VI H.L.C., 615 BAKER v. BAKER 111858)
what must have been meant ; because otherwise we must impute to the Legislature
an intention so capricious, not to say so absurd, tha t we can hardly suppose that it
could ever have entered into the mind of any person framing a law, because the
result mould be, that the object of the statute being to take care that all persons
advancing money shall have the means of knowing whether there are prior chargee
or not, although a person has purchased knowing that there is this prior charge,
the subsequent default of a formal act, which, as to him, was a mere formal act, is to
better his security, and for no object in the world. Questions used to arise of a
very difficult and delicate nature as to how far persons where affected by notice! of
prior jud,pents. The Legislature has very properly, I think, cut the knot and said
there shall be1 no question of notice; the only notice, available1 shall be notice upor1
the register. But when once you has5 got the notice upon the register, it seems
absurd to say that you must repeat the notice every five years; because when you
have once had notice, you know iha t there is an incumbrance upon the pi-operty, and
there it will reniain until it is paid off.
It appears to me, therefore, that the conelusioit at which the Court of Chancery,
the full Court, arrived in the mise of Berrwn 17. The Brtrf of Oafortl. i s the correct vien-,
and that conseqiiently, a p p l y i i ~ ~ that principle to the case now before your Lord-
ships, you must hold, that although Remnant has priority oTrer Shaw in respect to
his security registered before the 30th of January '1841, he has not priority in re6pect
of aiip subsequent incumbrance.
[SI51 The consequence will be, ns my noble and learned friend on the woolsack
has stated, that our declaration must be a declaration enabling Shaw to redeem
Remnant in respect of his prior securities, and then a subsequent direction that
Remnant map redeem Shaw upon paying to him all that he, Shaw, shall have paid
to redeem the first security, together with what is due to Shaw ; and then he will get
the estate, subject of course to that which in point of form must be introduced, but
which I am afraid is a mere matter of Ecrrm, that Neale may redeem the whole upon
the payment of all that is due. And with this declaration I think the decree of the
Master of the Rolls ought to be reversed.
Lord Wensleydale.-My Lords, I ani entireIy of the same opinion with rng noble
ancl leiarned friends, that the decree of the Master of the Rolls ought to be reversed.
I concur entirely in what has fallen from my noble and learned friend opposite,
upon the important questiori in this case, whether or not the case of Beitunit v. The
Earl of Oajord was properly decided. I consider that that was rightly decided.
That case ha8 been so fully explained by my noble and learned friend, as to make
it unnecessary for me to say anything more upon it. With respect to the other
questions in the ease which hare been so fully and elndoratelp considered by the
Lord Chaitcellor, I entirely concur in evxytliing that he litis said.
Lords'
Jourrtnls, f G March 1858.
Pccrer nppealed from reversed. and cause reitiitted, with it declaratioit.
E6161 ALFRED B ~ ~ ~ R , - ~ ~ ~ e ~ Z ~ ? z ~ ; ELIZdI3ETH ~ ~ ~ ~ ~ ~ , - ~ e s ~ ~ o ? ? ~ e ~ ~
[Harch 23, 1858].
[Mews' Dig. i. 318. S.C. 20 Besv. 548. Distinguished in Z?L r e iMa.sorr; ;I.lason v.
Robiizsom, 1875, 8 Ch.1). 414; Gee v. ;Ilnhood, 1878-9, 9 C1z.D. 1 5 5 ; 11 Ch.D.
891; and In re Tuylor; l l l d q t v. Nnr~dol l , 1884, 53 L.J.Ch. 1161 ; and cf.
tSn7q~in v. Weston, 1866, 35 L.J.Ch. 563 : Crimi~zehael v. Glee, 1880, 5 A.C.
596.1
TTzll-Aiznuify-Aitn7ca7 Incorne --Deficier&ey not ?rtadr good out of Corpis-
~ e p ~ ~ ~ i ~ ~ ~ Pzrmf sofd.
