Opinion · Supreme Court of the United States

Stanley v. Colt

72 U.S. (5 Wall.) 119

Type
Opinion
Court
Supreme Court of the United States
Jurisdiction
Federal
Date
1867-02-18
Topic
real-estate

72 U.S. 119 (____) 5 Wall. 119 STANLEY v. COLT. Supreme Court of United States. *124 Messrs. W.M. Evarts and C.E.

Citator

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Cited by
116 opinions

Headnotes

  1. Estate, Gift & Trust Law — Conditions vs. Trust Limitations — Construction Whether words in a devise operate as a common law condition — the breach of which works a forfeiture, defeats the devise, and lets in the heirs — or as regulations for the management of the estate and an explanation of the terms of management, is not determined from any particular expression in the devise, but from the whole instrument.
  2. Estate, Gift & Trust Law — The Word "Provided" — Construction The word "provided," though an appropriate word to constitute a common law condition, does not invariably and of necessity do so; it yields to the intent of the party gathered from an examination of the whole instrument, and may be taken as expressing a limitation in trust or a covenant rather than a condition.
  3. Estate, Gift & Trust Law — Fiduciary Duty Where the possession, superintendence, and direction of devised estate, and the letting, leasing, and management of it, are given to trustees empowered to perpetuate their authority indefinitely, and the only active duty of the beneficiary society is to receive the rents and profits for its own use and benefit, the legal estate is vested in the trustees and not in the society.
  4. Estate, Gift & Trust Law — Fiduciary Duty It is unnecessary that a testator expressly devise the legal estate to trustees or describe its quantity; the law examines the powers conferred and the duties required of them and infers that the testator intended to give them such a legal estate as would enable them to execute those powers and discharge those duties, and whenever a trust is created a legal estate sufficient for its execution will, if possible, be implied.
  5. Estate, Gift & Trust Law — Trusts Powers are never imperative and leave the act to be done at the will of the party to whom they are given, whereas trusts are always imperative and obligatory upon the conscience of the party entrusted.
  6. Estate, Gift & Trust Law — Fiduciary Duty Trustees who hold exclusive possession and control of trust property, subject to the limitations and restrictions annexed to its enjoyment, possess all the power and dominion of an owner and are bound to exercise the care, attention, skill, and diligence of a prudent and vigilant owner over his own property, including renting the property, collecting the rents, paying them to the beneficiaries, protecting the possession, preventing waste, seeing that taxes are paid, and doing all other legal acts for the well-ordering and management of the estate.
  7. Estate, Gift & Trust Law — Jurisdiction of Equity over Charities Charities are under the perpetual guardianship of the sovereign power; courts of chancery have jurisdiction over charitable trusts and will intervene to correct abuses or misuse by trustees or agents and to enforce the founder's charitable purposes, and may direct the sale of charity lands and the investment of the proceeds in other funds when lapse of time, changes in the condition of the property, or circumstances make alienation prudent and beneficial to the charity, taking care that no diversion of the gift be permitted.
  8. Estate, Gift & Trust Law — Alienation of Charity Property — Policy Lands given to charitable uses are not thereby rendered inalienable; they are set apart as a fund to be used in a provident and judicious manner to promote the object of the gift, which may require a sale where the property has become unproductive but can be made productive by sale, and a statute rendering all charity lands forever inalienable, or empowering the donor to render them so by conditions against alienation, would be contrary to public policy.
  9. Estate, Gift & Trust Law — Connecticut Act of 1702 — Construction The Connecticut statute of charitable uses, first appearing among the public acts in the revision of 1702 and substantially a re-enactment of the statute of Elizabeth, exempted charitable grants from the operation of the English statutes of mortmain, confirmed existing grants to the specified uses, and authorized future grants to the same uses, but was not intended to render lands so granted forever inalienable.
  10. Estate, Gift & Trust Law — Connecticut Act of 1702 — Construction as to Sale The provision that lands given to charitable uses "shall forever remain to the uses to which they have been or shall be given or granted, according to the true intent and meaning of the grantors, and to no other use whatever" is not to be construed as meaning that the land should never be sold or as conferring on the donor power to impose such a restriction; it declares that the fund shall never be diverted from the use to which it is dedicated, subject to such changes from time to time as the interest of the charity may require.
