Hooberry v. Harding
Hooberry v. Harding
Opinion of the Court
The question raised by this record is, whether Philip S. Stump has such an interest, Under his mother’s will, of the tract of land in the pleadings mentioned, or the rents, issues, and profits thereof, as can be reached, either at law or in equity, by the defendant Jacob Bloomstein as his judgment-creditor.
Eachel Stump, the mother, died in the year 1859, leaving a will, which contains the following provisions:
*678 “I hereby give, devise, and bequeath to my friends William Gr. Harding and John Shute, Jr., and my brother Philip Shute, and the survivors or survivor of them, and to the heirs of such survivor, his executors, etc., all the residue of my estate, not necessary for the payment of my debts, whether real, personal, or mixed, to have and to hold upon trust, nevertheless, and to and for.the uses, trusts, and purposes following, and none other, viz. : That the said William O. Harding and John Shute, Jr., and Philip Shute, and the .survivors or survivor of them, shall suffer and permit my «on, Philip S. Stump, for and during his life, to have and receive from the rents, issues, and profits of said property, for his support and maintenance, such sum or sums of money, or such amount of any other issues of said property •{except the increase of negroes), as he, said Philip S., may deem proper; in such manner, however, as that the ■same shall not be liable to his debts, or for contracts made by him; and that they, and the survivors or survivor of them, shall suffer and permit said Philip S. to have and to ■exercise such control over the slaves and real estate hereby bequeathed and devised, in the cultivation and renting of the one or the hiring or working the others, for one year at a time, as he, said Philip S., may deem proper; in such manner, however, only that said Philip S. may derive a support therefrom, and that the same shall not be liable for his debts or contracts ; it being my intention to provide for said Philip S., out of the issues of said property, a sum sufficient for his support, of the amount of which sum said Philip S. is to be the judge. And upon trust, further, that said trustees, and the survivors or survivor of them, their heirs, etc., after the death of the said Philip S., shall assign, transfer, and convey said property, with its increase, to any child or children of the said Philip S. that may be living at his death, and should the said Philip S. die without issue living at the time of his death, then they, or the ¡ survivors or survivor of them, their heirs, etc., shall assign,:*679 transfer, and convey said property to those wbo may then be my heirs-at-law, in such proportion as they would have taken by the rules of descent. I hereby declare it to be my intention, by the bequest and devise to trustees above, to provide a support for my son, Philip S., out of my estate, and not to vest in him any interest in said property which may or can be subjected to debts or contracts made or entered into by him. It is further my desire, that said trustees should not be made liable for any waste or mismanagement of said estate, unless such waste or loss shall be occasioned by their own intentional fraud or misconduct.”
By the result of the Civil War, the property thus devised was reduced to the plantation ón which Philip S. Stump now lives. One of the trustees has died, and the survivors have permitted Philip S. Stump to occupy, use, and control the place as he saw proper, without actively interfering in any way. The farm has become dilapidated, and the taxes are years in arrear. The defendant Bloomstein having recovered judgment against Philip S. Stump, upon an account for necessaries furnished him and his family, caused an execution, issued thereon, to be levied upon some corn, the produce of the farm, and upon Philip S. Stump’s interest in the land. The original bill was filed by Stump and his ■six children, to enjoin the sale of either the land or corn under the levy, to call the trustees into active diligence, or to have a receiver appointed to perform their duties. The defendant Bloomstein has filed a cross-bill, in which he seeks to subject the rents, issues, and profits of the land, and the debtor’s interest in the land, to the satisfaction of his judgment.
The argument of the learned counsel of Bloomstein is, that the Statute of Uses is in force in this state, and executed the possession and legal title to the land, for his life, in Philip S. Stump, the beneficiary, whereby the land and its proceeds became subject to his client’s execution ; and, even
Special or active trusts were never within the province of the Statute of Uses. These are trusts which require some act to be done or some duty to be performed by the trustee, even if the act or duty be for the benefit of the cestui que-trust. At an early day, it was held that the statute did not apply where lands are limited to trustees to receive and pay over the rents and profits to such and such persons, for here the lands must remain in the trustees to answer such purposes. Symson v. Turner, 1 Eq. Cas. Abr. 383, pl. 1, in-note. So, where the testator devised that the trustees should yearly, during the life of his son, receive the rents of land to be applied for the maintenance of the son. Sylvester v. Wilson, 2 Durnf. & E. 444. So, where the trust was out of the rents, after deducting rates, taxes, repairs, and expenses, to pay such clear sum as remained to a person named, during his life, and after his death, to the use of the heirs male-of his body. Shapland v. Smith, 1 Bro. C. C. 75. “Whether the trustees,” says Judge McKinney, “do or-do not take the legal estate depends chiefly on the fact, whether the testator has imposed upon the trustees any trust or duty the performance of which requires that the-estate should be vested in them.” Ellis v. Fisher, 3 Sneed, 234. And see Jones v. Lord Say and Seale, 1 Eq. Cas. Abr. 383, pl. 4; Bagshaw v. Spencer, 2 Atk. 583; Wright v. Pearson, 1 Eden, 125; Stanley v. Colt, 5 Wall. 168 Porter v. Doby, 2 Rich. Eq. 53; Mott v. Buxton, 7 Ves. 201; Aikin v. Smith, 1 Sneed, 309. “'Therefore,” says Mr.. Perry, “ if any agency, duty, or power be imposed on the-trustee, as by a limitation to the trustee and his heirs to-pay the rents, or to convey the estate, or to preserve contingent remainders, in all these, and in other and like-cases, the operation of the statute is excluded, and the trusts- or uses remain mere equitable estates.” “So,” he adds,,