A testator directed his brother A. B. (whom he appointed his esecutor and
trustee} to get in his estate and to stand possessed of the produce thereof, on
trust, to raise thereout nnd invest in the stocks or upon mortgage such a
rum of money as that, when invested, the dividends should " realise the clear
2436
BAKER 2’. BAKER’[1858] VI R.L.C., 617
annual income or sum of 2200,” and to pay to ‘$my wife such dividends,
interest, or annual income,“ etc., for her life or wido~~hood. On her death
or second marriage, A. B. was to stand possessed “of the said principal
or trust money, and the stocks upon which the same shall be invested,” in
trust for himself and the other brothers and sisters of the testator. And as
to the residue, “af ter raising thereout the money sufficient to realise the
annuity for my said wife,” A. B. was to stand possessed thereof on similar
trusts ; provided that if the testator should diet leaving children, the trusts
f o r his brothers and sisters were to be null, and the children were t o take
the whole. The estate when got in and invested did not produce &200 il
year :
Held (reversing the decision of the Court below), that the widow was not entitled
to haye the deficiency made good out of the corpus of the estate.
A certain portion of the fund itself had, under the order of the Court below,
been sold to make good the deficiency: the House, on reversing the order,
directed the widow to replace that portion.
This was an appeal against part of an order of the Lord Justices, affirming an
order of the Master of the Rolls.
The testator, by his will, dated 17th September 1551, gave all his real and
personal estate to the Appellant, his brother, t o get in and sell the sanm, and as
CO the money arising therefrom, “ i t is niy will, and I do hereby declare and direct
that my said trustee do and shall stand possessed thereof, upon trust, t o raise
thereout and invest in the Parliamentary stocks or funds of Great Britain, or upon
mortgage or other good security, such a sum of money as, when so placed out o r
invested, the dividends or interest thereof shall realise the clear annual income or
sum of &ZOO, [617] a i d do and shall pay to, or permit and suffer, my said wife
Elizabeth, to receive and take such dividends, interert, or annual income by two
equal half-yearly payments, for and during the term of her natural life, provided
she shall so long continue my widow, but not otherwise. And from and after her
decease or second marriage, ~7hiche~er shall first happen, i t is my will, and I further
declare that in case I shall dies without issue, the said trustee shall stand possessed
of the said principal or trust-monies, and the stocks, funds, and securities in or
upon which the same shall be invested, upon trust for liiniself and my other brothers,
Walter Baker and James Baker, and my sister Louisa, the wife of Thomas Grant, in
equal shares and proportions.”
Other provisions were then made, and the will proceeded thus :-‘I And as to the
residue of the said trust-monies arising from my real and personal estate und
effects, after raising thereout the money sufficient t o realize the annuity for my said
wife, I hereby further declare that the said trustee shall stand possessed thereof,
upon trust, for himself and niy said brothers and sister, in equal shares and
proportiona. Provided always that, in case I should die leaving issue, then niy will
is, that the frust aiid bequests hereinbefore contained in favour of my brothers and
sister shall be null and void, and that, instead thereof, my children shall take and
be entitled to the whole of the said trust-monies and estate, in equal shares and
proportions, at the same times and in like manner as liereinbefore directed and
declared y i th regard to my brothers and sister.”
Thc testator died on the 10th November 1853, without issue, leaving his widow
(the Respondent), and his brothers and sister, him surviving.
The ~ L I I ~ of 22735 7s. 4d., 3 3 per Cent. Consolidated Bank Annuities, constituted
the wliole residue of the tes-[618]-tator’s estates, and the dividends thereori did not
amount t o the sum of 3 2 0 0 a year.
The Master of the Rolls declared the Respondent entitled during her life or
widowliood to the full amount of the annuity of 3200, bequeathed to her by the will,
and oidered the deficiency of the dividends to be made good to her from time to
time out of the corpus of the fund, and directed a sufficient part of the corpus to be
sold out from time to time accordingly (20 Beiav. 545).
This order was taken on appeal to the Lords Justices, who differed in opinion,
and ~oiisequently it stood as affirmed. The present appeal was then brought.
