Wilmington Trust Co v. Grier

161 A. 921, 19 Del. Ch. 34, 1932 Del. Ch. LEXIS 41
CourtCourt of Chancery of Delaware
DecidedJuly 27, 1932
StatusPublished
Cited by11 cases

This text of 161 A. 921 (Wilmington Trust Co v. Grier) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilmington Trust Co v. Grier, 161 A. 921, 19 Del. Ch. 34, 1932 Del. Ch. LEXIS 41 (Del. Ct. App. 1932).

Opinion

The Chancellor :

Whether a power has been executed by the donee thereof is a question of intention. If the intention does not affirmatively appear, it is considered that [38]*38the donee elected not to execute the power. Lane v. Lane, 4 Pennewill, 368, 55 A. 184, 64 L. R. A. 849, 103 Am. St. Rep. 122; Security Trust & Safe Deposit Co. v. Ward, 10 Del. Ch. 408, 93 A. 385; Equitable Trust Co. v. Paschall, et al., 13 Del. Ch. 87, 115 A. 356. Such is the rule in this State. In some jurisdictions, however, the rule is otherwise—that is to say, an intention to exercise the power is to be presumed in the absence of some appearance to the contrary. Massachusetts supplies the leading decisional authority for the view that the presumption is in favor of an intent to exercise a power, and that an affirmative showing is necessary to rebut it. Statutes have been enacted in some of the states and in England which embody to a more or less degree the same view as a rule of statutory law.

Where there is no statute affecting the question, however, the rule adopted by the courts of this State is, I believe, in accord with the very decided weight of authority. No statute has been enacted in this State which undertakes in any way to alter the effect of the Delaware decisions above referred to, and the rule announced by them remains therefore in full force and vigor.

When it is said however that a power is deemed not to have been exercised unless an intention to exercise it is affirmatively disclosed, it is not meant that such intention needs to be made manifest in any given way. The classic categories into which the cases may be cast that illustrate the methods by which an intention to execute a power may be disclosed are stated by Mr. Justice Story in Blagge v. Miles, 1 Story 426, 3 Fed. Cas. page -559, No. 1, 479, to be: “(1) Where there has been some reference in the will or other instrument, to the power; (2) or a reference to the property, which is the subject on which it is to be executed; (3) or, where the provision in the will or other instrument, executed by the donee of the power, would otherwise be ineffectual, or a mere nullity; in other words, it would have no operation, except as an execution of the power.” But [39]*39the same learned judge further in effect observed in the cited case that it is not absolutely necessary that a given case shall fall into one of these classes in order that an intention to execute a power may be evidenced. “If a case of clear intention should arise,” said he, “although not falling within the predicament of these classes, it must be held, that the power is well executed, unless courts of justice are at liberty to overturn principles, instead of interpreting acts and intentions.” The principles which he insinuates that judges are not at liberty to overturn in the process of ascertaining the intention of the donee of a power with respect to its exercise, I think are those principles generally by which courts are guided in the broad undertaking of seeking to derive the intention of one who executes an instrument, for at a later point in his opinion he says—“But then this very statement leaves it open to inquire into the intention under all the circumstances; which seems to me to be the true and sensible rule upon the subject; and when that intention is thus once ascertained, it governs.”

We are then entitled to look to all the circumstances, and among these circumstances certainly those which are disclosed by the instrument itself are of prime importance. This is but another way of saying that in asking whether a will constitutes an exercise of a power, we are entitled to look at the whole will in all of its parts in order to see if there are any elucidating features which throw light on the particular question of intention in its relation to the power. To do this is to do no more than to apply the general rule applicable to the interpretation of wills. Numerous cases might be cited where such an exploring of the whole will has been engaged in for the purpose of searching for evidence bearing on whether an intention to exercise a power was entertained by "the testator. A striking case in this connection is Hunloke v. Gell, 1 Russ. & M. 515, 39 Engl. Rep. 198. In that case the testator had a power of appointment under a marriage settlement, and the question [40]*40was whether his will executed the power. There was no statement in the will that it was made in execution of the power. The testator appears to have possessed a considerable estate of his own laying out of account that over which he had a power of appointment under the settlement. If I read that case aright, the Master of the Rolls, Sir John Leach, concluded from an examination of the whole will that the testator had the settlement in mind for, while no express intent to execute the power conferred by the settlement was expressed, yet some of the dispositions in the will seemed to be framed so as to blend into the scheme of the settlement, and therefore it was to be inferred that the testator intended to execute the power which the settlement created. And Blagge v. Miles, supra, may be cited as a leading American authority establishing the same principle of interpretation, for in that case it was held, that from the circumstance that the testatrix specifically disposed of land in Connecticut to which she had no right except by virtue of a power, an intention was to be inferred that other property subject to the power should pass under a general devise in which neither the power nor the subject of it was mentioned.

Now examining the will of James Gregg in its entirety, is it not evident from the will itself, without regard to the other extraneous circumstances having to do with the condition of his estate, that he intended his will to operate as an execution of the power conferred by the trust deed to appoint the two-thirds of the proceeds? This much is plain —he certainly had the trust deed in mind when he wrote his will. The second item, wherein he mentions the provision made by the trust deed for his wife, shows that. But the seventh item shows it in an even more positive way. By that item he treats the trust property, as to two-thirds of the proceeds of which he had the power of appointment, as real estate belonging to him. This of course was an erroneous point of view, for the only right he had in it was [41]*41to receive two-thirds of the rents during life and to appoint by will the persons who should take two-thirds of the proceeds derived from its sale. So far as he was concerned the real estate which he had formerly owned and conveyed in trust was regarded in law as converted into personalty.

When the testator died the real estate had not been sold. He, evidently thinking of it still as realty, undertook by the seventh item to authorize its sale and conversion. Yet he had thirteen years earlier directed its conversion into personalty after the death of himself and wife. His testamentary direction of a sale was therefore in legal contemplation a mere gesture. But language in a will which as a legal proposition is vain of purpose and ineffective, may be legitimately considered in the endeavor to discover the intent which the will seeks to express. Wilmington Trust Co. v. Houlehan, et al., 15 Del. Ch. 84, 131 A. 529.

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Bluebook (online)
161 A. 921, 19 Del. Ch. 34, 1932 Del. Ch. LEXIS 41, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilmington-trust-co-v-grier-delch-1932.