Sawtelle Estate

28 Pa. D. & C.2d 381, 1962 Pa. Dist. & Cnty. Dec. LEXIS 61
CourtPennsylvania Orphans' Court, Philadelphia County
DecidedOctober 26, 1962
Docketno. 442 of 1957
StatusPublished
Cited by1 cases

This text of 28 Pa. D. & C.2d 381 (Sawtelle Estate) is published on Counsel Stack Legal Research, covering Pennsylvania Orphans' Court, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sawtelle Estate, 28 Pa. D. & C.2d 381, 1962 Pa. Dist. & Cnty. Dec. LEXIS 61 (Pa. Super. Ct. 1962).

Opinion

Saylor, J.,

This case concerns the power of the court to reform an irrevocable deed of trust by including as beneficiaries adopted children of one of the settlors where the deed provided only for their issue.

On December 30, 1935, a brother and four sisters created the deed by assigning as corpus of the trust their respective remainder interests under the will of [382]*382their maternal grandfather, George E. R. Burpee. Their prospective interest was to vest in possession at the death of their mother. Provision was máde for payment of one-half of the income to settlors’ father for life and the other half in equal shares to the settlors. After the death of any settlor, his or her share of the income was to be paid “to his or her issue per stirpes during the continuance of said trust.” On the death of the last surviving settlor and upon the youngest child of any of the settlors attaining his majority, the principal was to be “paid over ... to the issue then living of said Settlors per stirpes . . .”

Settlors’ father died before the trust became operative. Their mother died in 1941, whereupon the trust principal was turned over to the trustee.

The primary purpose of the trust was to protect the five settlors during their lifetime, and thereafter their children, against the dissipation by any of their spouses of the family inheritance such as one of the settlors had previously suffered. The deed was prepared by counsel for the settlors’ parents and was executed by the settlors at the request of their parents without the settlors receiving advice from counsel as to the significance of the word “issue” and without discussion either with counsel or parents of any provisions of the deed beyond the general idea of creating the trust.

Janet Sawtelle Peake, one of the settlors, adopted a child named Sandra on January 5, 1942, after learning that as a result of surgery she could never bear children. She adopted a second child on February 23, 1944.

On September 16, 1942, following the death of their mother who had expressed unequivocally her opinion that adopted children should be entitled to take under the deed, an instrument was executed by the five settlors which provided that “to remove any doubt which [383]*383may exist as to their intention to include within the meaning of the terms “issue” and “child” any adopted child, and that such terms wherever used in the original deed were “intended to include any children adopted by the settlors or by the settlors’ issue.”

On March 29, 1966, one of the settlors, Eleanor Otis Sawtelle, died, unmarried and without issue.

On January 31, 1962, the corporate trustee filed its second account of the trust. On February 21, 1962, Janet Sawtelle Peake, one of the four then living settlors, filed her petition for citation on all parties in interest to show cause why the deed of trust should not be reformed so as to incorporate the provisions of the supplemental indenture. On February 21, 1962, the court appointed Morris Goldman, Esq., guardian ad litem for four minor children and ten minor grandchildren of settlors and trustee ad litem for all other persons unborn or unascertained who might have an interest in the trust.

In their answer the remaining settlors admitted the averments of the petition and consented to the proposed reformation of the deed. All adult children born of the settlors were served with the citation but none of them filed any answer. The guardian and trustee ad litem filed an answer and requested the court to dismiss the petition.

On May 7, 1962, following hearing, Judge Lefever granted the prayer of the petition and affirmed the account before him. Thereafter, as instructed by the auditing judge, Mr. Goldman filed exceptions to the adjudication.

There is no question that this court enjoys exclusive jurisdiction over the trust before it. No court exercised any such jurisdiction until 1956, when the trustee submitted its first account to this court for audit. Thereby under section 301(3) of the Orphans’ Court [384]*384Act of August 10, 1951, P. L. 1163, this court acquired exclusive jurisdiction. By virtue thereof it may wield all the powers of a court of equity (Wilson v. Board of Directors of City Trusts, 324 Pa. 545, 550-52 (1936)), including the power to reform for mistake (Fisher Estate, 26 D. & C. 2d 351 (1962); Comly’s Estate, 16 D. & C. 336 (1932)). Accordingly, the only matter in dispute is whether this is a proper case for reformation of the deed.

At the hearing on petition and answer, it was testified that at the time of the execution of the deed the petitioner was single and just one month beyond the age of 21 years; that her brother was 31 and married; her sister Louise was 28 and married, with three children; her sister Eleanor was 21 and single; and her third sister, Margery, was 18 and single. The preparation of the deed of trust by an attorney was arranged by their parents to protect their children from possible dissipation by any spouse of the settlors of the inheritance they would receive from their grandfather’s estate on their mother’s death. Only the parents saw and conversed with the attorney, except possibly Louise. None of the settlors had anything to do with the writing of any provisions of the deed or the use of any specific words therein. No advice as to the deed was given by the attorney to any of the settlors. Nothing was said to them about the use of the word “issue” in the deed, and there was no mention made or discussion had as to including adopted children in the deed. The two settlors who testified said that when they executed the deed they knew of no distinction between the word “issue” and the word “descendant”. To them the words would have meant the same thing. The petitioner said that not until 1940 did she know that as the result of an operation she could never have children, whereupon she made arrangements for the adoption of the child Sandra.

[385]*385Petitioner’s sister Margery testified that she was 18 when the trust was created, that she did not remember that there was any discussion as to whether adopted children could take under the trust, and it did not come up until her sister Janet adopted her child. Nor was there any discussion of the word “issue”. Settlors at a family meeting discussed the situation concerning the adopted child and as a result the supplement to the deed was drawn up and executed by all of them. Both the petitioner and her sister who testified had high school educations.

The petitioner maintains that the deed fails to express the true intent of the settlors and should be reformed because there was a mistake of fact and law. The guardian and trustee ad litem argues that the facts as to the execution of the deed are not indicative of mistake.

The Supreme Court in Irish v. Irish, 361 Pa. 410, 412 (1949), held that “under appropriate circumstances a court in equity may reform a deed”. Mr. Justice Steame, at pages 412-13, said: “Whether the omission in the deed was in truth and in fact a mistake or inadvertence depends upon the findings of fact of a chancellor who sees and hears the witness, and which, if approved by the court in banc, would warrant a decree of reformation.”

In Bispham’s Principles of Equity, 11th Ed. 1931, sec. 165, it is said:

“Relief [through reformation] is sometimes given ...

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Related

Potteiger v. Fidelity-Philadelphia Trust Co.
227 A.2d 864 (Supreme Court of Pennsylvania, 1967)

Cite This Page — Counsel Stack

Bluebook (online)
28 Pa. D. & C.2d 381, 1962 Pa. Dist. & Cnty. Dec. LEXIS 61, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sawtelle-estate-paorphctphilad-1962.