Legal Document

357 U.S. 235 78 Supreme Court Reporter 1228 2 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 1283 Elizabeth Donner HANSON, Individually, as Executrix of the Will Dora Browning Donner, Deceased, et al., Appellants,v.Katherine N. R. DENCKLA, and Elwyn L. Middleton, Guardian Property Dorothy Stewart. Stewart LEWIS, Mary Washington Borie Paula Denckla, Petitioners, versus Trustee Under Updated: January al. Nos. 107 117. Argued March 10, 11, 1958. Decided June 23, Rehearing Denied Oct. 13, See 79 10. [Syllabus from pages 235-237 intentionally omitted] Mr. William or Haw. Hawai‘i KFH45 A2 Foulk, Wilmingon, Del., for appellants Hanson Arthur G. Logan, Wilmington, petitioners Lewis Sol Atlantic Rosenblatt, New York City, appellees Denckla Edwin D. Steel, Jr., respondents CHIEF JUSTICE WARREN delivered opinion Court. 1 This controversy concerns right to $400,000, part corpus a trust established in Delaware by settlor who later became domiciled Florida. One group claimants, 'legatees,' urge that this property passed under residuary clause settlor's will, which was admitted probate The Florida courts have sustained position. Fla., 100 So.2d 378. Other 'appointees' 'beneficiaries,' contend pursuant exercise inter vivos power appointment created deed trust. adopted position refused accord full faith credit determination because court had not acquired jurisdiction over an indispensable party, trustee. —- Del. —-, 128 Reporter, 2nd 819. We postponed question appeal, Number 107, 354 919, 77 1377, 1434, granted certiorari Court, 117, 920, 1380, 1435. whose validity is contested here 1935. then domiciliary Pennsylvania, executed instrument naming Wilmington Trust Co., Delaware, composed securities. Mrs. reserved income life, stated remainder should be paid such persons upon trusts she appoint testamentary instrument. agreement provided could change trustee, amend, alter revoke at any time. A measure control administration assured provision only with consent 'advisor' appointed trustee (1) sell assets, (2) make investments, (3) participate plan, proceeding, reorganization merger involving securities held few days after exercised her appointment. That replaced another 1939. Thereafter left 1944 Florida, where remained until death 1952. Donner's will Dec. 3, 1949. On same day terms are issue here.1 After making modest appointments favor hospital certain family retainers (the 'appointees'),2 sum $200,000 each two previously company balance corpus, $1,000,000 date death, executrix. amount here. 3 were 1948 daughter, Hanson, benefit Elizabeth's children, Joseph Winsor. In identical they provide required beneficiary's support accumulated age 25, when beneficiary 1/4 receive life. Upon go Hanson's instrument; default alive time his if none Hanson. 4 died Nov. 20, Her named She instructed pay all debts taxes, including might payable reason disposing personal household effects, directed trust) equal parts daughters Katherine baron 5 grows out lastmentioned trusts. It begins: 6 'All rest, residue my estate, real, mixed, whatsoever wheresoever may property, rights interest & N Immigration Nationality Decisions prior has been effectively me Executrix, direct deal follows * *.' 7 Residuary legatees Stewart, already recipients $500,000 each, $400,000 sister children 'effectively exercised' accordingly pass them. Fourteen months these parties petitioned chancery declaratory judgment 'concerning what passes clause' will. Personal service following defendants: executrix beneficiaries Winsor, potential Roosevelt, also one children. Curtin trusts, party served. About dozen other defendants nonresidents personally These included ('trustee'), (to whom shortly death), individuals successors complainants most appointees 1949 copy pleadings 'Notice Appear Defend' sent ordinary mail, notice published locally statutes dealing constructive service.3 With exception interests coincided nonresident made appearance. 8 appearing (Elizabeth children) moved dismiss suit parties, trustees, would offend Section Fourteenth Amendment. Chancellor ruled he lacked no outside territorial court. cause dismissed As far before concerned, however, void applicable law. decree dated Jan. 14, 1955, 9 litigation began, but entry decree, instituted action determine entitled assets State. Except addition Winsor several appointees, substantially litigation. Nonresident notified registered mail. All companies, beneficiaries, except appeared participated enjoined further participation, pursued their own interests. When entered unsuccessfully urged it res judicata dispute. 