Court Opinion

ID: 9700884
Source: CourtListenerOpinion
Date Created: 2023-08-25 21:52:11.490593+00
Date Added: 2024-06-11T18:21:15.710709
License: Public Domain

MANDERINO, Justice,
dissenting.
I dissent. The majority has done a beautiful job of weaving one technicality after another into a tapestry of injustice lacking in both reason and common sense.
In the second paragraph of his will testator left an undivided interest in land to appellant. It is well-settled that a will speaks as of the time of death, and at the time of his death testator had an interest in the land as he described. Moreover, it is also well-settled that all parts of a will are to be given effect if reasonably possible. Testator, without any question, made a testamentary gift to appellant, and at the time of his death he possessed exactly that which he gave to appellant. We should give effect to that gift.
The majority states that appellant claimed that a specific devise of the property had been made to her. That was not her claim. The judge of the court of common pleas properly analyzed the issues in his opinion denying the executors’ preliminary objections. The judge stated:
*500“The executors argue that the mortgage did not pass under paragraph two because the testator intended to dispose of real estate only under this provision. They cite various authorities in support of the contention that a mortgage is personalty. The executors conclude that since the testator never owned the real estate described in paragraph two, the gift to Mrs. Caldwell must fail.
“There is no doubt that a mortgage is personalty. Gallagher, Admr. v. Rogan, 322 Pa. 315 [185 A. 707] (1936); Sweeny v. Horn, 190 Pa. 237 [42 A. 709] (1899); Handley’s Estate, 181 Pa. 339 [37 A. 587] (1897); Eldredge v. Eldredge, 128 Pa.Super. 284 [194 A. 306] (1937). However, this is not dispositive of the issue at hand. While a ‘bequest’ is, strictly speaking, a gift by will of personal property and while ‘devise’ signifies a disposition of real estate by Will, a departure from the precise use of the terms ‘bequeath’ and ‘devise’ will not invalidate either a bequest or a devise. Fleck v. Harmstad, et a1., Kingsley, 304 Pa. 302, 308 [155 A. 875] (1931). Thus, even though the mortgage is personal property, the gift need not fail merely because the testator used the wrong magic words.
“Mrs. Dorothy Caldwell argues that the testator did not intend to dispose of any real estate in paragraph two, but that he intended to dispose of only his interest in the real estate. She submits that ‘regardless of what that interest is or what it is called’ the testator intended to pass it to her.
“In addition, Mrs. Caldwell contends that since a mortgage is a conveyance between the mortgagor and mortgagee, it is a real property interest. She cites Bulger v. Wilderman and Pleet, 101 Pa.Super. 168 (1931) in support of this contention.
“In Bulger, the court discussed the legal relationship between the mortgagee and mortgage and stated on page 175:
Thus we perceive an interest or estate in the land itself, capable of enjoyment, and enabling the mortgagee to grasp and hold it actually, and not a mere lien or poten*501tiality, to follow it by legal process and condemn it for payment. (Emphasis added)
“Mrs. Caldwell also cites Randall [Randal] v. Jersey Mortgage Inv. Co., 306 Pa. 1 [158 A. 865] (1932), where it is stated on page 5:
While ordinarily, as to third parties, a mortgage may be only a security for the debt specified in the accompanying bond, it is, as to the mortgagor and mortgagee, and those claiming under and through them, a conveyance of land,
“Whatever merit there may be in the contention that William B. Taylor held a real property interest by virtue of his ownership of the mortgage, it is immaterial. As the executors point out in their brief, Mrs. Caldwell does not claim under or through the mortgage as a mortgagee. She does not seek to enforce the rights of a mortgagee. She is merely claiming the mortgage as a bequest made by the testator. Therefore, the cases cited above do not support her position that paragraph two was a devise of a real property interest. To a beneficiary of a Will, a mortgage is personal property.