Sir X. Betlzell aud Mr. Hinde Palmer for the Appella~t.-The cardinal point in
1437
vf H.L.C., 619 8;1KII:R v. BAKER p ~ ~ q
co~struing this will is, that the widow i s to take only through the m e d i u ~ of the
investment ; she can conse~uently take nothing but the interest thereby produced.
The A200 were never intended to be produced by the absorption of capital, for that
vould after a tinie put an end to the annuity altogether.
The money directed to be invested, c o n s t i t u t ~ a special trust fund, and is,
upon the occurrence of either of oiie of two events, given over entire to the legatees
in remainder. Where that was the case, Lord Lyndhurst, in Foster v. Srnitlz (I Phill.
629), overruling the decision of the Vice-Chancellor, held that the charge was only
to be made good out of the rents, and not out of the corpus of the estate.
The rule of equity is, that if the principal is specifically bequeathed, effect must
be given to the bquest,--liozue v. ~ ( i ~ ~ ~ o ~ i t l ~ (7 Yes. 137), so that the property shall
in the way pointed out go over to the legatees in remainder.
10191 The Master of the Rolls here thought that he was bound by the authority
of Friglt$ v. Gcillpntber (2 De G., M. and Gurd, 652). but the two cases are distin-
~uis~iab le , for that was the case of an ~~ccountant and a legatee, while this i s the
case of a tenarit for life and a remainder man, a distinction which determines tlie
rule applicable to the case. There nothing shewed that the testator intended the
fund to be continued in its integrity during the life of the annuitant, arid in that
st&e to go over. Here the words distinctly shew such an intention ; for upon the
death or second marriage of the widow, the Appe~IaI~t is to ‘‘ stand possessed of the
principabsums or trust-monies ” upon trust for the ultimate legatees. Strike out
the word I ‘ axiriuity ” in the lntter part of the will, and say, as in the former part,
“ the clear anuual income o r sum,” and there cannot be a moment’s doubt about the
matter. The general provisions of the will shew that the testator did not intend
to cieate an annuity absolutely charged upon this trust-fund, but only to give a11
annital income if the fund should be sufficient to raise the same, preserving the fund
itself for the remainder-men.
By one clause of his will the testator shews that Be tho-light i t possible he should
have children ; cunsequeiitly, he could iiot have intended to annihilate the fund
during their mother’s life, for that would have been to leave them without any pro-
vision. The whole fund is given tu trustees, and their trust is to continue during
the life of the widow. and until the conreyatice of i t to those in remainder. There
have been cases, Dnzves v. Fattier ( X Si. and St. 163), and Nay v, B e m e t $ (1 Russ.
370), where n deficiency of arinnal inconie has. been made good out of the corpus
which was to produce it, but that mas where the deficiency was occasioned by the
act of the legislixture, in converting the, stock from one paying a 16201 larger to
one paying a snialler interest; but they do not apply to the present. But even in
some CitSes of that sort axi opposite course has been taken, KeiidnZ2 v. Russell ( 3 Sim.
42-1) XiEZet~ T. ~ ~ ~ ~ ~ ~ ( ~ Z f ~ f o 7 z ~ (3 Jlacn. arid Gord. 514). The deficiency here was ixr
the 01: iginal fund itself, the amount of xhicli had been niisc~lculated by the testator ;
it Y;~IS not occasioned by any subsequerit ei7ents, which he could not h a ~ e foreseexi.
In Iliirdle I-. Tnylor (20 Beur-. log) , FThich rery much resembled the present, the
Jfaster of the Rolls hiniself held, that the ’‘ clear yearly sum *’ there given to the widow
during life or ~vidowltood, did riot come out of the corpus, azid that p i % of his
dccis;un was left unaffected on appeal.
iMr. Willcoch and Air. Shebbeare for the Respondent.-The chief intention of the
testator here as to provide for his wife. Ke had given her all his goods; he meant
ta g jw her all his money, in preference to giving it to any one else. That being the
clear intention apparent 011 the face of the will. any particular expression of a
doubtful kind must be construed by it. No part of the residue was to be! enjoyed
by the legatees, except subject to the annual payment to the wife. The directioil is
to invest sufficietit to ‘‘ realise the clear armual income,” a very strong expression
to shev the testator’s intention, that all other objects mere to ba sacrificed to tfiat.
