Heffelfinger v. Appleton
| Decision Date | 28 November 1919 |
| Docket Number | Nos. 21,331, 21,332.,s. 21,331, 21,332. |
| Citation | 144 Minn. 208 |
| Court | Minnesota Supreme Court |
| Parties | IN THE MATTER OF THE ESTATE OF FRANK H. PEAVEY, DECEASED. LUCIA L. HEFFELFINGER AND OTHERS v. KATHERINE JORDAN PEAVEY APPLETON.<SMALL><SUP>1</SUP></SMALL> |
The executors of the estate of Frank H. Peavey, deceased, petitioned the probate court for Hennepin county for an order making partial distribution of the residuary estate and for the construction of item 36 of testator's will. The petition was heard by Dahl, J., who made findings and as conclusion of law ordered distribution of certain moneys to the beneficiaries. From the order of the probate court construing item 36 of the will, Katherine Jordan Peavey Appleton appealed to the district court for that county. The appeal was heard by Rockwood, J., who reversed the decree of the probate court for want of jurisdiction and remanded the case. From the judgment entered pursuant to the order for judgment, all parties appealed. Reversed.
Frank B. Kellogg, Cordenio A. Severance, George W. Morgan and Richard Reid Rogers, for K. J. P. Appleton.
Lancaster & Simpson, for the executors and daughters of testator.
1. Frank H. Peavey died testate December 30, 1901. He left two daughters and one son. The elder daughter was married to Frank T. Heffelfinger. They then had three children and now have four. The younger daughter was married to Frederick B. Wells. They then had one child and now have four. The son was married to appellant. He died childless in 1913. Appellant has since remarried. Mr. Peavey was engaged principally in the grain and elevator business and was possessed of large wealth. In his will he gave some specific legacies. He created many trusts, in each case directing the deposit of money or securities with a trust company during the life of the beneficiary, and directing that, upon the death of the beneficiary, the securities so deposited should become part of the residuary estate. He directed that $200,000 be placed in trust for the benefit of each of his three children, and that, if any child died leaving issue, the fund deposited for his benefit should be paid to such issue; if no issue, then the fund should become part of the residue.
His son and sons-in-law were his partners in the firm of F. H. Peavey & Company. He directed that they continue the business for five years, and that, at the expiration of that time, they form a corporation, to which the executors should transfer all property then belonging to the estate, except that held in trust. He directed that there should be sold to his son and sons-in-law, each, one-third (1/3) of the capital stock of the corporation, taking therefor a note payable out of dividends, and that one such note shall be transferred to each of his children so that each should receive, including the $200,000 placed in trust, $1,000,000.
The estate has never been closed. In March, 1918, the executors, having in their possession a substantial sum of money, petitioned the probate court for an order making a partial distribution of the residue of the estate, and asking that the court determine the proper construction of "item 36" of the will. Item 36 reads as follows:
"All the balance of my estate I give and bequeath to my beloved wife and to my three children, one-third (1/3) to my wife and two-thirds (2/3) to my three children, share and share alike, provided, however, that if either of my children shall die without leaving a living child or children, then the share of such child shall become the property of the survivor or survivors, it being my intention that the surviving child, in case the others die without leaving a living child, or children, shall have the whole balance of my estate."
The probate court ordered the distribution and in so doing construed "item 36" to mean that on the death of one child, either before or after the testator, his share of the residue should become the property of the surviving children. Appellant, claiming the share of George W. Peavey as part of his estate, appealed to the district court.
After the conclusion of the argument, the district judge, of his own motion, gave judgment that the decree of the probate court be reversed for want of jurisdiction, and remanded the case with instructions to take no further proceedings not consistent with such judgment. Both parties appeal.
2. Both parties contend the district court was in error in ruling that the probate court had no jurisdiction. We agree with this contention. The probate court has exclusive jurisdiction over administration of estates. It has exclusive jurisdiction to decree the distribution of an estate. Regular proceeding demands the entry, by the probate court, of a decree of distribution, when property comes into possession of an executor. The probate court alone can determine the devolution of the title to the property of the estate. In re Scheffer's Estate, 58 Minn. 29, 59 N. W. 956. See Culver v. Hardenbergh, 37 Minn. 225, 33 N. W. 792. For the purpose of determining to whom distribution shall be made, the probate court has jurisdiction to construe the will. Appleby v. Watkins, 95 Minn. 455, 14 N. W. 301, 5 Ann. Cas. 471. See Fiske v. Lawton, 124 Minn. 85, 144 N. W. 455.
The district court apparently understood the law as we do as to these propositions, but was of the opinion that the executors had disposed of all the property of the estate in the manner provided by the will, and that, this having been done, no decree could properly be made. In view of the fact that assets, declared by the will to be part of the residuary estate, are now admittedly in the hands of the executors, and are claimed by legatees as such, it is clear that all property of the estate has not been disposed of. Nor do we doubt that, if an executor transfers property to the party to whom the will directs, in anticipation of a proper decree, such decree may subsequently be made.
3. In view of the fact that the trial court made no decision on the merits, doubt may arise as to the propriety of our determining the merits on appeal. This court is an appellate court, and does not, as a rule, entertain a controversy without a determination by the trial court. In this case no question of fact is involved. No appeal is made to the discretion of the court. The question is one of law, involving a determination of the construction of the language of the will from a reading of the will itself. Both parties urge that the court determine the merits. A majority of the court are of the opinion that we should do so, that, under the conditions mentioned, the principle to be applied is that stated in Hawke v. Banning, 3 Minn. 30 (67), and Babcock v. Sanborn, 3 Minn 86, (141) namely, that this court may pass upon questions not determined by the trial court, where it is evident that the record would not be aided by verdict or decision below.
4. Coming to the merits: We agree with the probate court's construction of the will. Counsel for appellant invoke as an aid to the ascertainment of the testator's intention, what they conceive to be the correct rule as follows:
"Where a testator leaves a bequest to A, but if A should die without children, then to B, the testator, in the absence of language or circumstances clearly showing a different intention, is presumed to mean the death of A before that of the testator, so that if A survives the testator, his interest in the bequest becomes absolute."
Counsel for the executors take issue as to the correctness of this rule, and contend that, where such language is used in a will, the court should interpret the devise over as taking effect, according to "the ordinary and literal meaning of the words," upon death at any time, whether before or after the death of the testator. Each contention has the support of much respectable authority. Many of the cases sustaining appellant's contention will be found cited in Fowler v. Duhme, 143 Ind. 248, 42 N. E. 623; see also Lawlor v. Holohan, 70 Conn. 87, 38 Atl. 903; Lumpkin v. Lumpkin, 108 Md. 470, 70 Atl. 238, 25 L.R.A.(N.S.) 1063; Dameron v. Lanyon, 234 Mo. 627, 138 S. W. 1; In re Owen's Will, 164 Wis. 260, 159 N. W. 906. Some of the most pointed decisions sustaining respondent's contention are Britton v. Thornton, 112 U. S. 526, 5 Sup. Ct. 291, 28 L. ed. 816; Matter of Cramer, 170 N. Y. 271, 63 N. E. 279; Smith v. Kimbell, 153 Ill. 368, 38 N. E. 1029; O'Mahoney v. Burdett, L. R. 7 H. L. 388.
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