Page: 652↓
Subject_Clause—Tailzie—Testament—Personal and Real.—
Two separate deeds of entail having been executed, of the same date, in favour of the entailer's son, and, failing him and his issue, the other members of the entailer's family called in different orders by the two deeds; and the entailer having also, of the same date, executed a general disposition and settlement, conveying certain other lands, and generally his estate and effects, heritable and moveable, to his son, whom failing, to the heirs of tailzie, but in a different order from either deeds of entail, declaring that his son, by accepting this conveyance of the entailed estates, and the heirs succeeding him therein, “stand pledged and engaged to satisfy and procure discharges and extinctions of every debt and obligation, provision and bequest, of every description, created or contracted by me, or incumbent on me, and that in such habile, proper, and effectual manner as that the same shall hereafter cease to exist, or afford action or execution against my entailed estates;” and the son having survived the father, and entered to possession, under completed titles to the whole estates, and thereafter become bankrupt and been sequestrated, without discharging the provisions—held, 1. That the deeds were to be held as one settlement in a question as to this entailer's intention. 2. That the provisions were personal debts of the son as institute in the tailzie, as also as disponee, but did not affect the entailed estates so as to make them attachable therefor. 3. That the parties to whom the provisions were payable were not in the situation of creditors of the entailer, but were only personal creditors of the son. 4. That the trustee having completed titles to the son's liferent in the entailed estates by infeftment, had secured a preference for the general behoof of the son's creditors. 5. Question not decided, whether the heirs of tailzie were, in the circumstances, under a personal obligation for payment of the provisions to be implemented on their succession respectively to the entailed estates.
By deed of entail, dated 3d August, 1809, the late Mr Cochran of Ashkirk conveyed to himself in liferent, and to his only son, Archibald Cochran, now of Ashkirk, in fee, and the heirs whatsoever of his body; whom failing, to his two daughters, Euphan and Jean, in liferent, and to his several grandchildren in fee, in the order therein prescribed; whom failing, to certain other heirs therein mentioned; and, finally, to his own nearest heirs and assignees whomsoever, certain lands and estates belonging to him in the county of Edinburgh.
By another deed of entail, also dated the 3d of August, 1809, Mr
Both these deeds contained an obligation on the granter, “and his heirs and successors of every description, to abide by and confirm” the destination so made of his estates—an obligation on the heirs to possess the estates in virtue of the tailzied titles—and prohibitory clauses, with relative irritant and resolutive clauses, expressed in the usual terms, with the exception, that there was no prohibition in either deed against the heirs allowing adjudication to be led for the entailer's debts. In all respects, the two deeds were in similar terms, except in this, that the deed conveying the estate in the county of Edinburgh contained a clause, not in the Ashkirk entail, relative to a sum of £6000, which the entailer had obliged himself by his son's contract of marriage to provide for his son's wife, Mrs Elizabeth Sommerville, and her issue. This clause referred to a provision in regard thereto contained in the granter's general disposition and settlement, to be immediately mentioned, and declared that the heir of his daughter's marriage, in the event of the tailzied succession to both estates opening to such heir, should be bound to accept thereof, in lieu of the marriage provision.
Of the same date with these deeds of entail, Mr Cochran executed a general disposition and settlement, which narrates these two deeds, and proceeds as follows, inter alia:—“And having it now in contemplation (in consequence of the decease of Marion, my youngest daughter) to make certain additional provisions on my grandchildren by Mrs Kerr, and on my two surviving daughters, Euphan and Jean; and considering farther, that it is my meaning and intention that the said Archibald Cochran, my only son, if he survives me, shall be my residuary legatee, after discharging my debts, legacies, and provisions, have therefore resolved to make a final settlement of my affairs, in manner underwritten; but with reference to, and in confirmation of my settlement before-mentioned, and with reference, and pursuant to that resolution, do hereby give, grant, convey, and dispone to the said Archibald Cochran, my son, and the heirs whatsoever of his body; whom failing, to the said Euphan Cochran and Jean Cochran, my daughters, equally between them, and the survivor or longest liver of them two, in liferent allenarly;” whom failing, to his several grandchildren, in the order therein prescribed,—being different from the order of succession contained in either deed of tailzie;—“whom failing, to the heir of entail then in possession of my lands and estate in and about Musselburgh, and
The burdens and conditions under which this general disposition was granted were declared to be, that neither the son, nor any of the heirs, should have power to sell or alienate the lands gratuitously; and that the conveyance was “with and under the burden of the payment of all my just and lawful debts and funeral charges; and also with and under the burden of the payment of the following additional provisions to my grandchildren by Mrs Kerr, and my said children, Euphemia and Jean, viz. to Robert, William, Euphemia (the pursuer), and Jean Kerr, my grandchildren by my said daughter Margaret, now deceased, to each of these four the sum of £400 sterling of principal money,” and other similar provisions therein specified.
