UNION METHODIST EPISCOPAL CH. v. Equitable Trust Co.

83 A.2d 111
CourtCourt of Chancery of Delaware
DecidedAugust 17, 1951
DocketCiv. A. 231
StatusPublished
Cited by1 cases

This text of 83 A.2d 111 (UNION METHODIST EPISCOPAL CH. v. Equitable Trust Co.) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
UNION METHODIST EPISCOPAL CH. v. Equitable Trust Co., 83 A.2d 111 (Del. Ct. App. 1951).

Opinion

83 A.2d 111 (1951)

UNION METHODIST EPISCOPAL CHURCH et al.
v.
EQUITABLE TRUST CO.

Civ. A. 231.

Court of Chancery of Delaware, New Castle.

August 17, 1951.

Samuel R. Russell, of the firm of Logan, Marvel & Boggs, Wilmington, for complainants.

Caleb S. Layton, of the firm of Richards, Layton & Finger, Wilmington, for defendant.

*112 BRAMHALL, Vice Chancellor.

Under the last will and testament of Henry C. English, deceased, admitted to probate before the Register of Wills of New Castle County on March 3, 1921, testator provided, in part, as follows:

"Item-All the rest, residue and remainder of my estate of whatsoever kind, and wheresoever situate, real, personal or mixed, including the real estate, and the remainder of the money on deposit in the Wilmington Trust Company at Tenth and Market Streets, and at Second and Market Streets, the Wilmington Savings Fund Society and the Equitable Trust Company, I give, devise and bequeath to the said Equitable Trust Company, a corporation of the State of Delaware. In Trust, nevertheless, for the following uses, intents, and purposes, that is to say, to invest the principal sum (to be known as `The Henry C. English Helping Fund') in good income producing securities, with power to call in and reinvest the same in its discretion, to collect the income, interest and dividends arising therefrom and after deducting a reasonable compensation for its care and trouble to dispose of the net income as follows: — One-third thereof to be used in securing admission to the Home for Aged Women, a corporation of the State of Delaware, as hereinafter provided, one-third to be used in like manner in securing admission to the Home of Merciful Rest Society, a corporation of the State of Delaware, for *113 worthy members of Union Methodist Episcopal Church, and for worthy members of Scott Methodist Episcopal Church, who have been worthy members of said Churches for five years or more, by the payment of one-half the cost of admission, and who are to be selected and approved by the Official Board of said Churches.

"If the condition of the fund will allow, worthy couples may be aided in the same manner to admission to the Methodist Home of Philadelphia.

"I direct that a payment not exceeding five dollars be made to each of the beneficiaries under the fund on each Christmas Day if the condition of the fund will allow.

"The remaining one-third of the net income I direct shall be paid to the Trustees of the Home for Friendless and Destitute Children, a corporation of the State of Delaware.

"I direct that the provisions of this will be carried out as soon as it can be done with due regard to the interest of my estate and that the best business methods be observed in the management of my estate.

"If any church whose members are beneficiaries of this fund shall cease to exist, its successors shall be selected by a majority vote of the active ministers of the Methodist Episcopal Church of this City.

"If application for admission to the various Homes herein named should cease for any one year, I direct that one hundred dollars be paid into the `poor funds' of each of the two churches; The Union M. E. Church and Scott M. E. Church about the fifteenth day of December of the year in which there are no applications."

Trustee has paid one-third of the income to the Home for Aged Women Helping Fund and one-third of the income to the Home of Merciful Rest Helping Fund. The amount of principal of the two Helping Funds has increased so that the principal of the first is now $16,661.69 and the second is $16,602.72.

Because of the fact that few of the members of the Union Church and the Scott Church have desired to be admitted to the Homes, only two members of these Churches have applied for and have been admitted thereto. In addition, conditions at the Homes are so crowded that no vacancies now exist, nor will any probably exist for a considerable period of time to come.

By reason of the fact that one of the qualifications of admission to the Methodist Home of Philadelphia is that the applicants must be members of the Methodist Church in the Philadelphia Conference, and, since neither of these Churches is a part of the Philadelphia Conference, the trustee determined that it was unable to carry out that provision of the trust.

As provided by the will, trustee has paid to the "poor fund" of each of the churches named, in the years when there were no applications for admissions to the Home, the sum of $100.

It would therefore seem that the income which will be received on account of the trusts for the Aged Homes will be considerably in excess of the amount required to administer them. If it should be determined that admissions to the Philadelphia Home necessarily must come from Union and Scott Churches, the trust for "worthy couples" cannot be carried out according to the plan of testator.

For these reasons, the plaintiffs have made demand upon the trustee that all future income from the trust, over and above the amount which might be expended by the trustee in his efforts to carry out the specific provisions of the trust, be distributed annually to the trustees of Union and Scott Churches so that charitable assistance may be given to needy members thereof, particularly the aged. The trustee has refused to acquiesce to this demand, claiming that the terms of the will do not clearly permit its compliance therewith.

In considering the prayer of plaintiffs' petition, the Court must determine: First, is the rule of cy pres applicable in this state; secondly, if applicable, would the rule apply in this case; thirdly, should the Court apply the rule in the manner requested by plaintiff?

Is the rule of cy pres applicable in this state? There seems to have been, for a long time, the opinion that the rule of cy pres has no application in this state. Such *114 expressions are found in opinions of the Court. Doughten v. Vandever, 5 Del. Ch. 51; Murphy v. McBride, 14 Del.Ch. 457, 130 A. 283. However, in neither of these cases was the Court required to consider the cy pres rule or determine its applicability in this state. In the Doughten case it was determined that the bequest was neither for a charitable purpose nor in trust and therefore void. In the McBride case the corporation to which the trust was given had been extinct for some years prior to the death of the testator. The Court therefore held that, it not appearing from the will that the testator intended that his property should be applied to a general charitable purpose, but only for the benefit of the orphan girls who should be under the care and charge of the institution named therein, the legacy lapsed.

This question was first squarely faced in the case of Delaware Trust Co. v. Graham, Del.Ch., 61 A.2d 110. In that case the Court, at page 113 of 61 A.2d, said: "In principle, there therefore seems to be no good reason why judicial cy pres should not be applied in appropriate cases by this court. Nor do I find any reported case that squarely repudiates that rule".

With this opinion this Court concurs. As therein pointed out by Chancellor Harrington, the Court of Chancery in this state ordinarily has the same inherent jurisdiction as that of the English Court of Chancery at the time of our separation from that country.

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83 A.2d 111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-methodist-episcopal-ch-v-equitable-trust-co-delch-1951.