Steinway v. Steinway

24 A.D. 104, 48 N.Y.S. 1046
Appellate Division of the Supreme Court of the State of New York·Decided December 15, 1897·Published·Cited by 4 cases

Opinion

Patterson, J. :

In the view we take of this cause it is unnecessary to pass upon the question of the validity of the trust created by the 33d clause of the will of Christian F. T. Steinway. At the threshold of the case there is an insurmountable obstacle to the maintenance of the [106] action by the plaintiff. In our opinion he has no standing in court to wage the contest. It is set up as an affirmative defense that the executors of the will have paid all the debts and pecuniary legacies and made distribution of the property as required by its terms; that they have relinquished their commissions to the estate in a large sum, to which commissions they were entitled by law; that in consideration of such relinquishment and other good and valuable considerations, the plaintiff by an instrument in writing, under his hand and seal, quitclaimed and forever released the executors and the estate of the testator from all claims and demands of himself and his heirs or administrators. It is further set up in the answer that the will of Mr. Christian E. T. Stein way was duly admitted to probate; that appraisers were appointed of the estate for the purpose of ascertaining the amount of the collateral inheritance tax; that the amount of the tax to be paid on the legacies, including the 4,000 shares of stock mentioned in the 33d clause of the will, was paid with the knowledge and acquiescence of the plaintiff ; that the shares of stock mentioned in that clause of the will were divided and set apart to and for the use and benefit of the several legatees, one of whom was the plaintiff, agreeably to the terms of the will, with plaintiff’s knowledge and acquiescence; and that the dividends thereon have been paid to the legatees to the amount mentioned in that clause of the will, and the excess of income has been retained by the executors as provided for in the will, ever since the time of the probate and down to the time of the commencement of this action ; and, further, that at a meeting of the stockholders of the corporation which issued the 4,000 shares of stock mentioned in' such clause of the will, called for the purpose of increasing the capital stock, such capital stock was increased and the 4,000 shares mentioned in that clause of the will were represented in the proportions as bequeathed in said will, and that to the several legatees (including the plaintiff) and their representatives entitled to participate in the increase, “ there was allotted their proportions of the increase in said capital stock agreeably to said will, amounting to 1,333 shares, and they respectively subscribed and paid for their proportions of said stock,” amounting in the aggregate to the sum of $133,000 or thereabouts, and the said stock was issued to them accordingly; and that all this was done with the knowledge and consent of the [107] plaintiff herein. All these facts set up in the answer as affirmative defenses were fully proven. The plaintiff was entitled to a legacy, independently of the 33d clause, under the will of Hr. Christian F. T. Steinway, and received and receipted for such legacy.

■Under these circumstances, the contention is made by the defendants that the plaintiff has no standing in court to maintain this action. That contention it based primarily upon the theory that, having received his legacy, he cannot maintain an action of this character without making restitution of that which he has received. There was authority for that position in the case of Ohipman v. Montgomery (63 N. Y. 221). In the opinion of the court therein that proposition is distinctly stated, but that case seems to be no longer controlling on that point. In Wager v. Wager (89 N. Y. 161) the Court of Appeals said that Ghipman v. Montgomery {supra) was decided on the special facts of the case, and that there were rulings in that opinion which the court would not follow. In Head v. Williams (125 N. Y. 560) and Underwood v. Gurtis (127 id. 523) the court distinguished the case first cited, and announced the rule that, where there was an invalid trust of personalty created by will, the executors became the trustees of a resulting trust of that personalty for the residuary legatees or next of kin; that jurisdiction resides in a court of equity to enforce that trust in favor of the residuary legatee or next of kin, and for the benefit of the person who is entitled to the property freed from the void testamentary trust. Hence, any one who would be the owner of the property would be entitled to the enforcement of that trust; and the mere fact that he had received something else under the will would not, deprive him of his ownership or of his right.

But that does not dispose of the question of the plaintiff’s ability to maintain a suit in equity. He can only stand in court in the same way that any other person seeking equitable relief on any other ground of equitable jurisdiction might stand.

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Steinway v. Steinway, 24 A.D. 104, 48 N.Y.S. 1046 (N.Y. Ct. App. 1897).

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