This section is from the book "Business Law - Case Method", by William Kixmiller, William H. Spencer. See also: Business Law: Text and Cases.
The Greenfall estate, in eastern Connecticut, was found, upon the death of Mr. Charles Davis, the owner, to have been devised to Mr. Lloyd Jones "on condition that he use the farm as a site for a hospital for tubercular patients; otherwise the farm to become the property of my son, William Davis." Mr. Lloyd Jones died before the will was probated, but his son took the land, and, not being interested in hospitals, he decided to erect upon the land a flour mill. Mr. William Davis, thereupon, entered upon the land, quoted the terms of the will to Mr. Jones' son, and took possession. Mr. Jones, Junior, brought suit to recover the property. Will he succeed?
One Wadleigh, in consideration of $500, conveyed a parcel of land, with a church building upon it, to the bishop of the Protestant Episcopal Church. This $500 was raised by the bishop among the adherents of the Episcopal faith, who wished to see this church in Old Town, Maine. The conveyance was made to the bishop "and his successor in office, upon condition that the property conveyed shall be forever held for the use of the Protestant Episcopal Church of Old Town."
Sarah Hoskins and others, heirs of Wadleigh, many years later, took possession of the property, contending that the conditions of the conveyance had not been observed, and, therefore, the estate had come to an end.
This was an action brought by Neely, as bishop, to recover possession of the property.
Mr. Chief Justice Peters said: "Undoubtedly, the deed contains a condition for the benefit of the parish, but not for Wadleigh's benefit or for the benefit of his heirs. It operates between the parish and the bishop, and is not available otherwise. Every trust implies a condition that the trustee will faithfully administer the trust; equity will enforce this trust at the instance and for the benefit of the parish. But the heirs of Ira Wadleigh cannot complain." Judgment was given for Neely.
It frequently happens that a conveyance will be made to a person upon a condition. If the conveyance is made for some charitable purpose, the courts will often construe this as a conveyance in trust in favor of the charity, and not as a conveyance to the particular person on condition; and equity will enforce the condition as a direction of the grantor or testator, in reference to the manner in which the estate is to be used.
But in the Story Case, the words of the will leave no doubt that an estate on condition was granted. It provided who was to be possessed of the property, in case the condition was not met. Mr. Jones, Junior, will not recover the land, because by the plain conditions in the will the land has become the property of William Davis. Had Charles Davis devised the land to Jones upon condition that the property be used for a designated charity, as, for instance, the Boston Tubercular Hospital, then it would amount to a trust, and if Jones failed to use it for that charity the court would compel him to do so. Of course, if this were the case, the son, William Davis, would have no claim to the property.
 
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