Ware v. Green

691 S.W.2d 167, 286 Ark. 268, 1985 Ark. LEXIS 2043
CourtSupreme Court of Arkansas
DecidedJune 17, 1985
Docket84-262
StatusPublished
Cited by6 cases

This text of 691 S.W.2d 167 (Ware v. Green) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ware v. Green, 691 S.W.2d 167, 286 Ark. 268, 1985 Ark. LEXIS 2043 (Ark. 1985).

Opinions

Robert H. Dudley, Justice.

The testator devised a life estate with a power to sell when the devisee no longer had enough money to maintain “the standard of living to which she is accustomed.” Appellant, the devisee, filed a petition for declaratory judgment asking the court to declare whether her power to sell was exercisable only upon an order by the court or whether it was exercisable upon her judgment with the court review being limited to whether she acted in bad faith. We hold that the power devised to appellant may be exercised upon her judgment and a subsequent court review, if any, is limited to whether she used bad faith in making that judgment.

Neither party raises an issue about the interest which appellant may sell. In Patty v. Goolsby, 51 Ark. 61, 9 S.W. 846 (1888), we held that the widow could only convey her life estate when the will provided “I give and bequeath unto my beloved wife . . .all my. . .lands. . . to have and to hold during her natural life, or until she may think proper to marry, with full power to sell and dispose of such property as she may think proper; . . . .” However, in Pearrow v. Vaden, 201 Ark. 1146, 148 S.W.2d 320 (1941), we held that the widow could convey the fee when the devise provided “To my beloved wife. . .all of my. . .property . . . during her lifetime with the right to dispose of any or all of said property in the event that her financial condition or health make it necessary to do.” In Pearrow v. Vaden, supra, we pointed out a distinction between the cases — in Patty v. Goolsby the power to convey could be defeated by remarriage, while in Pearrow v. Vaden the power could not be defeated. We concluded Pearrow with the following:

We think the proper construction of the will does not thus limit the interest which the widow may convey. Had she been given a life estate without any power to convey, she could have sold that estate. We think the title the widow may convey is not confined to her life estate, but covers the fee title to so much of the property as may be subject to the power. If the will conferred the right only to sell the life estate, the power is meaningless, as she had the right otherwise to sell her life estate, and the provisions of the fourth paragraph for the division of all property remaining at the death of the widow would be equally meaningless.
Paragraphs 2 and 4 of the will must be read together, when so read effect may be given to them only by holding that it was the testator’s intention that his children should divide among themselves, in the proportions indicated, any of the devised property which the widow had not conveyed in her lifetime for the permissible purposes, because that — and that only — would be the “property remaining.”

The foregoing discussion is not meant to indicate, one way or the other, what interest the appellant may sell. The issue was not raised below, nor has it been briefed or argued on appeal. However, it is necessary to set out because if the appellant only attempts to sell her life estate, it is not necessary for her to exercise the power set out in the devise, and this case is moot, but, if the appellant attempts to sell the fee it is necessary for her to exercise the power and the point of this appeal becomes an issue.

The pertinent part of the devise in the case at bar provides:

FOURTH: All my real property, including my surface ownership, my mineral interest and my royalty interest, I give, devise and bequeath unto my beloved wife, Elzie Lata Ware, to be used and enjoyed by her during the term of her natural life or so long as she shall remain my widow. During such period of time she shall have the following powers and rights:
(a) . . .
(b) . . .
(c) . . .
(d) In addition thereto, I hereby grant unto my wife the power to sell or otherwise dispose of my realty in part or in whole subject to the following terms and conditions:
(1) When my wife does not have adequate money to provide her with the standard of living to which she is accustomed, then she shall have the right to dispose of any or all of my land by first giving written notice to my children, James Dolas Ware and Hilda Jean Ware Green, that she intends to sell such property and they shall be given the first option to purchase said property.
(2) In the event either or both of my children shall desire to purchase said property, then my wife shall sell said property to either or both of them.
(3) In the event my children do not desire to purchase the property, then my wife shall have the full power to sell the property to another person at a sum of no less than that which was offered to my children.
(4) Any proceeds from said sale shall be the sole and absolute property of my wife and she shall use said money only for her support and maintenance.
(e) Upon death of my wife or her remarriage, then my realty, or whatever shall be remaining, I give, devise and bequeath as follows:
(1) An undivided one-half of my realty, I give, devise and bequeath unto my daughter, Hilda Jean Ware Green, and her children, Deborah Ann Green, Jackie Wilson Green, and Robby Green, all to share and share alike.

(2) An undivided one-half of my realty, I give, devise and bequeath unto my son, James Dolas Ware, and his children, Ricky Lynn Ware and Rhonda Kay Ware, all to share and share alike.

The appellant’s point of appeal is that she should be able to exercise the power without prior court approval. The appellees counter that the power may be exercised only after a court finds that the restrictions or conditions have been met. The trial court ruled that the power could be exercised only after court approval. We modify that ruling and hold that the power may be exercised upon the decision by the devisee that she no longer has enough money to maintain the standard of living to which she is accustomed, and her decision will be reversed only in the event it is made in bad faith.

While the issue is one of first impression for this Court, it has been frequently litigated in other states. 51 Am. Jur.2d, Life Tenants and Remaindermen, § 67, in part, provides an overview of the decisions as follows:

Where a grant or devise of power to a life tenant is limited to a sale or other disposition to meet some contingency which may or may not arise, as where power is given to sell, transfer, or dispose of the property or as much thereof as may from time to time be needed for the life tenant’s support and maintenance, the question of who may determine when the contingency so provided against has arisen, thus maturing the power to convey, is one which has frequently occupied the attention of the courts. In the great majority of cases, it is held that if the grant of power is otherwise full or general in its terms and the determination of the question is one which involves the exercise of judgment and discretion, the decision made in good faith by the life tenant himself is final.

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Cite This Page — Counsel Stack

Bluebook (online)
691 S.W.2d 167, 286 Ark. 268, 1985 Ark. LEXIS 2043, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ware-v-green-ark-1985.