The deed nominated the granter's son, Archibald, and, failing him, the other heirs and substitutes in their order, to be his sole executors, with this express proviso: “But with, and under the burden of the payment of my debts, provisions, legacies, and others, before and after mentioned, and under the qualities and conditions thereto annexed.”
The general disposition and settlement farther contained the following declaration:—“And whereas, by contract of marriage entered into betwixt the said Archibald Cochran, my son, with my concurrence, and Mrs Elizabeth Sommerville, his late wife, now deceased, of date the 11th day of March, 1802 years, I became bound to provide and secure the sums of £6000 sterling to the said Archibald and Elizabeth in joint fee and liferent; but in security only to her of the life annuity thereby assured to her, in the event of her surviving him, and to the issue of the marriage in fee, under the regulations therein specified, and, inter alia, if there should be but one child, a daughter, procreated thereof, the said provision should be, and is thereby restricted to £4000 sterling, payable at such times and in such proportions as the father should deem proper and appoint; but in default of such appointment, to be payable in manner stipulated by the said contract, to which reference is hereby made: And whereas, by the predecease of the said Elizabeth Sommerville, leaving only one child of said marriage, a daughter, namely, Miss Robina Cochran, she will eventually be entitled to the fee of the said restricted provision, in case she should prefer the same to the more ample provisions and rights of succession which may eventually open to her, and which, if accepted of by
Mr Cochran survived the execution of these deeds several years, the only alteration made by him having been to increase the provisions and legacies to his several grandchildren by two codicils of date respectively, December 20, 1809, and September 20, and November 3, 1810. He died in April 1812, when his son Archibald succeeded to the two entailed estates, and also to the unentailed lands and other property conveyed by the general disposition and settlement, and titles were completed by him, first, to the two entailed estates under the separate deeds of tailzie, and, secondly, to the unentailed lands conveyed to him in fee-simple by the general disposition and settlement, but not so as to cause the payment of the debts and legacies, under burden of which these last lands were conveyed, to become real burdens affecting the same.
Archibald Cochran continued in possession of the property entailed and unentailed for about nine years after the death of his father, during which time he was quite solvent, but did not discharge the legacies bequeathed to the pursuer and others. On the 30th June, 1821, he was sequestrated, and the trustee on his estate took up and completed titles to the unentailed property, and to the bankrupt's life interest in the entailed estates. This he did by separate titles, and his right was in all respects feudally completed. In course of the sequestration one of the legatees, who stood in the same situation with the pursuer, claimed to be ranked preferably, but this was rejected by the pursuer, and his judgment was affirmed hoc statu by the Court (May 12, 1824).
* Claims were, however, made by all the legatees, and by the pursuer amongst others, as personal creditors of the bankrupt, for their several legacies, and they were so ranked, and drew a dividend of 2s. 6d. paid to the personal creditors. Thereafter the present action was brought by the pursuer, concluding that it should be found and declared “that the foresaid provisions, bequeathed to and settled upon the pursuer, with the legal interest of the same, all as fixed and ascertained by the foresaid decree of constitution, under deduction always of the said dividends, or other sums received in part payment and satisfaction of the same, form a burden on the said fee of the entailed estates and rents, and proceeds of the same; or, at least, the said entailed estate, and the rents and proceeds of the same, are liable for the pursuer's provisions as aforesaid; and that the pursuer, in payment and security of her said provisions, and legal interest thereof, is entitled to institute, and follow furth, against the fee of the said entailed estates, and the rents, profits, and duties of the same, all manner of real diligence competent by law against real property, for payment or security of debt; and in particular, that the pursuer is entitled to lead adjudication against the said entailed estates, for the said provisions, principal, interest, and penalty, under deduction aforesaid; or, at least, it ought and should be found and declared, by decree foresaid, that the said Archibald Cochran, and the said substitute heirs of entail,
_________________ Footnote _________________
* Ante, III. 6.
