WILLIAM WHEELER, APPELLANT,
v.
HUGH SMITH AND PHINEAS JANNEY, EXECUTORS OF CHARLES BENNETT, DECEASED, AND SURVIVING TRUSTEES UNDER HIS WILL, AND MOLLY E. TAYLOR, EXECUTRIX, AND HENRY DAINGERFIELD AND PHINEAS JANNEY, EXECUTORS OF ROBERT I. TAYLOR, DECEASED, WHO WAS AN EXECUTOR AND TRUSTEE UNDER THE SAME WILL, HUGH C. SMITH, EXECUTOR OF THE SAME CHARLES BENNETT, AND THE COMMON COUNCIL OF ALEXANDRIA, DEFENDANTS
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William Wheeler, the heir at law of Charles Bennett, challenged the validity of a will's residuary devise that left the testator's remaining estate to executors in trust to benefit "the town and trade of Alexandria" without specifying how the funds should be used, and also sought to void a compromise agreement he had made with the executors. The Supreme Court held that the devise failed as an indefinite charitable trust because Virginia law did not recognize the English Statute of Charitable Uses after its repeal, and the beneficiaries and mode of administration were too vague for a court to enforce or supervise; the Court also reversed the compromise agreement as void because Wheeler, who was financially desperate and heavily influenced by representations from the executors, had not acted freely or with proper understanding of his legal rights.
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Mr. Justice McLEAN delivered the opinion of the court.
This controversy arises under the last will and testament of Charles Bénnétt, late of Alexandria. After making a number of specific bequests, the testator declares, — “ The residue of my estate is left in trust of Hugh Smith, Robert I. Taylor, and Phineas Janney, for such purposes as they consider promises to to be most beneficial to the town and trade of Alexandria. If any difficulty occurs in construction as to any of my bequests, R. I. Taylor is especially charged to give said construction.” Smith, Taylor, and Janüey were appointed executors.
In a codicil the testator declares, — “Now in the inclosure I leave the residue of my estate, after payipg all bequests and appropriations, to some disposition thereof which my executors máy consider as promising most to benefit the town and trade of Alexandria. Now I leave the same entirely to their disposition of it, in such manner as appears to them promises to yield the greatest good.”
The complainant, William Wheeler, is next of kin and heir at law to the testqtor.. He filed his bill to set aside the. above devise, and also the compromise he made with the executors, under the impression that the devise was valid.
On reading the above residuary disposition of his estate, we cannot but observe the fact, that the testator had no settled purpose as to the mode of applying his bequest to “ benefit the town and trade of Alexandria.” The town and trade of any commercial city are closely connected, and whatever shall benefit the one will advance the interest of the other. These interests are inseparably blended; but they were treated by the testator as distinct objects of his solicitude and bounty. Perhaps no matter could give rise to a greater diversity of opinion, than that which is involved in this devise.. Shall the objects of the testator be most advanced by extending the lines of internal communication connected with the town, such as turnpike roads, railroads, or canals; or by improving and extending the wharves and warehouses of the city; or by deepening the harbour and removing obstructions to navigation; or by loaning the capital to men engaged in commerce,- .or by aiding some other enterprise beneficial to the trade and town ? Shall the bounty be limited to Our own citizens, if foreigners shall do more than they, to carry out the expressed objects of the testator ?
Under this devise, how can a court of chancery correct an abuse of the trust ? By what means shall it ascertain the misapplication of the fund ? There is nothing to restrain the discretion of the trustees, or to guide the judgment of the court. If the trust can be administered, it must be administered at-the will of the trustees, substantially free from all legal obligation.
But before we pronounce on the character of this trust, it is important to know by what law it >is governed. Is the common law of England in relation to charities, as modified and enlarged by the statute of the 43d of Elizabeth, in force in Virginia? Charities have been administered, both at common law and in chancery, from an early period of English jurisprudence. But the • earlier decisions in that country are often inconsistent, and of no great weight of authority. The prerogative of the king was invoked as parens patriae where the charity was indefinite, arid a most liberal construction was given to the act of the 43d of Elizabeth; and under these influences a system has grown up in England favorable to the policy of charitable bequests. So far has this policy been carried, that whére the devise has been uncertain or impracticable, it has been sustained in some instances by what was supposed to be. the intent of the testator, or by approaching as near to it as practicable.
