While domiciled in Pennsylvania, a woman executed in Delaware a
revocable deed of trust making a Delaware trust company trustee of
certain securities, reserving the income for life and providing
that the remainder should be paid to such parties as she should
appoint by
inter vivos or testamentary instrument. Later,
after becoming domiciled in Florida, where she remained until her
death, she executed (1) an
inter vivos instrument
appointing certain beneficiaries to receive $400,000 of the trust
property, and (2) a will containing a residuary clause covering,
inter alia,
"all property, rights and interest over which I may have power
of appointment which, prior to my death, has not been effectively
exercised."
In a proceeding in which the Delaware trust company did not
appear and was given notice only by mail and publication, a Florida
State Court held that the trust and power of appointment were
ineffective under Florida law, and that the $400,000 passed under
the residuary clause of the will. This ruling was sustained by the
Supreme Court of Florida, which also held that the Florida court
had jurisdiction over the nonresident trust company, and an appeal
was taken to this Court. A Delaware court with personal
jurisdiction over the trust company sustained the trust and
inter vivos appointment and held that the parties
designated therein were entitled to the $400,000. This decision was
sustained by the Supreme Court of Delaware, and its judgment was
brought here on certiorari. Both Delaware courts denied motions to
give full faith and credit to the Florida decree.
Held:
1. This Court need not determine whether Florida was bound to
give full faith and credit to the Delaware decree, because that
question was not seasonably presented to the Florida court. Pp.
357 U. S.
243-244.
2. This Court is without jurisdiction of the Florida appeal, and
it is dismissed; but, treating the papers whereon appeal was
taken
Page 357 U. S. 236
as a petition for certiorari, 28 U.S.C § 2103, certiorari
is granted. P.
357 U. S.
244.
3. Appellants in the Florida case have standing to challenge the
jurisdiction of the Florida court over the nonresident trust
company which made no appearance, because they have a "direct and
substantial personal interest in the outcome" of the litigation,
Chicago v. Atchison, T. & S.F. R. Co., ante, p.
357 U. S. 77, and
the trustee was an indispensable party without whom a Florida court
had no power to adjudicate the controversy. Pp.
357 U. S.
244-245.
4. The Florida court did not have
in rem jurisdiction
over the corpus of the trust or personal jurisdiction over the
trust company. Without such jurisdiction, it had no power under
Florida law to pass on the validity of the trust. Therefore, its
decree is void under the Due Process Clause of the Fourteenth
Amendment, and it is reversed, not only as to the trust company,
but also as to the individuals over whom it did have jurisdiction.
Pp.
357 U. S.
245-254.
(a) Though the property involved was intangible personal
property, the settlor was domiciled in Florida at the time of her
death, and Florida had jurisdiction over the probate and
construction of her will, it had no
in rem jurisdiction
over the trust assets, and its judgment is invalid insofar as it
rests on the basis of
in rem jurisdiction. Pp.
357 U. S.
246-250.
(b) The trust company did not have sufficient affiliation with
Florida to empower the Florida courts to exercise personal
jurisdiction over it.
McGee v. International Life Ins.
Co., 355 U. S. 220,
distinguished. Pp.
357 U. S.
250-253.
(c) Since it is the validity of the trust agreement, not the
exercise of the power of appointment, that is at issue here, the
execution in Florida of the power of appointment does not give
Florida a substantial connection with the contract on which the
suit is based, nor justify the exercise of personal jurisdiction
over the nonresident trustee. Pp.
357 U.S. 253-254.
(d) That the settlor and most of the appointees and
beneficiaries were domiciled in Florida does not give Florida
personal jurisdiction over this nonresident trustee. P.
357 U. S.
254.
(e) Because the Florida Supreme Court has repeatedly held that a
trustee is an indispensable party without whom a Florida court has
no power to adjudicate controversies affecting the validity of a
trust (though it did not rule on that point in this case), the
Page 357 U. S. 237
Florida judgment must be reversed not only as to the nonresident
trustees, but also as to the appellant over whom the Florida court
admittedly had jurisdiction. Pp.
357 U. S.
254-255.
5. Delaware was under no obligation to give full faith and
credit to the invalid Florida judgment, and the Delaware judgment
is affirmed. Pp.
357 U. S.
255-256.
(a) Since Delaware was entitled to conclude that Florida law
made the trust company an indispensable party, it was under no
obligation to give the Florida judgment any faith and credit --
even against parties over whom Florida's jurisdiction was
unquestioned. P.
357 U. S.
255.
(b) The Delaware case should not be held while the Florida case
is remanded to give the Florida court an opportunity to determine
whether the trustee is an indispensable party in the circumstance
of this case, since there is ample Florida authority from which the
answer to that question may be determined. Pp.
357 U. S.
255-256.
100
So. 2d 378 reversed, and cause remanded. ___Del. ___,
128
A.2d 819, affirmed.
Page 357 U. S. 238
MR. CHIEF JUSTICE WARREN delivered the opinion of the Court.
This controversy concerns the right to $400,000, part of the
corpus of a trust established in Delaware by a settlor who later
became domiciled in Florida. One group of claimants, "legatees,"
urge that this property passed under the residuary clause of the
settlor's will, which was admitted to probate in Florida. The
Florida courts have sustained this position.
100
So. 2d 378. Other claimants, "appointees" and "beneficiaries,"
contend that the property passed pursuant to the settlor's exercise
of the
inter vivos power of appointment created in the
deed of trust. The Delaware courts adopted this position and
refused to accord full faith and credit to the Florida
determination because the Florida court had not acquired
jurisdiction over an indispensable party, the Delaware trustee. ___
Del. ___,
128 A.2d
819. We postponed the question of jurisdiction in the Florida
appeal, No. 107, 354 U.S. 919, and granted certiorari to the
Delaware Supreme Court, No. 117, 354 U.S. 920.
The trust whose validity is contested here was created in 1935.
Dora Browning Donner, then a domiciliary of Pennsylvania, executed
a trust instrument in Delaware naming the Wilmington Trust Co., of
Wilmington, Delaware, as trustee. The corpus was composed of
securities. Mrs. Donner reserved the income for life, and stated
that the remainder should be paid to such persons or upon such
trusts as she should appoint by
inter vivos or
testamentary instrument. The trust agreement provided that Mrs.
Donner could change the trustee, and that she could amend, alter,
or revoke the agreement at any time. A measure of control over
trust administration was assured by the provision that only with
the consent of a trust "advisor" appointed by the settlor could the
trustee (1) sell trust assets, (2) make investments, and (3)
participate in any plan, proceeding, reorganization or merger
Page 357 U. S. 239
involving securities held in the trust. A few days after the
trust was established, Mrs. Donner exercised her power of
appointment. That appointment was replaced by another in 1939.
