Opinion ID: 2605808
Heading Depth: 1
Heading Rank: 1

Heading: background appellants' claim of the standard oil of indiana stock

Text: Charles W. Burdick, a successful lawyer and businessman in Cheyenne, executed his last will and testament on May 7, 1919. It provided in part: I, Charles W. Burdick of Cheyenne Wyoming declare this to be my last will disposing of my property as follows:   First :  I hereby appoint my daughter Margaret Fuller Burdick and Blanche O. Lummis of Cheyenne, Wyo. joint trustees of my estate and no bond shall be required of them. They or the survivor of them shall continue to act during life, and the trust hereby created shall continue during the life of such survivor and as long thereafter as may be herein specified. My said trustees shall receive the following annual compensation: to-wit:  there shall be paid to my said daughter as her compensation the sum of Five Thousand dollars, payable in monthly installments if practicable, and thereafter to the said Blanche O. Lummis the sum of twenty-five hundred dollars, payable in monthly installments if practicable.  Second. I give and devise all my property of every kind to my said daughter Margaret F. Burdick and to the said Blanche O. Lummis as joint trustees, in trust during their lives and during the life of the survivor of them on the conditions and for the purposes hereinafter set forth. It should be observed that in the first paragraph that Margaret Burdick and Blanche Lummis were appointed joint trustees of the estate, and then in the second paragraph the testator's property was devised to them as joint trustees. The question then arises did the testator confuse the term trustee. This will be discussed in detail later in the opinion. On November 24, 1919, and six months after executing his will, Mr. Burdick entered into a trust agreement, the provisions of which provided that Mr. Burdick convey in trust twenty four hundred (2,400) shares of capital stock of Midwest Refining Company to Blanche Lummis as trustee. She would collect and receive the income thereof, and    apply the entire net income to the use of the grantor during the term of his natural life.    Upon Mr. Burdick's death, the trust would terminate and the stock would be delivered to the trustees of the estate. Later on March 1, 1920, Mr. Burdick amended the trust agreement to provide that Margaret Burdick Hewlett (his newly married daughter) would succeed Blanche Lummis as trustee in the event of her death. It was further provided that if necessary, the New York Trust Company of New York City would succeed Margaret Burdick Hewlett as trustee. Upon the death of Blanche Lummis in October, 1923, Margaret Burdick Hewlett succeeded her as trustee pursuant to the amendment of the trust agreement. During the life of the inter-vivos trust, Midwest Refining Company merged with Standard Oil Company of Indiana. As a result, the 2,400 shares of capital stock in Midwest Refining  the principal item of the trust's corpus  became 12,000 shares of capital stock in Standard Oil. Mr. Burdick prior to his death executed two codicils to his will. The first codicil, dated November 20, 1925, followed his marriage to Mary McCalman and announced that his intentions embodied in the will had not been substantially altered by his change in marital status. The codicil merely provided that a trust be set up such that a net annual income of $5,500 would inure to the benefit of his wife for the remainder of her life. It should be observed that this command was directed to the Executors & Trustees named in my said will. However, after the one reference to executors, the remainder of the codicil used the term trustees. The second codicil, dated December 31, 1926, was executed a mere nine days before Mr. Burdick's death. It substituted the name George Hewlett (testator's son-in-law) for Blanche Lummis' in order that he may act as a trustee. After Mr. Burdick's death on January 8, 1927, a petition for probate was filed. It requested that George Hewlett and Margaret Burdick (Hewlett) be granted letters testamentary, since they were named as executors in the will. On February 14, 1927, they were officially appointed as executors of the estate. However, the final account and the petition for distribution could not be completed by the executors until over three years later on April 30, 1930. In the meantime, a 6,000-share dividend was declared on the 12,000 shares of Standard Oil of Indiana in Mr. Burdick's estate. The petition for distribution discussed this occurrence as follows: 9. The inventory and appraisement of said estate included an item of 12,000 shares of stock of the Standard Oil Company, an Indiana corporation, which stock had been issued to Margaret Burdick Hewlett, Trustee, pursuant to a trust instrument   :       The 2400 shares of stock of the Midwest Refining Company mentioned in said instrument, by exchange and additions thereafter became 12,000 shares of stock of the Standard Oil Company, an Indiana corporation. On or about March 15, 1929, the said Standard Oil Company declared and paid a stock dividend of 50% thereon, aggregating a dividend of 6,000 shares of stock of the said Standard Oil Company. Said 6,000 shares of stock were issued to Margaret B. Hewlett, Trustee, and are now held by said trustee, and have never been distributed to the beneficiary of the income of said estate, the said Margaret Burdick Hewlett. The executors then prayed that:    upon hearing had hereing [sic] it be adjudged and decreed by this Court: 1. That the final account and report of these executors be allowed and approved. 