It would seem from the preamble to the statute of Elizabeth,that its object was mainly to institute a remedy where the charitable intent of the founders had not been carried out, by reason of frauds, breaches of trust, and negligence in those that should pay, 979, 6.
In Wright v. Atkyns, 1 Turn. & Russ. 157, Lord Eldon said, that in order to determine whether a trust of this sort is a trust which a court of equity, will interfere with, it is matter-of observation, first, that the words should be imperative ; secondly,, that the subject must be certain; and thirdly, that the object must be as certainias the subject. This principle is .also strongly illustrated in the case of Wood v. Cox, 2 Mylne & Craig, 684; 10 Leigh, 147.
In Morice v. The Bishop of Durham, 10 Ves. 521, where a bequest “in trust for such objects of benevolence and liberality as the trustee in his own discretion shall most approve, cannot be supported as a charitable legacy; and is therefore a trust for the next of kin.” This was under the statute of 43d Elizabeth. The court said, “ The trust must be of such a nature that the administration of it can be reviewed by the court; or if the trustee die, the court itself can execute the trust.” And the court remark, in regard to the case before them, “ The trustee takes not for his own benefit, but for purposes not sufficiently defined to be controlled and managed by this court.”
The case of Vidal v. Girard’s Ex’rs, 2 How. 127, was decided under the law of Pennsylvania. The court say, “ It has been decided by the Supreme Court of Pennsylvania, that the conservative principles of the statute of Elizabeth have been in force in Pennsylvania by common usage and constitutional recognition.”
In a late case in Virginia, not yet reported, of Brand’s Adm’r v. Brand et al., the following devise was held to be void: — “ Third, I give to the Rev. W. J. Plummer, D. D., the residue of my estate, both real and personal, in trust for the board of publication of the Presbyterian Church in the United States.”
From the principles laid down in the above cases, it is clear that the devise under consideration cannot be sustained. A trust is vested in the executors, but the beneficiaries of the trust are uncertain, and the mode of applying the bounty is indefinite. It is argued that the testator intended to give to the town of Alexandria, in its corporate capacity, the residuum of his estate. But. he did not so express himself. On the contrary, it clearly appears that the executors were made the repositories of his confidence, and the only persons who were authorized to administer the trust. The cestui que trusts were the-town and the trade of the town. It would be difficult to express in more indefinite language the beneficiaries of a trust. How can a court of chancery administer this trust. On what ground can it remove the trustees for an abuse of it. The discretion of the trustees may be exercised without limitation, excepting that the fund must be applied for the benefit of the trade and town of Alexandria. And if the application of the fund be, however remotely, connected with the objects of the trust, the judgment of the court could not be substituted for the discretion of the trustees.' It is doubtful whether so vague a bequest could be sustained under the 43d of Elizabeth. Without the application of the doctrine of cy-pres, it could not be carried into effect. In Virginia charitable bequests stand upon the same footing as other trusts, and consequently require the same certainty as to the objects of the trust and the mode of its administration. But the defendants insist, that the right of the complainant •was compromised and finally settled, which is shown by a Writing under seal, and under which they paid to him twenty-five thousand dollars. The complainant prays that this agreement may be set aside as inoperative and void.
It appears from the bill, that the complainant resides in the State of Pennsylvania, and that so soon as he could raise the means of paying his expenses, after he heard of the death of his uncle, he came to Alexandria. He had an interview with the executors, and stated to them his determination to test the validity of 'the will, so soon as he' should be able to employ counsel. This was before the probate of the will. Mr. Smith, one of the executors, expressing great kindness for him, was anxious to avoid a lawsuit. He did-not fear the result, as the executors had been advised by counsel in whom they had confidence, that the will was valid. He represented the vexations, delays, and expenses of a lawsuit, and intimated to the complainant that the executors were, willing to pay a sum of money to him if the matter could be compromised.