Thereafter, she left Pennsylvania, and, in 1944, became domiciled
in Florida, where she remained until her death in 1952. Mrs.
Donner's will was executed Dec. 3, 1949. On that same day, she
executed the
inter vivos power of appointment whose terms
are at issue here. [
Footnote 1]
After making modest appointments in favor of a hospital and certain
family retainers (the "appointees"), [
Footnote 2] she appointed the sum of $200,000 to each of
two trusts previously established with another Delaware trustee,
the Delaware Trust Co. The balance of the trust corpus, over
$1,000,000 at the date of her death, was appointed to her
executrix. That amount passed under the residuary clause of her
will, and is not at issue here.
The two trusts with the Delaware Trust Co. were created in 1948
by Mrs. Donner's daughter, Elizabeth Donner Hanson, for the benefit
of Elizabeth's children, Donner Hanson and Joseph Donner Winsor. In
identical terms, they provide that the income not required for the
beneficiary's support should be accumulated to age 25, when the
beneficiary should be paid 1/4 of the corpus and receive the income
from the balance for life. Upon the death of the beneficiary, the
remainder was to go to such of the beneficiary's issue or Elizabeth
Donner Hanson's issue as the beneficiary should appoint by
inter vivos or testamentary instrument; in default of
appointment, to the beneficiary's issue alive at the time of his
death, and if none to the issue of Elizabeth Donner Hanson.
Mrs. Donner died Nov. 20, 1952. Her will, which was admitted to
probate in Florida, named Elizabeth Donner
Page 357 U. S. 240
Hanson as executrix. She was instructed to pay all debts and
taxes, including any which might be payable by reason of the
property appointed under the power of appointment in the trust
agreement with the Wilmington Trust Co. After disposing of personal
and household effects, Mrs. Donner's will directed that the balance
of her property (the $1,000,000 appointed from the Delaware trust)
be paid in equal parts to two trusts for the benefit of her
daughters Katherine N. R. Denckla and Dorothy B. R. Stewart.
This controversy grows out of the residuary clause that created
the last-mentioned trusts. It begins:
"All the rest, residue and remainder of my estate, real,
personal and mixed, whatsoever and wheresoever the same may be at
the time of my death, including any and all property, rights, and
interest over which I may have power of appointment which prior to
my death has not been effectively exercised by me or has been
exercised by me in favor of my Executrix, I direct my Executrix to
deal with as follows . . . ."
Residuary legatees Denckla and Stewart, already the recipients
of over $500,000 each, urge that the power of appointment over the
$400,000 appointed to sister Elizabeth's children was not
"effectively exercised," and that the property should accordingly
pass to them. Fourteen months after Mrs. Donner's death, these
parties petitioned a Florida chancery court for a declaratory
judgment "concerning what property passes under the residuary
clause" of the will. Personal service was had upon the following
defendants: (1) executrix Elizabeth Donner Hanson, (2)
beneficiaries Donner Hanson and Joseph Donner Winsor, and (3)
potential beneficiary William Donner Roosevelt, also one of
Elizabeth's children. Curtin Winsor, Jr., another of Elizabeth's
children and
Page 357 U. S. 241
also a potential beneficiary of the Delaware trusts, was not
named as a party, and was not served. About a dozen other
defendants were nonresidents, and could not be personally served.
These included the Wilmington Trust Co. ("trustee"), the Delaware
Trust Co. (to whom the $400,000 had been paid shortly after Mrs.
Donner's death), certain individuals who were potential successors
in interest to complainants Denckla and Stewart, and most of the
named appointees in Mrs. Donner's 1949 appointment. A copy of the
pleadings and a "Notice to Appear and Defend" were sent to each of
these defendants by ordinary mail, and notice was published locally
as required by the Florida statutes dealing with constructive
service. [
Footnote 3] With the
exception of two individuals whose interests coincided with
complainants Denckla and Stewart, none of the nonresident
defendants made any appearance.
The appearing defendants (Elizabeth Donner Hanson and her
children) moved to dismiss the suit because the exercise of
jurisdiction over indispensable parties, the Delaware trustees,
would offend Section 1 of the
Page 357 U. S. 242
Fourteenth Amendment. The Chancellor ruled that he lacked
jurisdiction over these nonresident defendants because no personal
service was had and because the trust corpus was outside the
territorial jurisdiction of the court. The cause was dismissed as
to them. As far as parties before the court were concerned,
however, he ruled that the power of appointment was testamentary
and void under the applicable Florida law. In a decree dated Jan.
14, 1955, he ruled that the $400,000 passed under the residuary
clause of the will.
After the Florida litigation began, but before entry of the
decree, the executrix instituted a declaratory judgment action in
Delaware to determine who was entitled to participate in the trust
assets held in that State. Except for the addition of beneficiary
Winsor and several appointees, the parties were substantially the
same as in the Florida litigation. Nonresident defendants were
notified by registered mail. All of the trust companies,
beneficiaries, and legatees except Katherine N. R. Denckla,
appeared and participated in the litigation. After the Florida
court enjoined executrix Hanson from further participation, her
children pursued their own interests. When the Florida decree was
entered, the legatees unsuccessfully urged it as
res
judicata of the Delaware dispute. In a decree dated Jan. 13,
1956, the Delaware Chancellor ruled that the trust and power of
appointment were valid under the applicable Delaware law, and that
the trust corpus had properly been paid to the Delaware Trust Co.
and the other appointees.
Hanson v. Wilmington Trust
Co., 119
A.2d 901.
Alleging that she would be bound by the Delaware decree, the
executrix moved the Florida Supreme Court to remand with
instructions to dismiss the Florida suit then pending on appeal. No
full faith and credit question was raised. The motion was denied.
The Florida Supreme Court affirmed its Chancellor's conclusion that
Florida law applied to determine the validity of the trust
Page 357 U. S. 243
and power of appointment. Under that law, the trust was invalid
because the settlor had reserved too much power over the trustee
and trust corpus, and the power of appointment was not
independently effective to pass the property because it was a
testamentary act not accompanied by the requisite formalities. The
Chancellor's conclusion that there was no jurisdiction over the
trust companies and other absent defendants was reversed. The court
ruled that jurisdiction to construe the will carried with it
"substantive" jurisdiction "over the persons of the absent
defendants" even though the trust assets were not "physically in
this state." Whether this meant jurisdiction over the person of the
defendants or jurisdiction over the trust assets is open to doubt.
In a motion for rehearing, the beneficiaries and appointees urged
for the first time that Florida should have given full faith and
credit to the decision of the Delaware Chancellor. The motion was
denied without opinion, Nov. 28, 1956.