The gift here1 %%as that of an “ annuity;” it is expressly 50 called ill the latter pqrt
of the will. If so. everything is subordinate to that, and it must be provided for a t
all eoeiits. In iliicxy v. Reiiiaett (I ftuss. 310) there were as strong expressions as there
are here to indicate that the fund W‘RS to be preserved; Bet, a deficiency arising, it
was ordered to be made good out of 16211 the corpus; and in IlauL* v. Fattier (1 si,
nnd St. 136) tlie same course vas follm-ed even to the extent of dealing with funds
which other persons had been judicially declared entitled. R7&ght T’. ci&Eelzder
1438
BARER 7). BAKER [ i 8581 VI EL& 622
(2 De G., M. and Gord. 652) is an authority for the present decision, and the t v o
cases cannot be d~stii~guished from each other. There: the testator directed hls
executors, as they are directed here, to stand possessed of his personal estate upori
trust to inrest a sutficient portion thereof in the funds to produce an annuity of
3 2 per week, to be paid to one of his sons. After that son’s decease the suni illrested
was to fall into the residue; the subsequent dealing with the property was then nmde
the subject of express and minute directions, so that other persons besides the
annuitant were provided for ; yet the sum invested proving insufficient, the annuitant
was declared entitled to have the deficiericy made up out of the capital. In ;If&lls
I-. Drezoitt (20 Beav. 6 3 2 ) the matter was fully cousidered, and the same conclusion
adopted. There money was given to trustees for investment, in the funds sufficient
t5 produce &40 a year to be paid to the testator’s wife for life. The gelneral residue
and the fund invested were (after her death) to go to other persons. The sun1 invested
produced less than the 340, and the widow was held entitled to have the deficiency
made good out of the corpus. The words of the will create a trust for the benofit
of the widow, and no benefit is to arise to other persons until that trust has been
performed.
[The Lord Cliancollor.--Suppose~c~llor.-Suppo~e the money had been lent upon mortgage, ac-
cording t o a power contained in this wilI, horn would the corpus have been affected
upon every yearly deficiency of income 31
There may be in a particular state of tliings some un-[622]-foreseen difficulties in
complying with the will of it testator, but that cannot affect the question wnerc: the
general intention is clear. Here the money was not lent on mortgage, and the sup-
I.esed difficulty does not arise.
The Appellant’s counsel were not called on to reply.
1 he Lord Chancellor (Lord ~ l~e ln is ford) . -~~y Lords, it is very nir~ch to Le re-
gretted that in 8 ease in which your Lordships have so clear an opinion with respect
to the construction of this will, a conflict of opinions of learned Judges should have
occasioned rwort to, different tribunals> and have led to grsat expenses, reducing very
cons~derably the snzalX sttm which is in question.
There is no principle whatever involved in this case, except that wtiich pervud~s
all these cases, namely, to ascertain what is the testator’s intention, and to carry that
intention into effect. ff the language of this will were to be regarded with reference
to the authorities upon the subject, I should feel no di%eulty whatever in coming t u
a conclusion as to the meaning of the testator. And it seenis to me that we shall not
break in up00 any principle whatever in deciding according t o the construction for
which the Appellant contends.
It is clear that the testator was under a misapprehension with regard to the
amount of his1 property, and that he supposed that his estate would enable him to
proyide a fund, which would pay an annual sum of e6200 to his widow, and would
learn a surplus; and, in construing the will, you must endeavour to ascertain the
intention of the tesistor with reference to that circumstance. The words of his will
in thst yiew appear to me to be perfectly cIear.--[His Lordship read the bequest.]
