Stearns v. Fraleigh

39 Fla. 603
CourtSupreme Court of Florida
DecidedJune 15, 1897
StatusPublished
Cited by4 cases

This text of 39 Fla. 603 (Stearns v. Fraleigh) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stearns v. Fraleigh, 39 Fla. 603 (Fla. 1897).

Opinion

Carter, J.:

The appellant having failed to argue the fourth error assigned in the petition of appeal, we treat it as abandoned. The principal question involved by the other assignments is, whether the appointment of E. M. Fraleigh to be trustee, by his wife, under the power of appointment given her by the terms of the trust deed, was a valid act. If so, and the deeds to Hamblin passed title, the appellant being a purchaser for value from him, without notice of any equities claimed by appellees, would obtain a good title. Saunders vs. Richard, 35 Fla. 28, 16 South. Rep. 679. The hearing-in the court below was upon bill and answer, and it [610]*610will be observed that the answer denied that the sale to Hamblin was for little or no consideration; that the-proceeds of the sale had not been reinvested, and all charges of fraud and conspiracy on the part of appellant to obtain title to the property. The deeds toHamblin expressed a consideration of $700, and, in the absence of actual notice, the appellant could only be charged with constructive notice to the extent of that furnished by the record of the trust deed and of those to Hamblin.

It is insisted by appellees that the appointment of E. M. Fraleigh to be trustee was void, because, first, the trustee, Love, could not, after having accepted the trust, resign or renounce it; second, a married woman can not appoint her husband trustee of a trust created by him for the benefit of herself and children; third, the execution of the instrument of appointment was-not joined in by Mrs. Fraleigh’s husband, nor did she acknowledge its execution separate and apart from her husband.

1. The general rule, that a trustee can not, after-having accepted a trust, resign or renounce it at his-pleasure, contended for by appellees, is unquestionably correct; but it is equally true that where the instrument creating the trust empowers the trustee to-resign after acceptance, a resignation in the manner pointed out by such instrument will be valid. 1 Perry on Trusts, sec. 274; 2 Lewin on Trusts, *646; Tiffany & Bullard on the law of Trusts and Trustees, p. 536. It is not denied that the trust deed authorized Mr.. Love to resign, nor that his resignation was in strict accordance with the authority, but the appellees ask us to construe the written resignation as a refusal to-accept the trust, and it is insisted that Mrs. Fraleigh. [611]*611had no authority to appoint another trustee, in case ■of Mr. Love’s refusal to accept the trust, but only in the event of his resignation. The instrument expressly recites the fact that Mr. Love was holding property in trust, and it referred to the trust deed for a description of the property so held, and to its provisions authorizing him to resign. If he was holding the property in trust as declared by this instrument, hé had accepted the trusteeship, and the instrument was what it purported to be — a resignation of the trust, and not a refusal to accept it.

2. It is argued by appellees that the appointment of E. M. Fraleigh as trustee of a trust created by him for his wife and children, would defeat the object of the trust, and his acceptance would amount to a revocation thereof, and we are referred to the case of Robinson vs. Executors of Dart, Dud. Eq. 128, and to the cases of Richards vs. Chambers, 10 Ves. 580; Magwood & Patterson vs. Johnston, 1 Hill Chy. 228, and Ewing vs. Smith, 3 Desaus. Eq. 417, S. C. 5 Am. Dec. 557, cited therein, as sustaining this proposition. The two last cases have no reference to the question under consideration. The case of Richards vs. Chambers, 10 Ves. 580, as quoted in the first named case, would go far towards sustaining the contention of appellees, but a reference to the official report of the case shows that it sustains the contrary view. There, the property, by a marriage settlement, was secured to the sole and separate use of the wife for life, and if she survived her husband, to her absolutely, but if she died before her husband, it was to go to such persons as she by will or deed might appoint, and in default of appointment, to her executors or administrators. The husband and wife by petition applied to [612]*612have a pare of the trust property then in court transferred to them, the wife having executed an appointment in favor of the husband and expressed a desire upon an examination de bene esse, that the petition be-granted. The court said : “The wife having a separate estate for life, might, according to the doctrine of many cases, part with that life interest. She might also execute an appointment in favor of Tier husband, or of any person, which appointment in the event of her death in his life would be a valid and effectual disposition of the property. But the question is, whether the contingent interest, which.the wife while sui juris, has secured to herself in the event of her surviving her husband, can through the interposition of this court, be given up by her while in a state of coverture.” The question in that case was as to a contingent interest, over which the wife had no power of appointment by contract, and the proposition was distinctly recognized that she could exercise a power of appointment even in favor of her husband. In Robinson vs. Executors of Dart, Dud. Eq. 128, application was made to a court of equity to appoint a husband trustee for his wife. The court declined to appoint him, or to direct that the wife's separate property be turned over to him, holding not that he was incompetent or disqualified, but that he was an improper person to whom to commit the trusteeship. The reasons advanced by the court were, that if appointed he would be constantly tempted to use the-authority and influence of a husband to assume the disposal of the x>roperty to his own uses, and induce-his wife’s acquiescence, and that a court of equity should not place a wife in such a situation that she might be compelled to go into equity to call her hus[613]*613band to account for breeches of his duty as trustee. To the same effect, see Boykin vs. Ciples, 2 Hill Chy. 200, S. C. 29 Am. Dec. 67; Ex parte Hunter, Rice Eq. 293; Dean vs. Lanford, 9 Rich. Eq. 423. In none of the cases referred to by appellees was any question involved as to whether under a power to appoint new trustees, a married woman could appoint her husband; nor was it held that a husband was incompetent or disqualified to be trustee for his wife. There-is a very clear and obvious distinction between the incompetency, and the unfitness, of a person for the position of trustee; and between the power of an individual to select a trustee, and the duty of a court in appointing one. Forster vs. Abraham, L. R. 17 Equity Cases, 351. The general rule is that any person may be-appointed a trustee who is capable of confideiice, of holding real and personal property, and of executing the trust. 3 Kerr on Real Property, sec. 1728; 1 Perry on Trusts, sec. 39; Tiffany and Bullard on the law of Trusts and Trustees, 325. It is not denied that the husband in this case was capable of everything required by tbe general definition, and that he was in fact a competent trustee for his childremmder the same deed; then why not for his wife? In equity he has been frequently held to be a trustee for his wife, and prior to and recent statutes regulating married women’s property, in all cases where real estate was conveyed direct to the wife during coverture for her sole and separate use, exclusive of her husband, he was in equity deemed a trustee for the wife, and as such held the legal title. 2 Story’s Eq. Jur. sec, 1380; 1 Bishop on Married Women, sec. 800; Porter vs. Bank of Rutland, 19 Vt.

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39 Fla. 603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stearns-v-fraleigh-fla-1897.