It appears that the complainant had been prodigal in his expenditures, and that, notwithstanding the provisions for his support which had been made for him by his uncle, he was without means and embarrassed. When the interview took place' which led to the compromise, the complainant again expressed his conviction that the will was not valid, ánd declared that he should try its validity by legal proceedings. Mr. Taylor, one'of the executors, was a distinguished, lawyer, a man of high standing, and in whom the complainant reposed the greatest confidence; he represented to the complainant that he had sundry written opinions of counsel in favor of the legal validity of the residuary devise, which-he offered to show to him.' His conversation conveyed to the complainant “ the clear and distinct impression, that there was but one opinion among the lawyers consulted, and that they were unanimous in favor of the validity of the devise.” The complainant asked Mr. Taylor to state his opinion on the subject. He observed, that the complainant should not have asked him, but his opinion was, “ that the devise in question was a legal and valid disposition of the residue of the estate.” At the same time, he admitted that in Pennsylvania such a devise would not be good ; but that it was good under the old law of Virginia.
The complainant alleges that he had no settled views of the legal question, and being disheartened by the circumstances under which he was placed, he yielded to the compromise. He had but little time for reflection, and none to advise with counsel; and at last he came to the conclusion to consider the devise valid, and take what he could get for a release.
Under these circumstances, the complainant agreed to the compromise. It stated the residuary devise, and that its validity had been controverted by the complainant. That “.the said executors, taking on themselves the burden of the execution of said will, and of the trusts aforesaid, and the said William Wheeler, to avoid the delay and expense of litigation, and finally to settle and adjust all doubts' and difficulties which might arise on the effect of said will, so as to leave the said executors to execute the same without delay or impediment, have agreed on the following terms of compromise.”
1st. That twenty-five thousand dollars shall be paid to the complainant. 2d. That the executors shall release to him all claims to any property, real or personal; conveyed or settled on complainant by the testator in his lifetime. 3d. That the complainant shall release to the executors “ all his claims, in law or equity, to the estate, real and personal, devised and bequeathed, or intended to be devised or bequeathed, by the said Charles Bennett by his said will, to be held and disposed of by the said executors in the manner in and. by the said will prescribed. And that the said executors shall be at liberty, if any specification of the objects to which the residuary fund is to be applied be thought necessary, to apply the same to aid in finishing the Alexandria Canal, &c., and to subscribe to any railroad or other roads communicating with the said town; to anymr to all of the above purposes, in such way as the said executors, or the survivors, may think most conducive to the prosperity and welfare of the town,” <fcc.
The complainant, it seems, had studied law, but it is manifest from the facts before us, that he was but little acquainted with business, was an inefficient and dependent man, easily misled, especially by those for whose abilities and characters he entertained a profound respect. From the high character of the executors, no one can impute to them any fraudulent intent in this'transaction.'; Looking to what they considered to be the object of the testator, they felt themselves authorized, if not bound, to effectuate his purposes by making this compromise with his heir'at law. They had no personal interest beyond that which was common to the citizens of Alexandria. And we admit that they may have acted under a sense of duty, from a misconception of their power under the 'will.
But in making the-compromise, the parties did not stand on équal ground. The necessities and character of the complainant were well known.to the executors'. Having the confi denee expressed in the validity of the devise, they could hardly have felt themselves authorized to pay to the complainant twenty-five thousand dollars for the relinquishment of a preténded right. Nor could they have deemed .it necessary, in the agreement of compromise, substantially to constitute him the donor of the munificent bequest to the town and trade of Alexandria.
We are to judge of this compromise by what is stated in the bill, the facts being admitted by the demurrer. And it appears to us that the agreement, under the circumstances, is void. -It' cannot be sustained on principles which lie at the foundation of á valid contract. The influences operating upon the mind of the complainant induced him to sacrifice his interests. He did not act freely, and with a proper understanding of his rights.
The decree of the Circuit Court is reversed, the demurrer overruled, and the' cause remanded for further proceedings.
Order. This cause came on to be heard on the transcript of the record from the Circuit Court of the United States for the District of Columbia, holden in and for the County of Alexandria, and was argued by counsel. On consideration whereof, it is now here ordered, adjudged, and decreed by this court,, that the decree of the said Circuit Court in this cause be, and the same is hereby, reversed, with costs, and that this cause be, and the same ,is hereby, remanded, for further proceedings to be had therein in conformity to the opinion of this court.
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- Francois Fenelon Vidal v. The Mayor, 2 How. 127 (U.S. 1844)
- Jackson, 12 Wheat. 153 (U.S. 1827)
- The Trs. of the Philadelphia Baptist Ass'n v. Hart's Executors, 4 Wheat. 1 (U.S. 1819)
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