1956, valid law, properly appointees. 119 901. 10 Alleging bound remand instructions pending on appeal. No raised. motion denied. affirmed its Chancellor's conclusion law applied invalid too much independently effective act accompanied requisite formalities. there companies absent reversed. construe carried 'substantive' 'over defendants' even though 'physically state.' Whether meant person open doubt. rehearing first given decision Chancellor. denied without opinion, 28, 1956. 11 raised unsuccessful new trial filed matter renewed 1957, respects. binding purposes res. 12 issues our are, first, whether erred holding defendants, second, refusing decree. need give since seasonably presented Radio Station WOW Johnson, 326 120, 128, 65 1475, 1480, 89 L.Ed. 2092. 13 Appeal. hearing merits. appeal predicated contention facts case statute providing contrary Federal Constitution. 28 Code KF62 § 1257(2), Annotated KF65 U5 1257(2). But state 'beneficiaries') did object applied, rather effect court's circumstances deprived them Constitution.4 Accordingly, we must dismissed. Wilson Cook, 327 474, 482, 66 663, 667, 90 793; Charleston Fed. Sav. Loan Association Alderson, 324 182, 624, 857. Treating papers whereon taken petition certiorari, 2103, granted. 14 Relying principle cannot invoke vindicate third party,5 lack standing complain defect appearance action. adheres general rule trust.6 absence proceed adjudicate controversy.7 Since acquisition company8 empowered action, defendant affected 'direct substantial outcome' necessary challenge fact acquired. Chicago Atchison, T. S.F.R. 77, 1063. 15 Appellants charge offensive Due Process Clause Amendment jurisdiction. There suggestion failed employ means reasonably calculated inform proceedings,9 opportunity heard defense interests.10 alleged those 'AFFILIATING CIRCUMSTANCES'11 WITHOut mAY NOt enter imposing obligations (jurisdiction personam) affecting rem quasi rem).12 While personam classifications do exhaust situations rise jurisdiction,13 adequate describe affiliating suggested here, serve useful approach case. 16 Founded physical power, McDonald Mabee, 243 90, 91, 37 343, 61 608, limited extent coordinate authority States.14 basis jurisdicton presence subject within forum Rose Himely, Cranch 241, 277, 608; Overby Gordon, 177 214, 221—222, 20 603, 606, 44 741. Tangible poses problem application rule, situs intangibles often controversy.15 considering restrictions tax, concluded 'jurisdiction' intangible single State Tax Commission Utah Aldrich, 316 174, 62 1008, 86 1358; Curry McCanless, 307 357, 59 900, 83 1339. type deals more than decide. seem assume form action16 located can see nothing record assumption, sufficient establish Florida.17 17 essential Authority construction domiciliary's pass, thought confer jurisdiction.18 contingent role Whatever efficacy so-called 'in rem' admittedly passing local acquires dispositions simply augment estate probated courts. If sustained, enjoy nationwide process neither nor decedent claim affiliation. settlor-decedent's domicile equally unavailing assets. For purpose maxim personalty owner19 fiction utility. Green Van Buskirk, Wall. 139, 150, 19 109. less suspect decedent. analogous cases, rejected render conclusive f Riley 315 353, 614, 885; Baker Baker, Eccles 242 394, 401, 152, 154, 386; 741.20 owner affiliation base rem. Having jurisdiction, consider purporting rest therefore 18 Prior absolute nullity,21 authority.22 adoption Amendment, bind well without. Pennoyer Neff, 95 714, 24 565. Nearly century being called apply invalidity seems assumed good reason. forbidden attempting extinguish jurisdiction.23 Therefore, so purports sustained. Sadler Industrial Mass. 97 North Eastern 169. Appellees' stronger argument They empower defendant. Principal reliance placed McGee International Life insurance 355 220, 199, 223. noted trend expanding nonresidents. technological progress increased flow commerce between States, undergone similar increase. At time, communications transportation foreign tribunal burdensome. response changes, requirements evolved rigid 565, flexible standard Shoe Washington, 310, 95. mistake heralds eventual demise Vanderbilt Vanderbilt, 416, 418, 1360, 1362, 1456. Those guarantee immunity inconvenient distant consequence limitations respective States. However minimal burden defending tribunal, unless 'minimal contacts' prerequisite him. 310. 