St. Andrews-Wesley Church v. Toronto General Trusts Corporation

St. Andrews-Wesley Church v. Toronto General Trusts Corporation

By majority the residuary clause "to pay all the rest, residue and remainder of my estate to the St. Andrew and Wesley Church... to be added to the endowment fund" was construed as a valid charitable endowment: the words indicate a general endowment for church (religious) purposes and are not conditional on an existing named fund; accordingly the gift manifests a charitable intention and creates a valid charitable trust. The dissent held the gift failed for uncertainty because no endowment fund existed and equity could not create one with potentially non-charitable objects.

Citation
[1948] SCR 500
Parties
Defendant Appellant: Congregation of St. Andrew's Wesley Church, Vancouver, B.C.; Plaintiff Respondent: The Toronto General Trusts Corporation (Executors of the Estate); Defendant Respondent: William Henry Oliver Stobie (representing next-of-kin and interested persons)
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
25 June 1948
Procedural Posture
Civil Appeal (charitable Trust/will) / On Appeal to the Supreme Court of Canada From the Court of Appeal for British Columbia
Outcome
Appeal allowed; judgment of the trial judge restored; majority hold bequest valid as charitable endowment; costs to be paid out of the residuary estate; amended order granted solicitor-and-client costs in the Court of Appeal.
Legal Topics
Construction of Will, Charitable Trust, Certainty of Objects, Endowment Fund, Precatory Vs. Imperative Language
Source Language
English
Estates Trusts Charity Law Wills Construction of Will Charitable Trust Certainty of Objects Endowment Fund +1 more

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Parties

Congregation of St. Andrew's Wesley Church, Vancouver, B.C.

Defendant Appellant

The Toronto General Trusts Corporation (Executors of the Estate)

Plaintiff Respondent

William Henry Oliver Stobie (representing next-of-kin and interested persons)

Defendant Respondent

Procedural Posture

Civil Appeal (charitable Trust/will) / On Appeal to the Supreme Court of Canada From the Court of Appeal for British Columbia

Legal Issues

  1. 1 Whether a residuary bequest to a church "to be added to the endowment fund" is a valid charitable gift where no endowment fund exists
  2. 2 Whether absence of an actual endowment fund renders the bequest void for uncertainty of objects
  3. 3 Whether the phrase "to be added to the endowment fund" is precatory (a wish) or mandatory (a direction)

Ratio Decidendi

By majority the residuary clause "to pay all the rest, residue and remainder of my estate to the St. Andrew and Wesley Church... to be added to the endowment fund" was construed as a valid charitable endowment: the words indicate a general endowment for church (religious) purposes and are not conditional on an existing named fund; accordingly the gift manifests a charitable intention and creates a valid charitable trust. The dissent held the gift failed for uncertainty because no endowment fund existed and equity could not create one with potentially non-charitable objects.

Court Disposition

Appeal allowed; judgment of the trial judge restored; majority hold bequest valid as charitable endowment; costs to be paid out of the residuary estate; amended order granted solicitor-and-client costs in the Court of Appeal.

Orders

  • Amended: all parties entitled to their costs in the Court of Appeal as between solicitor and client (order dated 18 Oct 1948)