University of Vermont v. James B. Wilbur's Estate

• Decision Date: 04 January 1933
• Citation: 163 A. 572,105 Vt. 147
• Parties: UNIVERSITY OF VERMONT v. JAMES B. WILBUR'S ESTATE
• Court: Vermont Supreme Court

163 A. 572

105 Vt. 147

UNIVERSITY OF VERMONT v. JAMES B. WILBUR'S ESTATE

Supreme Court of Vermont

January 4, 1933

May Term, 1932.

Gifts---Requisites of Valid Gift Inter Vivos---Conclusiveness of Findings in Supreme Court---"Give"---Supreme Court's Consideration of Evidence When Reviewing Findings----Construction of Statement by Donor as to Gift---Bills and Notes---Consideration---"Raise"---"Annuity Contract"---Gift upon Consideration of Annuity to Donor---Valid Obligation To Give upon Conditions Accepted by Donee as Money "Raised"---Executed and Irrevocable Gift---Reservation of Payment of Interest to Donor for Life as Not Defeating Gift---Presumptions in Favor of Judgment as to Court Having Inferred Facts---Immaterial Findings.

1. To constitute valid gift inter vivos, there must be intention on part of donor to transfer title to donee immediately and irrevocably, accompanied by such delivery as will place donee in complete possession and control of property.

2. Gift inter vivos, absolute in form, may be made subject to be defeated upon happening of subsequent event.

3. Findings of trial court must stand, on review in Supreme Court, if there is evidence which, in any rational view supports them.

4. Primary meaning of word "give" is to transfer ownership or possession without compensation.

5. In aid of judgment, Supreme Court must read evidence so as to support findings, if it can reasonably be done, and evidence is not to be considered piecemeal but as a whole, together with reasonable inferences drawn therefrom.

6. Statement of donor in agreement with university, that "I give you the following stocks to apply on my conditional gift" to university for a museum, held to show present intention on part of donor to transfer title to securities to university, and, when followed by delivery of securities to trust company for university, title to securities passed to university, which was placed in complete possession and control, subject only to be defeated by failure of university to raise additional amount stipulated within specified time.

7. Note given to university in return for proceeds realized from sale of securities, which maker had given to university for erection of building, subject to condition of raising additional specified amount within certain time, held to have been given for valuable consideration, not to be revocable during lifetime of maker, and to be enforceable against his estate after his decease, unless university failed to comply with condition of gift.

8. "Raise," as used in condition of gift that university should raise specified sum in addition to amount given by donor for building, held to mean not only money paid, but also subscriptions and obligations by responsible solvent persons which legally bind obligors to pay, and which are enforceable at law.

9. "Annuity contract" is obligation to pay annuitant certain sum of money at stated times during life or specified number of years in consideration of gross sum paid for such obligation.

10. Amount given to university for university museum by valid enforceable promise, fulfilled by delivery, upon condition that donee would pay donor certain annual sum in monthly payments, during lifetime of latter, to be secured by lien on net tuition receipts of university, held not required to be reduced to present worth of such annuity to determine amount of gift.

11. Where university, to whom gift was made subject to conditions specified by donor, delivery to be made at later date accepted such conditions, thereby supplying adequate consideration for donor's promise and making it legal enforceable obligation, such obligation constituted money "raised," within terms of condition subsequent of prior gift by another donor requiring specified additional sum to be raised.

12. Where donor transferred amount of gift consisting of cash and securities to university, after latter had accepted condition as to execution of bond to donor for payment to her of life annuity, to be secured by lien on net tuition receipts by university, and certain other conditions as to building to be erected, held that transaction constituted executed gift which was irrevocable.

13. Where there is executed gift of money or securities, mere fact that donor requires donee to pay, and secure payment of, interest to him for life on given sum will not defeat it as gift.

14. Supreme Court will presume in favor of judgment that court below inferred such facts from those certified as it ought to have infered, or fairly might have inferred.

15. Findings as to legal status of plaintiff university, and as to custom and correct accounting method for colleges to carry funds donated by annuity plan in their assets, held immaterial in action on note to university against estate of donor.

16. Exceptions to immaterial findings will not be considered by Supreme Court.

APPEAL by the University of Vermont from the disallowance by the commissioners of its claim against the estate of James B. Wilbur. Trial by court at the June Term, 1931, Bennington County, Sturtevant, J., presiding. Judgment for the plaintiff. The defendant excepted. The opinion states the case.

