Phalen v. United States Trust Co.

100 A.D. 264
Procedural entryThis page is a short order in Phalen v. United States Trust Co.. Read the opinion of the Court — 91 N.Y.S. 537

Opinions

Ingraham, J.:

The relief that the plaintiff asks in this action is that the trust under the 7th codicil of the will of James Phalen, of which the defendant, the United States Trust Company, is trustee, be declared to be [265]*265created in violation of the plaintiff’s rights under an ante-nuptial contract, a copy of which is annexed to the complaint, and that the' plaintiff be declared entitled to the principal of the trust fund after $50,000 is reserved therefrom in accordance with the provision of the 5th codicil. The defendant, the United States Trust Company, demurred to the complaint upon two grounds: First, that the complaint does not state facts sufficient to constitute a ■ cause of action against said defendant; and, second, that there is a defect of parties defendant- in the omission of the executors of the will of James Phalen, deceased.

The complaint alleges that the plaintiff is the only son of James Phalen, deceased, who died in Paris on the 20th of January, 1887; that on or about the 7tli day of August, .1873, in contemplation of plaintiff’s projected marriage with Julia de Zakrevsky the said James Phalen, deceased, entered into a written contract, under seal, dated the 7th day of August, 1873, with the plaintiff, in and by which contract the said James Phalen covenanted and agreed that he would make no distinction between his children as regards the proportion of his estate coming to each under his will; that on August 11, 1873, the plaintiff was duly married to the said Julia de Zakrevsky ; that' subsequent to the execution of this agreement the said James Phalen made testamentary disposition of his estate by a will dated May 15, 1882, and by six codicils thereto, the last one being dated December 31, 1886; that by this testamentary disposition, after several specific legacies, the testator devised and bequeathed his residuary estate to his trustees, one-fourtli thereof to be held for his wife during her life and upon her death to be divided, among his children. Another one-fourth of the said residuary estate was to be set apart for each of his children, the income of the trust fund and also any part of the capital of the said trust fund to be paid by the trustee to such child at such time or times as such child by an instrument in writing duly approved or acknowledged required, saving and excepting the sum of $50,000, which amount at least was to remain in trust until the death of each child. By this testamentary disposition the testator had complied with this covenant in • the ante-nuptial agreement, as no distinction was made between his children as regards the proportion of the estate coming to each under his will. On the 17th day.of January, 1887, however, the [266]*266testator executed a 7th codicil which provided that the- portion, of his estate, which he had by his will left -to his son, Charles James Phalen (plaintiff), be-' paid to^ the United States Trust Company of New York, in trust to pay the -income thereof annually, or at convenient intervals in each year to and for the use and support-of the said Charles during his life, and at his death the said trust to cease and the principal and any unpaid portion of the income of said trust fund, to go and be divided among his heirs at law, excepting from this, provision his dwelling house in Paris, which had heretofore been, occupied, by his. son, which he devises to his said son and his heirs, and assigns forever. ' , .

After the death of the testator on the 20th day of January, 1887, this will and the seven codicils were duly admitted to probate by the surrogate of the- county of New York. The. complaint does . not attack the -probate of the will and codicils; and it must be assumed that the same were admitted to probate upon notice of the plaintiff and the others interested in the estate of the testator. The will having been duly admitted to probate, the executors proceeded to administer the estate, and subsequently presented their accounts in the Surrogate’s Court. The accounts were duly, settled by a decree of the surrogate on the 29th of July, 1890, and a copy of that decree is annexed to the .complaint. That decree recites that the executors of the will had made application to the Surrogate’s Court for a judicial settlement of their account as such executors, and had filed a duly verified account of their' proceedings; that a -citation had thereupon been issued pursuant to statute directed by name to all persons interested in the estate of the.decedent, requiring them ahd each of them personally to be and appear before the said surrogate at á Surrogate’s' Court to- be held in the county of New York on- the '24th day of April, 1890, then and there to attend s.ucli judicial settlement. The decree then recites the service of this citation upon all of those interested in the estate, including the plaintiff in this action, and that on the .return day the plaintiff appeared by Charles PI. Woodruff, '.Esq'., his attorney, and that the executors having rendered under oath before the surrogate an account of their proceedings as such executors, and objections having been interposed to said account by the widow of the decedent, an order of reference was thereupon made to examine said account [267]*267and objections, “ to hear and determine all questions arising on the settlement of said account which the said Surrogate had power to determine, and to make a report thereon to the Court.” That objections to the account wére subsequently filed by Charles James Phalen (plaintiff) and the hearing before the referee proceeded; that Catherine S. Phalen and Charles James Phalen, after testimony was introduced by the accounting executors, withdrew their objections to said account and the order of reference was vacated by consent. The decree then directed that certain securities held by the executoi’s should be sold for the purpose of reimbursing the income account for the amount of certain advances that had been made from income account to meet the expenses of administration and for the payment of commissions and legacies. It was then decreed that the executors had fully accounted for all property of the estate of the said James Phalen which had come into their hands and their said accounts were duly adjusted; certain legacies were directed to be paid and the advances made by the testator to his children adjusted and that the residuary estate, including such advances, amounted to $714,807.30, one-fourth part of which was $178,701.82. It was then ordered, adjudged aud decreed that after certain deductions for commissions and costs and expenses the said executors <c assign, transfer and pay to the United States Trust Company of New York, as trustee of the various trusts created in and by said will, all the remaining securities and property held by said executors, and that said residuary estate in the hands of said trustee be thereupon divided, partitioned and constituted as follows.” Certain securities were directed to be delivered to the trustee, aggregating in value $178,701.82, to be held in trust for the plaintiff.

The complaint alleges that in pursuance of this decree the executors complied with its terms and paid over the money and property of the estate as therein directed, and that thereupon the executors were duly discharged from all liability and accountability by virtue of having complied with said decree. Upon this accounting by the executors and the decree adjusting their accounts and directing the distribution of the estate the defendant, the United States Trust Company, now holds this property. The defendants claim that this plaintiff is bound by the terms of this decree and that as to him the validity of this, trust is established.

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Phalen v. United States Trust Co., 100 A.D. 264 (N.Y. Ct. App. 1905).

100 A.D. 264 (Phalen v. United States Trust Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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