West Virginia Pulp & Paper Co. v. Miller

176 F. 284, 100 C.C.A. 176, 1909 U.S. App. LEXIS 4979
CourtCourt of Appeals for the Fourth Circuit
DecidedNovember 5, 1909
DocketNo. 894
StatusPublished
Cited by9 cases

This text of 176 F. 284 (West Virginia Pulp & Paper Co. v. Miller) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
West Virginia Pulp & Paper Co. v. Miller, 176 F. 284, 100 C.C.A. 176, 1909 U.S. App. LEXIS 4979 (4th Cir. 1909).

Opinion

PRITCHARD, Circuit Judge.

In disposing of the questions involved in this suit, it becomes necessary to determine as to whether the fourth clause of the will constitutes a devise of land. The court below held that it ivas a devise of land, that as such it was invalid, and, in passing upon the demurrer in the case of Miller v. Ahrens (C. C.) 150 Fed. 644, which raised the identical questions involved in this controversy, dearly states the contention of the plaintiff below as follows:

“On behalf of the plaintiff it is contended that this devise is void: First, because the beneficiary cannot be recognized as having a legal corporate existence by the laws of this state; second, because, aside from its corporate existence, the beneficiary is uncertain: third, because the tract of land sought to be devised exceeds the quantity that may be acquired for a church or religious denomination or body; fourth, because land cannot be taken for a church by trustees by devise; fifth, because the devise is contrary to the public policy of ilie state.”

Notwithstanding the court below held that this was a devise of land to the church, and therefore invalid under the laws of West Virginia, as being against the public policy of that state, it is contended by counsel lor appellants that, under the law, all that passed to the First Spiritualist Church by the will was personal property and not real estate; it being insisted that by the terms of the will there was an equitable conversion of the real estate whereby the original form of the property was changed from realty into personalty.

The fourth clause of the will is in the following language:

“I bequeath and devise to my friend Frank Woods, óf Baltimore City, tras-tee. upon the trusts herein set forth, the following three parcels of real estate: * * * To have and to hold said three tracts of land, situate in West Virginia, unto Frank Woods, trust ee. in fee simple; upon trust nevertheless to sell and dispose of said lands, at public or private sale, upon the best, possible terms and for the best possible prices, and pay over the proceeds of sale, less taxes paid by him and expenses incident to such salo, including a reason[288]*288able commission thereon-to himself, to the First Spiritualist Church of Baltimore City, a corporation created under the laws of Maryland.”

The rule invoked by the appellants is thus clearly stated in 3 Pom-eroy’s Equity Jurisprudence, § 1160:

“The rule is therefore firmly settled that, in order to work a conversion while the property is yet unchanged in form, there must be a clear, imperative direction in the will, deed, or settlement, or a clear, imperative agreement in the contract, to convert the property; that is, to sell the land for money or, to lay out the money in the purchase of land. If the act of converting— that is, the act of selling the land, or laying out the money in land — is left to the option, discretion, or choice of the trustees or other parties, then no equitable conversion will take place, because no duty to make the change rests upon them. * * * If, by express language or by a reasonable construction of all of its terms, the instrument shows an intention that the original form of the property shall be changed, then a conversion necessarily takes place.”

There was an express direction in this instance that the land should be sold in order that the proceeds of such sale might be applied to the purposes designated therein.

The case of Brown et ux. v. Miller’s Ex’rs et al. (decided by the Court of Appeals of West Virginia) 45 W. Va. 211, 31 S. E. 956, is very much in point. In that case the husband, by his will, devised a tract of land to his wife for life, and directed that at her death it should be sold and the proceeds divided among the children. A daughter, Mary J. Brown, owning her tenth, and a share which she had) purchased from another child, and her husband, who had purchased interests, so that they owned one-half, filed a bill asking’ that the tract be partitioned in kind, and not sold as directed in the will, and stated that two sons of the testator, who were executors, refused to allow a partition, and were going to sell the land, and prayed that they be enjoined from selling. The executors demurred to the bill, and upon consideration of the same the court held that the plaintiffs had no right to partition, refused the injunction, and dismissed the bill. The plaintiffs appealed. The Supreme Court, in disposing- of the matter, said:

“This is a bill to enforce what is called an ‘election.’ Have the plaintiffs a right to an election? It is well known that where a will or deed directs land to be sold and converted into money, or money to be invested in land, it operates as a conversion, the land assuming the character of personalty, and the money that of land, before actual conversion, and it passes to those taking under the will or deed as personalty or realty, according as the conversion is from the one to the other. Pratt v. Taliaferro, 3 Leigh, 419. But the party entitled to the beneficial interest may frustrate actual conversion by the exercise of the right of election, under circumstances. Being entitled to the subject, he may take the land or money in its original shape. That excellent late work, American & English Decisions in Equity, in volume 2, in the case of Ingersoll’s Estate, at page 76, and elaborate note, fully discusses the subject. * * * .The will having thus directed a sale and conversion into money, every child had a right to have a sale, and no one could exercise this right of election without the affirmative consent of all the others. Harcum’s Adm’rs v. Hudnall, point 2, 14 Grat. 369, 376; 2 Am. & Eng. Dec. Eq. 95; 2 Lom. Ex’rs, 294. So, without saying whether or not other provisions of this will as to pecuniary legacies would demand a sale, and deny a right of election and partition in kind, the want of consent of all, which must, but does not, appear-, will deny partition in kind.”

[289]*289Also, in the cases of Board of Trustees v. Blair, 45 W. Va. 823, 32 S. E. 203, and Lynch v. Spicer, 53 W. Va. 427, 44 S. E. 255, the same doctrine is announced.

In the case of Harcum v. Huduall, 14 Grat. (Va.) 369, this question was before the Court of Appeals of Virginia, and, in referring to the rule relied upon by appellant’s counsel, the court said:

“It is a familiar doctrine that land articled or devised to be sold and converted into money, or money articled or bequeathed tO' be invested in land, shall assume the very character of the property into which it was (o be converted: and. if the now form thus impressed upon it remain unchanged, it will pass to such of the representatives of those who take under the will as would be entitled to it as property of the character into which it was to be converted. And land thus directed to be converted into money will pass as money, although the actual conversion by a sale may not yet have been effected; and, if the will directing the conversion also dispose of the proceeds, the gift of the proceeds is to be considered as a gift of personal estate.”

The rule is thus stated in 2 Story’s Equity jurisprudence, where it is said:

“Another class of cases illustrating the doctrine of implied trusts is that which embraces what is commonly called the equitable convex-sion of property.

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Bluebook (online)
176 F. 284, 100 C.C.A. 176, 1909 U.S. App. LEXIS 4979, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-virginia-pulp-paper-co-v-miller-ca4-1909.