Stuart v. City of Easton

No. 18
Decided Circuit Court of Appeals, Third Circuit
Disposition
affirmed
full scope · unanimous
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Court
Circuit Court of the United States for the Eastern District of Pennsylvania
Decided
Judge
ACHESON, Circuit Judge
Posture
Judgment entered for defendants after jury verdict under court instructions
Plaintiff in error (heir of original plaintiff William Stuart) (1)
William Dugald Stuart
C. Berkeley Taylor, A. S. Preedley
v.
Defendants in errors (2)
City of Easton and county of Northampton
Aaron Goldsmith, Edward J. Fox

Overview

The judgment of the Circuit Court for the Eastern District of Pennsylvania is affirmed.

Case summary

This case involves an ejectment action by William Dugald Stuart, heir of Pennsylvania proprietaries Thomas and Richard Penn, against the City of Easton and Northampton County. In 1764, the Penns granted an 80-foot square lot in Easton to trustees 'in trust, nevertheless, to and for the erecting thereon a courthouse for the public use and service of the said county, and to and for no other use, intent, or purpose whatsoever.' A courthouse was built and used until 1862, then removed. Stuart claimed the grant created a conditional estate that reverted to the grantors' heirs upon nonuser. The trial court instructed a verdict for defendants. On appeal, the Circuit Court of Appeals held: (1) the grant created a fee simple estate with a charitable trust, not a conditional estate; (2) the use for a courthouse for public service is a charitable use; and (3) without an express provision for forfeiture or reverter, no right of re-entry exists for nonuser. The judgment for defendants was affirmed.

Abstract

Heir of original grantors brought an ejectment action against a city and county, claiming a conditional estate in a lot granted in trust for a courthouse reverted due to nonuse after the structure was removed. The courts held the grant created a fee simple estate subject to a charitable trust for public courthouse use, with no right of re-entry absent an express forfeiture provision. The judgment for defendants was affirmed on appeal.

Opinion of the court

Majority
opinion
ACHESON, Circuit Judgejoined by SHIBAS, Circuit Justice, AGHES02ÑÍ, Circuit Judge, BUTLER, District Judge
  • Grant used apt words to pass fee simple estate
  • Trust language defined relationship between grantees and beneficiaries
  • No express condition for forfeiture or reverter
  • Grant for courthouse for public use is charitable use
  • Charitable use cannot be defeated by nonuser without express condition
  • Plaintiff without title to maintain ejectment

Jurisdiction

not challenged
Subject matter
Error proceeding from Circuit Court of the United States for the Eastern District of Pennsylvania

Procedural posture

Posture at trial
Judgment entered for defendants after jury verdict under court instructions
Posture on appeal
Direct appeal (writ of error)
Preserved issues
  • Whether the grant created a conditional estate determinable on nonuser
  • Whether the grant was for a charitable use

Legal categories

Estate Planning and Real EstateBusiness

Case record

Full case name
STUART v. CITY OF EASTON et al.
Docket number
No. 18
Court
Circuit Court of Appeals, Third Circuit
Trial court
Circuit Court of the United States for the Eastern District of Pennsylvania
Decided
Opinion author
ACHESON, Circuit Judge
Opinion type
published
Precedential status
precedential
Judges on panel
SHIBAS, Circuit JusticeAGHES02ÑÍ, Circuit JudgeBUTLER, District Judge

Issues & holdings

2
Issues raised
2
affirmed
3
Holdings
Standard of review

de novo

Disposition rationale

Grant created fee simple estate with charitable trust, no express condition for forfeiture, so no right of re-entry implied

Preservation

Issue preserved for review

Standard of review

de novo

Disposition rationale

Grant for courthouse for public service is a charitable use under Pennsylvania and common law

