Williamson v. Grider

135 S.W. 361, 97 Ark. 588, 1911 Ark. LEXIS 87
CourtSupreme Court of Arkansas
DecidedJanuary 30, 1911
StatusPublished
Cited by20 cases

This text of 135 S.W. 361 (Williamson v. Grider) 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
Williamson v. Grider, 135 S.W. 361, 97 Ark. 588, 1911 Ark. LEXIS 87 (Ark. 1911).

Opinion

Wood, J.

First. When a trust is created by a will, a court of equity has jurisdiction to construe the will. This power is incident to the jurisdiction which courts of chancery have over trusts. Frank v. Frank, 88 Ark. 5, and cases there cited; 22 Enc. PI. & Pr. 60, 61 and 62 and numerous cases cited in notes.

As early as 1842 this court held that “as chancery will compel the performance of trusts, so it 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 its establishment, management and execution.” Ex parte Conway, 4 Ark. 302.

In Dimmock v. Bixby, 20 Pick. (Mass.) 374, it is said: “Whenever a trustee doubts as to his safety and security in complying with any claim of a cestui que trust or doubts as to any other matter arising in the execution of his trust, his only prudent and safe course is to wait for the directions of a court of equity. The common course in such cases is for 'the trustee to decline acting without such a sanction, leaving the cestui que trust to bring his bill to compel the execution of the trust. But it does not seem to be material whether the trustee be a plaintiff or defendant in the suit, the object of the application to the court being in either case the same.”

; “There are few cases of doubt in which the trustees may not properly decline to act without direction of the court.” 22 Enc. PL & Pr. 63. The will under consideration created an express trust for the payment of debts. The trustees were given unlimited discretion to “mortgage, sell, or lease” the lands for that purpose. The trust ended when the debts were paid; but if not paid before the children of the testatrix arrived at legal age, the trust terminated then any way.

The estate at the time of Mrs. Grider’s death owed about $38,000. Some of this indebtedness was not due until January 1, 1906, and could not have been, paid without the consent of the creditor before that time. Debts could not be paid by simply mortgaging the estate. For mortgaging to pay some debts would only be creating other debts to pay. It would require an income from other sources to satisfy the mortgage.

The testatrix evidently meant that, if her mother and husband deemed it to the best interest of her children, they could mortgage the lands of her estate to secure the debts until they could be paid out of the income derived from leasing or selling the lands. The whole will shows that the testatrix contemplated that it would take some time for the trustees to pay her debts, and that these might not be paid until her children had arrived at legal age. But the will was silent as to how the trustees should or might manage the estate during the time that would be required to sell the lands or to mortgage and lease same. The will, too, is silent as to whether the purposes of the trust should end when any of the beneficiaries were of age, even though the debts were still unpaid. It was a matter of doubt, and a question for construction, as to whether the testatrix intended to postpone the distribution of the estate among the beneficiaries until they all became of age.

A trustee is only entitled to come into a court of equity to have a construction of the will upon some doubtful question. 22 Fnc. Pl. & Pr. 64; Heald v. Heald, 56 Md. 300; Woods v. Puller, 61 Md. 457; Hayden v. Marmaduke, 19 Mo. 403; Methodist Episcopal Society v. Harriman, 54 N. H. 444; Vanness v. Jacobus, 17 N. J. Eq. 153; Matter of Brewster, 43 Hun (N. Y.) 600; Merlin v. Blagrave, 25 Beav. 139.

But there was sufficient ambiguity about the will in the above particulars to justify the trustees in asking a court of equity to construe the will concerning them. The court, however, should have declined to entertain jurisdiction of the ex parte petition of the trustees. For the court could readily see from the petition that the trustees were seeking a construction of the will that would enable them to “annually mortgage the rents, shares, income, and profits of the plantation, mules and farming implements for the purpose of operating it in the usual and customary way.” This is the construction the court gave the will. Under this construction the trustees could postpone the payment of the debts until the youngest child became of age. Indeed, by devoting the' entire income of the estate to expenses of operating the plantation in the “usual and customary way,” the payment of the mortgage debt that existed at the time of Mrs. Grider’s death has been postponed almost till the youngest child shall have become of age. Therefore the rights and interests of the beneficiaries were affected by the construction which the trustees sought and which the court granted. They were entitled to a hearing in their own right. The application for construction of a will must be by bill of complaint, and not by petition, in order that all parties interested may have notice. 22 Enc. PI. & Pr. 64, 1203; Gibbins v. Shepard, 125 Mass. 541; Ledyard’s Appeal, 51 Mich. 623; Matter of Van Wyck, 1 Barb. Ch. (N. Y.) 565, and other cases cited in note.

The court erred in taking jurisdiction of the administration of the estate for the purpose of construing the will and in giving directions to the trustees upon their ex parte petition, and also erred in its construction of the will. Eor, as we have shown, there was no authority to the trustees to operate the plantation in the usual way. There is-no authority to mortgage crops and personal property, rents, etc., for securing advances to operate the plantation. The only power given to them is “to mortgage, sell or lease the lands” for the payment of debts. Such debts as the trustees might have to incur in order to lease the lands to the best advantage would be included by necessary implication in the power to lease. But there is no language of the will that can be construed as giving the testamentary trustees power to carry on general farming operations and a general merchandise and supply business, no matter how advantageous or profitable these might be to the estate. The court not only erred in giving this construction to the will, but further erred in virtually assuming the administration of the estate by its orders and directions to the trustees and in receiving and approving annual reports of their management. The court, having assumed such jurisdiction, further erred in not requiring of the trustees a strict accounting of all the assets of the estate in their hands showing the disbursements with vouchers therefor, and the amounts received from all sources. For “a trustee must keep clear and accurate accounts of the trust property.” Underhill on Trusts, p. 332; Perry on Trusts, 821; 28 Am. & Eng. Enc. E. 1095, and note.

But, however egregious the above errors of the court and however great the mistakes of the trustees, these errors and mistakes can not be corrected by this appeal. For McGavock, the minor, was a necessary party to this proceeding for accounting, and he was not brought into court. Moreover, counsel for appellants, in his oral argument, expressly abandoned the prayer of his amended complaint for an accounting.

Second. All the proceedings of the chancery court in the matter of the construction of the will and of the administration of the estate, under the will, and all the acts of the trustees pertaining to such administration are, however, relevant to the question whether or not the court erred in refusing to remove W. H. Grider from the position of trustee.

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Bluebook (online)
135 S.W. 361, 97 Ark. 588, 1911 Ark. LEXIS 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williamson-v-grider-ark-1911.