P. Episcopal E. Society v. Churchman's Reps.

80 Va. 718, 1885 Va. LEXIS 112
CourtSupreme Court of Virginia
DecidedSeptember 25, 1885
StatusPublished
Cited by26 cases

This text of 80 Va. 718 (P. Episcopal E. Society v. Churchman's Reps.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
P. Episcopal E. Society v. Churchman's Reps., 80 Va. 718, 1885 Va. LEXIS 112 (Va. 1885).

Opinion

Richardson, J.,

delivered the opinion of the court.

The object of this suit was to have a judicial construction of the will of the late Dr. Henry J. Churchman, of Staunton, in respect to certain bequests therein contained, and a settlement of the estate of the testator, who died unmarried and childless.

By the 1st, 2d and 3rd clauses of his will, after the usual provisions as to burial expenses and the payment of debts, the testator bequeathed his gold watch and chain and his library to his [756]*756sister, Virginia M. Churchman. And by the 7th clause he also gave to his sister, Virginia M. Churchman, $4000, absolutely; and by the same clause he gives to his sister, Eaunie Cosbj^ G-eiger, and his brother, John S. Churchman, each one dollar.

By each of the 4th, 5th and 6th clauses of the will, a specific legacy is given to the appellant corporation; and by the 8th clause, it is made residuary legatee. The 4th clause reads; “Jour thousand dollars of my remaining estate shall go into the hands of a guardian or trustee, as may at the time be deemed best by the court, for my niece, Alice Clark Churchman, daughter of Dr. V. T. Churchman, dec’d, to be invested in some safe, permanent interest-bearing fund, so that the semi-annual or an■nual dividends arising therefrom shall go to the support and education of the said Alice Clark Churchman, until she is twenty-one years old, when this same fund, if not already in the hands of a trustee, shall then go into the hands of a trustee, to be invested as before, in some safe, permanent interest-bearing fund, that she, Alice, may receive for her sole and separate use, notwithstanding any marriage she may contract, the interest-bearing dividend that may accrue sémi-annually of. annually on the fund for her benefit as' long as she may live. In no case, however, shall the principal sum of four thousand dollars be diminished. The guardian and the trustee shall give ample security, under the direction of the court, for the amount intrusted. At the death of the said Alice Clark Churchman, whenever that may be, the principal sum of four thousand dollars, and ally unexpended interest, shall be paid to The Protestant Episcopal Education Society of Virginia, said bequest to be used exclusively for educating poor young men for the Episcopal ministry, upon the basis of evangelical principles as now established.”

By the 5th and 6th clauses, $3000 is directed to be set apart for the support and education of each of two nephews of the testator, until they are respectively twenty-one years old, or shall die, when the said sums shall go at once iuto the hands of [757]*757“ The Protestant Episcopal Education Society in Virginia,” to be used under precisely the same restrictions and for the same purposes mentioned in the 4th clause, ample security being required of the trustee and guardian in each case.

The testator accurately describes the legatee corporation in the 5th and 6th causes of his will, whilst, in the 4th and 8th clauses, there is a slight misdescription, it' being in the latter, “ The Protestant Episcopal Educational Society of Virginia,” when in the former it is accurately described as “ The Protestant Episcopal Education Society in Virginia.” But this is wholly immaterial when we look to the 8th clause, where the residuum is given to the same society, “to he used under the same instructions, and for precisely the same purposes, as the preceding bequests to the same society.” And for still greater certainty the testator adds: “To more fully identify, beyond mistake, the society I mean, I state that it is the same for which Bishop 'Whittle, of Virginia, is now and has been for years collecting in his usual visitations.”

The only question to be determined by this court is, whether the bequests to this corporation are valid. The circuit court of Augusta county, by its decree, held them to be null and Amid. The decree rests upon two grounds, neither of which can be maintained upon principles applicable to the case.

The first proposition announced in the decree is, that the bequests to the corporation were not absolute “for its own use as a corporate body.” 2d. That “the same were given to said corporation in trust to be exclusively used for the purpose in the Avill named, that the-uses and trusts declared by said testator are null and void, because said trusts are religious in their character, and too vague and indefinite to be upheld under the larv of this state or to be administered by a court of chancery, even if said trusts were merely educational, as contemplated by § 2, ch. 77, Code of Virginia, 1873.” These propositions Avill be examined in the order stated. The first proposition, that the bequests to this corporation are not absolute, though it does [758]*758not in terms so state, necessarily imports, and correctly too, that if absolute the gift would be valid; but assumes the further proposition that a corporation, as such, is incapable of taking and holding property by devise or bequest upon the trusts and for the uses indicated by the testator. Upon principle and authority the proposition is wholly untenable.

Formerly the law was that corporations could not be seized of lands and other property to the use of another, and could not be trustees. The reason for the rule was found to be too artificial for the substantial demands of society, and has long since been rejected as insufficient; and now the well-established doctrine is that corporations of every description may take and hold estates, as trustees, for purposes not foreign to the objects of their creation and existence; and they may be compelled by courts of equity to carry the trusts into execution. Perry on Trusts, § 42, and numerous authorities there cited.

As a proper qualification to the general rule above stated, Mr. Perry calls attention to the fact that corporations are the creatures of the law, and that as a general rule they cannot exercise powers not given to them by their charters. And he says: “For this reason they cannot act as trustees in a matter in which they have no interest, or in a matter that is inconsistent with, or repugnant to, the purposes for which they were created. Nor can they act as trustees if they are forbidden to take and hold lands, as by the statutes of mortmain, nor if they are not empowered to take the property. But if the trusts are within the general scope of the purposes of the institution of the corporation, or if they are collateral to its general purposes, but germain to them, as if the trusts relate to matters which will promote and aid the general purposes of the corporation, it may take and hold, and be compelled to execute them, if it accepts them.” Ib. § 43; and Vidal v. Girard, 2 How. 188-190, and authorities there cited.

It might well be held, in this case, that the bequests are to the corporation for corporate purposes, and that the corporation, [759]*759in respect thereto, is a trustee only in the general sense that 'every corporation is a trustee of the powers ancl franchises with which it is invested for the purposes of its incorporation. In effect there is unquestionably a trust here, though not expressly declared in terms.

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Cite This Page — Counsel Stack

Bluebook (online)
80 Va. 718, 1885 Va. LEXIS 112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/p-episcopal-e-society-v-churchmans-reps-va-1885.