In re Cox / Baker v. National Trust

In re Cox / Baker v. National Trust

Majority held the residuary clause, construed as limiting direct beneficiaries to employees and their dependents of The Canada Life Assurance Company, did not evidence a general charitable intent and the specified class failed the public-benefit test for a charitable trust (following Oppenheim and related authorities); consequently the gift is not a valid charitable trust and the residue resulted in intestacy (appeals dismissed).

Citation
[1953] 1 SCR 94
Parties
Appellant (representative of Employees of the Canada Life Assurance Company): Edwin G. Baker; Respondent (executor/administrator of Estates): National Trust Company Limited; Respondent (appointed Representative): Public Trustee; Interested Party / Proposed Distributing Body: Board of Directors of The Canada Life Assurance Company; Respondent (next of Kin Representative): Margaret Jane Ardagh; Respondent (representative of Unascertained Persons): Official Guardian; Deceased Testator: Herbert Coplin Cox; Deceased Testatrix: Louise Bogart Cox
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
22 December 1952
Procedural Posture
Appeal Concerning Validity of Charitable Trust Under Wills (trusts/charity) / Appeal to Supreme Court of Canada From Court of Appeal for Ontario — Final Judgment on Appeal (1952 12 22)
Outcome
Appeals dismissed by majority; residuary clauses not upheld as valid charitable trusts; reference ordered to determine next-of-kin and estates treated as intestate for residue
Legal Topics
Charitable Trust Validity, Public Benefit Test, Beneficiaries Limited to Employees and Dependents, Construction of Testamentary Trusts, Appointment and Discretion of Corporate Board, Cy Pres and General Charitable Intention
Source Language
English
Trusts Charity Law Wills and Estates Perpetuities Cy Pres Doctrine Charitable Trust Validity Public Benefit Test Beneficiaries Limited to Employees and Dependents +3 more

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Parties

Edwin G. Baker

Appellant (representative of Employees of the Canada Life Assurance Company)

National Trust Company Limited

Respondent (executor/administrator of Estates)

Public Trustee

Respondent (appointed Representative)

Board of Directors of The Canada Life Assurance Company

Interested Party / Proposed Distributing Body

Margaret Jane Ardagh

Respondent (next of Kin Representative)

Official Guardian

Respondent (representative of Unascertained Persons)

Herbert Coplin Cox

Deceased Testator

Louise Bogart Cox

Deceased Testatrix

Procedural Posture

Appeal Concerning Validity of Charitable Trust Under Wills (trusts/charity) / Appeal to Supreme Court of Canada From Court of Appeal for Ontario — Final Judgment on Appeal (1952 12 22)

Legal Issues

  1. 1 Whether the residuary clause created a valid charitable trust
  2. 2 Whether beneficiaries defined as employees and dependents of a specific company satisfy the public benefit requirement for a charity
  3. 3 Whether the testator manifested a general charitable intention sufficient to permit cy-près administration

Ratio Decidendi

Majority held the residuary clause, construed as limiting direct beneficiaries to employees and their dependents of The Canada Life Assurance Company, did not evidence a general charitable intent and the specified class failed the public-benefit test for a charitable trust (following Oppenheim and related authorities); consequently the gift is not a valid charitable trust and the residue resulted in intestacy (appeals dismissed).

Court Disposition

Appeals dismissed by majority; residuary clauses not upheld as valid charitable trusts; reference ordered to determine next-of-kin and estates treated as intestate for residue

Orders

  • Appeals dismissed
  • Referred to the Master at Toronto to determine and report who were entitled to the residuary estates at date of deaths (i.e. reference to determine next-of-kin)