Carpenter v. Strange

• Decision Date: 25 May 1891
• Parties: CARPENTER v. STRANGE et al
• Court: U.S. Supreme Court

141 U.S. 87

11 S.Ct. 960

35 L.Ed. 640

CARPENTER v. STRANGE et al.

May 25, 1891.

In 1857, William Newton Mercer conveyed certain lands in Illinois to Ayres P. Merrill, in trust for the latter's daughter Anna M., to the sole and separate use of said Anna M., and the heirs of her body, free from the control, debts, liabilities, or contracts of any husband she might have, with power in the trustee to sell and dispose of the same, in whole or in part, and reinvest the proceeds in either real or personal property, to be held for the same uses and purposes and upon the same trusts; and providing that in the event of the death of Anna M., leaving no surviving issue, the property so conveyed in trust, or the proceeds thereof, should descend to her brother, William Newton Mercer Merrill, and be held by the trustee or his successor for the use and benefit of the said William, upon the same conditions and trusts, with power of appointment. A. P. Merrill sold and conveyed the lands described in the deed, in 1861 and 1864, for an aggregate of $6,200, but never accounted to said Anna M., or any one for her, for the amounts received and interest. Anna M. subsequently intermarried with one Carpenter, now deceased. A. P. Merrill had resided in Memphis, Tenn., and subsequently became a citizen of the state of New York, where he died in November, 1873, leaving there some personalty, and holding title at the time to a considerable amount of real estate in Memphis. In December, 1867, Merrill executed a deed to another daughter, Mrs. Strange, dated December 3d, and acknowledged December 27th, of lot 59 Madison street, Memphis, without valuable consideration, and which was not recorded until December 27, 1873, after Merrill's decease.

In 1871, Merrill made his last will and testament.

By the first item he bequeathed to Mrs. Carpenter a life-estate in lot No. 98 Madison street, Memphis, 'upon condition that she renounce all claim upon my estate for monevs accruing from the sale of a tract of land in Illinois conveyed to me in trust for her benefit by Dr. W. N. Mercer;' and upon her decease, or declining the condition, it was provided that the property be sold 'for the benefit of the daughters then surviving of my several daughters.'

By the second item he devised to Mrs. Strange lot No. 59 Madison street, being the same lot described in the deed of December, 1867; and also all his personal property.

By the third item he bequeathed to Mrs. Strange certain moneys in trust for his grandchildren.

The fourth item was: 'All other property may be sold for the benefit of my own children, equally, who may survive me.'

By the fifth item he appointed Mrs. Strange sole executrix, without bond, and requested her to give to his son and three grandchildren certain specified articles.

Mrs. Strange was a citizen of New York, and there proved the will, and qualified as executrix, in February, 1874.

Shortly after the letters testamentary issued, Mrs. Carpenter, also a citizen of New York, brought suit in the supreme court of that state against Mrs. Strange, as executrix, for the recovery of the trust moneys.

The amended complaint aleg ed the decease of A. P. Merrill in December, 1873, testate; that Mrs. Strange was sole executrix; that the will was admitted to probate in February, 1874, a copy being annexed; set up the trust created in 1857 by Mercer; the sale by Merrill of the lands and the receipt of the money; charged that Merrill converted the money to his own use, and that it became absorbed in his business, and materally enhanced the value of his estate; that he had rendered no account to her of the trust-estate; and that he left real estate of large value in Memphis, and large sums of money and personal property in New York.