. It is quite apparent, froni the words of this will, that the intention of the testator
was, that the funds which ha &23] thought would enable him to secure’ the annual
payment tu his widow should be pro.vided by the sale of his property ; and that she
Rhould be p“id out of the dirridmds and interest of that fund, and that he intended
that that fund in its integrity, in case of her death or marrying again, should go
over to the parties who are named. That being the intention of the testator, your
Lordships are called upon, under a state of circumstances never in his contemplat~on,
to give a different construction t o the will, and to impose, as i t were. a new intention
upon the testator ; because, as he clearly contemplated that there would be a sufficient
fund to PRY this annual sum out of the interests and dividends, and that the corpus
of the funds was not to be touched for the purpose of assisting in its p i i p e n t , you
are now called upon to suppose that be had the intention of approprii t t in~ a portioii
of the corpus of the fund, in case the dividends and interest out, of which he so de-
clared the annual SUM should be payable, should prove to be deficient.
It is quite ciear that this is a question. not between an annuitant and a residuary
legatee, but between a tenant for life and a ~ei~~ainder-man. And the ~ u t h o r i t i e ~
which have been cited clearly mark that distinction, and show, I think, that, in .this
1439
VI H.L.C., 624 BAKER W. BAKXR [I8581
~ar t icuIar case there is 110. decision altich confiictx with that coiistructio~i of the -ill,
which appears to ine, under the c~rcu~i~st~ances, to be tlie correct one.
According to the construction nliiclt is contended for, on behalf of the widow,
this strange st&+ of things would arise, that, supposing her life to continua for many
years, the provision which was clearly i i ~ t e ~ ~ d e d for her by the will, might iu the
course of time, by a p ~ r o p r ~ a t ~ ~ i ~ annually a, portion of the corpus of the property,
be utterly annihilated, and she would be left without any provision at 311 ; [6%]
and therefore, as the question is one regarding intention, I apprehend thwt rlobody
can suppose that such an intention could ever have existed in the mind of the testa-
tor. There are other difficulties which occur in the construction which is contended
for on behalf of the Tidow ; and I think there has ha no s ~ t ~ s f a ~ t o r y answer given
to 21 d i ~ c u ~ ~ y with which her counsel were pressed in the course of the ~ r g u i ~ i e ~ l t .
The trustee i s at liberty to invest the fund upon ~ ~ ~ o r t ~ a g ~ , as well as in ~ o v e r I ~ ~ i i e n t
stocks. Xow, the fund would clearly be deficient to pay the annual sum of ‘€200
to the widow ; and the question is, in what mode, supposing the money had been in-
vested upon mortgage, the trustee is to supply tItc deficiency of the fund, and to pay
the annual sum of 2200 to the widow. It is quite clear tliat he could
iiot deal with R- niortgagrd estate in the same way as he can deal with Govern-
ment stocks, by a p ~ r o ~ ) i ~ i a t i ~ l ~ nnually U portion of the corpus of the fund to provide
the annual s w n of €200, and therefore, that itself, upon a question of ~ ~ ~ t e ~ ~ ~ o ~ ~ , ~ ’ ~ 3 7
aid rery considerablj- in giving the other constr~~ction which i s contended for on the
part of the Appellant.
Upon the words of the vill, it appears to me to be perfectly clear that there is TIO
difficulty at all in arriving at the irttention, and ascertaining That was the meaning
of tlte testntor ; zind therefore, if the question is tu be decided apart from a u t ~ ~ o r ~ t ~ c s ,
there can be no hesitation whatwer upon the subject. With regard to the author&
ties, the only case that the aster of tlia Itolla referred to, and by which his decision
seems to iiave been i n ~ u e ~ c e d , as the case of ~~r~~~~~ v. lend^^ ( 2 De G., M. and
Gord. 652). It was, in fact, n fettezed , j u d ~ i e I ~ t of the Master 0-f the Rolls; he con-
sidered that hs was bound by tlie ~ ~ u t ~ ~ o r i t y of that case. Now, i t is quite E6251
clear, that in cases of the coiistruction of wills, very little aid is to tx?. derived froin
authorities. Each case must depend in a great degree upon its own circunistances
and i a n g ~ ~ ~ ~ ~ . Rut with regard to Fpiglrf v. ~ ~ ~ ~ e ~ ~ e r , there i s a clear distinction,
as it appears to me, between that ewe and the present; because there the trustees
uere to stand possessed of property, and to invest a Bufficient portion thereof in the
public funds of Great Britain to provide a i l inconie of $2 a week. Wow that was
not like this case, in which the income is to be paid out of interest and dividends,
but it v a s income that was to be paid a t all events: and upon the death of the
person mho was entitled to that weekly snm, it was to fall into the residue. There-
fore the parties could take no portion of the residue, which had been exhausted €or
the purpose of satisfying this annual surn which was to be paid weekly to the party
who mas nsmed in the will. In that case Lord Cranworth (2 De G., M. arid Gord.
