Majority
Headnote
Trust for “ charitable and benevolent coiporations" of a city — when sufficiently spe cific— designation of beneficiaries — judicial notice of organized charities — application of a fund for the benefit of others, enforced — sight of the Attorney-General to institute a suit to enforce a charitable trust, not limited by Code of Oivil Procedwe, § 1781 — refusal of charitable corporations to collect a bequest— pasiies to the suit.The opinion of the Special Term was as follows :
The second ground of demurrer is clearly not well taken for several reasons. It does not appear upon the face of the complaint that there are any other charitable and benevolent institutions or corporations in the city of Rochester other than those made parties. If there are it does not appear that-the demurring defendant is prejudiced by the non-joinder. (Anderton v. Wolf, 41 Hun, 571 .)
“I give, bequeath and devise unto Daniel W. Powers, of Rochester, N. Y., all the property given and devised by the eleventh clause of this will which shall remain after the execution and termination of the said trust at the death of said Nancy and Mary Dunlap. This gift and devise is made upon the trust and confidence reposed in the said Daniel W. Powers that he will dispose of the said property among the charitable and benevolent institutions or corporations in the city of Rochester as he shall choose, and such sums and proportions as he shall deem proper.”
The defend an it is alleged, was nominated as executor; was appointed by the surrogate and took upon himself the duties of that office and reduced the estate to possession. No part of the income of the estate of Martha Dunlap was used for the support of her sisteus, their own property being ample for that purpose, and the last of the two sisters died in 1889. The complaint then states that Powers never made any distribution of the estate of Martha, bequeathed to him by the above clause of her will; nor in any way acted in discharge of the trust, nor even acknowledged it; but in the year 1892 he repudiated the trust and denied any obligation to distribute any
There are other allegations in the complaint, but they do not appear to be material upon this issue, whatever may be their bearing should there ever be a trial of the action.
The defendant, Power'é, in his demurrer, in addition to the charge that there is a defect of parties, objects that the complaint does not state facts sufficient to constitute a cause of action, and in this way are raised the serious and interesting questions presented in the case. That the words “ This gift and devise is made upon the trust and confidence reposed in the said Daniel W. Powers,” etc., are sufficient, if other conditions exist to create a trust, cannot be denied. (Perry on Trusts, § 112 ; Bull v. Bull, 8 Conn. 47 ; Harrison v. Harrison, 44 Am. Dec. 365 and note, 372, 373.) These conditions are that the testator has pointed out with sufficient certainty both the subject-matter and the objects of the trust. The subject-matter is clearly stated. Can it be said that the testatrix has designated the objects with sufficient certainty ? Has she so designated them that the court can ascertain who they are % For that is the test as established by the court. (Prichard v. Thompson, 95 N. Y. 76 ; Read v. Williams, 125 id. 560.) But to sufficiently designate the beneficiaries it is not necessary that they be named in the will. If power is given to the trustee to select the object of the trust it will be sufficient, provided the persons or corporations are so defined and limited in the will that a court of equity would have ’ power to enforce the execution of the trust, or. in default of a selection by the trustee, to decree an equal distribution among those from whom the selection might have been made. Such is the rule on the subject laid down by the courts of this State. (Power v. Cassidy, 79 N. Y. 602 ; Holland v. Alcock, 108 id. 312.) Obviously the application of this very general rule requires that the objects of the trust
The fact that the trustee has the right of selection does not make the power given to him less imperative. (1 R. S. 734, § 97.) It will be noticed that the discretion given to him is not as to whether or not the fund shall be divided, but only extends to the selection of the objects and the amount to be given to each. The sole differ
' It was suggested upon the argument that the trust was invalid, because the objects of it were benevolent as well as charitable institutions ; the argument being that while a trust for charitable institutions might be sustained, yet one for benevolent institutions was too broad, and might include institutions other than those which the law recognizes as charitable, and that, therefore, so much of the devise as went for the benefit of benevolent institutions was invalid. The conclusion was drawn that as all the estate might at the discretion of the executor be turned over to benevolent as distinguished from charitable institutions, the entire scheme was thereby made void. It cannot be denied that a devise for benevolent purposes alone does not create a charity and is not valid. (Chamberlain v. Stearns, 111 Mass. 267 .) But the same court which so held has also decided that when the word “benevolent” is used in connection with “ charitable ” it is synonymous with it, and that a bequest to “benevolent or charitable” objects is valid. (Saltonstall v. Sanders, 11 Allen, 446 ; Suter v. Hilliard, 132 Mass. 412 .) Such, I believe, now to be the law of England as pronounced by the highest court, overruling, or, at least refusing to follow, cases to the contrary. (Miller v. Rowan, 5 Cl. & Fin. *99 ; Perry on Trusts, § 705, 712, and note.) But in this will the discretion is limited not to charitable or benevolent institutions, but to charitable and benevolent institutions; so that no institution is within the terms of the devise, unless it is one of those which the law recognizes as charitable as well as benevolent. I have not for-gotten the case of Norris v. Thomson's Hxrs. ( 19 N. J. Eq. 307 ), in which it was held that a power of appointment “ among such benevolent, religious or charitable institutions as she may think proper ” was void because of the use of the word “ benevolent.” The court says that a devise for benevolent objects is too indefinite and is void, and that as the appointee might within the power have selected benevolent to the exclusion of charitable and religious objects, the whole devise was-
Having reached the conclusion that the devise is valid and that the defendant takes the property subject to the duty of disposing of it as directed by the will, the next question presented is whether this action can be maintained in the name of the People to enforce the trust. The objection to the action does not go to the jurisdiction of the court, for no one denies that the court has the jurisdiction to enforce this trust in an action of some kind. (1 R. S. 734, § 96; Perry on Trusts, § 694; Story’s Eq. Juris. § 1191.) The objection is that the People have set up no cause of action in their favor, and, therefore, are not proper jiarties plaintiff. It is undoubtedly true that the People, like all other parties to actions, must show an interest in the subject-matter of the litigation before they can prosecute a suit. (People v. Booth, 32 N. Y. 397 .) But when that principle is admitted we do not advance a step in this discussion, for still there remains the question, what is such an interest in the subject-matter as entitles the People to sue ? In this case the People have no money to gain by a recovery. But the interest which entitles or requires the Attorney-General to sue in the name of the People may be something other than a right to the recovery of money or property. This appears from the fact that without the direction of any statute it is the duty of the Attorney-General in the name of the People to sue out writs of quo warranto with or without a relator ; to sue out writs of mandamus; to proceed by scire facias to revoke grants improperly made or forfeited by the grantee; to proceed in ■equity if necessary to restrain public nuisances. In these matters, or several of them, the People have no pecuniary interest whatever,
* Laws oí 1892, chapter 683 — [Rep.
