Stone v. Baldwin

73 N.E.2d 635, 331 Ill. App. 421, 1947 Ill. App. LEXIS 295
CourtAppellate Court of Illinois
DecidedApril 18, 1947
DocketGen. No. 10,109
StatusPublished
Cited by8 cases

This text of 73 N.E.2d 635 (Stone v. Baldwin) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stone v. Baldwin, 73 N.E.2d 635, 331 Ill. App. 421, 1947 Ill. App. LEXIS 295 (Ill. Ct. App. 1947).

Opinion

Mr. Justice Bristow

delivered the opinion of the court.

This is an appeal from an order of the circuit court of Peoria county, entered in a hearing on a petition for instructions filed by Claude TJ. Stone, trustee of a testamentary trust, and authorizing the trustee to pay the proportionate share of income to the beneficiary Sidney Baldwin, on her sole receipt rather than on the joint receipt of the said beneficiary and her former attorney, the respondent Edward B. Hayes, as provided in a prior decree.

The salient facts appearing in the record are that under the terms of the will and codicil of Fannie Q-. Baldwin, deceased, a trust was established whereby the respondent Sidney Baldwin was a beneficiary of 60 per cent of the income of the estate, and the respondents Helen Baldwin Smith and Margaret Baldwin Holley, granddaughters of the deceased, were the beneficiaries of the remaining 40 per cent. Notwithstanding a clause in the will providing for forfeiture by any beneficiary who instituted proceedings to contest or nullify the will, the said Sidney Baldwin instituted two suits, one claiming ownership of certain stock of the Peoria Star Company, the primary asset of the estate, and the other to contest and set aside the will of Fannie Baldwin. The said beneficiary also sought to block a loan which the estate was endeavoring to make to pay taxes and other debts.

The first suit was decided against Sidney Baldwin, and, thereafter, she and the other beneficiaries entered into an agreement which was subsequently incorporated in a consent decree entered by the circuit court on September 19, 1945.

This decree recited that the parties agreed to accept and abide by the terms and provisions of the will and codicil of Fannie Gr. Baldwin, set forth therein, and to abandon the will contest, the notice of forfeiture, and all other differences heretofore obtaining between them. It further authorized the trustee to make a loan to pay debts of administration and taxes, which loan would be repaid out of income and corpus, and provided that the payments of income should be made to the beneficiaries upon their receipt and the receipt of their respective attorneys named therein.

After the entry of this consent decree, the will contest was dismissed, and the trustee proceeded to fulfill his duties according to the terms of the decree. On November 29, 1945, however, Sidney Baldwin notified the trustee that Edward B. Hayes was no longer her attorney and instructed the trustee to make all subsequent payments directly to her and on her sole receipt. The trustee, thereupon, filed this petition for instructions with reference to the new state of facts, calling the court’s attention to the “spendthrift trust” provision of the will of Fannie Gr. Baldwin, and requesting that Edward B. Hayes be made a respondent to the proceeding. Although the latter did not appear personally, or file an answer, he did appear by counsel, but neither made any offer of evidence nor indicated that he had any claim against the estate or against the beneficiary, Sidney Baldwin.

The court entered an order in that proceeding finding that Sidney Baldwin did discharge the respondent, Edward B. Hayes, as her solicitor; that any effort by Sidney Baldwin to make an assignment of the income under the will would be invalid; and that the provision in the consent decree — “upon her receipt and the receipt of Edward B. Hayes, her solicitor” — contemplated Edward B. Hayes continuing in that capacity. Inasmuch, however, as he had been discharged, this provision in the decree was no longer effective, and the court ordered that any available funds should properly be paid to Sidney Baldwin on her sole receipt.

The respondent, Edward B. Hayes, immediately appealed therefrom to this court. The sole issue to be determined herein is whether the order of the circuit court recognizing the discharge of Edward B. Hayes as solicitor for Sidney Baldwin and directing that payments be made by the trustee upon the sole receipt of Sidney Baldwin was within the jurisdiction of the court.

It is an established principle of law that a court of equity has plenary jurisdiction in the administration of estates in the hands of trustees. (Patterson v. Vermilion Academy, 312 Ill. 386; 54 Am. Jur., p. 219.) In the instant case, by the terms of the decree of September 19, 1945, the court of equity took jurisdiction of the trust established by the will of Fannie G. Baldwin.

A petition for instructions submitted by a trustee in a bona fide attempt to construe the instrument which established the trust is a recognized procedure honored by the courts. (Conlan v. Sullivan, 280 Ill. App. 332.) In the instant case, the trustee was confronted with interpreting the provisions in the consent decree of September 19, 1945 which referred to Edward B. Hayes as the solicitor of Sidney Baldwin and directed that he receipt payments of income, in the light of the notification that Edward B. Hayes had been discharged. This problem was further complicated by the provision in the will of Fannie Gr. Baldwin prohibiting the beneficiaries from assigning any part of their interests in the estate. Clearly, under these circumstances, there was ample justification for the filing of a petition for instructions.

In determining the propriety of the findings of the court in the hearing on this petition, it is apparent that a client may dismiss an attorney at any time, with or without cause, for the client is entitled to be represented by an attorney in whose ability and fidelity he has confidence. (Conlan v. Sullivan, supra; Doggett v. Deauville Corp., 148 F. (2d) 881; Almon v. American Carloading Corp., 380 Ill. 524.) "Where, however, the attorney has been guilty of no misconduct, the courts may require the payment of fair compensation for his services. (124 A. L. R. 725, note; 5 Am. Jur. p. 284.)

In the case under consideration, therefore, Sidney Baldwin would properly be entitled to discharge the respondent, Edward B. Hayes, and the order of the court recognizing the termination of his services with reference to this trust would be in accordance with the law, unless anything contained in the decree of September 19, 1945 barred his discharge from this cause.

Eespondent Hayes contends that the reference to his name in the following provision of the decree established his status thereunder, and that the subsequent order of the court was void as an improper modification of the consent decree. “Second: The balance of such income realized in any calendar year up to a total of $20,000.00 shall be paid as to 40% thereof to Helen Baldwin Smith and Margaret Baldwin Holley upon their several receipts and the receipt of Jerome J. Crowley, their solicitor, and as to 60% thereof to Mildred Sidney Baldwin upon her receipt and the receipt of Edward B. Hayes, her solicitor, (or upon the receipt of such other solicitors for the said parties respectively as they may nominate in the event of death, written resignation, or legal incompetency of such solicitors, respectively) and not otherwise.”

One of the fundamental canons of judicial construction is that a decree must be interpreted in its entirety. The decree of September 19, 1945 specifically confirmed the will, and recited that the parties agreed to abide by its terms. Under Item V, par.

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Bluebook (online)
73 N.E.2d 635, 331 Ill. App. 421, 1947 Ill. App. LEXIS 295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stone-v-baldwin-illappct-1947.