The full faith and credit question was first raised in the
Delaware litigation by an unsuccessful motion for new trial filed
with the Chancellor Jan. 20, 1956. After the Florida Supreme Court
decision, the matter was renewed by a motion to remand filed with
the Delaware Supreme Court. In a decision of Jan. 14, 1957, that
court denied the motion and affirmed its Chancellor in all
respects. The Florida decree was held not binding for purposes of
full faith and credit because the Florida court had no personal
jurisdiction over the trust companies and no jurisdiction over the
trust
res.
The issues for our decision are,
first, whether Florida
erred in holding that it had jurisdiction over the nonresident
defendants, and
second, whether Delaware erred in refusing
full faith and credit to the Florida decree. We need not determine
whether Florida was bound to give full faith and credit to the
decree of the Delaware Chancellor,
Page 357 U. S. 244
since the question was not seasonably presented to the Florida
court.
Radio Station WOW v. Johnson, 326 U.
S. 120,
326 U. S.
128.
No. 107, The Florida Appeal. The question of our
jurisdiction was postponed until the hearing of the merits. The
appeal is predicated upon the contention that, as applied to the
facts of this case, the Florida statute providing for constructive
service is contrary to the Federal Constitution. 28 U.S.C. §
1257(2). But, in the state court, appellants (the "beneficiaries")
did not object that the statute was invalid as applied, but rather
that the effect of the state court's exercise of jurisdiction in
the circumstances of this case deprived them of a right under the
Federal Constitution. [
Footnote
4] Accordingly, we are without jurisdiction of the appeal, and
it must be dismissed.
Wilson v. Cook, 327 U.
S. 474,
327 U. S. 482;
Charleston Fed. Sav. & Loan Ass'n v. Alderson,
324 U. S. 182.
Treating the papers whereon appeal was taken as a petition for
certiorari, 28 U.S.C. § 2103, certiorari is granted.
Relying upon the principle that a person cannot invoke the
jurisdiction of this Court to vindicate the right of a third party,
[
Footnote 5] appellees urge
that appellants lack standing to complain of a defect in
jurisdiction over the nonresident
Page 357 U. S. 245
trust companies, who have made no appearance in this action.
Florida adheres to the general rule that a trustee is an
indispensable party to litigation involving the validity of the
trust. [
Footnote 6] In the
absence of such a party, a Florida court may not proceed to
adjudicate the controversy. [
Footnote 7] Since state law required the acquisition of
jurisdiction over the nonresident trust company [
Footnote 8] before the court was empowered to
proceed with the action, any defendant affected by the court's
judgment has that "direct and substantial personal interest in the
outcome" that is necessary to challenge whether that jurisdiction
was in fact acquired.
Chicago v. Atchison, T. & S.F. R.
Co., 357 U. S. 77.
Appellants charge that this judgment is offensive to the Due
Process Clause of the Fourteenth Amendment because the Florida
court was without jurisdiction. There is no suggestion that the
court failed to employ a means of notice reasonably calculated to
inform nonresident defendants of the pending proceedings, [
Footnote 9] or denied them an
opportunity to be heard in defense of their interests. [
Footnote 10] The alleged defect is
the absence of those
Page 357 U. S. 246
"affiliating circumstances" [
Footnote 11] without which the courts of a state may not
enter a judgment imposing obligations on persons (jurisdiction
in personam) or affecting interests in property
(jurisdiction
in rem or
quasi in rem). [
Footnote 12] While the
in
rem and
in personam classifications do not exhaust
all the situations that give rise to jurisdiction, [
Footnote 13] they are adequate to describe
the affiliating circumstances suggested here, and accordingly serve
as a useful means of approach to this case.
In rem jurisdiction. Founded on physical power,
McDonald v. Mabee, 243 U. S. 90,
243 U. S. 91,
the
in rem jurisdiction of a state court is limited by the
extent of its power and by the coordinate authority of sister
States. [
Footnote 14] The
basis of the jurisdiction is the presence of the subject property
within the territorial jurisdiction of the forum State.
Rose v. Himely,
4 Cranch 241,
8 U. S. 277;
Overby v. Gordon, 177 U. S. 214,
177 U. S.
221-222. Tangible property poses no problem for the
application of this rule, but the situs of
Page 357 U. S. 247
intangibles is often a matter of controversy. [
Footnote 15] In considering restrictions on
the power to tax, this Court has concluded that "jurisdiction" over
intangible property is not limited to a single State.
State Tax
Commission of Utah v. Aldrich, 316 U.
S. 174;
Curry v. McCanless, 307 U.
S. 357. Whether the type of "jurisdiction" with which
this opinion deals may be exercised by more than one State we need
not decide. The parties seem to assume that the trust assets that
form the subject matter of this action [
Footnote 16] were located in Delaware, and not in
Florida. We can see nothing in the record contrary to that
assumption, or sufficient to establish a situs in Florida.
[
Footnote 17]
The Florida court held that the presence of the subject property
was not essential to its jurisdiction. Authority over the probate
and construction of its domiciliary's will, under which the assets
might pass, was thought sufficient
Page 357 U. S. 248
to confer the requisite jurisdiction. [
Footnote 18] But jurisdiction cannot be predicated
upon the contingent role of this Florida will. Whatever the
efficacy of a so-called "
in rem" jurisdiction over assets
admittedly passing under a local will, a State acquires no
in
rem jurisdiction to adjudicate the validity of
inter
vivos dispositions simply because its decision might augment
an estate passing under a will probated in its courts. If such a
basis of jurisdiction were sustained, probate courts would enjoy
nationwide service of process to adjudicate interests in property
with which
Page 357 U. S. 249
neither the State nor the decedent could claim any affiliation.
The settlor-decedent's Florida domicile is equally unavailing as a
basis for jurisdiction over the trust assets. For the purpose of
jurisdiction
in rem, the maxim that personalty has its
situs at the domicile of its owner [
Footnote 19] is a fiction of limited utility.
Green v. Van
Buskirk, 7 Wall. 139,
74 U. S. 150.
The maxim is no less suspect when the domicile is that of a
decedent. In analogous cases, this Court has rejected the
suggestion that the probate decree of the State where decedent was
domiciled has an
in rem effect on personalty outside the
forum State that could render it conclusive on the interests of
nonresidents over whom there was no personal jurisdiction.
Riley v. New York Trust Co., 315 U.
S. 343,
315 U. S. 353;
Baker v. Baker, Eccles & Co., 242 U.
S. 394,
242 U. S. 401;
Overby v. Gordon, 177 U. S. 214.
[
Footnote 20] The fact that
the owner is or was domiciled within the forum State is not a
sufficient affiliation with the property upon which to base
jurisdiction
in rem. Having concluded that Florida had no
in rem jurisdiction, we proceed to consider whether a
judgment purporting to rest on that basis is invalid in Florida,
and must therefore be reversed.
