Lane v. Garrison

• Decision Date: 14 March 1922
• Docket Number: No. 22746.,22746.
• Citation: 239 S.W. 813,293 Mo. 530
• Parties: LANE et al. v. GARRISON et al.
• Court: Missouri Supreme Court

239 S.W. 813

293 Mo. 530

LANE et al. v. GARRISON et al.

No. 22746.

Supreme Court of Missouri, Division No. 1.

March 14, 1922.

Motion for Rehearing Denied April 8, 1922.

Appeal from St. Louis Circuit Court; Victor H. Falkenhainer, Judge.

Action by Mary B. Lane and others against Arthur C. Garrison, trustee, and others. Judgment for defendants, and plaintiffs appeal. Affirmed.

Paul Bakervell, Jr., of St. Louis, for appellants.

T. Percy Carr, of St. Louis, for respondents.

SMALL, C.

I. This suit involves the construction of the 7th clause of the will of Daniel E. Garrison, who died in July, 1916. The will was dated May 22, 1916, and was duly probated. After making certain specific bequests, disposing of his household goods, jewelry, pictures, and effects of personal use, and $15,000 in cash, to be paid three several legatees, by said clause 7, the testator disposed of the rest, residue, and remainder of his estate, real, personal, and mixed, by dividing it into five equal shares, giving one share to Mary B. Garrison, the widow of his deceased son, Cornelius K. Garrison; one to his grandson Reginald E. Garrison, and a third share to his grandaughter, Cornelia Garrison Turner. The fourth and fifth shares he disposed of as follows:

"The fourth share I give, devise and bequeath to my son, Arthur C. Garrison, to be by him held in trust for the following purposes:

"To pay to my grandson, Daniel E. Garrison, Third, the income therefrom, not exceeding one thousand dollars ($1,000.00) per annum, divided into monthly, quarterly or semiannual installments, at the discretion of said trustee, for and during the natural life of said Daniel E. Garrison, Third. If my said grandson, Daniel E. Garrison, Third, shall die without lawful issue him surviving, said entire trust fund remaining on hand at the time of his death, together with all accumulations thereon, shall be distributed, one-half to my son, Arthur C. Garrison, and the other one-half, to Mary B. Garrison, Reginald E. Garrison, Cornelia Garrison Turner and Clark Garrison, share and share alike. In case my said grandson, Daniel E. Garrison, Third, shall, however, leave lawful issue him surviving, then, my said son, Arthur C. Garrison shall continue to hold said fund, as trustee, for the issue of my said grandson Daniel E. Garrison, Third, until they shall severally attain their legal majority. In case, however, of the entire failure of the issue of my said grandson, Daniel E. Garrison, Third, without any of such issue having attained their majority, as aforesaid, then I direct that the said entire trust fund remaining, shall, upon such failure of issue, be divided between my son, Arthur C. Garrison, and the widow and children of my deceased son, Cornelius K. Garrison, in the same proportions as above provided, in case of the death of my said grandson, Daniel E. Garrison, Third, without issue.

"The fifth share I give, devise and bequeath to my son, Arthur C. Garrison, to be by him held and administered in trust for my grandson, Clark Garrison, upon terms and conditions identical with the trust hereinbefore created for Daniel E. Garrison, Third, except, that, in case of the death of the said Clark Garrison, without issue him surviving, or in case of the failure of the issue of said Clark Garrison, before any of them shall attain their majority, then the trust fund on hand shall be distributed to said Mary B. Garrison, Reginald E. Garrison and Cornelia Garrison Turner, share and share alike. 3 direct that said trustee shall have full power, authority and discretion to manage and control the said trust funds as he shall see fit, with absolute discretion either to retain any investments which shall have been made by me, or to change or reinvest such funds, or any part thereof, from time to time, as he shall deem proper, and that no bond shall be required of said trustee, under either of said trusts.

"I further direct that the above provisions in favor of my said grandsons, Clark Garrison and Daniel E. Garrison, Third, shall not be in any manner subject to either anticipation or alienation or assignment, voluntary or involuntary, on the part of either of said beneficiaries, nor shall the same be in any way liable or subject to the payment of their debts; but, in case of any such assignment or attempt to make such assignment, voluntary or involuntary, or to subject said fund to the payment of any such debts of either of such beneficiaries, either as to the income or principal of such fund, in whole or in part, such provisions in favor of either of said beneficiaries shall cease and lapse as to him, and the beneficiary interest in said fund shall pass to such other persons as would take same in case of his decease, as above provided."

By his will, testator appointed his son, Arthur C. Garrison, executor without bond. The estate, which passed by the residuary clause, was of the value of about $300,000, or each share $60,000. At the time of his grandfather's death, Clark Garrison was single, but he was married after he came back from the World War, but had no children up to the time of the trial, October 23, 1920. November 19, 1919, he borrowed $500 from the defendant State National Bank of St. Louis, for which he executed his note due on demand, and a separate document assigning and transferring to said bank, as security for said loan, all his right to the interest in the said trust fund held by Arthur C. Garrison, as trustee for him under the will of his grandfather. His mother, Mary B. Lane (formerly Mary B. Garrison), mentioned in the 7th clause of said will, by an instrument in writing dated November 17, 1919, also guaranteed the payment of said note to the bank. Clark Garrison was not a witness in the case but his mother, Mrs. Lane, was, and she testified that she knew of her son's assignment to the bank and that the will was thereby violated, but she denied that such transfer was made purposely to violate the will but asserted that it was made to secure money for her son Clark, who had been gassed in France and was, in consequence, unable to care for himself and needed the money, which she did not have at the time to give him. But the trustee, Arthur C. Garrison, testified that, although he had an interview with Clark Garrison just before the assignment was made, said Clark Garrison did not suggest he was in need of money nor did he appear physically unable to care for himself. Both Mrs. Lane and one of the other plaintiffs, Reginald E. Garrison, the brother of Clark Garrison, testified that there was no agreement between them and said Clark, by which he was to receive any part of the property sued for, in case plaintiffs' suit was successful. Shortly after the assignment to the bank, the trustee, Arthur C. Garrison, was notified thereof, and plaintiffs brought their claim to the trust fund to his attention and requested the trustee to bring suit to have the will construed, which he refused to do. Thereupon, this suit was brought by the plaintiffs, who are the mother, brother, and sister of Clark Garrison, mentioned in said clause 7, against the trustee, said Arthur C. Garrison, Clark Garrison, and said State National Bank, as defendants. At the time of the trial, the income from the trust fund was about $3,000 per annum, and the surplus income, over $1,000 per annum, paid to Clark Garrison before his assignment, and the entire income since then had been regularly reinvested and the said fund increased and accumulated. The petition sets up the will and the assignment by Clark Garrison of his interest to the bank, as hereinbefore stated; that Clark Garrison has no issue; that plaintiffs are the alternative beneficiaries named in the will, and that defendant ...