Pentland v. Pentland

113 So. 2d 872
CourtDistrict Court of Appeal of Florida
DecidedJuly 24, 1959
Docket862
StatusPublished
Cited by11 cases

This text of 113 So. 2d 872 (Pentland v. Pentland) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pentland v. Pentland, 113 So. 2d 872 (Fla. Ct. App. 1959).

Opinion

113 So.2d 872 (1959)

Margaret PENTLAND, Appellant,
v.
Robert PENTLAND, Jr., Appellee.

No. 862.

District Court of Appeal of Florida. Second District.

July 24, 1959.
Rehearing Denied August 24, 1959.

Linton R. Lovett of Sinclair & Nicholson, Miami, for appellant.

Leon H. Handley of Gurney, McDonald & Handley, Orlando, and Berryhill, Leaird & Tedder, Ft. Lauderdale, for appellee.

REVELS, P.B., Associate Judge.

This is an appeal from a decree interpreting and modifying a final decree entered in the suit for divorce between appellee and appellant.

The plaintiff, Robert Pentland, Jr., and the defendant, Margaret Pentland, entered into a Separation and Property Division Agreement on March 10, 1953. This agreement provided for certain stock to be placed in trust to provide income to the defendant and also provided that a guardianship fund had been established for the minor daughter of the parties, Margaret Ann Pentland, as beneficiary.

Also on March 10, 1953, the same date as the above agreement, two other instruments were executed between plaintiff and *873 defendant. One entitled "Supplement to Separation and Property Division Agreement" was executed to clarify the original agreement, but also provided that plaintiff would pay defendant's attorney's fees in the event the wife had to bring suit to enforce either of these agreements. The third document executed on the same date, entitled "Agreement," provided that the plaintiff would make certain annual gifts of $3,000 to defendant for the period 1953-57, and thereafter $1,000 per year so long as the wife lives and remains unmarried.

The plaintiff and defendant were divorced on October 14, 1953, after Decree Pro Confesso was entered against the defendant, and Plaintiff incorporated into the final decree only the Separation and Property Division Agreement. The second and third instruments, supra, were not included.

In June, 1955, a 100% stock dividend was declared on the stock in the trust setup under the aforementioned agreement. The plaintiff filed a petition in the lower court seeking interpretation and modification of the final decree entered in the suit for divorce, and particularly seeking the court's interpretation relating to a trust established by plaintiff into which 3,000 shares of Armco Steel stock was placed, which stock, due to the stock split, had increased to 6,000 shares; and further seeking an order of the court directing the return to him of the excess 3,000 shares. Various pleadings were filed, including allegations of the wife that maintenance and child support payments were past due, and a request for attorneys' fees.

A special master was appointed and after his findings of fact and law were submitted to the chancellor, the lower court entered a decree which held that the plaintiff was entitled to the return of all stock in excess of 3,000 shares; that the two documents in addition to the "Separation Agreement" be incorporated into the original decree of divorce; that the defendant is entitled to $5,000 for arrearage in monthly child support; that defendant is entitled to $5,000 for arrearage of annual gifts and plaintiff is to continue to make the annual gifts; and that plaintiff pay defendant's attorneys' fees.

Several errors have been assigned and cross-assigned. However, we consider those directed to the return of the stock and enforcement of the annual gifts "Agreement" to be determinative of this appeal.

The indenture of trust under which the plaintiff and the Florida National Bank and Trust Company of Miami were designated as trustees provides in part:

"Now, Therefore, in consideration of the premises and in consideration of the acceptance by the Trustees of the trust hereby created, and Grantor has conveyed, assigned, transferred, set over and delivered, and by this Indenture does hereby convey, assign, transfer, set over and deliver unto the Trustees for the term of the trust hereby created the following securities, to-wit:
"Three thousand (3,000) shares of the Common Stock of Armco Steel Corporation, evidenced by Certificates Nos.
to have and to hold the same unto the said Trustees, their successors or assigns, in trust nevertheless, upon the terms, provisions, conditions and limitations and for the uses and purposes and subject to the power hereinafter set forth.
"Term of The Trust
"The trust estate hereby created and this trust Indenture shall be for the term of the life of Margaret McLin Pentland. Upon her death the trust estate hereby created shall be forthwith transferred, conveyed and delivered to Robert Pentland, Jr., his heirs or assigns."