The Lord Ordinary (Mackenzie) ordained Cases, on advising which, he pronounced the following interlocutor:—“Finds, That the three deeds executed by the late Archibald Cochran, on the 3d of August, 1809, refer to, and are connected with, one another, and must be viewed as constituting one settlement of his estate, Finds, That in the general disposition, which must be regarded as the last of these deeds, and as forming the completion of the settlement, Archibald Cochran expressly declares, ‘Whereas the estate and funds, real and personal, hereby settled by me on my said son in fee-simple, may be nearly adequate to the special burdens with which the same stand charged, as well as the foresaid restricted provision; therefore, my said son, by accepting hereof, or my entailed estates, in terms of the settlements thereof, and the heirs succeeding to him therein, stand pledged and engaged, as aforesaid, to satisfy and procure discharges and extinctions of every debt and obligation, provision and bequest, of every description, created or contracted by, or incumbent on me; and that in such habile, proper, and effectual manner, as that the same shall hereafter cease to exist, or afford action or execution against my entailed estates: Finds, That this declaration necessarily implies, that the entailed estates were, by the entailer, intended to be subject, not to his debts only, but to his legacies, and that the institutes and heirs of entail were bound to pay off these legacies, as well as debts, in order to clear these entailed estates: Finds, That this declaration is followed by a clause, providing a special arrangement for payment of part of the debt out of the rents of one of these estates; but finds no evidence in the deeds that the liability of the entailed
Against this judgment the defender, Keith, reclaimed, on the merits, and the pursuer, on the point of expenses, when their Lordships appointed a hearing in presence.
Pleaded for the Pursuer—
1. No real doubt exists of the construction to be put on the clause referred to by the Lord Ordinary in his interlocutor. It clearly applies to and embraces all the heirs called to the succession of his several estates by the granter—his heirs of tailzie, as well as his heirs general, each in their order. The case of Lord Macdonald, 29th May, 1832, applies directly to the present case, which decided that a clause similar to the present bound all the heirs of the maker of the deeds. See also the observations of Lord Glenlee in the recent case of Baugh v. Murray, which was a case the converse of this. Now, all the deeds are to be considered as one deed, and just as if the clauses in each were repeated in all. And thus the case is to be taken just as if the tailzied deeds had contained this clause; so that there could be no doubt that the heirs of tailzie are bound as well as the heirs general. 2. The next point is, the right of the pursuers to adjudge the tailzied estate. Though the pursuer's provision is not made a real burden, nor is an entailer's debt, it is, by declaration of the entailer, made to affect the estate, and this is sufficient to constitute a preference. The whole question is one of intention. If the entailer has declared that his estates are to be liable, that is enough;—nay, it would be enough, that there is evidence of his belief that the estate might be affected for payment. But, 3. The payment of these provisions is made a condition, on the fulfilment of which the heir's right to possess the estate is declared to depend. Being so, it must affect all possessing the estate through the heir in possession, and consequently the trustee for the creditors of the present heir. It is said that it does not appear on the face of the tailzie. But it was apparent on the face of the tailzie that there were certain burdens imposed in another deed—and those dealing with the heir were bound to look to that deed. Farther, the creditors of the present heir, though they have attached his life-interest, could not exclude the entailer's creditors—their right is an inherent burden, to which they are subject. And this provision has been put, to all substantial effects, in the same condition with a debt of the entailer. Neither could the creditors exclude the attachment
Pleaded for the Defender, Keith—
The first question is, whether the fee of the entailed estate can be attached for payment of the pursuer's provisions; and this depends entirely on the words of the deed, for the pursuer has no right, independently of express permission of the entailer, to attach the entailed estate. She is a mere legatee (See
Hill v. Hunter, 14th May, 1818). A single clause of the general disposition and settlement is founded on. The rest of that deed, as well as the deeds of tailzie, afford no countenance to pursuer's pleas, but the reverse. Now two questions arise under the clause founded on, in regard to the entailer's intention:—the one, whether he intended to bind his heirs of entail at all, and the other, whether, admitting that the heirs of entail, as well as the heirs general, were included in the obligation, it was any other than a mere personal obligation laid on them to discharge the provisions, without any power conferred on the legatees to adjudge the entailed lands for payment. It was quite possible that he might impose such a restricted obligation. Clearly, he had not made the provisions real burdens—and did not intend to make them such. Why, then, may he not have contemplated simply laying his heirs of tailzie as they should Succeed under a personal obligation, and still preserving his tailzied estates entirely free from liability? This was submitted to be the correct view, if the heirs of entail were to be held referred to at all in the obligatory words. In this light, the pursuer's situation was that of a mere personal creditor of the bankrupt for her provisions, with no power to adjudge the tailzied estate, like an entailer's creditor. If this be correct, then all the pursuer could do was to have attached for her payment the life-interest of the heir of entail in possession. But this interest has already been effectually attached for the whole creditors by the defender, and a complete feudal title to the entailed estate vested in his person, in so far as the nature of the bankrupt's right permits of the estate being attached. It is of no consequence to say the payment of these provisions made a condition of the right to the estate. Still, it is only a personal condition, and it does not appear on the face of the titles to the tailzied property. In attaching the life interest of an heir of entail, it is the fee of the estate (limited, no doubt, and qualified as in his person) which is adjudged. And the right acquired by the adjudger, when followed by infeftment, must just be as effectual, to the limited extent, as the right acquired by adjudication of a fee-simple estate, and as little liable to be affected by personal conditions
_________________ Footnote _________________
1 Williamson, June 28, 1826 (ante VI., 1035); Lord Macdonald, May 29, 1832 (ante X., 584); Lord Glenlee's Obs. in
Baugh v. Murray, Jan. 14, 1834 (ante XII. 279);
Erskine v. Wemyss, May 13, 1829 (ante VII. 594);
Hamilton v. Bennett, Feb. 14, 1832 (X. 330). Aff. H. of L., Aug. 16, 1833 (Supp. 105).