2. That George W. Hewlett and Margaret B. Hewlett be appointed and confirmed as testamentary trustees of said estate and directed to file their acceptance thereof and declaration of trust in this court with their official oath. 3. That all accrued income from said estate in the hands of the executors, including the 6,000 shares in stock dividends issued by Standard Oil Corporation, an Indiana corporation, to Margaret B. Hewlett, trustee, be distributed to, transferred and paid over to Margaret B. Hewlett, daughter of decedent. 4. That all capital assets of said estate in the hands of the executors be distributed to George W. Hewlett and Margaret B. Hewlett, as testamentary trustees. 5. That the 12,000 shares of stock of the Standard Oil Company, an Indiana corporation, heretofore issued to Margaret B. Hewlett, trustee, under the trust instrument set forth in this report, be transferred and delivered to George W. Hewlett and Margaret B. Hewlett, testamentary trustees. It is important to note that having previously been appointed as guardian ad litem for the residuary legatees who were either minors or nonresidents of Wyoming, William Mullen sent them the following notice on May 2, 1930, two days after the filing of the petition for distribution: WILLIAM E. MULLEN Attorney at Law 406-407 Hynds Building, Cheyenne, Wyoming. May 2, 1930. The suit brought against the executors of the Burdick Estate and others by the Receiver of The First National Bank of Cheyenne, Wyoming, to recover $1,340,846.47, upon an alleged directors' liability, was settled by the executors before going to trial as to said estate, for $220,000.00, which settlement was authorized and approved by the court. As the estate is now ready for settlement, and distribution, the executors filed their final account, report and petition for distribution of said estate in the District Court of Laramie County, Wyoming, on April 30, 1930. The petition prays that the capital assets of the estate be distributed to the testamentary trustees, and that all income, including interest, cash and stock dividends from the estate property to paid to Margaret B. Hewlett, the beneficiary named in decedent's will. The account and petition is open to objections on the part of anyone interested in the estate until May 10, 1930, and if no objections are filed, it will be presented to the Court for allowance and decree as soon thereafter as the matter can be heard. I was appointed attorney for non-resident residuary legatees and guardian ad litem for minor non-resident residuary legatees, named in decedent's will, by the District Court sitting in probate, on July 8, 1927, and for that reason, feel that it is my duty to notify you as one of the residuary legatees, of all important steps taken in the administration of said estate, in order that you may make objections, if you desire. Very truly yours, WILLIAM E. MULLEN. [1] On May 14, 1930, the probate court entered a decree providing in part: The above matter came on for hearing upon the final account, report and petition for distribution of the residue of said estate filed herein, on April 30, 1930, by George W. Hewlett and Margaret B. Hewlett, as executors of said estate, and also upon the supplemental report now filed by said executors covering transactions since the filing of their final report, and it appearing to the Court that notice of the filing of said final report, account and petition for distribution was duly published, as required by law, and that proof of such publication has been filed in this Court, and the executors now being present in person, and by their counsel, A.C. Campbell, Esq., and the non-resident residuary legatees, named in decedent's will being now represented by William E. Mullen, Esq., and Margaret B. Hewlett, sole heir and life beneficiary, named in the will of decedent, being now represented by Wilfrid O'Leary, Esq., and it appearing to the Court that no objections have been filed to said final report, account or petition for distribution, and no person or persons, having appeared to except, or object to said final account, report, or petition for distribution, and the Court having examined said account, report and petition for distribution, and heard all of the evidence offered by the parties interested in said estate, finds:       3. The Court further finds that under the trust agreement referred to in said final account and report, 12,000 shares of the capital stock of Standard Oil Company, an Indiana corporation, were issued to Margaret B. Hewlett, trustee, under Certificates numbered D-18944; D-18945 and D-18946 ____, and that thereafter and on or about the 15th day of March, 1929, 6,000 shares of the capital stock of said Standard Oil Company, an Indiana corporation, were issued as a stock dividend upon said original 12,000 shares, under Certificate No. j-26957, to Margaret B. Hewlett, trustee. The Court further finds that under said trust agreement, and pursuant to the terms thereof, said original 12,000 