She then set forth the clause of the will in relation to No. 98 Madison street, and stated 'that she has not renounced said claim, so as aforesaid required to do, nor has she refused to renounce said claim, for the reason that plaintiff claims that by virtue of the deed of trust it is impossible for plaintiff to release said trust funds, and for the further reason that such a condition as aforesaid required is against conscience and justice.' She further alleged that Mrs. Strange was unfit for the position of trustee, and that her interests were opposed to plaintiff's interests; that at the time of Merrill's death plaintiff was informed and believed he was free from debt, except plaintiff's claim for the trust moneys, and other money she had put into his hands in trust, and a balance due her brother William for money held upon a similar trust created by Mercer simultaneously with that in plaintiff's favor, and that, if any debts had existed, they had been paid, except as aforesaid. She charged that the executrix refused to account for these sums of money, and denied the liability of the estate for the same, and, in proving the will, claimed and declared that she owned as devisee the real estate specifically devised to her, but suppressed mention of the fact that a deed of the same property had been made to her. Complainant further alleged that if the deed of December, 1867, was obtained at all from the testator, it was so obtained by collusion with him, and for the 'fraudulent purpose of defeating the collection of the plaintiffs' just and legal claim against the estate of the said testator, and to take so much of his estate as said property represents from liability to said claim;' and plaintiff alleged and charged that said 'conveyance was made without any valuable consideration in law;' that said deed, if made at all, was made while the trust existed, and was a just claim and lien against testator's estate; and that Mrs. Strange had notice and knowledge thereof. Plaintiff prayed that the court might adjudge and decree that the bequest of the life-estate 'be taken and held free from all and every condition thereunto attached in said will; that the said condition be decreed as void, and that the title to the life-estate be absolutely vested in this plaintiff, and she be relieved from renouncing any claim for said trust money, and that the trust-estate be declared unaffected by said condition in said will, and a charge upon the estate of the said testator;' that Mrs. Strange, executrix, be compelled to account; that the deed from Merrill to Mrs. Strange be set aside, and be declared inoperative and void and of no effect as against the claims of plaintiff against testator's estate; and that the sums of money found due plaintiff be made a line on the property described in the deed to Mrs. Strange and in the will, and the decree be enforced against the same; that the cause be referred, and Mrs. Strange compelled to account as the representative of A. P. Merrill as trustee, and a suitable trustee be appointed to carry out the trust; that on the rendition of the account, the sums reported due be paid over to the trustee or to the cestui que trust, as the court should direct; and for general relief.

Mrs. Strange was personally served, and answered fully. She denied the trust; alleged that the trust moneys had been paid over to plaintiff; averred that testator's personalty was insignificant; set p a counter-claim; alleged the validity of the deed of Merrill to herself; and as to the devise to plaintiff, insisted that it ought to be taken and accepted by plaintiff as a complete satisfaction of all her claims against Merrill's estate, and that there was no obstacle to plaintiff's renunciation of such claims; and further alleged that decedent was solvent, and had sufficient property to pay his debts aside from the real estate conveyed to her; and also set up the statute of limitation. She prayed that the complaint be dismissed as to her individually as well as executrix, and for judgment on her counter-claim as executrix; 'and that it may be adjudged and declared by this court herein that the devise to, and the provisions made for, the plaintiff by said last will and testament was and is, as it was intended by said testator to be, in full satisfaction of any and all claims and demands which the plaintiff had against him at the time of the death of the testator, or now has, against his estate, or against this defendant in her capacity of executrix of his last will and testament; that in the event that the plaintiff shall elect to take, or in the event that it shall be adjudged that plaintiff take and accept, the devise contained in said last will and testament so intended to be in satisfaction of all her claims and demands against the estate of said testator, the plaintiff in that case be required and directed by the judgment of this court to execute and deliver to this defendant, in her representative capacity as the executrix of said last will and testament, and also to this defendant in her individual capacity, a release in due form of law of this defendant and the estate of said testator from all her claims and demands, as in said last will and testament provided, as to the testator's estate; and that in the event that plaintiff shall not elect to take or accept, nor be required to take or accept, the devise to and provisions for her contained in said last will and testament, and it be found that the plaintiff is entitled to an accounting as to said alleged trust-estate as found, and to recover any amount for or on account thereof, this defendant prays that in such case' her counter claim be set off against such recovery. To this answer a special replication was filed.

The cause was referred on January 29, 1880, to a referee, who made his report July 1, 1880, whereupon it was ordered and adjudged: '(1) That Anna M. Carpenter, the plaintiff in this action, do recover of or against the estate of the said Ayres P. Merrill, deceased, and of the executrix as such, or of any person or persons having the possession, custody, or control of said estate or part thereof, the sum of $16,436.70, hereby adjudged to be due to pl...