Union Trust Co. v. Stamford Trust Co.

43 A. 555, 72 Conn. 86, 1899 Conn. LEXIS 136
CourtSupreme Court of Connecticut
DecidedJune 8, 1899
StatusPublished
Cited by27 cases

This text of 43 A. 555 (Union Trust Co. v. Stamford Trust Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union Trust Co. v. Stamford Trust Co., 43 A. 555, 72 Conn. 86, 1899 Conn. LEXIS 136 (Colo. 1899).

Opinion

Baldwin, J.

A bill of interpleader, under the old English chancery practice, could only be maintained by a stakeholder having no interest in the disposition of the fund, nor any substantial right of his own to be litigated, and who had incurred no independent liability by his own act or contract to either of those having conflicting claims to it. These rules were somewhat relaxed in the system of equity pleading formerly followed in this State, and it was intimated by the court that it might conduce to the ends of justice to relax them still further, and to do away with the distinction between bills of interpleader and bills in the nature of bills of interpleader. Consociated Presbyterian Society v. Staples, 23 Conn. 544, 555. A decisive step in this direction, and one fully in line *92 with the general policy of the Practice Act, was taken by the General Assembly in 1898, by “ an Act concerning Bills of Interpleader,” which provides that “whenever any person has, or is alleged to have, any money or other property in his hands or possession which is claimed by two or more persons, either he, or any of the persons claiming the same, may bring a complaint in equity, in the nature of a bill of interpleader, to any court which by law has equitable jurisdiction of the parties and amount in controversy, making all persons parties who claim to be entitled to, or interested in, such money or property ; and said court shall hear and dispose of all questions which may arise in such case.” Public Acts of 1893, p. 222.

Under General Statutes, §§ 887, 888, it would have been proper for the Union Trust Company, in the suit brought against it by Timothy H. Porter, to apply for an order to summon in his sons, the executors of his wife’s will, Joanna Krom, and the Stamford Trust Company, since they would necessarily have been prejudiced by a judgment in favor of the plaintiff in that action for the relief which he demanded. But had they thus been made parties, they would not have been bound to relieve the Union Trust Company from the burden of the defense. They could have remained passive spectators of the contest, and left the original defendant to look for reimbursement for its expenditures in the litigation to such decree as might be passed upon the settlement of its account as trustee in other proceedings.

As to controversies of this nature, the Act of 1893 affords a new remedy by enabling a trustee whose title is attacked to throw his outlays in defending it directly on the fund; and in the suit at bar this is part of the relief which is specifically claimed.

The plaintiff has property in its possession which is claimed by two or more persons. It consists of a principal fund, and of certain accumulations of income. The entire fund with all accumulations is claimed by Timothy PI. Porter. Part of the accumulated income is claimed by the Stamford Trust Company, and claimed by it in behalf of the other defendants. The latter also insist that the principal of the fund cannot *93 be delivered over to Timothy H. Porter, but must be held by the plaintiff for their benefit. This is a claim to an interest in the fund adverse to that set up by Timothy H. Porter.

Under these circumstances, the plaintiff could clearly, under the statute, have brought an action in the nature of a bill of interpleader against the defendants, and demanded an order that they interplead as to their respective rights in the accumulations of income. These it is its duty to pay over either to the Stamford Trust Company or to Timothy H. Porter. It is a single duty for which there has been a double demand. But the rights of the parties as to the surplus income are substantially identical with such as they may have in the principal fund. If Mr. Porter’s children and those claiming under the will of his wife, have none in that, they have none in any of its fruits. If they have rights in the fruits, it is only because they have rights in that which produced them. The Stamford Trust Company, also, in demanding the surplus income must count on the validity of the trust out of which it grows; and such is the frame of the complaint which it has brought.

The statute of 1893 is a remedial one and to be favorably construed. It requires the court to which any complaint founded upon it may be brought, to “ hear and dispose of all questions which may arise in such case,” and by the provision for making not only all who claim to be “ entitled to,” but all who claim to be “ interested in ” the property in question, parties defendant, shows that its purpose is to secure a determination of every right, title or interest that can by possibility be set up.

A question as to the right or title to the principal fund held by the plaintiff must arise in any suit brought by it to settle that to the accumulations of income. It was therefore proper to seek an order of interpleader, upon the complaint in the present action, as respects both these items of property. The only parties having a substantial and beneficial interest in the controversy are Timothy H. Porter on the one side, and his sons and Joanna Krom on the other. The plaintiff is a mere trustee and has a right under the statute to re *94 quire them, or their representatives, to assume the burden of the litigation. Comstock v. Hadlyme Eccl. Soc., 8 Conn. 254, 262.

It is true that a possible result of the proceeding may be a judgment upholding the validity of the trust and directing the plaintiff to retain the property in its hands and administer it, during the life of Timothy H. Porter, according to the terms of the deed tuider which it was received ; but whether such a' judgment could ever have been rendered on a strict bill of interpleader in an English court of chancery, is a question of no importance: the statute of 1893 is the rule of jurisdiction.

It is contended in support of the demurrer, that the complaint was insufficient because the entire rights of the respective parties could not be adjudicated upon it, inasmuch as it raised no question as to the validity of the trust deed to the Stamford Trust Company. This objection overlooks the rules under the Practice Act, by which, in any equitable action, upon a suitable cross-complaint, “ the court may determine the ultimate rights of the parties on each side, as against themselves, and grant to the defendant any affirmative relief to which he may be entitled.” Practice Book, p. 20, Rule VIH, §7.

The defendants argue that the plaintiff needs no other information as to its rights than what it can obtain from the record in the case of Porter v. Ritch, to which it was a party.

As that action came on appeal to this court and was made the subject of an opinion in which the effect of the “ family agreement ” was considered, it was proper for the Superior Court to consider it, in passing upon the demurrer. No trustee can have a right to apply for judicial advice as to any point of law which has been previously adjudicated by the highest tribunal of the State ; and the authority of the decision in question, was certainly not the less because rendered in a cause in which the parties now before us were also engaged.

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Cite This Page — Counsel Stack

Bluebook (online)
43 A. 555, 72 Conn. 86, 1899 Conn. LEXIS 136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-trust-co-v-stamford-trust-co-conn-1899.