Wood v. . Brown

34 N.Y. 337
CourtNew York Court of Appeals
DecidedJanuary 5, 1866
StatusPublished
Cited by41 cases

This text of 34 N.Y. 337 (Wood v. . Brown) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wood v. . Brown, 34 N.Y. 337 (N.Y. 1866).

Opinion

Morgan, J.

, When the suit was commenced, the defendant had not entered upon his duties, as. trustee in respect to the residue of the estate, for at that time the executors had' not succeeded in collecting-in the estate; nor was. it', then known what the residue would be. Indeed, the executors had not then ascertained the debts, so that they could pay the legacies without, taking- security from the- legatees, for reimbursement, in case of a deficiency of assets to. pay debts and legacies. Their duties as executors, and as trustees for the residuum of the estate, were entirely different. As executors, it was their duty to collect in the property, to pay the debts and general legacies, and then, on ascertaining the residuum, join their associate trustees in the investment and management of the trust estate, in accordance with the directions of the. will. So far as the plaintiff sought to remove ' the defendant as trustee under the will, in respect to the residuum of the testator’s estate, there is no ground upon which he was entitled to succeed.

*340 Whether a court of equity, independent of the power conferred upon it by the Eevised Statutes, could revoke the defendant’s letters, may admit of great doub|.. It is supposed by the appellant’s counsel that the power is vested in .the Surrogate’s Court, and that a court of. equity, will decline jurisdiction when the parties have a statutory remedy, at law. Without stopping to inquire how far this is true, I will observe, that an examination of the statute will show that the surrogate had no . authority to revoke the letters .testamentary granted to the defendant in. this case for .any of the causes specified in the report of the referee. .The causes which authorize the surrogate to revoke letters testamentary' are mentioned in the statute (2 R. S., 85), and do not include this case.

As the defendant had not discharged his duties as executor, and taken upon himself the character of trustee, it 'is difficult to maintain the authority of the Supreme Court to remove him for the misconduct specified in the report, of the referee. The cases in which a írosle may be. removed are specified in our statutes.

By § 70 of 1 R. S., p. 730, “upon the petition or bill of any person interested in the "execution of a trust, and under such regulations as for that purpose shall be established,, the Court of Chancery may remove any trustee who shall violate, or threaten to violate, his trust, or who shall be insolvent, or whose insolvency shall be apprehended, or who, from any other cause, shall be deemed an unsuitable person to execute the trust.” By section 71, authority is given to the chancellor to appoint a new trustee, and when, in consequence of such removal, there shall be no acting trustee, the court, in its discretion, may appoint new trustees, or cause the trust to be executed by one of its officers under , its direction. By section 72, this authority is confined to cases of express' trusts only. The executors, being authorized by the will to sell lands for the purpose of- paying debts, and legacies, may, in this réspect, be regarded .as trustees of an express trust. (1 R. S., 728, § 55.)

*341 But the referee did not find, as a matter of fact, that the defendant was guilty of any misconduct in the execution of his trust in respept to the sale of the testator’s real estate; and I am of-opinion, therefore, that it was not a case for invoking the authority of a court of equity to remove him" from his trust; under the provisions of the Revised Statutes. (In the matter of the petition of Van Wyck, 1 Barb. Ch., 565.) But when his duty as an executor has terminated, and he has befcome simply a trustee, it is- believed that a court of equity may remove him under the power conferred upon that court by the Revised-Statutes; (See Leggett v. Hunter, 25 Barb., 82.) Conceding that the statutes of this State did not confer jurisdiction upon either the surrogate or the chancellor to remove the • defendant from his ‘trust, as executor, upon any of the grounds of misconduct specified in-the'report of the referee, the question'remains, whether the Supreme Court,, by virtue of its general authority - over , executors and trustees, may interfere to regulate the conduct of the defendant, and give him direction as- to the manner in which he shall perform his duties as executor. For the decree, as modified by the General Term,'does not undertake to go beyond this; arid so far as the original decree undertook to remove the defendant from his trust as executor, the error in that respect, if-it was an error, has been'corrected.

The complaint may be said to entitle the plaintiff to the relief finally granted to him, without being sufficierit to entitle him tó a decree removing" his có-execútor from his trust.

• It is not to be dismissed' because it asks for more than the court is authorized to grant, if, upon the facts "stated and" found by the referee, the plaintiff is entitled to the relief awarded to him by the final judgment.

As to trustees, there can be no question as to the. authority of the Supreme Court to remove them for- any misconduct which endangers the trust property. (Story’s Eq., § 1289.) And "this jurisdiction - exists and will be equally enforced, whether the instrument creating the trust does or does not contain a -power-to appoint new trustees; (Hill, on T., 191.) *342 The court will adapt its relief to the exigencies of the case, and having first removed the trustee, will then proceed to supply the vacancy if necessary. (Id.)

This relief has been granted when the trustees could not discharge the trust through disagreement among themselves. (Id., citing Bagott v. Bagott, 10 Law Jour., N. S., ch. 116; Story’s Eq., § 1288.)

But the difficulty still exists, that a mere executor is not properly to be considered a trustee within the meaning of the statute, or within the meaning of the rule of a court of equity, conferring authority upon that court to interfere with the execution of his trust, by removing him and appointing others to take his place. But when the trusts under a will, vested in the executor, are distinguishable from those attached to his office, the court may dismiss him as to the former and not as to the latter. (Craig v. Craig, 3 Barb. Ch., 76; Matter of Wordsworth, 2 id., 381.) It is important, therefore, to consider whether the court may interfere in such a case, not to remove the executor, but to regulate his conduct and direct the mode in whicli he shall cooperate with his co-executor in discharging his duties as executor under the will.

And, in my opinion, the surrogate may interfere, either at the suggestion of the co-executor or of the creditors and legatees, in case the defendant refuses to perform any duty which the law casts upon him and which is necessary to be done to preserve the estate. (2 R. S., 4th ed., 277, § 57; Act of 1837.)

The surrogate is authorized to direct and control the conduct and settle the accounts of executors and administrators, and to administer justice in all matters relating to the affairs of deceased persons, according to the provisions of the statutes of this State. (2 R. S., 220, § 1, subs. 3 and 6.) This language is comprehensive enough to reach the case at bar.

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Bluebook (online)
34 N.Y. 337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wood-v-brown-ny-1866.