Preservation

Issue preserved for review

Holdings of the court

Nature of estate created by 1764 grant
The grant created a fee simple estate with a charitable trust, not a conditional estate determinable on nonuser
Deed used apt words 'their heirs and assigns, forever' to pass fee simple; trust language defined relationship between grantees and beneficiaries; no express provision for forfeiture or re-entry; charitable grants are favored against grantors
unanimousbinding precedent
Charitable nature of the use
Grant for erection of courthouse for public use and service of county is a charitable use
Under Pennsylvania and common law, gifts for public purposes like courthouses are charitable uses; cited authorities include Jones v. Williams, Howse v. Chapman, and Pennsylvania cases
unanimousbinding precedent
Right of re-entry for nonuser
No right of re-entry exists in absence of express provision for forfeiture or reverter
Charitable use cannot be forfeited for nonuser without express condition; law raises intendment in favor of charity against grantor
unanimousbinding precedent

Error analysis

  • Trial court erred in instructing verdict for defendants by misinterpreting grant as creating charitable fee simple rather than conditional estate — evidentiary · no error foundNot applicable as no error found

Statutory interpretation

1
Statute
Act of Pennsylvania assembly March 11, 1752
Question
Whether act contemplated acquisition of fee simple estate
Court's reading
Act contemplated acquisition of fee simple estate by trustees
Canons applied
plain meaning

Standards of review

  • Interpretation of grant deed and whether it created conditional estate — de novo Legal interpretation of deed terms and estate created
  • Whether grant was for charitable use — de novo Legal characterization of use under charitable trust principles

Timeline

9
Events
— Trial date not specified
Span
factual eventcited in opinion

Pennsylvania assembly passes act authorizing trustees to purchase land for courthouse and prison for Northampton County

Created authority for acquisition of land for public use

General Assembly of Pennsylvania · Thomas Craig · Hugh Wilson · John Jones · Thomas Armstrong · James Martin Pennsylvania
factual eventcited in opinion

Thomas and Richard Penn issue warrant of survey for 80-foot square lot in Easton for courthouse

Initiated process for granting land for courthouse

Thomas Penn · Richard Penn Easton, Pennsylvania
1763-1766factual eventcited in opinion

Northampton County courthouse erected on the lot

Trust purpose fulfilled initially

Trustees · Northampton County Easton, Pennsylvania
factual eventcited in opinion

Penns grant lot to trustees via patent 'in trust, nevertheless, to and for the erecting thereon a courthouse for the public use and service of the said county, and to and for no other use, intent, or purpose whatsoever'

Conveyance at issue in the case

Thomas Penn · Richard Penn · John Jones · Thomas Armstrong · James Martin · John Rinker · Henry Allshouse Easton, Pennsylvania
procedural eventcited in opinion

Act of assembly vests trustees' title in Northampton County

Transferred legal title to county

Pennsylvania legislature · Northampton County Pennsylvania
factual eventcited in opinion

Courthouse removed from lot, no other buildings erected since

Alleged nonuser triggering ejectment claim

Northampton County Easton, Pennsylvania
procedural eventcited in opinion

William Stuart enters lot for alleged breach of condition and brings ejectment action

Commencement of litigation

William Stuart Easton, Pennsylvania
After 1888procedural eventcited in opinion

William Stuart dies, his son William Dugald Stuart substituted as plaintiff

Continuation of lawsuit by heir

William Stuart · William Dugald Stuart
Trial date not specifiedtrial eventcited in opinion

Trial court instructs jury to find verdict for defendants, judgment entered accordingly

Outcome: Verdict for defendants, judgment entered

Trial court ruling appealed

Trial court · Jury trial court

Facts & evidence

Incident

Location
Easton, Northampton County, Pennsylvania

Key facts

8 facts
  1. In 1752, Pennsylvania assembly authorized trustees to purchase land for a courthouse and prison for Northampton County
  2. In 1762, proprietaries Thomas and Richard Penn issued warrant to survey an 80-foot square lot in Easton for a courthouse
  3. In 1764, Penns granted the lot to trustees via patent 'in trust, nevertheless, to and for the erecting thereon a courthouse for the public use and service of the said county, and to and for no other use, intent, or purpose whatsoever'
  4. Courthouse was built 1763-1766 and stood until 1862, then removed with no other buildings since
  5. In 1834, act vested trustees' title in Northampton County
  6. In 1888, William Stuart (heir of Penns) entered lot for alleged breach of condition and brought ejectment action
  7. William Stuart died, his son William Dugald Stuart substituted as plaintiff
  8. Trial court instructed verdict for defendants, judgment entered accordingly

