Thurlow v. Berry

32 So. 2d 526, 249 Ala. 597, 1947 Ala. LEXIS 435
CourtSupreme Court of Alabama
DecidedOctober 30, 1947
Docket6 Div. 580.
StatusPublished
Cited by22 cases

This text of 32 So. 2d 526 (Thurlow v. Berry) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thurlow v. Berry, 32 So. 2d 526, 249 Ala. 597, 1947 Ala. LEXIS 435 (Ala. 1947).

Opinion

BROWN, Justice.

. This appeal is prosecuted by the complainants who filed the original bill from the final decree of thé circuit court, sitting in equity, construing the will of Harvey G. Woodward, deceased, who died in Birmingham, Alabama,-on the 18th day of November, 1930. .

The decree construes what the parties denominate the “backlog provision,” the major bases of the controversy between the parties, as administrative and directory— not mandatory — and subject to the doctrine of approximation, more appropriately the doctrine of equitable deviation; and directs the board of governors to proceed with the construction and maintenance of the first unit of the school provided for in Section (j) of the Tenth Paragraph »of said will.

The equity of the original bill filed by Thurlow and Martín, a minority of the Board of' Governors, against the other members of the Board, the fiscal trustee First National Bank of Birmingham, and the Massachusetts Institute of Technology, was not questioned on the first appeal nor is it questioned on this appeal.

*600 The bill as last amended sought an interpretation of the will and the advice of the court in respect to the administration of the trust. The only question involved in the former appeal was the sufficiency and equity of the cross-bill filed by the majority members of the Board of Governors, which sought an interpretation of the declaration of trust by the Alabama Educational Foundation, a corporation organized by the testator in his lifetime to which he had conveyed considerable property as an educational foundation for ultimately carrying out the educational scheme outlined in his will.

The equity and sufficiency of the cross-bill. was upheld insofar as it sought interpretation of the declaration of trust by the educational foundation as related to the will. And on that appeal this court refused to construe the will in advance of the final decree of the circuit court. Thurlow et al. v. Berry et al., 247 Ala. 631, 25 So.2d 726.

[1] After the decision on the former appeal the cross-bill was elaborately amended, praying for specific relief outlined in subparagraphs b, c, d, e and f of the prayer to the cross-bill. Several grounds of demurrer addressed to these subparagraphs are made bases for assignments of error on this appeal, the demurrer having been overruled by the circuit court. Some of these assignments are stressed in argument by appellant. It is sufficient to observe that where a pleading in equity is sufficient in other respects and contains a proper prayer, it is not demurrable, because of a prayer for further but unwarranted relief. Wilks v. Wilks, 176 Ala. 151, 57 So. 776.

Woodward, after making several minor bequests including provision for his wife with respect to which he stated in his will, “The devises, bequests and provisions made for my wife, Annie Louise Woodward, are in lieu of dower or any distributive share or other interest in my estate, statutory or otherwise,” bequeathed to the First Nation^ al Bank of Birmingham, Alabama, as fiscal trustee, the residue of his large estate, consisting of real and personal property of the value of more than five million dollars, as a foundation for an educational trust to establish and maintain a system of schools, which he outlined in his holographic will, vesting in the fiscal trustee and its successors, the legal title of all the property in said residuary estate, with specific powers in íespect to the investment and care of such trust property, some of which is enumerated in Section (c) of said will. The will also names a self-perpetuating Board of Governors constituted of seven men, to act without compensation, including Oscar G. Thurlow, who joined as a complainant in filing the original bill, and Keehn W. Berry, who was named as a defendant in said bill, along with the other members of the board not made complainants, conferring on said Board of Governors numerous and sundry duties and powers, among others:

“The Board of Governors shall be and is hereby expressly charged with the duty of carrying into effect the educational trusts herein provided and of directing the expenditure of the income from said trust estate and the principal thereof for the purpose and in the manner herein provided. To this end I vest in said Board of Governors the power and authority to do any act or thing and to make any expenditure of funds of said trust estate which in the opinion of the said Board of Governors is nec.essary or desirable in carrying into effect the provisions hereof and the trusts herein created, in accordance with the provisions hereof, subject only to the requirement that said Board of Governors shall act in good faith.”

Another provision in the will is: “The Board of Governors will find among my papers much data with reference to the school, representing the result of several years investigation by me, and they are directed that my evident intents are to be given preference over their own or other ideas, when not in conflict with five o'f the Board members; * *

The’will further provides:

“The Board of Governors shall keep the Trustee advised of its plans in order that the investment of the funds of the trust estate may be so handled that .the directions of the Board of Governors for the expenditure of money may not result in unnecessary embarrassment to the Trustee or loss *601 to the estate in providing such funds when called for. In taking action calling for the expenditure of funds, the Board of Governors shall give consideration to the condition of the trust estate and the nature of the investment thereof and the total value of the trust estate, and so control its expenditure of funds that the disbursement out of the assets of the estate may not impair the trust estate to the extent that it may endanger the full consummation of the plan herein provided. They may expend principal for school sites and buildings and as specifically provided.”

The “Backlog Provision”

“To avoid expenditure in excess of that justified by the size of the trust estate, I direct that before making an expenditure for the original unit, of the school, whatever its size, or any subsequent unit or addition to an existing unit, the Board of Governors shall first make or cause to be made a careful estimate of the cost of such unit or addition and the amount required annually for the upkeep and operation thereof. The Board shall make the expenditure for such unit only if and when there shall remain in the trust estate property or securities other than school properties, after deducting the estimated cost of such unit, which will produce income, after' paying all expenses other than the cost and expenses connected with the operation o^ the schools, equal to 200% of the actual^ cost of operation of the unit or imits of thei school then in operation, if any, and the es-1 timated cost of operation of the unit, the construction of which is then contemplated; provided, further, that in addition to the foregoing there shall be other income producing assets (excluding school properties) of the value of Three Million Dollars ($3,-000,000.00), the income from which shall be added to said Three Million of Dollars to help provide the funds for the next unit.

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Bluebook (online)
32 So. 2d 526, 249 Ala. 597, 1947 Ala. LEXIS 435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thurlow-v-berry-ala-1947.