Warner v. Mettler

103 N.E. 259, 260 Ill. 416
CourtIllinois Supreme Court
DecidedOctober 28, 1913
StatusPublished
Cited by20 cases

This text of 103 N.E. 259 (Warner v. Mettler) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warner v. Mettler, 103 N.E. 259, 260 Ill. 416 (Ill. 1913).

Opinion

Mr. Justice Carter

delivered the opinion of the court:

At the December term, 1911, of the circuit court of DeWitt county Vespasian Warner filed on the chancery side of said court a report as testamentary trustee of the estate of John Warner, deceased. On motion of defendants in error said report was stricken from the files. From this order an appeal was allowed to the Appellate Court for the Third District, where the order of the trial court was affirmed. The cause was then brought to this court on a petition for certiorari.

The report was not filed in any other suit or proceeding. It was entitled, “Tn the matter of the estate of John Warner, deceased,” and purported to give a general statement of the acts and doings of Vespasian Warner, as executor and trustee, since the death of John Warner, in 1905, referring, among other things, to the litigation between the widow of John Warner and some of the heirs over a bill to set aside an ante-nuptial agreement, (Warner v. Warner, 235 Ill. 448,) and a bill for partition of certain real estate, (Mettler v. Warner, 243 Ill. 600,) stating that a settlement had been had between the trustee and certain of the heirs up to March 1, 1910, and purporting to give an itemized statement of the receipts and disbursements by said trustee from that date to a date shortly before ,the filing of the report. The abstract filed in this court does not show that there was any request made in said report for any action on the part of the circuit court. A reference to the record shows that after setting out said statement of the alleged receipts and disbursements the trustee stated that his attorneys who represented him in litigation theretofore referred to in said report had presented to him a bill of $15,000 for their services, and prayed that the court should allow and direct him to pay to his attorneys such sum as to the court might appear reasonable and proper, out of the trust funds. There is no request that any other action be taken as to the report, and no statement of any kind that there was a dispute over any item of receipt or disbursement shown in said report or over the fees to be allowed to said attorneys. It appears from the evidence in the record and from the briefs'that the report was filed as the result of certain conversations and correspondence between the attorneys for the trustee and the attorneys for defendants in error in this proceeding. After the report was filed, December n, 1911, a notice was served on defendants" in error, on December 12, of the filing of such report. February 2, 1912, defendants in error, through their attorneys, filed objections to the report, first, on the ground that the court was without jurisdiction, in a proceeding of that kind, to approve the report; second, that if the court had such jurisdiction, certain items of the report were incorrect; third, objecting to the payment of the attorneys’ fees requested, alleging that the trustee had already, as executor of the estate, requested in the county court of Der Witt county an allowance of fees for the same services, and that the fees were such as should be paid by Warner individually, and not by the estate; and fourth, because no vouchers were filed with the report. On the same day counsel for defendants in error moved to strike said report from the files.

Two questions are presented for our consideration: First, did the circuit court have jurisdiction to pass upon and approve the report of the testamentary trustee? And second, if it had such jurisdiction, was the report presented in such a manner that the court was required to take it up and consider it?

The circuit courts of this State have general equity jurisdiction over trust estates and trustees. (Waterman v. Alden, 144 Ill. 90.) Matters of trust and confidence are cognizable in courts of equity. (2 Story’s Eq. Jur.—13th ed.—sec. 961.) It is not in every matter of the kind cognizable at law that equitable jurisdiction will be exercised, the general rule being that a proper case is presented when the remedies at law are inadequate. (4 Pomeroy’s Eq. Jur. sec. 1420.) Where there has been an adjustment of accounts between the trustee and cestui que trust and a promise by the former to pay the amount ascertained to be due, then there may be a suit at law to recover, but so long as the amount of the indebtedness is undecided and there is no promise by the trustee to pay, a court of equity has jurisdiction. (39 Cyc. 469, and cases cited.) Upon a bill in chancery the court can compel an accounting by the trustee. (Weaver v. Fisher, 110 Ill. 146.) The trustee must not only render a full account of his conduct at the time of final settlement, but it is his imperative duty to keep regular and accurate accounts while he is acting as trustee, of all the property coming into, passing out of or remaining in his hands. The accounts “should at all times be open to the inspection and produced at the demand of the beneficiary.” (3 Pomeroy’s Eq. Jur.—3d ed.—sec. 1063; 28 Am. & Eng. Ency. of Law,—2d ed.—1076.) Trustees must make reports at such times as the instrument under which they are acting requires or as the court may direct. (Orr v. Yutes, 209 Ill. 222.) “A trustee cannot be expected to incur the least risk in the distribution of the trust fund. Therefore, where there is a mere shadow* of doubt as to the rights of the parties, he may require; a bond of indemnity. * * * If a third person makes a claim, or if he refuses to state whether he has a claim, where the trustee has a right to know, the trustee may bring such person before the court by bill, and if he claims improperly, or has improperly refused to answer, he will be charged with the costs. So where the equities are not perfectly clear the trustee may decline to act without the sanction of the court, and his costs and proper expenses will be allowed. * * * The suit, in such case, may be instituted by the trustee himself asking for the direction of the court, or parties claiming to be the cestuis que trust may institute the suipagainst the trustee and others claiming to be the cestuis que trust.” (2 Perry on Trusts,—5th ed.—sec. 928.) “Wherever there is any bona ñde doubt as' to the true meaning and intent of the provisions of the instrument creating the trust or as to the particular course which he ought to pursue, the trustee is always entitled to maintain a suit in equity at the expense of the trust estate and obtain a judicial construction of the instrument and directions as to his own conduct.” (3 Pomeroy’s Eq. Jur. sec. 1064.) Courts of equity will not only compel the performance of the trust, but they “will assist the trustees.and protect"them in the due performance of the trust whenever they seek the aid and direction of the court as to the establishment, the management or the execution of it.” (2 Story’s Eq. Jur.—13th ed.—sec. 961.) The difficulties arising in the execution of a trust may make it eminently proper for the trustee “to apply to' a court of equity for its aid and direction in the premises, and we have no doubt of the jurisdiction of-a court of equity to afford the requisite relief.” (Whitman v. Fisher, 74 Ill. 147; Baker v. Bradsby, 23 id. 582; 39 Cyc. 472.) As the trustee is not. expected to incur the least risk, if the equities are not clear he should decline to act without the sanction of the court, and he will then be allowed his costs and expenses, but if he appeals tp the court without reason he will be answerable in costs. (Lewin on Trusts,—1904 ed.—413; see, also, White v. Glover, 59 Ill. 459; Kingsbury v. Powers, 131 id. 182; Taylor v. Glanville, 3 Madd.

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Bluebook (online)
103 N.E. 259, 260 Ill. 416, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warner-v-mettler-ill-1913.