Wemme v. First Church of Christ, Scientist

237 P. 674, 115 Or. 281, 1925 Ore. LEXIS 63
Oregon Supreme Court·Decided April 7, 1925·Published·Cited by 7 cases

Opinion

COSHOW, J.

The Attorney General of the state was made a party by order of the Circuit Court. He appeared in the case by a duly appointed- assistant. His theory of the case was upheld by this court. It is now too late, in our judgment, to question his authority so to do. We do not deem it necessary to enter into the discussion, so ably presented by the learned attorneys for the churches, as to whether or not the constitutional amendment revising the judicial department of the state, and adopted by the people in 1910, amended Section 17 of Article VII of the original Constitution, providing for prosecuting attorneys.

The court had jurisdiction of the subject matter. If an error was committed in making the Attorney General a party, instead of the prosecuting attorney of Multnomah County, the court would not be thereby deprived of the jurisdiction of the subject matter.

The learned circuit judge disallowed the items in the account of the original trustees for attorney’s fees and expenses of the litigation because he understood the opinion of this court, reported in 110 Or. 179 (219 Pac. 618, 223 Pac. 250), so directed. In this we believe the learned judge misconstrued our former opinion.

The matter of the attorney’s fees paid by the original trustees of the fund was not at that time involved in the litigation. That issue did not, and could not, arise in the issues presented to this court in the former appeal. That issue could only arise upon an accounting between the original trustees *285 and the new trustees. It was before the Circuit Court for the first time upon that accounting, and is before this court for the first time upon this appeal. It is very clear, therefore, that this court did not have under consideration the question of the expenses of the litigation, including attorney’s fees, incurred by the original trustees of the Wemme Fund, when it rendered its former decree and handed down its opinion.

This proceeding was instituted by the heirs at law of the late E. Henry Wemme for the purpose of destroying the charitable fund and of recovering for themselves the property constituting that fund. It was both the duty and the right of the original trustees to defend the fund against that attack. The attorneys for the new trustees conceded the principle relied upon by the churches for the right to retain from the fund the amount expended by them in this litigation. In their brief they use this language:

“Now, it is well settled by all authorities that a trust must bear the expenses of its administration; and when a trust is attacked, it is the duty of the trustees to defend, and to that end and purpose to employ counsel; and the reasonable expenses and fees of counsel are charged against the fund or trust. If the churches, as the trustees or directors of this fund, had employed Judge Corliss to defend the trust, to preserve it as a legal trust, as a charitable trust, and he had done so, then we concede that his compensation should be paid out of the fund. ’ ’

That this is a correct statement of the principle of the law is supported by the following authorities: 39 Cyc. 339, 342; 2 Perry on Trusts (6 ed.), §§747, 910; Bissell v. Butterworth, 97 Conn. 605 (118 Atl. *286 54); Mead v. Sherwin, 275 Pa. St. 146 (118 Atl. 731).

The new trustees base their sole contention on the assertion that the original trustees were not defending the trust, but were waging a contest in the interest of the churches. In our opinion this assertion is not supported by the facts. The only ground for that assertion is the change of the beneficiaries of the trust and the claim that the trust fund was the property of the churches. The churches and the original trustees have uniformly declared, in the most solemn documents in the record of this proceeding, that they considered the fund a sacred trust. It is true that they claim that the property belongs to the churches absolutely. This claim is based upon the advice of eminent counsel and was sustained by four of the circuit judges for Multnomah County. United with this claim in every instance the original trustees and the churches asserted their intention to treat the fund as a sacred trust. Not one dollar of the fund was converted to the use of the churches or any of them. ■ The fund has been kept intact. The acts of the original trustees are in strict harmony with their expressed intention to treat the fund as a trust.

The fact that the original trustees were mistaken in the construction of the will does not and ought not to deprive them of the right to be reimbursed in defending the trust. It is morally certain if they had not vigorously defended the fund that it would have been dissipated, the intent of the testator would have been diverted and the fund distributed to the heirs of the testator. It was by the defenses made by the original trustees that the fund has been *287 preserved and the benevolent purpose of the testator is being consummated.

This proceeding was started for the purpose of recovering for the heirs the fund devoted to the trust. That purpose was apparent until this court rendered its former decree herein. In page 157 of the brief of the attorneys for the heirs in the original appeal to this court is found this language:

“If there was a trust over, and the argument of the Attorney General does not prevail, then the gift over was too broad to be executed as a charity and is a reversion to the heirs.”

The attorneys for the heirs were working with the Attorney General. They assisted in preparing the brief in this court for the Attorney General. Indeed, it was by their efforts that the Attorney General was brought into the case. The original trustees of the fund representing the churches were required by their duty to defend the trust fund to the end.

There is a long list of authorities upholding the right of trustees to be reimbursed for their expenditures, including attorney’s fees, notwithstanding they make claim to an interest in the property in trust: In re Duffill’s Estate, 188 Cal. 586 (206 Pac. 42); Clark v. Anderson, 13 Bush (Ky.), 111; 11 C. J. 370, §98; 2 Perry on Trusts (6 ed.), 1237, § 747. It is conceded that the amount of the $25,000 is a reasonable fee for the services rendered by Judge Corliss as attorney for the original trustees and the churches. In their brief, the attorneys for the new trustees, in opposing the allowance to the original trustees and the churches reimbursement for these expenditures, use this language:

*288 “Upon the threshold of onr argument, we desire it understood that we have no quarrel with Judge Corliss of or concerning his fee, or of the amount thereof. None whatever. "We know his high, standing before the Bench and Bar, and his great legal ability; and we know the arduous labors, the great amount of energy, time and research bestowed by him upon this case; and when these factors are taken into consideration, we concede that the compensation asked by him is very reasonable. For, if any lawyer ever earned a fee of $25,000 in defending a suit, Judge Corliss did in the instant case. There is no doubt about that. ’ ’

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Wemme v. First Church of Christ, Scientist, 237 P. 674, 115 Or. 281, 1925 Ore. LEXIS 63 (Or. 1925).

237 P. 674 (Wemme v. First Church of Christ, Scientist) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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