655) says, ‘‘ Tf there had been a ~ i y t ~ i i r ~ ~ in the terms of that gift< o37er, showing that
the testator intended the fund to be continued in its integrity during tile life of the
annuitant, and in that state to go over, the argument might be well forlnded.” But
i n t h i s case there is that very cireumstiknce to which TJord ~ r a n ~ ~ o ~ h adverted ths
being absent in the case of Fright v. ~ a ~ ~ e n ~ ~ ? . , h a u s s here it is apparent, froill the
lariguitpe of the will, that the testator intended that the fund should be continued in
its integrity during the life of the Un~~~i i tan t , and in that state; should $0 over. The
trustee is to stand possessed of the “said principal or trustFrilonicR.” So that, in
fact, he is, as trustee, to hold the1 fund, and out of the interest and dividends t o pay
the amount of i2200 a year, supposing i t sufficient, as the testntor tlzought it wonld
he, to pay that amount; or if not, he is to pay the whole of E6261 tlie illterest and
dividends : that is one trust j and then u ~ o ~ ~ the death of the widow, or up011 lrer
second i ~ ~ a r r i a ~ e , th next trust is, that he is to stand possessed of U said pr inc~pal O r
t r u s ~ - ~ ~ ~ o I l i ~ ~ upon trust for his brothers and sister alld l l i ~ s e ~ f .
~ ~ ~ e r e € o r e it appears p e r f ~ t l y clear that this is a case in mllich all the cjrcllm-
&anew concur tcr show that? the intention of the testator must have to preserve
the fund apart and in its integrity as a fund which is to be first: applicable to the pav-
ment uf the annual sum to the widoq-, and ~ ~ f t e r ~ a r d s to go over to thaqo .cv~lo in
1.140
EAKEB 2). BAKER [1858] VI H.L.G., 637
remainder after her. That, being SQ, it really appears that there is no authority
which conflicts a t all with that construction of the will,
Under these circumstances, I submit t o t your brdsii ips that i t will be proper to
vary so much of the decree of the Lords Justices as declares that the Plaintiff is exk
titled to an anuuity of ~€200, and that she is entitled to have the deficiency of the
dividends msde good out of the corpus of the fund, and ta give the directions con-
sequent i~l thereupon ; and also with regard to cos&, that % declaration should &
made so as to inaka the costs payable out of the atate.
Lord Brougharn.-My Lords, I take entirely the same view of this case with niy
noble and learned friend; and I shall not detain your Lordships by urging any
argument in favour of my opinion, which is, that the decree of the Court below ought
to be varied, as suggested.
It has been very justly observed, in regard t5 cases like this, where the sole ques-
tion that arises i s upon the construction of a will, and where the object is t . ~ ascertain
the ~ e a n i n ~ of the words used by the testator, that nothing, E6271 generdly speaking,
can be more urifruitful tlmn a reference to other c a m wliere, instead of the question
arising upon a principle of law, or a rule of law, the whole quepstion arose upor1 the
meaning of the words employed in the will ; and the least difference between the case
a t the bar and the case cited, will make all the difference in the world, rand render the
application of the case cited utterly uselws.
My Lords, reference has. been made in this instance to the erne o f W r ~ g ~ ~ ~ v.
Ca$lelcLder_[% De G. M. and G. 6521, which, for the reason given by nzy noble and
learned friend, is clearly distinguisltable from this case. I should have had no
hesitation whatever in the case' of Fright v. Gullender in taking the same view of i t
which my noble and learned friend, now sitting upon the1 bench opposite, took.
