Van Norden Trust Co. v. O'Donohue

122 A.D. 51, 106 N.Y.S. 948, 1907 N.Y. App. Div. LEXIS 2373
CourtAppellate Division of the Supreme Court of the State of New York
DecidedNovember 22, 1907
StatusPublished
Cited by1 cases

This text of 122 A.D. 51 (Van Norden Trust Co. v. O'Donohue) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Norden Trust Co. v. O'Donohue, 122 A.D. 51, 106 N.Y.S. 948, 1907 N.Y. App. Div. LEXIS 2373 (N.Y. Ct. App. 1907).

Opinion

Lambert, J.:

The principal question involved in this appeal relates to the construction of the will of one Hugh Smith, who died on the 16th day of July, 1890, leaving a last will and testament, bearing date of April 10, 1884, the same having been duly probated in August, 1890. The deceased at the time of his death was the owner of the Murray Hill Hotel and property at Avenue B,” and this action for partition relates solely to these properties. The defendants John J. O’Donohue, Mary L. 'Kelly and Thomas J. O’Donohue, Jr., oppose the partitioning of the property, the various questions being raised by demurrer to the complaint, on the ground that it does not state facts sufficient to constitute a cause of action. The theory of the demurring defendants is that under the will of Hugh Smith, deceased, this property vested in trustees, and that the com-. plaint does not show tjiat the trustees were ever divested of title, Or that the plaintiffs and defendants áre in possession of the premises in such a manner as to permit of this action. The whole argument proceeds upon the theory that tliere is a trust under the will, although the defendants do not, apparently, concede that the facts would constitute a cause of action under any circumstances. The will is complicated in its arrangement, and it does contain some elements of a trust nature, but we are of the opinion that it is lacking in some of the essential elements of an express trust, and that it did not vest title in the executors under the will of Hugh Smith.

Hugh Smith left him surviving his sisters, Margaret C. Smyth and Catherine T. Smith, his brother, Henry A. Smith,' the plaintiff’s testator, John H. Murphy and Edward F. Murphy, his nephews, and Jane T. Dillon and Louisa A. O’Donohue, his nieces, as his only heirs at law. By his will the' testator gave to his sister Cathe[53]*53riñe T. Smith the net annual income of his entire estate, both real and personal, after the payment for certain repairs, and the sum of $100 per month to his brother, Henry A. Smith, who was given no other interest in the estate. He does not attempt to vest the estate in the executors for the purpose of paying the income to the sister during life, but provides that the executors are to take care and charge of his whole estate, real and personal, during the lifetime of his sister. He then provides that the executors shall, if the brother Henry survives the sister Catherine, continue to pay the former $100 per month, and provides that a sum may be set apart and invested for that purpose, to become a part of the residuary estate upon the death of the brother, but he died in 1903, before the sister, so that this complication is out of the case. The testator then authorized the executors, or the survivors of them, to sell the whole or any part of his real estate from time to time in their discretion, except that the Murray Hill Hotel and the real estate situate on Avenue B were not to be sold during the lifetime of Catherine. Upon the death of Catherine the testator gives, devises and bequeaths one equal half part of all the rest, residue and remainder of his estate, real and personal, to his sister Margaret O. Smyth, and unto her, her heirs and assigns forever; but if she shall die before Catherine, then he gives, devises and bequeaths this share to the issue of his sister Margaret, to be equally divided between them per stirpes and not per capita. Likewise, upon the death of Catherine, he gives, devises and bequeaths the remaining undivided half part of his estate, real and personal, to his nieces and nephews, children of his sister Mary Ann Murphy, and of James Murphy, her husband, both deceased. The various proportions which were given to each of these nieces and nephews, and the contingent distributions, are not material to be mentioned. Finally the will provides a power of sale in the executors after the death of Catherine, and to divide the net proceeds of such sale among the people entitled thereto in the provisions of the will; such power of sale, however, to be exercised within the period of ten years after the decease of Catherine.

Catherine T. Smith, the life beneficiary, died on the 11th day of April, 1906, and it cannot be doubted that at that time each of the. beneficiaries provided for under the will came into the right of possession of the expectant estate, subject to the discretionary [54]*54power of sale vested in the executors, which power has never been exercised, though it is alleged in the complaint that these executors are threatening to sell the Murray Hill Hotel property at a price below its fair value. Prior to the death'of Catherine, and on the 20th of May, 1905, by fourteen separate conveyances, John J. O’Donolme, Thomas J. O’Donohue, Jr., May Cecelia Dillon, Francis J. M. Dillon, Agnes M. Smyth,'Louis Smyth, Francis Smyth, Peter Smyth, Teresa B., Smyth, Jane T. Dillon, John H. Murphy, Edward F. Murphy, Margaret C. S. Carroll and Mary L. O’Donohue, now Mary L. Kelly, conveyed to Henry A. Smith (the plaintiff’s testator) one equal fourth part of all their right, title and interest in and to said lands and premises. These parties were those who were entitled to take upon the death of Catherine, and. they unquestionably had a right to convey their interest to Henry A. Smith, subject to the contingencies provided in the will, and upon the death of Catherine there wa"s an immediate right of possession, subject, perhaps,' to. the naked right on the part of the executors to sell the lands for the purposes of distributing the proceeds.

Henry A. Smith, as we have already seen, died in 1903, leaving a. last will and testament, and the plaintiff in this action is asserting his rights under the several conveyances above mentioned, and which involved the acts of every one of the persons who were interested in the distribution of the estste. Enough, we believe, has been pointed out to indicate clearly that Hugh Smith did not create a trust in his will. He not only did not attempt to vest the title in. his executors, in trust, but he specifically gave, devised arid bequeathed the income to Catherine for her life, and upon her death he gave, devised and bequeathed the entire estate, giving merely a naked power of sale to his- executors, not absolutely, but in their discretion. Before the death of Catherine, and while'some of. the interests were liable to be defeated by death, those in whom the estate eventually vested joined in conveying an interest in the property to the plaintiff’s testator, and thus all occasion for the exercise of the power of sale in the executors was at an end. It is urged that by conferring the power of sale an equitable conversion of the realty, including the Murray Hill Hotel and the Avenue B property, was effected; but if that be so, then, the beneficiaries having • disposed of a portion of their interest in the property, this power [55]*55became useless; they had elected to take the property rather than tiie proceeds, and this, under well-recognized authorities, is entirely proper. If the grantees had conveyed their entire interest, so that the full title vested in Henry A. Smith, it certainly would not be contended that the executors, who had the power merely for the purpose of conveniently closing up and distributing the estate, were justified in selling the premises, and the rule ought not to be different because such interest only reached a one-fourth part of the estate. This is the doctrine of Greenland v. Waddell (116 N. Y. 234), and no reason suggests itself why it should not be applied in the present case.

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Related

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128 A.D. 534 (Appellate Division of the Supreme Court of New York, 1908)

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Bluebook (online)
122 A.D. 51, 106 N.Y.S. 948, 1907 N.Y. App. Div. LEXIS 2373, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-norden-trust-co-v-odonohue-nyappdiv-1907.