Judgment affirmed. To be certified to the probate court for the District of Manchester.

Stickney, Sargent & Chase (Davis, Polk, Wardwell, Gardiner & Reed, of New York City, of counsel), for the defendant.

Warren R. Austin, of Burlington, for the plaintiff.

Present: SLACK, MOULTON, THOMPSON, and GRAHAM, JJ., and SHERBURNE, SUPR. J.

OPINION

THOMPSON

This is an appeal by the University of Vermont, hereafter called the University, from the disallowance of its claim against the estate of James B. Wilbur. There was a trial by court, a finding of facts was filed, and a judgment was entered for the plaintiff. The defendant excepted.

The plaintiff seeks to recover upon the following promissory note delivered to it by Mr. Wilbur on November 13, 1928:

"$ 100,000.00. Burlington, Vt., Oct. 20, 1928. For value received I promise to pay to the order of the University of Vermont, Burlington, Vt., the sum of one hundred thousand dollars. This note is given under the terms of the letter of President Guy W. Bailey to me, dated Oct. 10th, 1928, regarding a conditional gift of one hundred thousand dollars to the University of Vermont for a museum. (Signed) James B. Wilbur."

Mr. Wilbur, a resident and citizen of Manchester, died, testate, April 28, 1929. His will was duly admitted to probate, and executors were appointed and qualified.

Mr. Wilbur was a trustee of the University of Vermont and State Agricultural College from December 2, 1925, to the time of his death, and a member of its finance committee from June 18, 1927, to the time of his death.

He was a benefactor of the University. He was a collector of Vermontiana and owned a valuable collection of books, manuscripts, broadsides, and pictures which he intended to, and did, bequeath to the University in his will, dated November 18, 1927, on certain conditions which are not material in our disposal of the case.

From June 28, 1928, to August 10, 1928, Mr. Wilbur and Mr. Guy W. Bailey, president of the University, considered building a separate building to take care of the University's museum exhibits and also provide an adequate room therein in which to house and display Mr. Wilbur's collection, the building to cost not less than $ 300,000. This was a substitute for the original plan of Mr. Wilbur to have an addition built to Billings Library to house his collection. Mr. Wilbur approved of such a building and he proposed to give $ 100,000 to the University for the same on condition that the University raise $ 200,000 additional for that purpose.

Mr. Wilbur prepared a memorandum (Plaintiff's Exhibit 14) in which he stated: "I give you the following stocks to apply on my conditional gift to the U. of Vt. for a museum," and also stated the conditions of the gift. He also prepared a typewritten draft of a letter (Plaintiff's Exhibit 15) to be written by Mr. Bailey to Bankers Trust Company directing it to sell all of the securities given, for him "as President of the University of Vermont," except 100 shares of Atlantic Refining Company common stock, at certain named prices, "and place the proceeds to the credit of James B. Wilbur. Please hold the remaining 100 shares of Atlantic Refining Common Stock subject to my further orders." Attached to this exhibit is a memorandum in Mr. Wilbur's handwriting, which reads: "When stocks are sold will give my note for amount and buy 100 Atlantic Ref. for difference between amount and $ 100,000."

Mr. Bailey visited Mr. Wilbur at Manchester on October 9, 1928, and the conditions of Mr. Wilbur's gift were agreed to by them. The precise conditions of the gift, as agreed to, are set forth in a letter written by Mr. Bailey to Mr. Wilbur, dated October 10, 1928, and they are substantially the same as those mentioned in Exhibits 14 and 15. This letter is Plaintiff's Exhibit 35, and is hereafter referred to as such. Although it is dated October 10, 1928, it was actually written on a later day at Mr. Wilbur's request. It is the letter that is referred to in the note in suit. It is as follows: "October 10, 1928.

"Hon James B. Wilbur, Manchester, Vt.

"Dear Mr. Wilbur: "On behalf of the University of Vermont, I acknowledge your gift to the University of Vermont for a museum, of the following stocks delivered to Bankers Trust Company, 16 Wall Street, New York City, namely: (The several stocks mentioned in this letter are set forth in finding No 7, hereafter quoted, and reference is made to that finding for the same.) "This gift is upon the conditions following: "1. The sum of money intended to be given by you is $ 100,000, and the above...