Court Opinion

ID: 9445811
Source: CourtListenerOpinion
Date Created: 2023-08-03 21:38:29.130194+00
Date Added: 2024-06-11T17:30:24.765229
License: Public Domain

WILBUR K. MILLER, Circuit Judge
(dissenting).
I do not agree that the action brought by the trustees for a construction of the trust instrument “was in substance an effort on the part of Mary W. Walsh to terminate the trust.” The trustees were in doubt as to how to interpret the declaration of trust and were unwilling to take the responsibility of resolving their doubt. In these circumstances, they very properly sought judicial guidance.
Mary W. Walsh did not initiate the litigation, and neither attacked the integrity of the declaration of trust nor sought to terminate the trust contrary *783to its terms. She merely tried to induce the courts to agree with her interpretation of it, just as the contingent remaindermen argued for the adoption of their contrary view. Meanwhile the trustees looked on, with the trust fund securely in their possession, ready to retain or distribute it as directed. The fund had already been created and was intact at the original amount. It was not in need of preservation or protection by others than the trustees. The latter simply awaited judicial direction; the controversy was solely between the antagonistic parties.
It may be the trustees filed the action because of the conflicting contentions of Mrs. Walsh and the contingent remaindermen as to the trustor’s intention. If so, the fact serves to point up the adversary nature of the proceeding. Certain it is that in the trial court and in this court they were antagonists, each taking a selfish position which was unfavorable to the other.
The remaindermen’s success did not redound to her benefit but rather to her prejudice. Allowance of their attorneys’ fees out of the corpus will further prejudice her by curtailing the income from the trust which she is entitled to receive as long as she lives.
I agree that “An attorney who creates, increases, preserves or protects a trust fund, with an accompanying benefit to all who are entitled to participate in the trust,1 is entitled to receive his fee from the corpus of the trust.” But that is not this case, as the majority concede. I also agree that “a litigious party or one who seeks construction in bad faith is not entitled to costs out of the corpus.” But this case does not fall in that category, as my brothers admit.
They find, however, “[bjetween these extremes” a twilight zone where the chancellor has discretion to allow from the trust fund the attorney’s fees of a party who did not in any way create, increase, preserve or protect the fund. I doubt the existence of such an area in which the majority say lies a “large body of cases,” and I note they cite no authority for it. It seems to me that the chancellor’s discretion is exhausted when he determines whether the claimant meets the test of Caine v. Payne, 1951, 89 U.S.App.D.C. 260, 191 F.2d 482.
In citing the Caine case to support the first of the two “extremes”: that one who creates, increases, preserves or protects a trust fund to the benefit of all concerned is entitled to costs from the corpus, my brothers of the majority overlook the fact that in the Caine opinion we held the converse or negative of that proposition. We said one who did not create, increase, preserve or protect the trust fund for all beneficiaries is not entitled to have his attorney paid from the fund. Thus the true test was established.
The Caine case is so factually similar to the situation here that I think its holding is dispositive of the case before us. I quote from the Caine opinion:
“National Savings and Trust Company sued for construction of the residuary cause of a will under which it was trustee. The residuum was in the trustee’s possession, ready for distribution. Appellant and appellees were opposing claimants. As such, they were joined as defendants. The controversy was solely between the two parties. The District Court adjudged in favor of the present appellees. This court reversed, deciding in favor of the present appellant. Caine v. Payne, 1950, 86 U.S.App.D.C. 404, 182 F.2d 246 [20 A.L.R.2d 823], Upon remand of the case, the District Court allowed the attorney for present appellees (the losing group in this court) an attorney’s fee of $1,000 out of the estate. This appeal is from that order.
“In our opinion the court erred. The attorney’s services contributed nothing to the estate. They did not *784create, enhance, preserve, or protect the estate in any way. The property was in actual possession of the trustee, awaiting distribution as the court should direct. The claims of the opposing parties were wholly antagonistic. Each faction had its own attorney, who was bound to serve only the selfish interests of those he represented. Under such circumstances there is no justification for allowance of a fee out of the estate. [Cases cited.]”
The foregoing so closely fits this case both factually and legally that, mutatis mutandis, it would serve as an opinion in this appeal. Although the majority say they adhere to our decision in Caine v. Payne, it seems to me they depart from it and in effect overrule it. I would reverse on the authority of the Caine case.

. My emphasis.