319, 159, fail find contacts office transacts business there. None ever administered discloses solicitation either Cf. 95; 223; Travelers Health Com. Virginia ex rel. Corporation Comm., 339 643, 70 927, 94 1154. 21 arises done transaction consummated respect, differs 201, 223, cases cited. McGee, solicited reinsurance resident California. offer accepted State, premiums mailed insured's death. Noting California redress residents insurers refuse claims upheld 'was based contract connection State.' contrast, involves incorporated Pennsylvania. relationship years there, remitted From bits compared mailing McGee.24 instance performed acts bear McGee. Consequently, said enforce obligation arose privilege different enacted special legislation (Unauthorized Insurers Act, West's Ann.Cal.Insurance Code, 1610 seq.) 'manifest interest' citizens injured engaged activity treats exceptional subjects regulation. 647—649, 929—930, 1154; Doherty Goodman, 294 623, 627, 55 553, 554, 1097; Henry Hess Pawloski, 274 352, 47 632, 71 1091. 22 execution powers does based. agreement, appointment, here.25 applying determined creation, amounted 'republication' original choice-of-law ruling justified, think insubstantial determining unilateral some satisfy requirement contact vary quality nature defendant's activity, purposefully avails itself conducting activities thus invoking benefits protections laws. remedy 23 able trustees. nonsequitur. executor, legatees, federal prevent adjudicating concerning liabilities parties. chosen so. understand acquire proceeding trust.26 'center gravity' controversy, convenient location choice resolved indicated, insufficient sustain jurisdiction.27 Because found unnecessary Our requires instance. earlier, repeatedly controversies trust.28 reversed trustees appellants, 25 Certiorari. reasons compel reversal require affirmance one. 1738, 1738. Even passage judgments defendants. D'Arcy Ketchum, How. 165, 648; Hall Lanning, 91 160, 271. 885. conclude credit—even against Florida's unquestioned. 26 disposition improper—that while remanded like Herb Pitcairn, 459, 789, appropriate clarify ambiguity reveal ground deprive us affect result controversy. Nor circumstance never deciding. Although case, ample answer. 27 primacy final incident credit. function consistent correctness Delaware's look authorities entered. To withhold correct participating instead outcome. affirmed, proceedings inconsistent opinion. 29 ordered. 30 Judgment affirmed; directions. 31 Justice BLACK, BURTON BRENNAN join, dissenting. 32 believe effectiveness respect violating Amendment.1 correct, U.S.Const., Article IV, 1; 33 controversial share 'trustee' Until received entire times possessed dispose pleased. practical retained management little custodian.2 number 95% involved, present filed. consisted real particular although taxes 34 duly contained distribution bequeathed, 'any Thus ineffective involved came back into distributed anticipated brought seeking valid. live timely obtain counsel appear. 35 light foregoing quite clear denies wills. disposition, designed take very close connections Not primary lived view hardly chose, effectual. Watson Employers Liability Assurance Corp., 348 66, 75 166, 99 74; Osborn Ozlin, 310 53, 60 758, 84 1074. True, judgment, closely related degree depend considerations. ought arising transaction, impose heavy disproportionate referred 'traditional notions fair play justice.' Milliken Meyer, 311 457, 463, 339, 342, 85 278; 316, 158, So concerned approaches unfairness. home principal contenders largess, all.3 Certainly fundamentally unfair subjecting corporate chose maintain relations eight years, regularly communicating question. 36 emphatic traditionally proper place provisions marshal distribute property. Here seriously winding up finally purpose. Court's (and inferentially beneficiaries) stems principles better ago landmark decided 1878, affairs predominantly travel difficult, costly sometimes dangerous. laid down broad served boundaries voluntarily appeared, constantly increasing ease rapidity communication tremendous growth interstate led steady inevitable relaxation strict limits announced course evolution old jurisdictional landmarks behind many instances now amenable borders.4 Yet certain. Of reached point significance, mean suggest abundance 38 Perhaps nearly Mullane Central Hanover Bank 306, 652, 865. there.5 upholding State's emphasized great governed Id., page 313, 656. Also implicit desire avoid necessity multiple accompanying waste possibility results. kind considerations supporting 39 holding, unjustified. reverses be, affirms subsequent judgment. ogliged party. completely wiped homes acknowledges Constitution precludes entering argued become prevail. comes makes thing hold decide probable say not. Trueman Fertilizer Allison, 81 734. why plaintiffs speculation about turn unwarranted. 