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Where an annuity was left in the following terms:—“to my servant, Mary Roney or Rennie, who has served me long, faithfully, and well, an annuity of £30 sterling, to be secured to her by purchasing the said annuity from Government, or from some respectable insurance office, in the discretion of the said Robert M'William and James M'William, and to be payable half—yearly, and also to pay to her £10 for mournings, and as a provision till the first half-year's annuity shall be received by her.” Held that the annuitant was entitled to the annuity a morte testatoris.
The question in dispute in this suit was whether the pursuer was entitled to an annuity left her by her master a morte testatoris, and it arose under the following circumstances. The late John M'William, solicitor at Stranraer, died on 16th November 1870. The following clause occurred in his will—“to my servant, Mary Roney or Rennie, who has served me long, faithfully, and well, an annuity of £30 sterling, to be secured to her by purchasing the said annuity from Government, or from some respectable insurance office, in the discretion of the said Robert M'William and James M'William, and to be payable half-yearly, and also to pay to her £10 for mournings, and as a provision till the first half-year's annuity shall be received by her.” The defenders, the executors of the testator, averred that they had made payment to the pursuer of the sum of £10 referred to in the bequest in her favour, and that on 4th July 1871 they purchased a Government annuity in the pursuer's name of £30, payable half-yearly. The price was £410, 5s. 11d. It began to run from 5th April 1871, and the first half-year became due in October 1871. In addition, before the action was raised they made her an offer of £12,10s., being amount of the annuity from 18th May 1871 to 5th October 1871.
The Lord Ordinary pronounced the following interlocutor:—
“ Edinburgh, 30 th January 1873.—The Lord Ordinary having heard counsel for the parties, and considered the argument and proceedings, decerns and ordains the defenders, on obtaining from the pursuer the requisite discharge, to deliver to her the document constituting the Government annuity in her favour, No. 10 of process; as also to make payment to the pursuer of the sum of £11,13s. 5d., being the amount of the annuity to which she was entitled for the period from the 14th of November 1870, when the testator died, to the 6th of April 1871, when said Government annuity commenced to run, with interest thereof at the rate of 5 per cent, per annum from said 5th of April 1871 till paid: Finds the pursuer entitled to expenses,—reserving the question whether there should be any and what modification, until the auditor's report has been seen; allows an account of these expenses to be lodged, and remits it when lodged to the auditor to tax and report.
Note.—The Lord Ordinary has felt this case to be one of some nicety and difficulty, and he is not surprised that the defenders should have hesitated to comply with the pursuer's demands without judicial authority. He cannot doubt that they have acted throughout in good faith.
The disputed question is, whether the pursuer was, under the disposition and settlement of her late master Mr M'William, entitled to the annuity of £30 left to her by him, a morte testatoris, that is to say, from the 14th of November 1870, or whether it was to commence only nearly half a—year thereafter.
The will of the testator contains no express direction on this point; but from the nature and object of the bequest, as well as the description of the recipient, the Lord Ordinary thinks it must be held to have been his intention that the annuity should commence to run as from bis death. The additional bequest of ‘£10 for mournings, and as a provision till the first half-year's annuity shall be received by her,’ was most probably meant as something to keep her in the meantime from actual want, and so may be fairly considered as leading towards the conclusion at which the Lord Ordinary has arrived, rather than otherwise.
The Lord Ordinary is not aware of any Scotch precedent exactly in point. In the case, however, of Cruickshank v. Sandeman, Feb. 16, 1842, 5 D. 643, Lord Jeffrey observed, in regard to an annuity not expressly fixed as to the date of its commencement, that the granter of it was to be held to have given it ‘from the time the breath left his body.’ And in England it seems to be a settled rule that an annuity given by will commences immediately after the testator's death (2 Williams on Executors, 1288, and Roperon Legacies, vol. i, 872, and vol. ii, 1245 and 1344). In the case also of Houghton v. Franklin ( 1 Sim. and Stu. p. 390), it was decided that an annuity given by will, with a direction that it should be paid monthly, the first payment must be made at the end of a month after the testator's death—the Vice-Chancellor (Sir John Leach) remarking, that ‘as a will speaks at the death of a testator, it must be intended that the payment of an annual sum given by it is to commence from that period, unless there be some circumstances or expression in the will to control that intention.’
It appears that in the present case the defenders have secured for the pursuer a Government life annuity, commencing as from the 5th of April 1871, which it was stated by her counsel at the debate she was willing to accept, provided she also got payment of an equivalent in money, being £11, 13s. 5d. for the prior period; and for this sum, besides delivery of the document constituting
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Any objection that could be taken by the defenders to the right and title of the pursuer in respect of the partial assignation, No. 20 of process, to her annuity, has been obviated and removed by the retrocession, No. 21 of process. And the offer referred to in the sixth article of the defenders' statement of facts being applicable, not to the period from the 14th of November 1870, when the testator died, to the 5th of April 1871 thereafter, when the Government annuity commences, but to the period from 15th May to 5th October 1871, cannot be held to affect the dispute between the parties as is has now been determined.”
The defenders reclaimed.
The Court adhered.
Counsel for Pursuers— Reid and Burnet. Agents— J. & J. Milligan, W.S.
Counsel for Defenders—Solicitor-General ( Clark) and Asher. Agent— R. M'William, S.S.C.