Opinion ID: 2343373
Heading Depth: 1
Heading Rank: 5

Heading: Application of the Cy Pres Doctrine

Text: The cy pres doctrine is based on the concern of equity to protect and preserve charitable bequests. Levings v. Danforth, 512 S.W.2d 207, 209 (Mo.App.1974). The original French phrase was cy pres comme possible, meaning as near as possible. GEORGE T. BOGERT, TRUSTS 520 (6th ed.1987). The doctrine of cy pres exists to permit the main purpose of the donor of a charitable trust to be carried out as nearly as possible where it cannot be done to the letter. Thatcher v. Lewis, 335 Mo. 1130, 76 S.W.2d 677, 682 (1934). It was the policy of courts of equity to declare valid, if possible, gifts to charity. Burrier v. Jones, 338 Mo. 679, 92 S.W.2d 885, 889 (banc 1936). Charitable trusts are favorites of equity, and they are given effect wherever possible, by applying the most liberal rules of which the nature of the case will permit. First Nat'l Bank of Kansas City v. Stevenson, 293 S.W.2d at 367. Courts have the power and duty to apply the cy pres doctrine to seek to determine as nearly as may be the general purpose and intent of the settlor and adopt a plan or carry the general intent into fruition, thus preventing a failure of the charitable trust. Restatement (Second) of Trusts, sec. 399, p. 298 (1959). The cy pres power is generally confined to charitable trusts. BOGERT, TRUSTS at 520. Missouri courts have previously applied the cy pres doctrine only to charitable trusts; this Court has held that absent the creation of a trust, there is no room for the application of the doctrine of cy pres. Burrier, 92 S.W.2d at 889. While acknowledging the historical limitation of the cy pres doctrine to trusts, the doctrine is appropriate in certain cases involving gifts to charitable corporations. At issue here is a gift with direction from the grantor indicating the intended use of the trust assets. While the cy pres power is applied to gifts in trust, other jurisdictions have applied cy pres to absolute gifts to charitable corporations or other organizations. GEORGE T. BOGERT, TRUSTS AND TRUSTEES, sec. 431, p. 105 (2d ed.1991). That view is consistent with analogous Missouri cases. This Court has held that a person may devote property to a charitable purpose by transferring it to a charitable corporation, in which case the principles applicable to charitable trusts are applicable to charitable corporations. Voelker v. Saint Louis Mercantile Library Ass'n, 359 S.W.2d 689, 694 (Mo.1962). Courts have applied the cy pres doctrine when a charitable institution that is an absolute donee has a deficiency. BOGERT, TRUSTS AND TRUSTEES, sec. 440 at 179. Such instances include: when a charitable institution cannot be identified by the name used; when impossibility arises in carrying out the intention of the donor charitable corporation, as the absolute donee ceased to exist before the gift was made, went out of existence after it received the gift, merged, or dissolved; and when the charitable corporation declines the gift, does not meet a condition precedent to the vesting of a gift, or is incompetent to take title. Id. at 179-195. Although the trust itself has ceased to exist, the gift comes from a trust. Moreover, most cy pres cases involve situations where many years have passed since the creation of a trust or other origination of the gift and the time the gift is to be given effect. Cy pres exists to conform the terms of the gift to current conditions. The money in the trust was to be distributed free from trust unto Washington University, St. Louis, Missouri, for the exclusive use and benefit of its Dental Alumni Development Fund. Were Dr. Kimbrough's gift a charitable trust, the Court would readily apply the cy pres doctrine. Dr. Kimbrough's gift from the trust is an absolute gift to Washington University with an instruction that can no longer be observed because the fund ceased to exist in 1965. Although courts typically reserve application of the cy pres doctrine for charitable trusts, and the absolute gift to the university may not fall under the categories listed above, the cy pres analysis is adopted to carry out Dr. Kimbrough's intent.