State ex rel. Goddard v. Coerver

• Decision Date: 14 March 1966
• Docket Number: No. 8667,8667
• Citation: 100 Ariz. 135,412 P.2d 259
• Parties: STATE of Arizona ex rel. Samuel P. GODDARD, as Governor of the State of Arizona, Applicant, v. W. A. COERVER, Ruth C. Irving, William C. Smitherman, William B. McGrath, and Joseph E. McGarry, as Members of the Arizona State Hospital Board, Arizona State Hospital Board, the Board of Supervisors of Maricopa County, and Maricopa County, Respondents.
• Court: Arizona Supreme Court

Page 259

412 P.2d 259

100 Ariz. 135

STATE of Arizona ex rel. Samuel P. GODDARD, as Governor of the State of Arizona, Applicant, v. W. A. COERVER, Ruth C. Irving, William C. Smitherman, William B. McGrath, and Joseph E. McGarry, as Members of the Arizona State Hospital Board, Arizona State Hospital Board, the Board of Supervisors of Maricopa County, and Maricopa County, Respondents.

No. 8667.

Supreme Court of Arizona, In Banc.

March 14, 1966.

Darrell F. Smith, Atty, Gen., Walter O. Holm, Asst. Atty. Gen., Phoenix, for applicant.

Robert K. Corbin, Maricopa County Atty., John A. Golden, Deputy County Atty., Phoenix, for respondents Maricopa County and its Board of Supervisors.

Lewis, Roca, Scoville, Beauchamp & Linton, by Paul M. Roca, Phoenix, for respondents William A. Coerver, Ruth C. Irving, William C. Smitherman, William B. McGrath, and Joseph E. McGarry, as Members of the Arizona State Hospital Board and the Arizona State Hospital Board.

George Frederick Randolph, Phoenix, for Maricopa County Hospital Development Ass'n, amicus curiae.

LOCKWOOD, Justice:

Application for original jurisdiction in this Court was made by applicant, State of Arizona, ex rel. Samuel P. Goddard, as Governor of the State of Arizona, pursuant to the Arizona Constitution, Art. VI, § 5(1), A.R.S. We accepted the dispute, by order on July 6, 1965, stating the state's application for Writ of Prohibition would be treated as an application for Writ of Injunction against the named respondents.

The issues in this case concern the nature of the interest of the respective parties in certain lands conveyed in 1885 by deed from the Board of Supervisors of Maricopa County to the Directors of the Insane Asylum of Arizona, and the present power and authority of the successors of that grantee board to reconvey an unused portion of the lands to the original grantor.

On March 9, 1885, the Governor of the Territory of Arizona approved dual enactments of legislation entitled 'An Act authorizing and instructing the Board of Supervisors of Maricopa County to issue bonds for a certain purpose,' and 'An Act to establish, maintain and provide for the government of an Insane Asylum.' Ariz. Laws 1885, Nos. 53, 58. On September 8, 1885, acting pursuant to this legislative authority, the Board of Supervisors of Maricopa County purchased 160 acres of land from M. W. Kales and Charles H. Veil for the sum of $3500. On October 8, 1885, this same 160 acres was conveyed by the Board of Supervisors to the Board of Directors of the Insane Asylum of Arizona.

The deed upon which the applicant relies to prove its title is lengthy as it sets out a resolution adopted by the Territorial County. The deed, with omissions which are not material, reads as follows:

'This indenture made * * * by and between the County of Maricopa * * *, and the Board of Supervisors thereof * * * parties of the first part and the Directors of the Insane Asylum * * * parties of the second part * * *, Resolved, That a conveyance be made, executed and delivered to the Board of Directors of the Insane Asylum of Arizona with full covenants of warranty and further assurance by * * * the County * * * conveying unto the * * * Directors * * * For the use and benefit of the Territory of Arizona And for said Asylum * * *.

'Now therefore the said parties of the first part for and in consideration of the premises and of the acceptance of said land * * * and in order the more effectually to Carry out and fulfill the requirements and provisions of the said Acts of the Legislative Assembly aforesaid have granted, bargained, sold, conveyed and confirmed and by these presents do grant, bargain, sell, convey and confirm unto the said parties of the second part and their successors and assigns all and singular that certain piece parcel and tract of land * * *. Together with all and singular the tenements hereditaments and appurtenances thereunto belonging or in anywise appertaining and the rents issues and profits thereof; and, also, all the estate right title interest, property possession as well in law as in equity and in possession as well as in expectancy of the said party of the first part of in or to said premises and every part thereof with the appurtenances.