Prior to the Fourteenth Amendment, an exercise of jurisdiction
over persons or property outside the forum State was thought to be
an absolute nullity, [
Footnote
21] but the matter
Page 357 U. S. 250
remained a question of state law over which this Court exercised
no authority. [
Footnote 22]
With the adoption of that Amendment, any judgment purporting to
bind the person of a defendant over whom the court had not acquired
in personam jurisdiction was void within the State as well
as without.
Pennoyer v. Neff, 95 U. S.
714. Nearly a century has passed without this Court's
being called upon to apply that principle to an
in rem
judgment dealing with property outside the forum State. The
invalidity of such a judgment within the forum State seems to have
been assumed -- and with good reason. Since a State is forbidden to
enter a judgment attempting to bind a person over whom it has no
jurisdiction, it has even less right to enter a judgment purporting
to extinguish the interest of such a person in property over which
the court has no jurisdiction. [
Footnote 23] Therefore, so far as it purports to rest
upon jurisdiction over the trust assets, the judgment of the
Florida court cannot be sustained.
Sadler v. Industrial Trust
Co., 327 Mass. 10,
97
N.E.2d 169.
In personam jurisdiction. Appellees' stronger argument
is for
in personam jurisdiction over the Delaware trustee.
They urge that the circumstances of this case amount to sufficient
affiliation with the State of Florida to empower its courts to
exercise personal jurisdiction over this nonresident defendant.
Principal reliance is placed upon
McGee v. International Life
Ins. Co., 355 U. S. 220. In
McGee, the Court noted the trend of expanding personal
jurisdiction over nonresidents. As technological
Page 357 U. S. 251
progress has increased the flow of commerce between States, the
need for jurisdiction over nonresidents has undergone a similar
increase. At the same time, progress in communications and
transportation has made the defense of a suit in a foreign tribunal
less burdensome. In response to these changes, the requirements for
personal jurisdiction over nonresidents have evolved from the rigid
rule of
Pennoyer v. Neff, 95 U. S.
714, to the flexible standard of
International Shoe
Co. v. Washington, 326 U. S. 310. But
it is a mistake to assume that this trend heralds the eventual
demise of all restrictions on the personal jurisdiction of state
courts.
See Vanderbilt v. Vanderbilt, 354 U.
S. 416,
354 U. S. 418.
Those restrictions are more than a guarantee of immunity from
inconvenient or distant litigation. They are a consequence of
territorial limitations on the power of the respective States.
However minimal the burden of defending in a foreign tribunal, a
defendant may not be called upon to do so unless he has had the
"minimal contacts" with that State that are a prerequisite to its
exercise of power over him.
See International Shoe Co. v.
Washington, 326 U. S. 310,
326 U. S.
319.
We fail to find such contacts in the circumstances of this case.
The defendant trust company has no office in Florida, and transacts
no business there. None of the trust assets has ever been held or
administered in Florida, and the record discloses no solicitation
of business in that State, either in person or by mail.
Cf.
International Shoe Co. v. Washington, 326 U.
S. 310;
McGee v. International Life Ins. Co.,
355 U. S. 220;
Travelers Health Ass'n v. Virginia, 339 U.
S. 643.
The cause of action in this case is not one that arises out of
an act done or transaction consummated in the forum State. In that
respect, it differs from
McGee v. International Life Ins.
Co., 355 U. S. 220, and
the cases there cited. In
McGee, the nonresident defendant
solicited a reinsurance agreement with a resident of
California.
Page 357 U. S. 252
The offer was accepted in that State, and the insurance premiums
were mailed from there until the insured's death. Noting the
interest California has in providing effective redress for its
residents when nonresident insurers refuse to pay claims on
insurance they have solicited in that State, the Court upheld
jurisdiction because the suit "was based on a contract which had
substantial connection with that State." In contrast, this action
involves the validity of an agreement that was entered without any
connection with the forum State. The agreement was executed in
Delaware by a trust company incorporated in that State and a
settlor domiciled in Pennsylvania. The first relationship Florida
had to the agreement was years later, when the settlor became
domiciled there and the trustee remitted the trust income to her in
that State. From Florida, Mrs. Donner carried on several bits of
trust administration that may be compared to the mailing of
premiums in
McGee. [
Footnote 24] But the record discloses no instance in
which the trustee performed any acts in Florida that bear the same
relationship to the agreement as the solicitation in
McGee. Consequently, this suit cannot be said to be one to
enforce an obligation that arose from a privilege the defendant
exercised in Florida.
Cf. International Shoe Co. v.
Washington, 326 U. S. 310,
326 U. S. 319.
This case is also different from
McGee in that, there, the
State had enacted special legislation (Unauthorized Insurers
Process Act) to exercise what
McGee called its "manifest
interest" in providing effective redress for citizens who had been
injured by nonresidents engaged in an activity that the State
treats as exceptional and subjects to special regulation.
Cf.
339 U. S. S.
253� Health Ass'n v. Virginia,
339 U.
S. 643, 339 U. S.
647-649; Doherty & Co. v. Goodman,
294 U. S. 623,
294 U. S.
627; Hess v. Pawloski,@
274 U.
S. 352.
The execution in Florida of the powers of appointment under
which the beneficiaries and appointees claim does not give Florida
a substantial connection with the contract on which this suit is
based. It is the validity of the trust agreement, not the
appointment, that is at issue here. [
Footnote 25] For the purpose of applying its rule that
the validity of a trust is determined by the law of the State of
its creation, Florida ruled that the appointment amounted to a
"republication" of the original trust instrument in Florida. For
choice of law purposes, such a ruling may be justified, but we
think it an insubstantial connection with the trust agreement for
purposes of determining the question of personal jurisdiction over
a nonresident defendant. The unilateral activity of those who claim
some relationship with a nonresident defendant cannot satisfy the
requirement of contact with the forum State. The application of
that rule will vary with the quality and nature of the defendant's
activity, but it is essential in each case that there be some act
by which the defendant purposefully avails itself of the privilege
of conducting activities within the forum State, thus invoking the
benefits and protections of its laws.
International Shoe Co. v.
Washington, 326 U. S. 310,
326 U. S.
319.
Page 357 U. S. 254
The settlor's execution in Florida of her power of appointment
cannot remedy the absence of such an act in this case.
It is urged that, because the settlor and most of the appointees
and beneficiaries were domiciled in Florida, the courts of that
State should be able to exercise personal jurisdiction over the
nonresident trustees. This is a
non sequitur. With
personal jurisdiction over the executor, legatees, and appointees,
there is nothing in federal law to prevent Florida from
adjudicating concerning the respective rights and liabilities of
those parties. But Florida has not chosen to do so. As we
understand its law, the trustee is an indispensable party over whom
the court must acquire jurisdiction before it is empowered to enter
judgment in a proceeding affecting the validity of a trust.