40 DOUGLAS, 41 testatrix Delaware. By during undistributed or, failing that, last testament. 42 appointment; exercised, trust, consisting intangibles, designated 43 character witnesses, Therefore Distribution integrated interpretation itself. privy separately litigate 386. situation privity deceased. settlor; bidding. say, managing life settlor, transfer testament, classes persons. purely stakeholder agent designated. community deceased stand concerned. procedure just, Hansberry Lee, 32, 115, 22; 312—317, 656—658, plain compelling relation out-of-state (cf. 1339), nexus close, controlling it. remember liability person. merely intangibles. supra, Atkinson Superior 49 Cal.2d 338, Pacific 960, Florida; there; through others agency words identified represent legal right. partially revoked July 7, 1950 material instant $10,000. Six servants qualified totalling $7,000. Fla.Stat., chapter 48, 48.01: 'Service publication had, state, mentioned 48.02 proceeding: '(1) equitable lien title fund debt owing state. '(5) deed, written judicial declaration enforcement right, title, claim, thereunder.' 48.02: 'Where natural corporate, known unknown, including: Any unknown corporation entity, foreign, domestic mention court, appellant's manner: 'The sought invoked herein contravene Laws and, particular, Constitution.' 41. Liberty Warehouse Burley Tobacco Growers' Co-op. Marketing Ass'n, 276 71, 88, 48 291, 294, 72 473; Smith Indiana, 191 138, 148, 51, 52, 125; Tyler Judges Registration, 179 405, 206, 45 252; Robertson Kirkham, Jurisdiction (Wolfson Kurland ed.), 298. 734, 738; Winn Strickland, Fla. 610, 633, Southern KF135 S69 613; Russ, 691, 697; McArthur Scott, 113 340, 396, 670, 1015; Martinez Balbin, 76 488, 490; Land Rock Phosphate Anderson, 50 501, 512—513, 392, 396. Hereafter 'trust,' 'trust company' reference 1935 proceeding. Walker City Hutchinson, 352 112, 200, 179; 865; 608. Roller Holly, 176 398, 410, 520. Sunderland, Problem Jurisdiction, Selected Essays Constitutional Law, 1270, 1272. imposes another. affects latter types. plaintiff secure pre-existing nonexistence seeks concedes satisfaction Restatement, Judgments, 5—9. convenience terminology use lieu rem.' E.g., Mallane 312, 656, Williams Carolina, 317 287, 297, 63 207, 212, 87 279. Fraser, Necessity, U. Pa.L.Rev. 305. 400, 349, 612, 741; 565; Andrews, Situs Intangibles Suits Non-Resident Claimants, Yale L.J. 241. concern beneficial contesting Their invalid, settlor. relevant factor stocks, bonds, notes Properly speaking 'physical' location. embodiment documents treated themselves partake tangibles. Wheeler Sohmer, 233 434, 439, 607, 58 1030. evidencing ownership cf. Jasper First Nat. Bank, 258 119, 202, 204, 490, obligee instruments stock. obligors corporations Without expressing significance factors unnamed, note relates states: 'We (in Henderson Usher, 118 688, 160 9) substantive existed virtue testator having observed physically order non-resident adjudicate, alia, status therein. entirely hold, do, below defendants.' 385. leaves unclear establishing York, exercised. objections specially defendant, ruled: 'Since confronted impelled least constructively advise how immediate construed intents it.' 692, arguendo discussion 'owner' Though analogous, squarely point. sovereign, 720—728, 732, Story, Commentaries Conflict (6th ed. 1865), §§ 539, 550—551; Cooley, Limitations (1st 1868), 404—405; Rheinstein, Bases Chi.L.Rev. 775, 792—793. 403, 155, forecast supra. declared actions substituted permissible 'property subjected adapted (Emphasis supplied.) 733. letter Feb. 5, 1946, changed compensation advisor. April 2, 1947, $75,000, returning December 22, 1947. added earlier. repeated references 'invalidity' uses language import. 381, 382, 383, 384, Its 'appointments' (because lacking formalities) proceeded initial 'invalid,' 'illusory,' whatever agreement. 6, consideration appellants' slight denial due Home Insurance Dick, 281 397, 74 926. assumption invalidated living it, complete died, accordance Among things 'advisers' serving sufferance controlled purchases, sales investments 'trustee.' Evidence indicated advisers, 'trustee,' actually decisions transactions 'trust' mechanically acted directed. suitable forum, resided See, e.g., involve

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