  11. Tax Law — Exemption — Charitable and Religious Uses Land granted to an ecclesiastical society is not, by that fact alone, exempt from taxation under the statute of 1702; the statute requires the grantor to dedicate the property to one or more of the particular uses specified, and the general character and corporate powers of an ecclesiastical society do not imply such a dedication, since those powers could later be essentially changed by the legislature.
  12. Tax Law — Exemption — Declaration of Use by Grantor The statute requires the grantor himself to declare the use; the law will not supply the declaration, and a grant of land to an ecclesiastical society with no declaration of use other than what may be implied from the character of the grantee is not within the statute because it is not a dedication or sequestration of the land to any of the uses the statute specifies.
  13. Estate, Gift & Trust Law — Conditions in Restraint of Alienation A condition in restraint of alienation is not a valid condition the breach of which would work a forfeiture under the Connecticut statute of 1702, because the statute does not authorize a grantor or devisor to impose such a condition; to establish that it does, one must show that the statute repealed the English statutes of mortmain and empowered a proprietor of land to sequester it forever, render it inalienable forever, and take it out of commerce forever.
  14. Estate, Gift & Trust Law — Construction — Intent from Whole Instrument In construing a will the court seeks to discover the testator's intention not by considering what legal force a particular word might have in the abstract, but by looking at all the provisions of the will and the connection in which the word is used, and from an examination of the whole ascertains the sense in which the word was probably employed.
  15. Estate, Gift & Trust Law — Consistency of Limitations Where a will contains multiple limitations, each must be construed consistently with the others.
  16. Estate, Gift & Trust Law — Devise on Condition Construed as Trust A devise on condition may, under modern construction, be construed as a devise in fee upon trust rather than as a strict common law condition, so that instead of the heir taking advantage of a broken condition, the cestui que trust may compel observance of the trust by suit in equity; where limitations in a devise are regarded as regulations to guide trustees and as explanatory of the terms on which the devise was made, they create a trust that those taking the estate are bound to perform, and on breach a court of equity will interpose and enforce performance.
  17. Remedies — Remedies for Breach of Trust Where a trust is created, the estate is preserved and devoted to the objects of the testator's charity or bounty even in case of a violation of the limitations annexed to it: a fraudulent or unfaithful trustee will be removed and another appointed in his place, a diversion of the trust fund will be arrested, and an account will be compelled for any waste or improvident use of it.
  18. Estate, Gift & Trust Law — Effect of a Broken Common Law Condition A strict common law condition, if broken, forfeits the estate, permanently deprives the beneficiary of the gift, revests the first estate in the heirs, avoids all intermediate charges or incumbrances, and leaves the heirs entitled free and clear of all expenditures and improvements laid out on the property.
  19. Estate, Gift & Trust Law — Words Following an Express Condition In construing a devise containing an express condition in terms, the court looks through the whole will and regards the intent of the testator, relying on words following the condition as explaining away the strict common law meaning of the term and as importing a meaning inconsistent with a strict interpretation.
  20. Estate, Gift & Trust Law — Single Clause Containing a Prohibition and a Direction Where a clause prohibits sale and also enjoins a duty to lease and manage the estate, the prohibition and the injunction cannot be separated so as to treat the prohibition as a condition and the injunction as a limitation in trust; the clause must be construed consistently, and a provision directing trustees to lease the estate and apply the rents to the use of the beneficiary society, contained in the same clause as a prohibition on sale, is a limitation in trust rather than a condition.
  21. Estate, Gift & Trust Law — Devisee's Lack of Power to Sell — Forfeiture Where a will devises property to a society with a provision against sale, the society cannot sell the devised property without violating the condition upon which it holds the property and incurring forfeiture of title.
  22. Estate, Gift & Trust Law — Conditions Subsequent — Intent and Effect A devise of an estate upon condition subsequent is determined both by the obvious intent of the testator and by the legal effect of the words used, and a breach of the condition destroys all right of the society in the property.