[
Footnote 26] It does not
acquire that jurisdiction by being the "center of gravity" of the
controversy, or the most convenient location for litigation. The
issue is personal jurisdiction, not choice of law. It is resolved
in this case by considering the acts of the trustee. As we have
indicated, they are insufficient to sustain the jurisdiction.
[
Footnote 27]
Because it sustained jurisdiction over the nonresident trustees,
the Florida Supreme Court found it unnecessary to determine whether
Florida law made those defendants indispensable parties in the
circumstances of this case. Our conclusion that Florida was without
jurisdiction over the Delaware trustee, or over the trust corpus
held in that State, requires that we make that determination in the
first instance. As we have noted earlier, the Florida Supreme Court
has repeatedly held that a trustee is an
Page 357 U. S. 255
indispensable party without whom a Florida court has no power to
adjudicate controversies affecting the validity of a trust.
[
Footnote 28] For that
reason, the Florida judgment must be reversed not only as to the
nonresident trustees, but also as to appellants, over whom the
Florida court admittedly had jurisdiction.
No. 117, The Delaware Certiorari. The same reasons that
compel reversal of the Florida judgment require affirmance of the
Delaware one. Delaware is under no obligation to give full faith
and credit to a Florida judgment invalid in Florida because
offensive to the Due Process Clause of the Fourteenth Amendment. 28
U.S.C. § 1738. Even before passage of the Fourteenth
Amendment, this Court sustained state courts in refusing full faith
and credit to judgments entered by courts that were without
jurisdiction over nonresident defendants.
D'Arcy v.
Ketchum, 11 How. 165;
Hall v. Lanning,
91 U. S. 160.
See Baker v. Baker, Eccles & Co., 242 U.
S. 394;
Riley v. New York Trust Co.,
315 U. S. 343.
Since Delaware was entitled to conclude that Florida law made the
trust company an indispensable party, it was under no obligation to
give the Florida judgment any faith and credit -- even against
parties over whom Florida's jurisdiction was unquestioned.
It is suggested that this disposition is improper -- that the
Delaware case should be held while the Florida cause is remanded to
give that court an opportunity to determine whether the trustee is
an indispensable party in the circumstances of this case. But this
is not a case like
Herb v. Pitcairn, 324 U.
S. 117, where it is appropriate to remand for the state
court to clarify an ambiguity in its opinion that may reveal an
adequate state ground that would deprive us of power to affect the
result of the controversy. Nor is this a circumstance where the
state
Page 357 U. S. 256
court has never ruled on the question of state law that we are
deciding. Although the question was left open in this case, there
is ample Florida authority from which we may determine the
appropriate answer.
The rule of primacy to the first final judgment is a necessary
incident to the requirement of full faith and credit. Our only
function is to determine whether judgments are consistent with the
Federal Constitution. In determining the correctness of Delaware's
judgment, we look to what Delaware was entitled to conclude from
the Florida authorities at the time the Delaware court's judgment
was entered. To withhold affirmance of a correct Delaware judgment
until Florida has had time to rule on another question would be
participating in the litigation, instead of adjudicating its
outcome.
The judgment of the Delaware Supreme Court is affirmed, and the
judgment of the Florida Supreme Court is reversed and the cause is
remanded for proceedings not inconsistent with this opinion.
It is so ordered.
* Together with No. 117,
Lewis et al. v. Hanson, Executrix
and Trustee, et al., on certiorari to the Supreme Court of
Delaware.
[
Footnote 1]
The appointment was partially revoked July 7, 1950, in a respect
not material to the instant controversy.
[
Footnote 2]
The hospital received $10,000. Six servants qualified for
appointments totalling $7,000.
[
Footnote 3]
Fla.Stat., 1957, c. 48, § 48.01:
"Service of process by publication may be had, in any of the
several courts of this state, and upon any of the parties mentioned
in § 48.02 in any suit or proceeding:"
"(1) To enforce any legal or equitable lien upon or claim to any
title or interest in real or personal property within the
jurisdiction of the court or any fund held or debt owing by any
party upon whom process can be served within this state."
"
* * * *"
"(5) For the construction of any will, deed, contract or other
written instrument and for a judicial declaration or enforcement of
any legal or equitable right, title, claim, lien or interest
thereunder."
§ 48.02:
"Where personal service of process cannot be had, service of
process by publication may be had upon any party, natural or
corporate, known or unknown, including: (1) Any known or unknown
natural person . . . (2) Any corporation or other legal entity,
whether its domicile be foreign, domestic or unknown . . . ."
[
Footnote 4]
The record discloses no mention of the state statute until the
petition for rehearing in the Florida Supreme Court. In the trial
court, appellant's motion to dismiss raised the federal question in
this manner:
"The exercise by this Court of the jurisdiction sought to be
invoked by the plaintiffs herein would contravene the Constitution
and Laws of the State of Florida and the Constitution of the United
States, and, in particular, Section 1 of the Fourteenth Amendment
to the United States Constitution."
No. 107, R. 41.
[
Footnote 5]
See Liberty Warehouse Co. v. Burley Tobacco Growers' Co-op.
Marketing Ass'n, 276 U. S. 71,
276 U. S. 88;
Smith v. Indiana, 191 U. S. 138,
191 U. S. 148;
Tyler v. Judges of the Court of Registration, 179 U.
S. 405; Robertson and Kirkham, Jurisdiction of the
Supreme Court (Wolfson and Kurland ed.), § 298.
[
Footnote 6]
Trueman Fertilizer Co. v. Allison, 81 So.
2d 734, 738;
Winn v. Strickland, 34 Fla. 610, 633, 16
So. 606, 613;
Wilson v. Russ, 17 Fla. 691, 697;
McArthur v. Scott, 113 U. S. 340,
113 U. S. 396;
Sadler v. Industrial Trust Co., 327 Mass. 10,
97
N.E.2d 169.
[
Footnote 7]
Martinez v. Balbin, 76 So. 2d
488, 490;
Florida Land Rock Phosphate Co. v. Anderson,
50 Fla. 501, 512-513, 39 So. 392, 396.
[
Footnote 8]
Hereafter, the terms "trust," "trust company" and "trustee" have
reference to the trust established in 1935 with the Wilmington
Trust Co., the validity of which is at issue here. It is
unnecessary to determine whether the Delaware Trust Co., to which
the $400,000 remainder interest was appointed and was paid after
Mrs. Donner's death, is also an indispensable party to this
proceeding.
