Opinion · Supreme Court of the United States

McArthur v. Scott

McArthur v. Scott, 113 U.S. 340 (1885)

Type
Opinion
Court
Supreme Court of the United States
Jurisdiction
Federal
Date
1885-03-02
Topic
general

Mr. Justice Gray delivered the opinion of the court. This case presents three principal questions : First. "Whether the equitable estate in fee. which Duncan McArthur by his will undertook to devise to his grandchildren, children of his five surviving children, was vested or contingent ? Second.

Citator

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Cited by
254 opinions

Headnotes

  1. Estate, Gift & Trust Law — Vesting of Remainders Language in a will directing land to be conveyed to or divided among remaindermen at the expiration of a particular estate is presumed, unless clearly controlled by other provisions, to refer to the commencement of enjoyment by the remaindermen rather than to the vesting of title in them. McArthur v. Scott, 113 U.S. 340 (1885)
  2. Estate, Gift & Trust Law — Fiduciary Duty Where a testator devises lands and personal property to executors and their successors in trust, with income to be divided among his children and grandchildren until the youngest grandchild reaches twenty-one, and then the estate to be divided among the grandchildren per capita in fee, the executors take the legal title in fee to hold until final division, and the trusts are imposed on them in their capacity as executors. McArthur v. Scott, 113 U.S. 340 (1885)
  3. Estate, Gift & Trust Law — Vested Remainders Subject to Open Under such a will, all grandchildren take equitable vested remainders, subject to open to let in grandchildren born after the testator's death, and subject to being divested only as to any grandchild who dies before the expiration of the particular estate leaving issue, by an executory devise over to that issue. McArthur v. Scott, 113 U.S. 340 (1885)
  4. General — Perpetuities — Validity Under Statute (Ohio Act of 1811) Under the Ohio statute of December 17, 1811, which permits no estate in lands to be granted by deed or will except to persons in being or to the immediate issue or descendants of persons in being at the time of the deed or will, a devise of a vested remainder to the testator's grandchildren, with an executory devise over of the share of any grandchild who dies leaving children before the youngest grandchild comes of age, to the children of that deceased grandchild, is valid at least as to the grandchildren, including those born after the testator's death. McArthur v. Scott, 113 U.S. 340 (1885)
  5. Remedies — Necessary Parties All persons interested in a suit in equity whose rights will be directly affected by the decree must be made parties, unless they are too numerous, out of the jurisdiction, or not in being; in every case there must be such parties before the court as to insure a fair trial of the issue on behalf of all. McArthur v. Scott, 113 U.S. 340 (1885)
  6. Remedies — Necessary Parties (Trustees) A trustee who has large powers over the trust estate and important duties to perform with respect to it is a necessary party to a suit by a stranger to defeat the trust. McArthur v. Scott, 113 U.S. 340 (1885)
  7. Estate, Gift & Trust Law — Probate A court of probate has inherent power, without specific statutory authority, to grant administration limited to the defense of a particular suit.
  8. Remedies — Dispensing with Parties Where parties necessary to a suit are too numerous, out of the jurisdiction, or not in being, they may be dispensed with as parties.
  9. Estate, Gift & Trust Law — Probate A decree annulling the probate of a will is absolutely void as against grandchildren born afterward where no executor, trustee, or administrator with the will annexed was made a party to the suit.
  10. Estate, Gift & Trust Law — Rights of Unborn Remaindermen Against Heirs and Purchasers Grandchildren born after a decree annulling probate, as against whom the decree is void, are entitled to recover their shares under the will against heirs and purchasers for value without actual notice of any adverse title.
  11. Federal Courts & Jurisdiction — Diversity of Citizenship Such grandchildren may bring suit in the Circuit Court of the United States if the parties are citizens of different States.