  23. Estate, Gift & Trust Law — Technical Words — Presumption of Legal Sense Where a testator uses technical words, he is presumed to employ them in their legal sense unless the context clearly indicates the contrary; the word "provided" is a technical word whose legal meaning is settled, and a devise to a grantee "provided" he should or should not perform certain acts is a devise upon a condition subsequent, the estate vesting in the grantee subject to being divested if he does or does not perform the acts specified.
  24. Real Property Law — Estates on Condition Subsequent — Possibility of Reverter A grant of a fee on condition creates an estate of a base or determinable nature in the grantee, leaving the right or possibility of reverter vested in the grantor; the possibility of reverter, being a vested interest in real property, is not liable to the objection of violating the rule against perpetuities in the same degree as other conditional and contingent interests of an executory character, may at all times be released to the person holding the estate on condition or his grantee — whereupon an absolute and indefeasible title vests — and does not fetter or tie up estates so as to prevent alienation.
  25. Estate, Gift & Trust Law — Charitable Devises — Perpetual Restriction Against Sale A devise to a charity providing that none of the land shall ever be sold may be made in perpetuity; such a direction makes no perpetuity in the sense forbidden by law, but only a perpetuity allowed by law and equity in the case of charitable trusts.
  26. Constitutional Law — Legislature — Power to Alter the Terms of a Will No state legislature has power to alter the express conditions of a will; a special act dispensing with the performance of a condition of a devise is void and unconstitutional, and if the legislature can dispense with one condition of a devise it can dispense with any.
  27. Constitutional Law — Enabling and Healing Acts Distinguished Acts enabling or healing, such as those authorizing the sale of the lands of minors or lunatics, are different from an act altering or dispensing with the express conditions of a will, because in such cases the legislature merely removes a personal disability.
  28. Constitutional Law — Legislative Power The commonwealth as parens patriae cannot rightfully interfere with property dedicated to charity unless there has been an escheat to it, in which case it becomes absolute and beneficial owner; where a person has a claim to property ineffectually dedicated to charity, the commonwealth has no prerogative right to decide that claim and dispose of the property.
  29. Constitutional Law — Due Process A state constitutional provision declaring that no person shall be deprived of property but by due course of law prohibits the taking of property without compensation and without notice or citation to the affected parties; a conditional or contingent interest — such as a right to enter upon and hold property for breach of a condition — is property of which the holders cannot be deprived by legislative act without due course of law.
  30. Real Property Law — Contingent Interests — Descendibility A contingent interest or right that is more than a naked possibility, being an interest in the estate though contingent, is descendible and passes to the residuary devisee.
  31. Constitutional Law — Contracts Clause By the law of 1702 the State of Connecticut made a contract with all devisors of lands for the charitable purposes mentioned in that act, and the last clause of the act — exempting the property named from taxation — created a contract with all persons disposed to give their property to those religious and charitable purposes that it should be forever exempted from taxation; a legislative act impairing that exemption is contrary to the Contract Clause of the United States Constitution.
  32. Constitutional Law — Contracts — Charitable Gifts as Contracts A charitable gift made for a purpose the donor deems of inestimable value, the stipulated consideration being the perpetual application of the fund to that object in the mode prescribed by the donor, constitutes a contract; the legislature may not substitute its will for the will of the donors, and a state act that does so, even if advantageous to the institution, is subversive of the contract on the faith of which the property was taken.
  33. Statutory Interpretation — Re-enacted Statutes — Adoption of Prior Construction A statute that re-enacts the statute of Elizabeth concerning charitable uses should upon general principles receive the same construction, and where the legislature of the colony and of the state has consistently exercised jurisdiction over the sale of charity lands in the manner exercised in England by the Court of Chancery, that construction governs.
  34. Estate, Gift & Trust Law — Requirement of Public Authority Assent to Sale It is a rule of public policy to require trustees of a charity to obtain the assent of the public authority exercising guardianship over charities before a sale of charity estates, in order to protect the charity — and thus the cestui que trust — against imprudent sales; ordinarily there is no jurisdiction in the courts to authorize a sale of charity property in the absence of statutory authority.
