WACHOVIA BANK AND TRUST COMPANY, NA v. Morgan

176 S.E.2d 860
CourtCourt of Appeals of North Carolina
DecidedOctober 21, 1970
Docket7021SC518
StatusPublished

This text of 176 S.E.2d 860 (WACHOVIA BANK AND TRUST COMPANY, NA v. Morgan) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WACHOVIA BANK AND TRUST COMPANY, NA v. Morgan, 176 S.E.2d 860 (N.C. Ct. App. 1970).

Opinion

176 S.E.2d 860 (1970)

WACHOVIA BANK AND TRUST COMPANY, N. A., John C. Whitaker and L. D. Long, Trustees under the Will of Mrs. Kate G. Bitting Reynolds, Deceased, Petitioners,
v.
Robert MORGAN, Attorney General of The State of North Carolina, et al., Respondents.

No. 7021SC518.

Court of Appeals of North Carolina.

October 21, 1970.

*863 Womble, Carlyle, Sandridge & Rice, by W. P. Sandridge, Jr., Winston-Salem, for plaintiff appellants.

Robert Morgan, Atty. Gen., by Christina Y. Denson, Raleigh, Staff Attorney, for respondent appellee State of North Carolina.

Hollowell & Ragsdale, by Edward E. Hollowell, Raleigh, for respondent appellee North Carolina Hospital Association.

*864 GRAHAM, Judge.

It does not appear that any party has objected to the entry of the judgment tendered to the court by the trustees. The Attorney General and the North Carolina Hospital Association have filed briefs in which they join the trustees in urging that the judgment be affirmed. No briefs have been filed by any party urging the contrary.

A question arises as to whether the trustees may appeal as aggrieved parties within the meaning of G.S. § 1-271. A party has no right to appeal from a judgment entered on his own motion. Dillon v. Wentz, 227 N.C. 117, 41 S.E.2d 202; Johnson v. Sidbury, 226 N.C. 345, 38 S.E.2d 82. The trustees admit in their brief that there are no aggrieved parties. The judgment appealed from was entered on the motion of the appellant trustees. Hence, this appeal is subject to being dismissed ex mero motu as presenting no controversy. However, this case affects the interests of substantial numbers of public and private hospitals in this State, as well as thousands of persons who are now, or in the future will be, hospitalized in North Carolina as charity patients. We have, therefore, elected to entertain the appeal in the exercise of the supervisory power vested in this Court under the provisions of G.S. § 7A-32(c). We also point out that the same situation existed when the first judgment entered in this cause was appealed, and the Supreme Court entertained the appeal. Wachovia Bank & Trust Co. v. McMullan, Attorney General, supra. (See also: Harriet Cotton Mills v. Local 578, 251 N.C. 218, 111 S.E.2d 457; State v. Scoggin, 236 N.C. 1, 72 S.E.2d 97; Wachovia Bank & Trust Co. v. Waddell, 234 N.C. 454, 67 S.E.2d 651).

The first questions raised by the trustees' assignments of possible errors are jurisdictional. We conclude, under the authority of the Supreme Court opinion affirming the first judgment entered in this action (Wachovia Bank & Trust Co. v. McMullan, Attorney General, supra), that the trial court had jurisdiction over the parties and the subject matter and did not err in permitting this action to be reopened. Although some of the parties named in the original suit are no longer in existence, appropriate parties have been substituted. The judgment of 24 May 1948 specifically provided for the retention of the case on the inactive docket for reactivation upon proper notice. It appears that the petition and proper notice were served on all parties and that they are properly before the court.

The trustees seek a determination as to whether the court had the authority to grant the broad discretionary powers to administer the trust which are enumerated in the judgment. We look first to the authority granted by statute. G.S. § 36-23.2, enacted in 1967, provides as follows:

"Charitable Trusts Administration Act.— (a) If a trust for charity is or becomes illegal, or impossible or impracticable of fulfillment or if a device [sic] or bequest for charity, at the time it was intended to become effective is illegal, or impossible or impracticable of fulfillment, and if the settlor, or testator, manifested a general intention to devote the property to charity, any judge of the superior court may, on application of any trustee, executor, administrator or any interested party, or the Attorney General, order an administration of the trust, devise or bequest as nearly as possible to fulfill the manifested general charitable intention of the settlor or testator. In every such proceeding, the Attorney General, as representative of the public interest, shall be notified and given an opportunity to be heard. This section shall not be applicable if the settlor or testator has provided, either directly or indirectly, for an alternative plan in the event the charitable trust, devise or bequest is or becomes illegal, impossible or impracticable of fulfillment. However, if the alternative plan is also a charitable trust or devise or bequest for charity and such trust, *865 devise or bequest for charity fails, the intention shown in the original plan shall prevail in the application of this section.
(b) The words `charity' and `charitable,' as used in this section shall include, but shall not be limited to, any eleemosynary, religious, benevolent, education, scientific, or literary purpose."

This statute represents an obvious intent on the part of the legislature to invest the superior courts of this State with the power of cy pres. Cy pres, meaning "as near as possible," is the doctrine that equity will, when a charity is originally or later becomes impossible, inexpedient, or impracticable of fulfillment, substitute another charitable object which is believed to approach the original purpose as closely as possible. Bogert, Trusts and Trustees 2d, § 431. Before the passage of this statute, our Supreme Court often held that the doctrine of cy pres did not obtain in this State. Board of Education v. Wilson, 215 N.C. 216, 1 S.E.2d 544; Woodcock v. Wachovia Bank & Trust Co., 214 N.C. 224, 199 S.E. 20; Thomas v. Clay, 187 N.C. 778, 122 S.E. 852; Wachovia Bank & Trust Co. v. Ogburn, 181 N.C. 324, 107 S.E. 238; Keith v. Scales, 124 N.C. 497, 32 S.E. 809; Holland v. Peck, 37 N.C. (2 Ire.Eq.) 255. However, it has nevertheless been repeatedly recognized in this jurisdiction that the failure of the method designed by the trust for carrying out a general charitable purpose does not destroy the trust. In Johnson v. Wagner, 219 N.C. 235, 13 S.E. 2d 419, Devin, J. (later C. J.), speaking for the court stated:

"In this case, while the general purpose of the testator to donate property to charitable uses, and the designation of the ultimate beneficiaries for whom the trust is created, sufficiently appear, the fact seems to have been definitely established that the particular mode for the use of the designated property has failed. The gift of the property for a designated use in a particular manner has been declined as impracticable. The donation of the land for use as an assembly ground has failed, but that does not destroy the trust. It seems to be a generally recognized principle controlling the decisions of courts of chancery on the subject that when a definite charity has been created, the failure of the particular mode in which it is to be effectuated does not destroy the trust.

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West Ex Rel. Murray v. Lee
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Johnson v. . Wagner
13 S.E.2d 419 (Supreme Court of North Carolina, 1941)
Dillon v. . Wentz
41 S.E.2d 202 (Supreme Court of North Carolina, 1947)
Paine v. Forney.
38 S.E. 885 (Supreme Court of North Carolina, 1901)
Woodcock v. . Trust Co.
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Mars v. Gibert
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Woodcock v. Wachovia Bank & Trust Co.
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