[
Footnote 9]
Walker v. City of Hutchinson, 352 U.
S. 112;
Mullane v. Central Hanover Bank & Trust
Co., 339 U. S. 306;
McDonald v. Mabee, 243 U. S. 90.
[
Footnote 10]
Roller v. Holly, 176 U. S. 398.
[
Footnote 11]
Sunderland, The Problem of Jurisdiction, Selected Essays on
Constitutional Law 1270, 1272.
[
Footnote 12]
A judgment
in personam imposes a personal liability or
obligation on one person in favor of another. A judgment
in
rem affects the interests of all persons in designated
property. A judgment
quasi in rem affects the interests of
particular persons in designated property. The latter is of two
types. In one, the plaintiff is seeking to secure a preexisting
claim in the subject property and to extinguish or establish the
nonexistence of similar interests of particular persons. In the
other, the plaintiff seeks to apply what he concedes to be the
property of the defendant to the satisfaction of a claim against
him. Restatement, Judgments, 5-9. For convenience of terminology,
this opinion will use "
in rem" in lieu of "
in rem
and
quasi in rem."
[
Footnote 13]
E.g., Mullane v. Central Hanover Bank & Trust Co.,
339 U. S. 306,
339 U. S. 312;
Williams v. North Carolina, 317 U.
S. 287,
317 U. S. 297.
Fraser, Jurisdiction by Necessity, 100 U. of Pa.L.Rev. 305.
[
Footnote 14]
Baker v. Baker, Eccles & Co., 242 U.
S. 394,
242 U. S. 400;
Riley v. New York Trust Co., 315 U.
S. 343,
315 U. S. 349;
Overby v. Gordon, 177 U. S. 214,
177 U. S.
221-222;
Pennoyer v. Neff, 95 U. S.
714;
Rose v. Himely,
4 Cranch 241,
8 U. S. 277.
[
Footnote 15]
See Andrews, Situs of Intangibles in Suits against
Non-Resident Claimants, 49 Yale L.J. 241.
[
Footnote 16]
This case does not concern the situs of a beneficial interest in
trust property. These appellees were contesting the validity of the
trust. Their concern was with the legal interest of the trustee or,
if the trust was invalid, the settlor. Therefore, the relevant
factor here is the situs of the stocks, bonds, and notes that make
up the corpus of the trust. Properly speaking, such assets are
intangibles that have no "physical" location. But their embodiment
in documents treated for most purposes as the assets themselves
makes them partake of the nature of tangibles.
Cf. Wheeler v.
Sohmer, 233 U. S. 434,
233 U. S.
439.
[
Footnote 17]
The documents evidencing ownership of the trust property were
held in Delaware,
cf. Bank of Jasper v. First Nat. Bank,
258 U. S. 112,
258 U. S. 119,
by a Delaware trustee who was the obligee of the credit instruments
and the record owner of the stock. The location of the obligors and
the domicile of the corporations do not appear. The trust
instrument was executed in Delaware by a settlor then domiciled in
Pennsylvania. Without expressing any opinion on the significance of
these or other factors unnamed, we note that none relates to
Florida.
[
Footnote 18]
The Florida Supreme Court's opinion states:
"We held [in
Henderson v. Usher, 118 Fla. 688, 160 So.
9] that constructive service was valid in that state of the record
because substantive jurisdiction existed in the Florida court by
virtue of construction of a will, which was also involved, the
testator having been domiciled in Florida. We observed that it was
not essential that the assets of the trust be physically in this
state in order that constructive service be binding upon a
nonresident where the problem presented to the court was to
adjudicate,
inter alia, the status of the securities
incorporated in the trust estate and the rights of the nonresident
therein. It is entirely consistent with the
Henderson case
to hold, as we do, that the court below erred in ruling that it
lacked jurisdiction over the persons of the absent defendants."
100 So. 2d at 385.
The foregoing leaves unclear whether the court was invoking
in personam jurisdiction over the trustee or
in
rem jurisdiction over the trust assets.
Henderson v.
Usher, supra, which was an action by testamentary trustees for
a construction of the will establishing a trust whose assets were
held in New York, found it unnecessary to decide the basis of the
jurisdiction exercised. In response to the jurisdictional
objections of a specially appearing nonresident defendant, the
Florida Supreme Court ruled:
"Since the interpretation of the will is the primary question
with which we are confronted we are impelled to hold that the
res is at least constructively in this state and that the
Florida courts are empowered to advise the trustees how to proceed
under it and what rights those affected have in it. For the
immediate purpose of this suit, the will is the
res, and,
when that is voluntarily brought into the courts of Florida to be
construed, the trust created by it is, to all intents and purposes,
brought with it."
118 Fla. at 692, 160 So. at 10.
[
Footnote 19]
We assume
arguendo for the purpose of this discussion
that the trust was invalid, so that Mrs. Donner was the "owner" of
the subject property.
[
Footnote 20]
Though analogous, these cases are not squarely in point. They
concerned the efficacy of such judgments in the courts of another
sovereign, while the issue here is the validity of such an exercise
of jurisdiction within the forum State.
[
Footnote 21]
See Pennoyer v. Neff, 95 U. S. 714,
95 U. S.
720-728,
95 U. S. 732;
Story, Commentaries on the Conflict of Laws (6th ed. 1865),
§§ 539, 550-551; Cooley, Constitutional Limitations (1st
ed. 1868), 404-405; Rheinstein, The Constitutional Bases of
Jurisdiction, 22 U. of Chi.L.Rev. 775, 792-793.
[
Footnote 22]
See Baker v. Baker, Eccles & Co., 242 U.
S. 394,
242 U. S.
403.
[
Footnote 23]
This holding was forecast in
Pennoyer v. Neff, supra.
When considering the effect of the Fourteenth Amendment, this Court
declared that in actions against nonresidents substituted service
was permissible only where "
property in the State is
brought under the control of the court, and subjected to its
disposition by process adapted to that purpose . . . ." (Emphasis
supplied.) 95 U.S. at
95 U. S.
733.
[
Footnote 24]
By a letter dated Feb. 5, 1946, Mrs. Donner changed the
compensation to be paid the trust advisor. April 2, 1947, she
revoked the trust as to $75,000, returning that amount to the
trustee December 22, 1947. To these acts may be added the execution
of the two powers of appointment mentioned earlier.
[
Footnote 25]
The Florida Supreme Court's opinion makes repeated references to
the "invalidity" of the trust, and uses other language of like
import.
See 100 So. 2d at 381, 382, 383, 384, 385. Its
ruling that the 1949 and 1950 "appointments" were ineffective to
pass title to the property (because lacking the requisite
testamentary formalities) proceeded from this initial ruling that
the trust agreement was "invalid," 100 So. 2d at 383, or
"illusory," 100 So. 2d at 384, and therefore created no power of
appointment. There was no suggestion that the appointment was
ineffective as an exercise of whatever power was created by the
trust agreement.
