Woods v. Stull

30 S.E.2d 675, 182 Va. 888
CourtSupreme Court of Virginia
DecidedJune 22, 1944
DocketRecord No. 2787; Record No. 2788
StatusPublished
Cited by19 cases

This text of 30 S.E.2d 675 (Woods v. Stull) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Woods v. Stull, 30 S.E.2d 675, 182 Va. 888 (Va. 1944).

Opinion

Spratley, J.,

delivered the opinion of the court.

These two separate petitions for appeals, are based on a single record, and arise out of a proceeding instituted by C. J. Stull under Virginia Code, 1942 (Michie), section 6140a, et seq., in the Hustings Court of the City of Roanoke, Virginia, seeking a declaratory judgment in a controversy involving the interpretation of a certain provision in the last will and testament of J. Shirley Riley, deceased. The Roanoke Coca-Cola Bottling Works, Inc., James P. Woods and Thomas A. Lupton, trustees under the last will of J. Shirley Riley, deceased, the First National Exchange Bank of Roanoke, Virginia, trustee for Georgia R. Knisely, and Georgia R. Knisely were named -parties defendant. By an order of the court, process was issued and served on Woods and Lupton as executors and trustees under the will of Riley rather than merely as trustees. The remaining defendants were summoned as named. No evidence was taken in the case, and the decree appealed from was based on the pleadings and exhibits filed therewith.

The Roanoke Coca-Cola Bottling Works, Inc., will be hereinafter referred to as the corporation; the First National Exchange Bank, trustee for Georgia R. Knisely, as the bank; Georgia R. Knisely as Mrs. Knisely; and James P. Woods [892]*892and Thomas A. Lupton, as executors, or trustees, or executors and trustees, as their relation to the proceedings may appear.

The bill of complaint alleged that in September, 1932, Stull, an expert accountant, with an established and profitable business in accountancy in the city of Roanoke, Virginia, was requested by J. Shirley Riley to give up his business and accept employment with the bottling corporation; that Riley, a majority stockholder in the corporation, stated that he had absolute control of it and would guarantee the permanent employment of Stull by it as long as his services were reasonably satisfactory, at a salary of $5,000 per year, with such increase as conditions might justify; that Riley further said he would execute his will, making a provision for such employment after his death; that Stull accepted the offer, went to work for the corporation, and continued in its employment for about ten years; that at the time of his discharge, as of January 1, 1942, he was receiving $6,600 a year and an annual bonus amounting to a considerable additional sum; that Riley carried out his contract with him in full up to the time of his death, and prepared his will in such a manner as to take care of him after his death; that Riley’s will, dated February 15, 1934, filed as an exhibit, was duly admitted to probate on February 5, 1940; and that the said will contained the following provisions and restrictions to protect Stull:

Item IV

“I devise and bequeath unto my hereinafter named executors as trustees my entire holdings of the capital stock in the Coca Cola Bottling Works of Roanoke, Virginia, owned by me at the time of my death, together with any interest in or right, to purchase any other stock in said corporation,, which right to purchase I hereby authorize my trustees to exercise, to be held by them upon the following terms and conditions:
“(a) Said trustees shall have title to, custody and control of said capital stock and shall manage and vote the same [893]*893in. such manner as in their judgment is most advantageous for the beneficiaries of the trust but shall not sell or dispose of my holdings of said stock or any part thereof without the consent of my mother first had thereto provided she is living and then capable of giving such consent and provided further that said stock shall be so voted as to secure continued employment by said corporation with a reasonable salary or compensation to each so long as their services are reasonably satisfactory for the following persons: C. J. Stull, Ira T. Burns and George L. Temple, all of Roanoke, Virginia.
“(b) Subject to the restrictions above provided, said trustees are hereby vested with full power and authority from time to time to sell, encumber and convey such part or all of said stock as in their judgment is deemed advisable and upon such terms’ as they deem advisable and from time to time to reinvest the proceeds thereof in such manner as is by them deemed most advantageous for the beneficiaries of the trust, and purchasers from them or persons dealing with them shall not be chargeable with the proper application of any funds coming into their possession and constituting the whole or any part of the trust estate. In the event of sale and reinvestment of the funds derived therefrom said trustees shall not be restricted in their investment to those enumerated in section 5431 of the Code of Virginia or any amendments thereof or supplements thereto.
“(c) Said trustees shall, for the purpose hereinafter mentioned, divide the corpus of the trust estate passing to them under this item of my will into two parts of approximately equal value.
“(1) The income from one-half of said trust estate shall be paid to my said mother as long as she shall live. Upon her death the corpus of this one-half of the trust estate shall be paid over or delivered to such persons or corporation as she may by will or other written instrument nominate or appoint; or, in the event of her failure to so nominate or appoint, then to her heirs at law.
“(2) Out of the other one-half of said trust estate, said. [894]*894trustees shall set apart to the extent that said fund is sufficient property and securities of the value of One Hundred Thousand ($100,000.00) Dollars as a spend-thrift trust under section 5157 of the Code of Virginia (1930). The income from said $100,000.00 fund shall be applied by the trustees to the support and maintenance of my said sister as long as she shall live without being subject to her liabilities or to alienation by her. The income from the remainder of this one-half of- the trust fund in excess of said sum of $100,000.00 shall be paid by said trustees to my said sister as long as she shall live. Upon the death of my said sister, the entire corpus of this one-half of said, trust fund shall be by said trustees paid over or delivered to such persons or corporations as my said sister may by will or other written instrument nominate and appoint: or, in the event of her failure to make such appointment, then to my heirs at law.”

The bill further alleges that under the will of Dora A. Whitesell, a copy being filed as an exhibit, J. Shirley Riley acquired a vested remainder in 100 shares of stock in the said corporation, subject to a trust providing for the payment of a specified part of the dividends thereon to Mrs. Knisely for her life; that Mrs. Whitesell died leaving surviving her Riley and Mrs. Knisely; that subsequently Riley died leaving surviving him Mrs. Knisely, his sister; that Riley, at the time of his death, also owned 500 shares of stock in the corporation in his own right; that the provisions of item IV of the will of Riley impressed upon his entire holdings of the capital stock in the corporation a trust to insure and protect Stull in his employment so long as his services were reasonably satisfactory, and a command upon the executors and trustees of Riley’s will to so vote said stock; that not considering the interest of Riley in the 100 shares derived from his mother’s will, the trustees thereunder, James P. Woods and Thomas A. Lupton, held 250 shares of stock impressed with the trust, having delivered 250 shares to Mrs.

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Bluebook (online)
30 S.E.2d 675, 182 Va. 888, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woods-v-stull-va-1944.