Stevens v. Bosch

54 N.J. Eq. 59
CourtNew Jersey Court of Chancery
DecidedOctober 15, 1895
StatusPublished

This text of 54 N.J. Eq. 59 (Stevens v. Bosch) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stevens v. Bosch, 54 N.J. Eq. 59 (N.J. Ct. App. 1895).

Opinion

Pitney, V. C.

The complainant was appointed by the orphans court of the county of Essex trustee to execute the trust created by the will of one Clark Hammond, in place of Alfred Lister, deceased, who was the trustee named in the will.

The object of the bill is, first, to ascertain the amount of the trust estate which was received by Lister in his lifetime; and second, to recover the same from the estate of which he died seized.

Lister, by his will, after directing the payment of his debts, gave the whole of hi§ estate, which consisted entirely of land, to his widow, Joanna C. Lister (who has since intermarried with one Bosch), and appointed her executrix thereof. There was no personal estate. Mrs. Lister conveyed all the lands (with a trifling exception) of which her husband died seized, to the defendant Howell, in trust for the payment of certain debts of a corporation in which. Lister was interested, and of a certain partnership of H. S. Miller & Co., of which he was a member.

The allegation of the bill is that Lister received at.least $6,000 of the estate of Hammond, which he failed to properly invest, so that his estate is liable to pay that sum, at least, with arrears of interest, to the complainant; and the equity relied upon is.that [61]*61the debt due the estate of Hammond was the individual debt of Lister, and should be paid out of his estate before the partnership debts of H. S. Miller & Co., and before any of the debts of the corporation of which he was a member.

The demurrer states two grounds — first, misjoinder of causes of action, viz., (a) a suit to ascertain the amount of the trust fund .in the hands of the executrix of Lister; and (6) to declare the same a lien upon certain lands; second, lack of parties, both complainant and defendant.

There is no misjoinder of causes of action. The suit has a single object, namely, to recover from the estate of Alfred Lister, in whomsoever’s hands it is found, the amount due from him to the estate of Hammond. The .ascertaining of the precise amount due is a mere incident. The main object of it is to follow the assets of the estate into the hands of the assignee of the devisee and to enforce a lien thereon, given both by the statute and by the will of the decedent.

The authorities cited for the contrary, position, when carefully examined, do not sustain it. Salvidge v. Hyde, 5 Mad. 138 ; S. C., Jac. 151, was a creditors’ bill against an executor to settle the estate of the testator, and also to set aside a sale, made by the executor to a purchaser who was made a party. The vice-chancellor, as reported in 5 Mad., held the bill not to be multifarious, and I think his reasoning is sound.. He was-reversed by Lord Elden, on appeal, for reasons which Lord Cottenham explained in Attorney-General v. Cradock, 3 Myl. & C. 85 (at p. 96); and see Campbell v. Mackay, 1 Myl. & C. 603.

The object of the present bill is not, as in Salvidge v. Hyde, to have a general settlement of the estate of Lister, but to ascertain simply the amount due from him. All the parties to the bill are interested in both the questions, and the two are indissolubly connected.

It was suggested that the complainant should first establish the amount due from the estate of Lister and then file his bill against the grantee to establish his lien upon the lands. But the complete answer to that suggestion is that the grantee, as trustee, is engaged in selling the lands and distributing the pro[62]*62ceeds among the creditors of Lister, and by the time the first suit would come to a conclusion the estate would probably have been disposed of and distributed among divers creditors in different parts of the country.

Upon the question of multifariousness or misjoinder, the judges all agree that it is impossible to lay down any rule applicable universally, or to say what constitutes or not multifariousuess, as an abstract proposition, but that each case must be determined upon its own particular facts and in the exercise of a sound discretion by the court as to what will best tend to the promotion of justice in a particular case. Vice-Chancellor Van Fleet, in Ferry v. Laible, 12 C. E. Gr. 146 (at p. 150), says: “The question is not one of principle, but of convenience addressed to the sound discretion of the court.” And Justice Depue, in Lehigh Valley v. McFarland, 1 Stew. Eq. 758, says:

“ The rule with regard to multifariousness, whether arising from the misjoinder of causes of action, or of defendants therein, is not an inflexible rule of practice or procedure, but is a rule founded in general convenience, which rests upon the consideration of what will best promote the administration of justice, without multiplying unnecessary litigation on the one hand, or drawing suitors into needless and unnecessary expenses on the other.”

The present case resembles that of the foreclosure of a mortgage against an assignee by deed with warranty of the mortgaged premises, who has not assumed the mortgage, and where the amount due upon the mortgage is open to dispute. Clearly, in such a case, the original mortgagor and bondsman should be brought in and the amount due 'upon the mortgage established as against him as a part of the foreclosure proceeding.

Next, as to want of parties.

It is alleged that the eestuis que trust, under the will of Hammond, should be made parties complainant, and that the eestuis que trust of the defendant Howell should have been made parties defendant.

"With regard to the first allegation, the bill shows that the estate was devised to the trustee in trust to pay the income to [63]*63the testator’s daughter during her life, and at her death to divide it among his children and grandchildren. The widow is still living, and hence the trustee is not a mere naked formal trustee, holding the legal title without any active duties to perform except to pay it as soon as received to his eestuis que trust, but he is entitled to hold the fund upon a continuing trust with active duties; and the object of the present suit is simply to recover the estate from the hands of the holders of the estate for the former trustee. In such case, the general rule laid down in the books, that eestuis que trust are necessary parties complainant, does not apply. Story’s Eq. Pl. § 215 a.

The cases cited by counsel, to wit, Tyson v. Applegate, 13 Stew. Eq. 305; Brokaw v. Brokaw, 14 Stew. Eq. 223; Cool’s Executors v. Higgins, 10 C. E. Gr. 117 ; Allen’s Executor v. Roll, 10 C. E. Gr. 163, are all distinguishable ón the ground that in those cases either the complainant was a bare trustee and was not entitled to hold possession of the fund when recovered, or the interests of the eestuis que trust were adverse to those of the complainant.

The distinction above pointed out is treated of by Mr. Calvert in his book on Parties (2d ed., 1847) 277, 278, and several cases are there cited illustrating the distinction, to which I add the case of Reeve v. Richer, 1 De G. & S. 624; S. C., 17 L. J. (N. S.) Ch. 86.

This is not a suit to administer a trust, or in which the construction of it or the rights between trustee and eestuis que trust are at all involved.

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Bluebook (online)
54 N.J. Eq. 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stevens-v-bosch-njch-1895.