  12. Estate, Gift & Trust Law — Construction of Doubtful Clauses Where an instrument is open to two constructions, one consistent with law and the other repugnant to law, or one that gives effect to the whole instrument and the other that destroys a part, the construction consistent with law and preserving the whole instrument must be adopted. Pruden v. Pruden, 14 Ohio St. 251
  13. General — Perpetuities — Construction to Avoid Remoteness To prevent a perpetuity, a devise to grandchildren who may die before distribution may be construed as an estate tail. Allyn v. Mather, 9 Conn. 114; Doe v. Cooper, 1 East 229; Humberston v. Humberston, 1 P. Wms. 332
  14. Estate, Gift & Trust Law — Equitable Estate as Executory Trust The grandchildren's interest is not a remainder — neither a vested legal remainder upon the legal estate given to the trustees nor an equitable remainder — but an equitable right, upon the happening of a particular event (the arrival at majority of the youngest grandchild after the children are dead), to have the lands partitioned and conveyed to them in fee simple. Holt v. Lamb, 17 Ohio St. 374, 387; Phipps v. Ackers, 9 Cl. & Fin. 583
  15. Estate, Gift & Trust Law — Nature of Devise to Grandchildren The devise creates a legal estate in fee simple in the trustees and an equitable estate in fee, to commence in the future, in the grandchildren living at the testator's death, subject to open and let in after-born grandchildren, with a devise over of the share of any grandchild dying leaving issue to that issue. Phipps v. Ackers, 9 Cl. & Fin. 583; Jeefers v. Lampson, 10 Ohio St. 101; Linton v. Laycock, 33 Ohio St. 128; Fox v. Fox, L.R. 19 Eq. 286; Doe v. Considine, 6 Wall. 458
  16. General — Perpetuities — Validity Where Devise Must Vest Within Period A devise is valid only if it must necessarily vest, if at all, within twenty-one years after lives in being, counting a child en ventre sa mere as in being; a devise that necessarily vests within that period is good regardless of whether the same sentence, clause, or subject matter contains other devises that are too remote, or whether the identical devise has engrafted remote ulterior limitations. Common-law rule
  17. General — Perpetuities — Effect of Invalid Limitations on Valid Ones The rule of Leake v. Robinson does not establish that a devise to two classes or individuals void as to one is therefore void as to the other, nor that if the testator's entire intention as to any subject matter cannot lawfully be carried out it must fail altogether, nor that a gift including persons capable and persons incapable by reason of remoteness is invalid as to all; those cases recognize, and some expressly decide, the opposite doctrine. Leake v. Robinson, 2 Meriv. 363
  18. General — Perpetuities — Vested Devises Not Subject to Remoteness A devise to grandchildren that vested at the testator's death is not subject to the question of remoteness. Sears v. Russell, 8 Gray 86; Rees v. Williams, 2 M. & W. 749; Garth v. Baldwin, 2 Ves. Sen. 646; Doe v. Edlin, 4 Ad. & El. 582; Doe v. Field, 2 B. & Ad. 564; Moore v. Burnet, 11 Ohio 334; Neilson v. Lagow, 12 How. 98
  19. Estate, Gift & Trust Law — Fiduciary Duty Trustees take a legal estate in fee simple where nothing less would suffice for the execution of the trusts imposed on them. Sears v. Russell, 8 Gray 86; Rees v. Williams, 2 M. & W. 749; Garth v. Baldwin, 2 Ves. Sen. 646; Doe v. Edlin, 4 Ad. & El. 582; Doe v. Field, 2 B. & Ad. 564; Moore v. Burnet, 11 Ohio 334; Neilson v. Lagow, 12 How. 98
  20. Constitutional Law — Binding Effect of State Court Construction of State Statutes The settled construction of a state statute by the courts of that state is binding on the federal courts as much as if it were part of the statute. Polk v. Wendall, 9 Cranch 87, 98; Thatcher v. Powell, 6 Wheat. 119, 127; Jackson v. Chew, 12 Wheat. 153; Nichols v. Levy, 5 Wall. 433; Williams v. Kirtland, 13 Wall. 306; Barrett v. Holmes, 102 U.S. 651; Burgess v. Seligman, 107 U.S. 20, 33; Leffingwell v. Warren, 2 Black 599, 603; McKeen v. Delancy, 5 Cranch 22; Christy v. Pridgeon, 4 Wall. 196