Pleaded for the Defender Cochran, the Substitute Heir—
The case is one purely of intention. If the maker of the deeds has chosen to declare the heirs of tailzie liable, and not the estate, that is of the essence of the pursuer's right; and nothing is more natural than to bind heirs of tailzie, but nothing less usual than to bind the estates in payment. And so here. The estates are not declared affectable for these provisions. Then, as to liability of the substitute heirs, the facts of the case, as admitted in the record, afford them a complete defence. These provisions were declared real burdens on the unentailed lands, and this is admitted. Now, the trustee completed titles both to the entailed and to the unentailed lands, and he took enough, under the general disposition and settlement, to have paid the provisions in full; and thus an obligation was created against the trustee to pay these provisions, which he must implement. This creates a decisive specialty. This is not a case where the unentailed property has been spent, and the creditors of the heir looked only to the tailzied estates. The creditors take the unentailed property as well as the tailzied, and they cannot shake themselves free of the burdens imposed by the general disposition. It will not do to say that there is nothing on the face of the titles applicable to the burden; for the creditors take under all the deeds, and are bound by what is contained in them all. The pursuer, on the admitted facts, is entitled to have judgment against the trustee; but the substitute heirs, in every view, are free from the obligations. Here was a case of gross and culpable mora to enforce the obligation on the heir primarily liable—and this is a good defence for them in itself. 2
In consequence of the statements in the argument for the substitute heir, the Court allowed a minute and answers from the two defenders severally; and on the case being finally advised, the following opinions were delivered:—
_________________ Footnote _________________
1
Brown v. Paterson, Nov. 12, 1834(ante III. 7);
Martin v. Porteous, June 21, 1808 (F.C.);
M'Intyre v. Marshall, Feb. 3, 1834;
Nairn v. Gray, Feb. 15, 1810;
Grahame v. Hunter, Nor. 14, 1828(VII. 13);
Graham v. Alison, Dec. 3. 1830 (IX. 130); 1 Bell, 52, and 280–2; 2 Bell, 191;
Rose v. Drummond, June 11, 1828, (VI. 945); Forbes'
Trustees v. Gordon's Assignees, Dec. 14, 1833 (XII. 219);
Russet v. Ross's Creditors, Jan. 24, 1792 (10300).
2 1 Bell, 282;
Stewart v. Duncan's Trustee, (XI 847);
Thomson v. Douglas, Heron, and Co. Nov. 15, 1786 (10229);
Wylie v. Thomson, Jun. Jan. 18, 1830 (VIII. 337).
The Court pronounced this interlocutor:—“Find that the declaration in the general disposition and deeds of entail executed by the late Archibald Cochran on the 3d August, 1809, founded on by the pursuer, do not import as his intention that the estates entailed by him should be liable to the payment of the legacies or voluntary provisions bequeathed by him as his own onerous debts: Find that, under the settlements in question, the pursuer has no right or title to affect the entailed estates for payment of her legacies: Find that, in respect of the title completed by infeftment in the person of the trustee on the sequestrated estate of the present heir of entail in possession, she has no preferable right to the rents of the estate to the prejudice of the trustee and the personal creditors, whom he represents, and that in the sequestration of his estates she must rank as a personal creditor thereon: Therefore, sustain the defences for the trustee, and assoilzie him from the whole conclusions of the libel; find no expenses due to any of the parties, and decern: And, quoad ultra, remit the cause to the Lord Ordinary to proceed further therein as to his Lordship may seem just.”