Wesleyan University v. Hubbard

20 S.E.2d 677, 124 W. Va. 434, 1942 W. Va. LEXIS 99
CourtWest Virginia Supreme Court
DecidedJune 2, 1942
Docket9292
StatusPublished

This text of 20 S.E.2d 677 (Wesleyan University v. Hubbard) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wesleyan University v. Hubbard, 20 S.E.2d 677, 124 W. Va. 434, 1942 W. Va. LEXIS 99 (W. Va. 1942).

Opinions

Kenna, Judge:

This proceeding was instituted in the Circuit Court of Ohio County by' Wesleyan University, a Connecticut corporation, in its own behalf and in behalf of all other creditors of the Estate of W. P. Hubbard, deceased, for the purpose of subjecting to the payment of an indebtedness alleged to be due and unpaid to the complainant, evidenced by a demand collateral note for forty-three thousand dollars, dated January 1, 1928, and signed by Nelson C. Hubbard and Alma R. Hubbard, the then executors of the estate of W. P. Hubbard, deceased, which note in turn was given to cover the unpaid semi-annual installments of a written pledge of eighty-nine thousand dollars made by W. P. Hubbard in his lifetime on April 12, 1920, for the purpose of endowing a chair of economics and social science to be dedicated to the name of his father, Chester D. Hubbard, certain property known as “Forest Home” situated in Triadelphia District of Ohio County of which it is alleged W. P. Hubbard died seized *436 and possessed. The decree of the circuit court allowed the complainant a partial recovery, and the defendant creditors of Alma R. Hubbard, to whom “Forest Home” was specifically devised, were granted this appeal.

According to the allegations of the bill of complaint, W. P. Hubbard died testate on the fifth day of December, 1921, specifically devising the property known as “Forest Home” to his daughter, Alma R. Hubbard, who in turn died testate and unmarried on the sixth day of January, 1932.

The Keystone National Bank of Pittsburgh and other creditors of Alma R. Hubbard brought a proceeding in the Circuit Court of Ohio County against her executor and others for the purpose of settling her estate, and on the twelfth day of November, 1937, a decree of sale was therein entered, which included “Forest Home” as a part of the property of which Alma R. Hubbard died seized and possessed. The bill of complaint herein, which was filed in open court December 2, 1937, also sought an ancillary injunction directed to the special commissioners named in the decree of sale in what may for convenience be called the “Keystone” case therein'entered on November 12, 1937, and a statement of the accounts of Nelson C. Hubbard, co-executor of the estate of W. P. Hubbard, who had died and been succeeded by Chester R. Hubbard as administrator d. b. n.

After exhaustive demurrers to the bill of complaint were overruled, answers were filed by the creditors of Alma R. Hubbard, parties in the “Keystone” cause, and, after proof taken, a decree was entered in favor of the complainant which disregarded the collateral note for forty-three thousand dollars made by the executors on January 1, 1928, restricted the amount of the recovery to that of the last semi-annual payment of sixty-five hundred dollars due under decedent’s pledge December 1, 1927, with interest from that date, and ordered “Forest Home” sold as property subject to the indebtedness of W. P. Hubbard.

There are numerous integrated issues shown of record in this matter, but the core of the controversy admittedly *437 is the question of whether the highly valuable Hubbard residential property known as “Forest Home” is to be subjected to the indebtedness of the estate of Alma R. Hubbard, who, as the specific devisee of her father, occupied it from the time of his death in 1921 until she died in 1932, and in good faith incurred substantial indebtedness under the belief of her ownership and control, her creditors having neither actual nor constructive notice to the contrary, or is to be applied to the debts of W. P. Hubbard, whose estate, though his death occurred in 1921, has not yet been settled and who was unquestionably solvent at the time of his death, his estate having been appraised, át an aggregate value of a little less than two million dollars, and that part of his indebtedness not involved in this proceeding having been practically negligible and promptly satisfied by his executors.

There are two major questions to be disposed of before the other assignments of error can be reached. These are: (a) The nature of the obligation, to the payment of which the real estate of a decedent may be subjected, and (b) whether the claim upon which recovery is sought in this matter' as described in the bill of complaint falls within that class.

The debts of a decedent at common law do not constitute a charge upon his real estate. We must, then, look to our statutes for the principles upon which the decision of this matter rests.

If the assets in the hands of the personal representative, i. e. personal property, prove to be insufficient to discharge all of the just claims against the estate, they are to be applied in the order prescribed in Code, 44-2-21, subsection eight covering “voluntary obligations.” The balance remaining unpaid after such assets have been administered in the manner prescribed is, by Code, 44-8-3, made a charge upon the decedent’s real estate provided they fall within the definition of “debts” or “lawful demands against his estate.” There can be no doubt that debts and lawful demands are exclusive of other than legal obligations, the first being for a definite amount and *438 the term lawful demand embracing unliquidated obligations.

Viewing these two sections together, we believe that it is unnecessary to say more than that, in our opinion, the language of neither section was intended by the lawmaking body to extend the obligations of a decedent’s estate so that they would include as binding, matters that, had the decedent lived, would be payable only subject to his election: Such a policy would be in direct conflict with the well established general policy of the legislature and of the courts to accord- to the property of a decedent the full protection of the law. Neither section of the statute renders enforceable against the estate of a decedent an “obligation” not legally enforceable against a living party thereto. All other provable obligations constitute valid charges against such estate.

The next query, then, is whether this “pledge,” so-called, in fact did constitute a legally enforceable contract entered into between W. P. Hubbard and Wesleyan University either at the time the pledge was signed and delivered or, treating that act as a continuing offer by W. P. Hubbard, became irrevocable when Wesleyan University entered, upon its performance.

The question of whether charitable subscriptions or voluntary pledges are enforceable at law is extremely involved and rather abstract, it being the tendency of the courts to sustain the enforceability of subscriptions of that nature as being based upon a valid consideration, not on the ground of maintainable legal reasoning, but rather on the general ground of public policy, even though the legislative bodies seem to have failed to respond to that policy, plainly discernible by the courts. The legal distinctions drawn are abstractly fine and cannot be adequately dealt with in an opinion of limited length, but as a source of reference, see 25 R. C. L. 1396; 1 Williston on Contracts (Rev. Ed.) 403, and “The Problem of Consideration in Charitable Subscriptions,” by Thomas Clifford Billig in Selected Reading on The Law of Contracts, at page 542.

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Bluebook (online)
20 S.E.2d 677, 124 W. Va. 434, 1942 W. Va. LEXIS 99, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wesleyan-university-v-hubbard-wva-1942.