“The real concern here, is what interest did William B. Taylor intend to convey to Dorothy Caldwell. It is appropriate to start with an analysis of what the testator meant when he referred to his ‘interest in land’ in paragraph two. As mentioned above, the Executors assert that this necessarily refers to a real property interest.
“Bulger, supra, however, states that a mortgagee has ‘an interest or estate in the land itself’, at least insofar as a mortgage acts as security for debt. Britton’s Appeal, 45 Pa. 172 (1863) supports this conclusion. There, the court stated at page 177: ‘They (mortgages) are in form defeasible sales, and in substance grants of specific security, or interests in land for the purpose of security.’
“Further support for the proposition that a mortgage is an ‘interest in land’ may be found in the Restatement, Property, sec. 9 (1936). After excluding a mortgage from the *502definition of an ‘estate’, comment (c) states, in part: ‘[W]hen a mortgagee has a lien on land for his repayment, he has an interest in land . . . . ’
“The above authorities reveal that although a mortgagee does not have a real property interest, he does have an interest in real property. In other words, a mortgagee does not have an ‘estate’ in the incumbered land, as that term is generally used in real property law, but he does have ties to the real estate in that the real estate serves to secure the debt.
“Having concluded that a mortgagee does have an interest in land, the question of what interest William B. Taylor intended to convey in paragraph two remains.
“The Executors point out that the testator did not own the mortgage in question at the time he executed his Will. They contend that it follows that it would be unreasonable to conclude testator intended to dispose of the mortgage in his Will. However, they argue that the testator intended to dispose of real property under the provision in question.
“The weakness in this argument is that the testator did not own any real estate in Ohio at the time he executed his Will, or thereafter, for that matter. The Executors are aware of this fact. Nevertheless, they urge this court to speculate that Mr. Taylor may have mistakenly concluded that he owned ‘an undivided interest in land there owned by Kepner (the true owner) or anticipated purchasing an undivided interest therein.’ This the court will not do.
“In ascertaining the intention of the testator, his Will is to be construed as of the date of its execution. Whiteside’s Estate, 302 Pa. 452 [153 A. 728] (1931). As to a Will’s effect and operation, it speaks as though executed immediately prior to death. Braman’s Estate, 435 Pa. 573 [258 A.2d 492] (1969).
“A testator’s intent, unless unlawful shall prevail and that intent shall be gathered from a consideration of the language of his Will, his scheme of distribution, the surround*503ing circumstances at the execution of the Will and the existing facts. It is only when the will is ambiguous or conflicting or the testator’s intent is uncertain that the court will resort to the canons of construction. Carter Estate, 435 Pa. 492 [257 A.2d 843] (1969); Houston Estate, 414 Pa. 579 [201 A.2d 592] (1964).
“An uncertainty does exist. Paragraph two attempts to dispose of testator’s ‘interest in land’ located in Ohio. As mentioned earlier, testator did not own any land in Ohio either before or after he executed his Will. Furthermore, testator did not own the mortgage interest when the will was executed. He acquired this interest afterwards. Thus, this court is required to resort to rules of construction to interpret this Will.
“A bequest is to be given effect when possible. As stated in Little Estate, 403 Pa. 247, 255 [168 A.2d 738, 742] (1961): ‘If there be any doubt, a testator is presumed to intend the meaning which makes his gift legally effective rather than one which renders it nugatory and void.’
“Also, a construction of a Will which renders every word operative is to be preferred to one which makes some words and sentences idle and worthless. Hollenbaugh Estate, 402 Pa. 256 [167 A.2d 270] (1961).
CONCLUSION
“Keeping in mind that a Will speaks at a testator’s death, Braman’s Estate, supra, paragraph two of testator’s Will must be construed as having passed the mortgage to Mrs. Caldwell. At the time he died, testator owned the mortgage in question. Paragraph two gave Dorothy Caldwell testator’s ‘interest in land’ located in Ohio. As concluded above, though a mortgage is personal property, is is an ‘interest in land.’ This was the only interest testator ever had in said land.”
I agree with this analysis and therefore dissent.