'To have and to hold all and singular the above mentioned * * * premises together with the appurtenances unto 'The Directors of the Insane Asylum of Arizona' * * * For the use and benefit of the Territory * * *, and for said asylum in accordance with the provisions of the said acts of said Legislature; and the said parties of the first part and their successors and assigns the said premises in the quiet and peaceable possession of the said parties of the second part * * *, will forever warrant and defend; and said parties of the first part hereby covenant to make and execute all such further conveyances and to do and perform such further acts as may hereafter be deemed necessary in order to vest the title to the above mentioned * * * premises in fee simple absolute in the said parties of the second part their successors and assigns.' (Emphasis supplied)

The respondents, W. A. Coerver, Ruth C. Irving, William C. Smitherman, William B. McGrath, and Joseph E. McGarry, are the duly appointed, qualified, and acting members of the Arizona State Hospital Board, and, as such, are the successors in office and in interest to the original Directors of the Insane Asylum of Arizona.

The land involved in this case constitutes slightly more than sixty-two acres of the land conveyed to the asylum board in 1885. The remaining portion of the original 160 acres is presently occupied and used by the Arizona State Hospital as the site of its physical plant and operation. During much of the time from its acquisition in 1885 until 1964, the land in question was used for agricultural purposes, in connection with he operation of the hospital.

On June 24, 1965, at a regular monthly meeting, the respondent Board unanimously adopted a resolution expressing its intention to convey to Maricopa County so much of the sixty-two plus acres as is needed for a new Maricopa County General Hospital. The present action was brought to test the power and authority of the State Hospital Board to convey the land and the power and authority of Maricopa County to accept the grant.

Both respondents contend the deed from the Board of Supervisors of Maricopa County to the Directors of the Insane Asylum created a charitable trust. The respondent Maricopa County contends the trust has failed, in part, and, therefore, the respondent Arizona State Hospital Board now holds the land as a resulting trustee for the benefit of Maricopa County. The respondent State Hospital Board claims it may substitute the res of the charitable trust. Applicant urges that the county holds no interest in the property, but that the state owns the land in fee simple absolute. Thus, the nature of the right, title or interest conveyed by the deed of the land in question by the Board of Supervisors of Maricopa County on October 8, 1885, is the first question to be answered in resolving this case.

From the admittedly ambiguous instrument two major possibilities emerge: (1) a conveyance in fee simple absolute to the Directors of the Insane Asylum; (2) a conveyance of legal title in fee simple absolute to the Directors of the Insane Asylum and its successors to be held in trust for the use and benefit of the Territory of Arizona, and the people confined in the asylum.

A general principle of law applied to either a private or charitable trust, is that when a trust is created by a written instrument, the intention of the settlor is ascertained from the express language of the instrument, and court will not go outside the instrument in an attempt to give effect to what it conceives to have been the actual intent or motive of the settlor. If, however, the intention is not plainly expressed, or if the language used is ambiguous, there are well-established rules which courts will invoke to aid them in the construction of the instrument. See, Olivas v. Board of Nat. Missions of Presbyterian Church, 1 Ariz.App. 543, 405 P.2d 481 (1965).

One such rule is that the determination of the intention of the settlor, where construction is necessary, will be made in light of surrounding circumstances at the time of execution of the deed. The court places itself in the position of the settlor at the time of creation of the trust and interprets what he has said or done in light of his environment at that time. In the instant case the language used does not plainly express the intention of the grantor, and, therefore, it is necessary for us to look at circumstances surrounding the execution of the deed to determine if a trust was intended, and if so, the nature of any trust so created, its terms and its beneficiaries.

A charitable trust is defined as:

'* * * a fiduciary relationship with respect to property arising as a result of a manifestation of an intention to create it, and subjecting the person by whom the property is held to equitable duties to deal with property for a charitable purpose.' Restatement, Trusts 2d § 348.

The settlor must manifest an intention to create a charitable trust. It is not necessary that any particular words or conduct be manifest to create a trust, and it is possible to create a trust without using the words 'trust' or 'trustee'. Scott on Trusts §§ 24--25 (2d ed. 1956); Restatement, Trusts 2d § 24. Conversely, the mere fact these words are used, or other similar words, does not necessarily indicate an intention to create a trust.

There is a difference of opinion in the reported cases as to whether language similar to that used in the deed in question passes legal and equitable title to the grantee in fee simple absolute or the legal title in fee simple absolute upon a trust with equitable title in the beneficiaries. We have found no Arizona cases which have interpreted language similar to that...