shares of the capital stock of the Standard Oil Company, an Indiana corporation, should be transferred and delivered by said trustee to George W. Hewlett and Margaret B. Hewlett as testamentary trustees named in the will of decedent; that under the terms of decedent's will, Margaret B. Hewlett, daughter of decedent, is entitled to receive all net income from the property of said estate, during the period of her natural life, and that said 6,000 shares, issued as a stock dividend by the Standard Oil Company, an Indiana corporation, should be distributed, transferred and delivered by Margaret B. Hewlett, trustee as aforesaid to Margaret B. Hewlett as life beneficiary under decedent's will as a portion of the net income from said estate passing to her under the will of her father Charles W. Burdick.       IT IS THEREFORE ORDERED, ADJUDGED AND DECREED by the Court: 1. That the final account and report and supplementary account and report of said executors filed herein as aforesaid, be and the same are hereby settled, allowed and approved. 2. That George W. Hewlett and Margaret B. Hewlett, be and they are hereby appointed and confirmed as testamentary trustees of said estate as directed by the will of decedent, to serve without bond, and they are hereby directed to file herein their written declaration, acceptance and oath as such trustees.       4. That Margaret B. Hewlett, trustee named in the trust agreement hereinbefore referred to, assign, transfer and set over to George W. Hewlett and Margaret B. Hewlett, testamentary trustees, the 12,000 shares of the capital stock of Standard Oil Company, an Indiana Corporation, heretofore issued to her as trustee; and described in Certificates Nos. D-18945 [,] D-18944 and D-18946; that Margaret B. Hewlett, trustee, assign, transfer and set over and deliver to herself as sole life beneficiary under the will of the decedent, as income from the property of said estate, the 6,000 shares of stock issued to her as such trustee as a stock dividend by Standard Oil Company, an Indiana Corporation, described in Certificate Numbered J-26957; and take receipt therefor;    In 1932 when Standard Oil refused to reissue the 6,000 shares of stock in Margaret Burdick Hewlett's name, she brought suit in the United States District Court for the District of Wyoming. The court concluded that Standard Oil had to comply with Margaret Hewlett's demand because the matter had been decided by the probate court's order. The federal court noted the following in reaching its determination: As conclusions of law, the Court finds: 1. Said trust agreement executed by Charles W. Burdick on November 24, 1919, as amended by him on March 1, 1920, is clear in terms, and shows such an unequivocal intent on the part of the makers that it should terminate upon his death and that the property included therein should then pass out of said trust and become the property of the estate of said Charles W. Burdick, that no construction of said instrument by a court of equity is or was required. 2. Said trust agreement executed by Charles W. Burdick on November 24, 1919, and the amendment thereof executed by him on March 1, 1920, terminated upon his death on January 9, 1927, and the title of the property that had been included therein passed out of the trust at once to his estate and into the possession of his executors for administration. The stock dividend shares issued thereon about two years later during the administration of his estate also became the property of the estate of said Charles W. Burdick, subject to administration by the District Court sitting in probate, as an incident of the primary holding.       4. The District Court of Laramie County, Wyoming, sitting in probate, acquired and had jurisdiction of the estate of Charles W. Burdick, deceased, and of all parties interested in said estate, admitted his will to probate and had full power and right to administer and settle the affairs thereof, allow and require the payment of claims and expenses, determine the net income payable to beneficiaries named therein, construe the terms of his will and codicils, and decree distribution of said estate to the persons entitled thereto in accordance with the terms of the will. 5. The District Court of Laramie County, Wyoming, sitting in probate, having after statutory notice, rendered its decree of settlement and distribution of the estate of Charles W. Burdick, in the exercise of its lawful jurisdiction, no conflicting interests appearing or objecting, had power to determine what portion of said estate was corpus, and what was income, and having decided said questions, its decision is binding upon all persons interested in the estate, and upon all the world. 6. The order and decree of distribution rendered by the District Court of Laramie County, Wyoming, in probate, in the matter of the estate of Charles W. Burdick, deceased on May 14, 1930, followed the method of procedure provided by statute and bound all parties interested therein, and being unmodified, unchanged and not appealed from, is final and conclusive and not subject to collateral attack. No challenge was ever made to Margaret Hewlett's receipt of this property until after her death in 1976. It is from the district court's denial of that challenge that this appeal arises.