With respect to the case of May v. Beanett [I Rum, 3101, I cannot go quite so far ;
I wish to say nothing in disparagement of that case: it is di5t,inguishabl~ from the
present. But, with the greatest possible respect for the learned Judge, the late
Lord Gifford, who decided that case, I must say, that if I had had to decide it, 1
think I should have come to a different conclusion from that at which he arrived.
X have sometimes wished that, as to d18, we might have formulas laid down ; so
that if any one chose to use those formulas, they might feel awxed of effect being
given to them by the lam. Many o b ~ ~ t i o i i s have k e n taken to that mode of proceed-
ing j but if it. verci left entirely optional t<) any one to use the prescribed form or not,
a guarmtiei being given to those who did elect to use it, that they had used words
which had a certain defined effect, I have ofteii considwed that that might be one
mode of avoiding tliese endless disputes respecting the meaning of words employed in
wills and in some other instruments. But that observation rather applies to cases in
which questions arise respecting sonic principle1 o r some rule of law than to those in
which [62S] the quwtion relates t4> intention alone. In this case it i s merely U
question of the, m e a n i ~ ~ ~ or the sense we are to give to the words which have been here
used, and I am of opinion that the correce sense1 is that which has been given by iny
noble and learned friend in the proposition which he has made to your Lordship
for varying the decree of the Court blow, and not that which the Court' below itself
took.
Lord Cranwortb.-Fy Lords, in all them cases arising upon the ~ n s t ~ c t i o n f
wills, the real question IS, whether that. which is. given is given as an annuity, or js
given as the interest of a fund ; and when that p~sst ion is to be considered, what p~
must look tn i s thirz, whether the language of the testator importpi that a su171, a t all
events, is annually to be paid oiit of his general estate, o r only the intereet, or a
portion of the interest, of a capital SUM which is to be set apart? pu'ow in deciding
that question, it i s obvious that all we have to look to is the language of tha particular
will, and to ascertain what is the true interpretation of the language there eniployed.
I confess that in this case I think there is very little) room, and, were it, not far
the opinions of two, learned Judge8 to the cont.-rary, 1 might say no room whatever for
doubt, that what the tmtator here means is, that out of the dividends of a fund to be
set apart, a SUM of &200 is to be paid nnnually to his widow ; but that, i s to be pnid
out of the dividends only, and the trustee i s to purchaie and invest such a of
money a8 that, when invested, the dividends and interest" shall realise a clear annual
sum of d2OO. It appears to me perfectlp Plain, without referencci to other cases,
R.L. x. 1441 46
VI H.L.C., 629 BAKER 'v. BAKE& [I8581
that the widow can take nothing but the dividends and interest of the mvestnient;
arid if the investment does not produce $200 a year? she cannot have J300 [6291 a
year. That is the judgment that I should come to, quite independent~y of prior
authorities, references to d j k h , upon the constructioii of other wills, often furnish
only an unsatisfactory mode of arriving a t a conclusion in the case before YOU.
The case which lias been ~ n n i ~ ~ l y advertsd to in the course of the argument, is one
for which I inay be supposed to have a sort of prejudice, from having beeit one of the
Lords Justices who decided i t ; if so I can only say, that if that case and this case are
the same, that case was vrongly decided ; but I do not think it was1 wrongly decided,
because the test to which I should bring these cases is a test which leads to one result
in this case and to a different result in that case, according to my construetion of the
vords of the will. There the testator directed that, a t all events5 an investment
should be made, which so long as one of hie sons (who, I suppoee, was infirm, or there
%%as sorilething to distinguish liini from the other sons) should live, shouIcl produce a
aeekly suni of X2. That was the ixiteI~tion he had. and he directed an investment to
be made, in order to carry out that intentioii, and he ga.;e the residue of his e&ate
to h i s other cltilciren. Without going into the detail of that case, which is not to be
irrgufid now, the conclusioii at 5% hich niy learned brother and myself arrived Tsas, that
the true import of that lariguage, mas that &2 a neek, at all events, were tot be paid
for the benefit of his son. He directed that his property should be invested, and out
of that investment tlie payment of that sun1 was1 to bt made. If that was not the) true
construction of that will, I adinit that the case was wrongly decided ; but 1 think that
that was the true construction, and consequently I think that that case was rightly
decided.