Tbe will before us may have intended to create tbe trust-estate for the purpose of preserving tbe contingent remainders, and securing tbe actual conveyances of the property, upon tbe happening of the contingency, to those entitled in remainder. These are purposes which would suffice to vest tbe trustees with title, although not essential, perhaps, to the effectuating of those objects, under our system of laws. For, tbe ultimate remainder might be good
Conceding that the trust is active, the question still remains whether a creditor of the beneficiary may not reach the interest of the latter in the property, or its incomes, for the satisfaction of the debt, through the aid of this court, •or the produce of the farm, at law, if the beneficiary is permitted to cultivate it. The general rule undoubtedly is, that the beneficial interest of a party in a trust may be disposed of by his own act, or by operation of law in invitum. And I agree with the learned counsel of the creditor in thinking that the power of disposition is an incident of property which cannot, ordinarily, be impaired by the will or ■direction of a testator or grantor. I further agree that the weight of authority and of reason is, in the absence of positive law to the contrary, that where the party labors ■under no protecting disability, his property is subject to the claims of creditors. Harding v. St. Louis Life Ins. Co., 2 Tenn. Ch. 469; Campbell v. Foster, 2 Tenn. Ch. 409. “It is a settled rule of law,” says Mr. Justice .Swayne, “ that the beneficial interest of the cestui que trust, whatever it may be, is liable for the payment of his debts. It cannot be so fenced about by inhibitions and restrictions as to secure to it the inconsistent characteristic of right and enjoyment to the beneficiary and immunity from his creditors.” Nichols v. Levy, 5 Wall. 441, and cases cited. It is notorious, however, that the English Court of Chancery refused to lend its aid to a creditor to reach the stocks, choses in action, and other property of his debtor not leviable at law, and that it has been followed in this respect by the courts of several of the states of the Union, and, among others, by the courts of this state. Dundas v. Dutens, 1 Ves. jr. 198; Erwin v. Oldham, 6
The trust in this case is by will duly recorded. It is, as we have seen, an active or special trust, which vests the trustees with the legal title to the land, and with the trust assets until received by the cestui que trust. There is no remedy, therefore, by the judgment-creditor, at law, against the realty or its incomes in their hands, and the trust is one which will be enforced to the extent of the payment of taxes, and keeping the property in reasonable repair. The only question is, as to the right of the creditor to reach the surplus incomes or crops, and that depends upon the construction which may be put upon the proviso. Does it enable the third person, by whose will the trust is declared, to cut off the rights of creditors, and confine the bounty to the beneficiary? That is done every day where the beneficiary is a married woman. Has the statute placed a person sui juris in the same category?
The Court of Appeals of the state of New York, upon precisely the same statute and the same proviso, has arrived at the conclusion that the interest of the beneficiary cannot be reached by a creditor’s bill, and, except for another statute, not even to the extent of the surplus after defraying the necessary expenses of the beneficiary. Williams v. Thorn, 70 N. Y. 270; Campbell v. Foster, 35 N. Y. 361. And the Supreme Court of the United States, in a ease which went up from this state, and involved the construction of our statute, have announced that the Supreme Coui’t of this state had made the same decision in an unreported case; and this, too, where the trust was of realty. “ The Supreme Court of the state,” says Mr. Justice Swayne, “ decided, in the suits referred to, that this statute embraces trusts of real estate, and that it exempted the property in question from liability to the judgment-creditors.” Nichols v. Levy, 5 Wall. 444.
I was of counsel for the Nichols in the litigation in the-state court, and my recollection of the scope of the opinion, which- was delivered by Judge McKinney, whose opinions in our books show great familiarity with the doctrine-of trusts, is in accordance with the conclusion reached by Judge Swayne. It was based upon the statute, and turned upon the power of the donors of property, by will recorded or deed registered, to fix upon it a trust for the benefit of' the objects of their bounty, to the exclusion of creditors. I do not remember that the existence of the debts at the-creation of the trust, although dwelt upon in the argument,, cut any figure in the decision; and I am very certain that no-such point, on the nature of the estate of the beneficiaries, as is made by the counsel for the creditors in 5 Wall. 439,. to explain the decision, formed any part of its reasoning. My impression is that the principles enunciated fully cover-the case before us. And, even if I had doubts on the-point, my respect- for that “ enlightened tribunal,” as welh as my duty, would require me to adopt the construction put. upon the decision by the Supreme Court of the United' States. Neither the property itself, nor its rents, incomes,, or crops, can be reached by a creditor of the beneficiary,., either by the aid of this court or by execution without its-aid.
The cross-bill will be dismissed, and the injunction heretofore granted be made perpetual as to the property levied on, without otherwise affecting the judgment.' The costs=' will be paid out of the funds in court, or by the complainants.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.