  21. General — Actions — Proceedings In Rem Defined For a proceeding to be in rem, the res must be (1) a thing guilty — a thing in, with, or by which an act has been done in contravention of a law whose sanction is forfeiture of that misused thing; (2) a thing hostile — owned or controlled by a public enemy; or (3) a thing indebted — liable in law for payment of a sum of money.
  22. Estate, Gift & Trust Law — Suit to Set Aside Will Not a Proceeding In Rem A suit to set aside a will is not a proceeding in rem.
  23. Estate, Gift & Trust Law — Effect of Trustee Resignation on Legal Estate Resignation of trustees did not divest the trustees of the legal estate; even if it did, the estate would pass to the heirs charged with the trust. Adams v. Adams, 21 Wall. 185, 192; Story Eq. Jur. § 976; Perry on Trusts, § 240
  24. Remedies — Representation of Unborn Persons The rights of unborn persons in a will contest are not affected by a decree against the living holders of the equitable estate. Downin v. Sprecher, 35 Md. 474; Graham v. Houghtalin, 1 Vroom 552; Monarque v. Monarque, 80 N.Y. 320; Goodess v. Williams, 2 Y. & Col. Ch. 595
  25. Estate, Gift & Trust Law — Contingent Remainders and Executory Devises Distinguished A contingent remainder may be barred and destroyed, or prevented from taking effect, by several different means, whereas an executory devise cannot be prevented or destroyed by any alteration whatsoever in the estate out of which, or after which, it is limited. Fearne on Remainders 418
  26. Remedies — Representation by Adverse Interest The right of one defendant to represent many in a common interest is limited to cases where the rights in issue are in the nature of general rights and to cases in which the object of the suit is merely to change the form of the property to which the rights attach — not where the object is to divest or destroy them; representation by an adverse interest is an absurdity the law does not contemplate.
  27. Remedies — Liability of Trustees for Fraudulent Conveyance of Trust Estate A court of equity will compel trustees who have caused the trust estate to be conveyed to themselves in fraud of the rights of the cestuis que trust to account as trustees. Long v. Mulford, 17 Ohio St. 509; Rammelsberg v. Mitchell, 29 Ohio St. 57; Perry on Trusts, § 181
  28. Remedies — Defense of Innocent Purchaser The defense of innocent purchasers applies only to a defendant who has purchased the legal title in ignorance of the complainant's equitable title. Vattier v. Hinde, 7 Pet. 252
  29. Estate, Gift & Trust Law — Probate The probate and record of a will passed title to the devisees in the land devised from the death of the testator wherever situated within the State; and there can be no defense of innocent purchase in the face of a recorded title. Hall v. Ashby, 9 Ohio 96; Carpenter v. Denoon, 29 Ohio St. 379, 395; Dick v. Balch, 8 Pet. 30; Nichols v. Eaton, 81 U.S. 716; Day v. Micou, 18 Wall. 156
  30. Estate, Gift & Trust Law — Finality of Decree Annulling Will While the verdict and decree annulling the will remain in force, neither the actual parties to the proceeding in which they were rendered nor persons not born until many years after the contest can treat them as nullities or collaterally impeach them.
  31. Estate, Gift & Trust Law — Right to Contest Is Statutory The right to make a will and the right to contest it are created and regulated by the same statute; a contest brought within the time and in the mode prescribed by statute cannot be cut off by any provision in the will itself.
  32. Estate, Gift & Trust Law — Nature of Will Contest Proceeding A will contest is not an adversary suit in which there are strictly parties; the statute confers jurisdiction on the court over the thing itself, the first proceeding to prove the will being ex parte and in rem and the second to set aside the probate being equally so, though in form original it is in fact in the nature of an appeal.
  33. Estate, Gift & Trust Law — Verdict in Contest Is Against the Thing, Not Persons The verdict in a will contest establishes or annuls the will as a whole; it is not against persons but against the thing in contest, and neither the question submitted nor the jury deciding it has any direct reference to the persons interested.