[
Footnote 26]
See note 6
supra.
[
Footnote 27]
This conclusion make unnecessary any consideration of
appellants' contention that the contacts the trust agreement had
with Florida were so slight that it was a denial of due process of
law to determine its validity by Florida law.
See Home
Insurance Co. v. Dick, 281 U. S. 397.
[
Footnote 28]
See notes
6 and |
6 and S. 235fn7|>7,
supra.
MR. JUSTICE BLACK, whom MR. JUSTICE BURTON and MR. JUSTICE
BRENNAN join, dissenting.
I believe the courts of Florida had power to adjudicate the
effectiveness of the appointment made in Florida by Mrs. Donner
with respect to all those who were notified of the proceedings and
given an opportunity to be heard without violating the Due Process
Clause of the Fourteenth Amendment. [
Footnote 2/1] If this is correct, it follows that
Page 357 U. S. 257
the Delaware courts erred in refusing to give the prior Florida
judgment full faith and credit. U.S.Const., Art. IV, § 1; 28
U.S.C. § 1738.
Mrs. Donner was domiciled in Florida from 1944 until her death
in 1952. The controversial appointment was made there in 1949. It
provided that certain persons were to receive a share of the
property held by the Delaware "trustee" under the so-called trust
agreement upon her death. Until she died, Mrs. Donner received the
entire income from this property, and at all times possessed
absolute power to revoke or alter the appointment and to dispose of
the property as she pleased. As a practical matter, she also
retained control over the management of the property, the "trustee"
in Delaware being little more than a custodian. [
Footnote 2/2] A number of the beneficiaries of the
appointment, including those who were to receive more than 95% of
the assets involved, were residents of Florida at the time the
appointment was made, as well as when the present suit was filed.
The appointed property consisted of intangibles which had no real
situs in any particular State, although Mrs. Donner paid taxes on
the property in Florida.
The same day the 1949 appointment was made, Mrs. Donner executed
a will which, after her death, was duly probated in a Florida
court. The will contained a residuary clause providing for the
distribution of all of
Page 357 U. S. 258
her property not previously bequeathed, including
"any and all property, rights and interest over which I may have
power of appointment which prior to my death has not been
effectively exercised by me . . . ."
Thus, if the 1949 appointment was ineffective, the property
involved came back into Mrs. Donner's estate, to be distributed
under the residuary clause of her will. As might be anticipated,
the present litigation arose when legatees brought an action in the
Florida courts seeking a determination whether the appointment was
valid. The beneficiaries of the appointment, some of whom live
outside Florida, and the Delaware trustee were defendants. They had
timely notice of the suit and an adequate opportunity to obtain
counsel and appear.
In light of the foregoing circumstances, it seems quite clear to
me that there is nothing in the Due Process Clause which denies
Florida the right to determine whether Mrs. Donner's appointment
was valid as against its statute of wills. This disposition, which
was designed to take effect after her death, had very close and
substantial connections with that State. Not only was the
appointment made in Florida by a domiciliary of Florida, but the
primary beneficiaries also lived in that State. In my view, it
could hardly be denied that Florida had sufficient interest so that
a court with jurisdiction might properly apply Florida law, if it
chose, to determine whether the appointment was effectual.
Watson v. Employers Liability Assurance Corp.,
348 U. S. 66;
Osborn v. Ozlin, 310 U. S. 53. True,
the question whether the law of a State can be applied to a
transaction is different from the question whether the courts of
that State have jurisdiction to enter a judgment, but the two are
often closely related and to a substantial degree depend upon
similar considerations. It seems to me that, where a transaction
has as much relationship to a State as Mrs. Donner's appointment
had to Florida, its courts ought to have
Page 357 U. S. 259
power to adjudicate controversies arising out of that
transaction unless litigation there would impose such a heavy and
disproportionate burden on a nonresident defendant that it would
offend what this Court has referred to as "traditional notions of
fair play and substantial justice."
Milliken v. Meyer,
311 U. S. 457,
311 U. S. 463;
International Shoe Co. v. Washington, 326 U.
S. 310,
326 U. S. 316.
So far as the nonresident defendants here are concerned, I can see
nothing which approaches that degree of unfairness. Florida, the
home of the principal contenders for Mrs. Donner's largess, was a
reasonably convenient forum for all. [
Footnote 2/3] Certainly there is nothing fundamentally
unfair in subjecting the corporate trustee to the jurisdiction of
the Florida courts. It chose to maintain business relations with
Mrs. Donner in that State for eight years, regularly communicating
with her with respect to the business of the trust including the
very appointment in question.
Florida's interest in the validity of Mrs. Donner's appointment
is made more emphatic by the fact that her will is being
administered in that State. It has traditionally been the rule that
the State where a person is domiciled at the time of his death is
the proper place to determine the validity of his will, to construe
its provisions and to marshal and distribute his personal property.
Here, Florida was seriously concerned with winding up Mrs. Donner's
estate and with finally determining what property was to be
distributed under her will. In fact, this suit was brought for that
very purpose.
The Court's decision that Florida did not have jurisdiction over
the trustee (and inferentially the nonresident beneficiaries) stems
from principles stated the better part
Page 357 U. S. 260
of a century ago in
Pennoyer v. Neff, 95 U. S.
714. That landmark case was decided in 1878, at a time
when business affairs were predominantly local in nature, and
travel between States was difficult, costly, and sometimes even
dangerous. There, the Court laid down the broad principle that a
State could not subject nonresidents to the jurisdiction of its
courts unless they were served with process within its boundaries
or voluntarily appeared, except to the extent they had property in
the State. But, as the years have passed, the constantly increasing
ease and rapidity of communication and the tremendous growth of
interstate business activity have led to a steady and inevitable
relaxation of the strict limits on state jurisdiction announced in
that case. In the course of this evolution, the old jurisdictional
landmarks have been left far behind, so that, in many instances,
States may now properly exercise jurisdiction over nonresidents not
amenable to service within their borders. [
Footnote 2/4] Yet further relaxation seems certain. Of
course, we have not reached the point where state boundaries are
without significance, and I do not mean to suggest such a view
here. There is no need to do so. For we are dealing with litigation
arising from a transaction that had an abundance of close and
substantial connections with the State of Florida.
Perhaps the decision most nearly in point is
Mullane v.
Central Hanover Bank & Trust Co., 339 U.