In Attorney-General v. Utica Ins. Co. ( 2 Johns. Ch. 371 ) Chancellor Kent, denying the power of the Court of Chancery to interfere with private corporations by way of restraining violations of law at the suit of the People, admitted that in the case of a charitable institution the Court of Chancery at the suit of the People had jurisdiction to redress abuses of their trusts. In People v. Miner ( 2 Lans. 396 ) it is held by Judge Mullin, delivering the opinion of the court, that the Attorney-General may sue i'n equity to enforce trusts or prevent the use of trust powers. Erom these holdings and dicta I think I am warranted in the conclusion that the People have such an interest in the administration of a public charity as to warrant the Attorney-General here, as in England and Massachusetts, in bringing a suit to enforce it where his interference is necessary.
The reason is that the People have an interest that the fund shall be devoted to the purpose for which the testatrix intended it. The corporations have by law the right to the fund for public purposes. It is, therefore, their duty to take steps to procure it. If they refuse, and by that refusal they lose the fund, it. is quite as much a breach of their duty as though having it, they had misapplied it. I can see no difference in principle between the refusal of a charitable corporation to claim and collect a fund which is undoubtedly its and a refusal to collect any securities which it might own and allowing them to be lost. But, in the latter case, no one would question the right of the People to interfere. In either case the effect of its action would be to waste the fund to which it was entitled and which it was its duty to protect and apply.
The foundation of the duty of the Attorney-General to sue is that unless he proceeds the fund will be lost or wasted. If that condition of affairs exists it is no matter whether it comes to exist because of lack of power of some one to sue, or because the person who should sue, through collusion pr otherwise with the wrongdoer, refuses to act. In each case the interests of the People are jeopardized and the duty of its law officer begins. The case of The People v. Simonson ( 126 N. Y. 299 ) is vastly different. There
It is said that the Attorney-General might have proceeded against these corporations under section 1181 of the Code of Civil Procedure. Possibly that is true. But the statutory power given in that section does not, in terms or otherwise, affect or take away the duty of the Attorney-General to proceed under the provisions of the Revised Statutes, now incorporated into the Executive Law, or at common law, by prosecuting such suits as are necessary to protect the interests of - the People. But a suit, as provided by section 1181, would be of no avail here. All that could be done under that section would be to charge the officers with the consequences arising from a breach of their trust. The fund here could not be reached. It is doubtful whether Powers could even be made a party defendant in his capacity of executor or trustee.
Such an action would by no means accomplish the purpose which is sought, or which the necessities of the case require. That purpose is to reach this fund and compel its application to the public purpose for which the testatrix intended it and thus prevent its waste and misapplication. Not only the corporations, who refuse to act, but the person who wrongfully withholds the estate that has been devoted to their use, must be made parties that the full relief may be granted.
It can be done in this action, and because it can be so done and done in no other way, and because, if not done, the fund will be lost to public charity, I think this action can be maintained.
The plaintiff must have judgment on the demurrer, with costs, with leave to defendant to withdraw the demurrer and answer on payment of the usual costs.
Cases cited
- Prichard v. Thompson 95 N. Y. 76 p. 453, p. 455
- Power v. Cassidy 79 N. Y. 602 p. 453, p. 454
- O'Hara v. Dudley 95 N. Y. 403 p. 455
- Read v. Williams 125 N. Y. 560 at 569 p. 456
- People v. Booth 32 N. Y. 397 p. 457
- Davis v. Mayor 14 N. Y. 506 p. 459
- Owens v. Missionary Society of the Methodist Episcopal Church 14 N. Y. 380 p. 459
- People v. Miner 2 Lans. 396 p. 459
- People v. Simonson 126 N. Y. 299 p. 460