Procedural history

10 steps
  1. 1752: Pennsylvania assembly authorizes land acquisition for courthouse
  2. 1762: Penns issue survey warrant
  3. 1764: Penns grant lot to trustees via patent
  4. 1763-1766: Courthouse built
  5. 1834: Act vests title in Northampton County
  6. 1862: Courthouse removed
  7. 1888: William Stuart enters lot and brings ejectment
  8. After suit commenced: William Stuart dies, William Dugald Stuart substituted
  9. Trial: Verdict for defendants under court instructions, judgment entered
  10. 1896: Appeal to Circuit Court of Appeals

Evidence in the record

Documentary
  • 1752 act of Pennsylvania assembly authorizing land acquisition for courthouse
  • 1762 warrant of survey from Penns
  • 1764 patent from Penns to trustees
  • 1834 act vesting title in Northampton County

Objects of relevance

80-foot square lot in center of great square in EastonCourthouse building erected 1763-1766

Authorities

Cited authorities (15)

Wright v. Linn, 9 Pa. St. 433
followedprecedent
Held charity not determined by nonuser for 17 years, no re-entry right without express condition
McKissick v. Pickle, 16 Pa. St. 140, 148
followedquotedprecedent
Charity cannot be forfeited for nonuser without express condition; law favors charity against grantor
Griffiths v. Cope, 17 Pa. St. 96, 99
followedquotedprecedent
Law discourages fettering estates, favors construction relieving restraints unless expressed
Barr v. Weld, 24 Pa. St. 84, 87
followedquotedprecedent
No right to maintain ejectment for misuser without express condition
In re Mercer Home for Disabled Clergymen, 162 Pa. St. 232, 238, 29 Atl. 731
followedprecedent
Charity takes fee simple without remainder to heirs unless plain direction otherwise
Jones v. Williams, Amb. 651
followedquotedprecedent
Defined charity as gift to general public use extending to poor and rich
Howse v. Chapman, 4 Ves. 542, 551
followedprecedent
Bequest for improvement of city held charitable
Attorney General v. Heelis, 2 Sim. & S. 67, 76
followedquotedprecedent
Funds for public purposes like building sessions house are charitable
Coggeshall v. Pelton, 7 Johns. Ch. 292
followedprecedent
Legacy for townhouse for town business held valid charitable bequest
Magill v. Brown, Brightly, N. P. 347, Fed. Cas. No. 8,952
followedprecedent
Common law favorable to charities, bequest for fire engine sustained as charitable
Cresson’s Appeal, 30 Pa. St. 437, 450
followedquotedprecedent
Defined charity as general public use, upheld bequests for shade trees and professorship as charitable
Fire Ins. Patrol v. Boyd, 120 Pa. St. 624, 644, 645, 15 Atl. 553
followedquotedprecedent
Approved definitions of charity, held fire insurance patrol as public charity
Penn v. Carey, 24 How. 465, 506
followedquotedprecedent
All property held for public purposes is held as charitable use
Ould v. Hospital, 95 U. S. 303, 309, 311
followedquotedprecedent
Validity of charitable endowments does not depend on Statute of Elizabeth, charitable use promotes well-being of social man
Vidal v. Girard’s Ex’rs, 2 How. 127, 191
followedprecedent
Cited for principle that misuse of trust property answerable to those interested or commonwealth

Statutes

  • Act of Pennsylvania assembly March 11, 1752 (1 Dali. Laws, 1-52)
  • Act of assembly approved April 15, 1834 (S?. L. ]>. 538)

Standards & doctrines

  • Charitable use doctrine under Pennsylvania and common law
  • No implied reverter for nonuser of charitable trust

Legal principles applied

  • Charitable grants are favored against grantors
  • No forfeiture for nonuser of charity without express condition
  • Words 'heirs and assigns, forever' pass fee simple estate
Index terms64
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Entities and documentation
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Action type
affirmed
Target
trial court judgment for defendants
Appealed from
Circuit Court of the United States for the Eastern District of Pennsylvania
Context
Court affirmed judgment for defendants, holding grant created charitable fee simple with no right of re-entry for nonuser
Scope
full
Disposition vote
unanimous
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