Quirollo v. Fifth Third Union Trust Co.

41 F. Supp. 891, 1941 U.S. Dist. LEXIS 2560
CourtDistrict Court, S.D. Ohio
DecidedNovember 8, 1941
DocketNo. 187
StatusPublished
Cited by1 cases

This text of 41 F. Supp. 891 (Quirollo v. Fifth Third Union Trust Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Quirollo v. Fifth Third Union Trust Co., 41 F. Supp. 891, 1941 U.S. Dist. LEXIS 2560 (S.D. Ohio 1941).

Opinion

DRUFFEL, District Judge.

Plaintiffs bring their action for a reversionary interest in an estate and an accounting, claiming under the statutes of North Carolina. Defendant by way of counterclaim for interpleader caused Bayard L. Kilgour, Jr., ancillary administrator of the estate of James C. Ernst, to be made a party. The ancillary administrator, an appointee of the Hamilton County, Ohio, Probate Court, by answer challenges the jurisdiction of the District Court to try the issues, and plaintiffs move for judgment on the pleadings.

From the pleadings and stipulation of facts, which the court adopts, it appears that James C. Ernst died a resident of Ash-ville, Buncombe County, North Carolina, September 20, 1917, leaving a last will and testament which was admitted to probate and record in the Superior Court of that county. After certain bequests to his widow Jennie Stites Ernst, his daughter Virginia Kilgour, and his grandson, Bayard L. Kilgour, Jr., and other relatives, paragraph III of the will provided: “I give, bequeath and devise to my Executors hereinafter named, all the rest and residue of my estate, of every kind and description, real, personal and mixed, wherever located, and any lapsed legacies, and I hereby direct my said Executors to convey, assign, transfer and deliver, by proper instruments to The Union Savings Bank & Trust Company of Cincinnati, Ohio as Trustee, in trust for the uses and purposes as set forth in a certain written instrument executed by me with the said The Union Savings Bank and Trust Company, bearing date the 23rd day of June, A. D. 1917, all said rest and residue of my estate, aforesaid.”

The estate was duly administered in the Superior Court of Buncombe County and pursuant to paragraph III the residuary estate, consisting of money, stocks, and bonds, was completely distributed by December 30, 1919, to the Union Savings Bank and Trust Company of Cincinnati, Ohio, as trustee.

The trust agreement referred to in paragraph III provided, among other things, that Jennie Stites Ernst and Virginia Kilgour would share the income for life; that upon the death of one the other would receive all the income and upon the death of the survivor, the residuary estate should be promptly distributed.

Virginia Kilgour died six months after her father, and from that time until the date of her death May 2, 1938, Jennie Stites Ernst, except for three other bequests, received all the income, the total for the period being $445,230.05.

[893]*893The death of Jennie Stites Ernst provided the last event required for the distribution of the residuary estate, but the trustee was unable to make prompt distribution as directed by the trust agreement because of the deaths of certain legatees prior to the death of Jennie Stites Ernst, and the trust agreement being silent as to who was entitled to these lapsed legacies, the trustee Fifth Third Union Trust Company, successor to Union Savings Bank and Trust Company, filed an action in the Court of Common Pleas of Hamilton County, Ohio, for a construction of the trust agreement, in which action the Common Pleas Court adjudged and decreed that because of the deaths of these legatees prior to Jennie Stites Ernst and the failure of the trust agreement to make provision for a distribution of said lapsed legacies, the ancillary administrator was entitled to three-sevenths of the residuary estate on distribution.

Prior to the filing of this action, Bayard L. Kilgour, Jr., ancillary administrator, appointed by the Hamilton County, Ohio, Probate Court, July 21, 1938, made demand of defendant trustee for the distribution and delivery to him as administrator, of the entire portion of the estate to which the final decree of the Court of Common Pleas held he was entitled.

The plaintiffs knew of the pendency of the action to construe the trust agreement; they were not made parties and took no part therein. No appeal was taken from said decree and the same became final on April 20, 1940.

May 15, 1940, plaintiffs made demand upon trustee for an accounting and distribution of the assets to them and upon the trustee’s refusal to comply filed their complaint, alleging, among other things, that by reason of the diversity of citizenship of the parties this court has jurisdiction of the subject matter; that under the statutes of descent and distribution of North Carolina, the reversionary interest in the estate not fully disposed of by his will and trust agreement passed one-third to his widow Jennie Stites Ernst; that as executors of her estate they are entitled to one-third of the three-sevenths of the residuary estate not disposed of under the trust agreement. Thereafter the defendant bank, as trustee, made a distribution to Bayard L. Kilgour, Jr., as ancillary administrator of two-thirds of the securities comprising the residuary estate, and is withholding one-third pending judicial determination of the claims of plaintiffs and the ancillary administrator.

Plaintiffs move for judgment on the pleadings to direct the Fifth Third Union Trust Company, defendant, “to turn over and deliver to. them the claimed assets and securities, together with any accumulated income,” specifically claiming that James C. Ernst died intestate as to three-sevenths of the residuary estate and that said intestate property can be properly distributed only in accordance with the directions of the statutes of distribution effective at the domicile of the intestate at the time of his death, and argue that the assets in dispute are in possession of the bank as trustee; that they never were in the actual or constructive possession or control of the Ohio courts or the ancillary administrator.

In view of the principle reaffirmed in United States v. Bank of New York & Trust Co., 296 U.S. 463, 56 S.Ct. 343, 80 L. Ed. 331, infra, it becomes necessary to consider this phase of the case first, that is, whether the Ohio courts first properly assumed and exercised jurisdiction over the assets in dispute.

According to the stipulation of facts the defendant trustee administered the estate at Cincinnati, Ohio, for almost twenty years until the death of Jennie Stites Ernst, which was the event obligating the trustee to make prompt distribution of the remaining assets.

At this point it should be emphasized that the assets in dispute result from lapsed legacies and that the testator in paragraph III of his will gave to the Union Savings Bank and Trust Company of Cincinnati, Ohio, as trustee, all the rest and residue of his property and any lapsed legacies.

“The intention of a testator as to the disposition of his property is controlling, unless contrary to public policy.” Orendorf et al. v. Fayette Farms, Inc., et al., 6 cir., 112 F.2d 149, certiorari denied 310 U.S. 628, 60 S.Ct. 976, 84 L.Ed. 1399; Smith v. Bell, 6 Pet. 68, 31 U.S. 68, 8 L.Ed. 322.

Accordingly when a testator, a citizen of North Carolina, by will directs that after due administration of his estate in that state, all the rest and residue of his property and any lapsed legacies be distributed to a Cincinnati, Ohio, bank as trustee to administer under a trust agreement, the law will presume that the testator in[894]

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Bluebook (online)
41 F. Supp. 891, 1941 U.S. Dist. LEXIS 2560, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quirollo-v-fifth-third-union-trust-co-ohsd-1941.