted, 1 ‘ but it fastens upon the individual who gets the title under that act, and imposes upon him a personal obligation, because he applies the act as an instrument for accomplishing a fraud.” (McCormick v. Grogan, L. R., 4 E.&I. App. 82, see, also, Bond v. Hopkins, 1 S.&L. 413). As Judge Andrews said in Wood v. Rabe (supra, p. 425), the court in equity “ will not permit the statute of frauds to be used as an instrument of fraud ”.

Even where the words which would make out an express trust are not found in the record, equity in a proper case “ will raise out of the situation, from the grouped and aggregated facts, an implied trust to prevent and redress a fraud, and which trust will be unaffected by the Statute of Frauds and may properly be enforced.” (Finch, J., Goldsmith v. Goldsmith, 145 N. Y. 313, 318.)

The conduct of one having a legal title acquired in a confidential relationship, who denies or withholds rights which should under equitable principles be recognized, itself lies within the term ‘ ‘ fraud ’ ’, as the courts of equity use that term in this context. (Goldsmith v. Goldsmith, supra, p. 317.) “It would be a reproach to equity if it proved unable to redress such a wrong ” Judge Finch there noted in a case where one son had acquired from his mother title to real estate with an understanding that ultimately the other four children would share in it; an understanding he repudiated after his mother’s death.

The ‘ secret trust ’ ’ of the beneficiary under a will lies within the range of this equitable principle. Such a trust rests on the promise “ express or implied” that the legatee “will devote his legacy to a certain lawful purpose ”; and equity will compel its application to that purpose (Vann, J., in Amherst Coll. v. Ritch, 151 N. Y. 282, 323). “ The trust springs from the intention of the testator and the promise of the legatee. ’ ’

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Bluebook (online)
8 A.D.2d 194, 186 N.Y.S.2d 829, 1959 N.Y. App. Div. LEXIS 8358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oursler-v-armstrong-nyappdiv-1959.