S. 306. In that case, the Court held that a State could
enter a personal judgment in favor of a trustee against nonresident
beneficiaries of a trust even though they were not served with
process in that State. So far as appeared, their only connection
with the State was the fact that the trust was
Page 357 U. S. 261
being administered there. [
Footnote
2/5] In upholding the State's jurisdiction, the Court
emphasized its great interest in trusts administered within its
boundaries and governed by its laws.
Id., at
339 U. S. 313.
Also implicit in the result was a desire to avoid the necessity for
multiple litigation, with its accompanying waste and possibility of
inconsistent results. It seems to me that the same kind of
considerations are present here supporting Florida's jurisdiction
over the nonresident defendants.
Even if it be assumed that the Court is right in its
jurisdictional holding, I think its disposition of the two cases is
unjustified. It reverses the judgment of the Florida Supreme Court
on the ground that the trustee may be, but need not be, an
indispensable party to the Florida litigation under Florida law. At
the same time, it affirms the subsequent Delaware judgment.
Although, in form, the Florida case is remanded for further
proceedings not inconsistent with the Court's opinion, the effect
is that the Florida courts will be obliged to give full faith and
credit to the Delaware judgment. This means the Florida courts will
never have an opportunity to determine whether the trustee is an
indispensable party. The Florida judgment is thus completely wiped
out even as to those parties who make their homes in that State,
and even though the Court acknowledges there is nothing in the
Constitution which precludes Florida from entering a binding
judgment for or against them. It may be argued that the Delaware
judgment is the first to become final, and therefore is entitled to
prevail. But it only comes first because the Court makes it so. In
my judgment, the proper thing to do would be to hold the Delaware
case until the Florida courts had an opportunity to
Page 357 U. S. 262
decide whether the trustee is an indispensable party. Under the
circumstances of this case, I think it is quite probable that they
would say he is not.
See Trueman Fertilizer Co. v.
Allison, 81 So. 2d
734. I can see no reason why this Court should deprive Florida
plaintiffs of their judgment against Florida defendants on the
basis of speculation about Florida law which might well turn out to
be unwarranted.
[
Footnote 2/1]
In my judgment, it is a mistake to decide this case on the
assumption that the Florida courts invalidated the trust
established in 1935 by Mrs. Donner while she was living in
Pennsylvania. It seems quite clear to me that those courts had no
such purpose. As I understand it, all they held was that an
appointment made in Florida providing for the disposition of part
of the trust property after Mrs. Donner's death was (1)
testamentary, since she retained complete control over the
appointed property until she died, and (2) ineffective, because not
executed in accordance with the Florida statute of wills.
[
Footnote 2/2]
Among other things, Mrs. Donner reserved the right to appoint
"advisers," serving at her sufferance, who controlled all
purchases, sales and investments by the "trustee." Evidence before
the Delaware courts indicated that these advisers, not the Delaware
"trustee," actually made all decisions with respect to transactions
affecting the "trust" property. and that the "trustee" mechanically
acted as they directed.
[
Footnote 2/3]
The suggestion is made that Delaware was a more suitable forum,
but the plain fact is that none of the beneficiaries or legatees
has ever resided in that State.
[
Footnote 2/4]
See, e.g., McGee v. International Life Ins. Co.,
355 U. S. 220;
Travelers Health Ass'n v. Virginia, 339 U.
S. 643;
International Shoe Co. v. Washington,
326 U. S. 310;
Milliken v. Meyer, 311 U. S. 457;
Henry L. Doherty & Co. v. Goodman, 294 U.
S. 623;
Hess v. Pawloski, 274 U.
S. 352.
[
Footnote 2/5]
There was no basis for
in rem jurisdiction, since the
litigation concerned the personal liability of the trustee and did
not involve the trust property.
MR. JUSTICE DOUGLAS, dissenting.
The testatrix died domiciled in Florida. Her will, made after
she had acquired a domicile in Florida, was probated there. Prior
to the time she established a domicile in Florida, she executed a
trust instrument in Delaware. By its terms, she was to receive the
income during her life. On her death, the principal and
undistributed income were to go as provided in any power of
appointment, or, failing that, in her last will and testament.
After she had become domiciled in Florida she executed a power
of appointment; and she also provided in her will that, if the
power of appointment had not been effectively exercised, the
property under the trust, consisting of intangibles, should pass to
certain designated trusts.
The Florida court held that the power of appointment was
testamentary in character, and, not being a valid testamentary
disposition for lack of the requisite witnesses, failed as a will
under Florida law. Therefore the property passed under the will.
100
So. 2d 378.
Distribution of the assets of the estate could not be made
without determining the validity of the power of appointment. The
power of appointment, being integrated with the will, was as much
subject to construction and interpretation by the Florida court as
the will itself. Of course, one not a party or privy to the Florida
proceedings is not bound by it, and can separately litigate
Page 357 U. S. 263
the right to assets in other States.
See Riley v. New York
Trust Co., 315 U. S. 343;
Baker v. Baker, Eccles & Co., 242 U.
S. 394. But we have no such situation here. The trustee
of the trust was in privity with the deceased. She was the settlor,
and, under the trust, the trustee was to do her bidding. That is to
say, the trustee, though managing the
res during the life
of the settlor, was, on her death, to transfer the property to such
persons as the settlor designated by her power of appointment or by
her last will and testament, or, failing that, to designated
classes of persons. So far as the present controversy is concerned,
the trustee was purely and simply a stakeholder or an agent holding
assets of the settlor to dispose of as she designated. It had a
community of interest with the deceased. I see no reason,
therefore, why Florida could not say that the deceased and her
executrix may stand in judgment for the trustee so far as the
disposition of the property under the power of appointment and the
will is concerned. The question in cases of this kind is whether
the procedure is fair and just, considering the interests of the
parties.
Cf. Hansberry v. Lee, 311 U. S.
32;
Mullane v. Central Hanover Trust Co.,
339 U. S. 306,
339 U. S.
312-317. Florida has such a plain and compelling
relation to these out-of-state intangibles (
cf. Curry v.
McCanless, 307 U. S. 357),
and the nexus between the settlor and trustee is so close as to
give Florida the right to make the controlling determination even
without personal service over the trustee and those who claim under
it. We must remember this is not a suit to impose liability on the
Delaware trustee or on any other absent person. It is merely a suit
to determine interests in those intangibles.
Cf. Mullane v.
Central Hanover Trust Co., supra, at
339 U. S. 313.
Under closely analogous facts, the California Supreme Court held in
Atkinson v. Superior Court, 49 Cal. 2d
338, 316 P.2d 960, that California had
Page 357 U. S. 264
jurisdiction over an absent trustee. I would hold the same here.
The decedent was domiciled in Florida; most of the legatees are
there; and the absent trustee through whom the others claim was an
agency so close to the decedent as to be held to be privy with her
-- in other words, so identified in interest with her as to
represent the same legal right.