  34. Estate, Gift & Trust Law — Court's Duty to Protect Unborn Persons In controlling the preparation and directing the progress of a will contest under the wills act of Ohio, the court must look to the persons interested, whether in existence or not, because they are to be affected consequentially by the verdict, and must protect the interests of unborn persons to whom contingent bequests or devises are made, even though it is uncertain whether such persons will ever come into being or whether such interests will ever vest. Scott v. Calvit
  35. Estate, Gift & Trust Law — Binding Effect of Decree on Unborn Executory Devisees A verdict and decree in a will contest binds unborn executory devisees where the instrument cannot be set aside as to living interested persons while remaining in force as to unborn devisees, and the unborn persons, having been born after expiration of the statutory time for bringing suit, could not have been made parties. Singleton v. Singleton, 8 B. Mon. 340; Hunt v. Acre, 28 Ala. 580; Scott v. Calvit, 3 How. (Miss.) 148; Benoist v. Murrin, 48 Mo. 48; Haynes v. Haynes, 33 Ohio St. 598; Brown v. Burdick, 25 Ohio St. 260; Meese v. Keefe, 10 Ohio 362; Bradford v. Andrews, 20 Ohio St. 208
  36. Estate, Gift & Trust Law — Binding Unborn Interests as Public Policy The rule that verdicts and decrees in contested will cases bind contingent and executory interests of persons not in esse and unascertained when the contest takes place is founded on public policy, is essential to the repose of titles founded on wills, and is necessary for quieting litigation. Mosier v. Harmon, 29 Ohio St. 220, 255–56; Walker v. Walker, 14 Ohio St. 157, 175
  37. General — Executors — Effect of Resignation and Nonexistence at Time of Decree The absence of executors in existence at the time a decree was rendered does not entitle a party to treat the decree as a nullity, because upon acceptance of their resignations the executors were functi officio; and a contestant is not obliged to have executors appointed, since doing so would be a recognition of the will.
  38. General — Executors — Powers Vested in the Office Powers given to executors are given to the office, not to the persons. State v. Nicols, 10 Gill & Johns. 27; Perkins v. Moore, 16 Ala. 9; Steele v. Worthington, 2 Ohio 182; Gandolpho v. Walker, 15 Ohio St. 251
  39. General — Executors — Holding Property as Executor Versus Special Trustee An executor is to be considered as holding property devised to him in that character unless it clearly appears from the face of the will that the testator intended it to be held by him as a special trustee; where a special trust is cast upon an executor as executor, execution of that trust is a duty superadded to his ordinary official duties, and until he qualifies and assumes to act in his separate capacity as special trustee, the bond to perform his duties as executor binds him and his sureties to the execution of the trust. Perkins v. Moore, 16 Ala. 9; Newcombe v. Williams, 9 Met. 525; Dorr v. Wainwright, 13 Pick. 328; Towne v. Ammidown, 20 Pick. 535; Felton v. Sawyer, 41 N.H. 202
  40. General — Executors — Vesting and Divesting of Legal Title; Resignation Where executors did not qualify or assume to act as special trustees and the will devised the legal title to the lands to them for a limited time qua executors and not nominatim, the legal title vested in them as executors upon their qualification, and their resignations and the acceptance thereof divested them of the legal title, which vested in the heirs until the appointment and qualification of successors.
  41. Remedies — Former Executors as Parties Executors who have ceased to be executors do not represent the estate and are not necessary parties to the suit.
  42. Remedies — Virtual Representation of Persons Not In Esse Persons not in esse may be virtually represented in a suit by actual parties to the proceeding, and the principle of virtual representation applies where the will devised the lands in controversy to all the grandchildren, whether born or unborn at the testator's death, so that grandchildren afterwards born were virtually represented by the grandchildren who were actual parties. Mead v. Mitchell, 17 N.Y. 210; Baylor's Lessee v. Dejarnette, 13 Gratt. 152; Faulkner v. Davis, 18 Gratt. 651