  35. Remedies — Legislative and Judicial Power to Cut Off Remote Contingent Interests A mere possibility of reverter is so little regarded at common law that it could not be conveyed or devised, and the legislature has no less power than a court of chancery to unfetter estates by cutting off remote and contingent interests; laws affecting contingent rights in property — such as a contingent right of dower or curtesy, the husband's contingent right in the choses in action of his wife, the possibility of reverter in land taken for a city street, or the conversion of an estate in fee tail into a fee simple with authority to sell — have never been held beyond the scope of legislative power.
  36. Constitutional Law — Legislative Power Even assuming that the power of the legislature is so far limited by general principles of law that it cannot, by any act of legislation, destroy or impair a vested and beneficial right in property, it does not follow that every act affecting a remote and contingent interest is void; to establish that an act of the legislature is void, the plaintiffs must maintain that legislative power is so limited that any act which would destroy or impair not a vested and beneficial interest but the most remote and contingent interest is invalid.
  37. Constitutional Law — Legislative Power Under the charter of Charles II, which was the organic law of Connecticut when a will imposing a condition was made, the General Assembly had the same power of legislation as the Parliament of Great Britain, so that a sale by authority of law would not work a forfeiture; a testator is presumed to have made his will and imposed a condition in subordination to the power of the legislature to order a sale, and if the legislature had power to authorize a sale and control the testator's intention when the will was made and the trusts took effect, it possessed the same power when it acted, unless deprived of it in the meantime by a constitutional restriction.
  38. Constitutional Law — Judicial Review Courts will not declare an act of the legislature void unless it is a clear and unequivocal violation of the Constitution; it is for the party asserting invalidity to show that a provision of the United States Constitution or of the state constitution prohibited the legislature from exercising the power in question and that the act was therefore void.
  39. Constitutional Law — State Constitutions as Limitations on Power The constitution of the State of Connecticut is not a grant of legislative power but merely a limitation imposed upon pre-existing power.
  40. Constitutional Law — Vested and Beneficial Rights — Distinction from Remote Interests For a right of property to be within the protection against legislative taking, it must not only be a vested right, as distinct from a mere possibility, but must also be a beneficial interest; where the legal title vested in trustees, the heirs could have no beneficial interest in a breach of condition by the trustees, and the only gain from an entry for condition broken would be the naked right to hold the legal estate for the beneficiaries until a court of chancery appointed new trustees, and the legislature could control such an interest either before or after breach.
  41. Estate, Gift & Trust Law — Tutelary Legislative Authority — Parens Patriae The legislature may authorize the sale of the lands of infants, idiots, lunatics, and others who are not sui juris, in the exercise of a tutelary authority as parens patriae, and that power must rest in the legislature, that body being alone competent to act as general guardian and protector of those who are incompetent to act for themselves; the power to authorize the sale of a charity's lands derives from the same source and rests upon the same principles.
  42. Estate, Gift & Trust Law — Sanctity of the Charitable Fund The state may not divert a charitable fund from the use to which it is given, but it may authorize such modal changes in the property from time to time as may be found necessary and proper, and it is not in the power of a donor to a charity so to fetter the state as to prevent the sovereign power from authorizing a lawful disposition of the estate given to the charity, its ward, when it is clearly made to appear that the disposition will be for the interest of the charity.
  43. Estate, Gift & Trust Law — Sale Without Authority — Breach of Trust Trustees are prima facie guilty of a breach of trust in selling the estate of a charity without authority derived from the state.
  44. Statutory Interpretation — Charitable Use Statutes — Nature of Enactment The notion that any general law of the state is in the nature of a compact between the state and the citizen is erroneous; the statute of 1702 created nothing in the nature of a compact with anyone and does not differ from ordinary statutes specifying what should or should not be subject to taxation.
  45. Estate, Gift & Trust Law — Fiduciary Duty A construction of a will importing a condition whose breach forfeits the devise is not well founded where the will does not support it; a condition requiring forfeiture of an estate will not be implied from directions to trustees where the testator's intent that the beneficiary forfeit the estate upon the trustees' disobedience cannot be maintained with any plausibility.