*874 By the terms of the trust indenture the conveyance to the trustees of the complete legal title to the 3,000 shares of stock is clear and unambiguous. Thus, as of the execution of the trust the res or principal consisted of 3,000 shares of stock.

When the Armco Corporation issued a two-for-one stock split, these additional 3,000 shares then became a part of the trust principal.

Florida has enacted the Uniform Principal and Income Law, being Chapter 690, Florida Statutes, F.S.A. Section 5 of the Uniform Principal and Income Act appears almost verbatim in Florida Statutes, § 690.06, F.S.A., which provides:

"(1) All dividends on shares of a corporation which form a part of the principal and are payable in the shares of the corporation shall be deemed principal."

Logic would therefore dictate that since the trustees were the legal owners of the original principal of the trust, under Florida Statutes they are likewise the legal owners of the shares received as dividends which are deemed principal.

The appellee-plaintiff agrees with the foregoing reasoning but contends that under the "Separation Agreement" and Trust Indenture, plaintiff intended that defendant was to receive dividends from only 3,000 shares of stock, therefore the excess 3,000 shares should be permitted to be withdrawn from the trust.

Although the courts have devised numerous principles to aid in ascertaining the intent of the settlor under ambiguous indentures, these rules of interpretation vanish when the trust deed clearly expresses the intent. Travis v. Ashton, 156 Fla. 529, 23 So.2d 725. Upon examination of the documents in the instant case, we find a clear intent of the settlor set forth therein.

The "Separation Agreement" contains the following provision:

"If the trust in any event produces more than $12,000 (or if the wife marries another, more than $6,000) in any year, the wife shall in such event receive the overplus, and if it produces less, the husband or his estate shall as aforestated supply the deficiency by maintaining the agreed quarterly payments." (Emphasis added.)

The Indenture of Trust contains the following provision:

"(d) Should the trust estate produce more than the sum of Three Thousand ($3,000.00) Dollars per quarter after the payment of the costs and expenses of the administration of the trust, then the Trustees shall pay the said Three Thousand ($3,000.00) Dollars per quarter to the said Margaret McLin Pentland and shall accumulate the balance, and at the beginning of the next calendar year, pay over said balance remaining after payment of the quarterly payments for the past calendar year, to the said Margaret McLin Pentland, it being intended that she receive the full net trust income in any event,

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

Related

FARREY'S WHOLESALE HARDWARE CO., INC. v. COLTIN ELECTRICAL SERVICES, LLC
263 So. 3d 168 (District Court of Appeal of Florida, 2018)
Kosow v. Kosow
627 So. 2d 604 (District Court of Appeal of Florida, 1993)
Bieley v. Bieley
398 So. 2d 932 (District Court of Appeal of Florida, 1981)
In re the Estate of Howard
393 So. 2d 81 (District Court of Appeal of Florida, 1981)
Knauer v. Barnett
360 So. 2d 399 (Supreme Court of Florida, 1978)
Gator Oil Co. v. Commissioner
66 T.C. 145 (U.S. Tax Court, 1976)
Shriners Hospitals for Crippled Children, Inc. v. Dick
298 So. 2d 553 (District Court of Appeal of Florida, 1974)
Hall v. Hall
135 So. 2d 432 (District Court of Appeal of Florida, 1961)
Pentland v. Pentland
119 So. 2d 295 (Supreme Court of Florida, 1960)

Cite This Page — Counsel Stack

Bluebook (online)
113 So. 2d 872, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pentland-v-pentland-fladistctapp-1959.