I agree in the, proposition of my noble and lsarned friend [630] on the woolsack,
that the decree of the Court below must be varied.
Lord Wensleydale.-I entirely agree in the opinion of my noble and learned
friends who have preceded me. It is our duty to endeaxour tom expound this will, by
ascertaining, according to the ordinary rules of construction, the meaning of the
n-ords used by the testator ; and I think, adopting that course, that there is no diffi-
culty in construing this will. I entirely agree with what has been said about the
importance of adhering to this rule, rather than looking at precedents, as I took occa-
sion in the course of last Session to express, in the case of Grey v. X'earson (a iz te ,
p. 108). I will take the liberty of repeating the remarks I then made, because the
subject is of slome importance: " The principle of construction which has been laid
down is, in niy mind, of such paramount consequence, that I think i t much more im-
portant to adhere t o it, than t o follow the authority of the previous decisions of
Courts upon words in other wills reseinbling those used in the present. We are bound
by decided cases, for the sake of securing as much certainty in the administration of
the law as the subject is capable of. But when the decision is not upon some rule or
principle of law, but upon the meaning of words in instruments which differ so much
from each other, and when the proper construction is SO vaxied by the peculiar cir-
ciimstances of each case, it seldom happens that the words. of one will are a surB guide
for the construction of words r e s ~ n ~ ~ ) l i i i g them in another. Besides, the salutary
rule of construction I have mentioned, may have been misapplied in the particular
ctxses, and then they really become of n o binding authority a t all."
E6311 I think the case of Wright v. Callender 12 De G. M. and G. 6621 is dis-
tinguidiable from the present, upon the grounds stated by niy noble and learned
friends who hare preceded me. As to the other cases which have been cited, i t is
not f o r me t o say, and i t is quite iqmaterial tQ pronounce whether thev were rightly
decid$ or not. But upon this will I do not think any reasonable doubt could be
entertained if it were not for the opinions which have been expremed. The words
ar+ [His Lordship read the part directing the investment, of the fund and the
payment of the annual sum.]
The only doubt really created is by the subsequent words of reference. which are
relied upon on the part of the Respondent, as if they indicated the real intention of
the testator. Those w e .wards of reference ; and if you interpret them by the former
p a r a ~ r a p h to which they refer, there is really no doubt about their meaning: " And
as to the residue of the said trust monies arising from my real and personal estate and
effects, after raising thereout the money sufficient to realize the annuity fo r my said
1442
CLARKE AND CETAPT/~AN I?. HART [1858] VI H.L.C., 632
wife.” Now, construing that by reference to the former part, what does the whole
mean? Clearly, a sum of money sufficient to pay out of ths interest or dividends
that amount. If you rend it in that way, there is no difficulty in the case. Inas-
much as the testator’s estate has turned out to be deficient, he cannot be supposed to
have known the precise amount of his propeny; arid as the interest or dividend on
it is insufficieIit to pay the $200. annually, the widow niust suffer a propo~ionate
diminution.
Sir Ricbsrd Bethell applied that it might be part of the order, that the Respondent
should replace the funds which, under the order of the Master of the Rolls, hLtd
been sold out.
[632] It was “ Ordered and adjudged, That the order of the Master of the Rolls,
of the 9th of June 1855, and the order of the Lords Justices of the 13th of December
1855, SQ far as it affirms, etc., be, aiid the same are hereby reversed: And it is
declared, That Elizabeth Baker is entitled to rcceive during her widowhood the
dividends (subjeot to the application thereof hereinafter ordered) arising from so
much of the sum of $2735 7s. 4d. Bank 3 per Cents. as shall remaiii after payment
of the cos& directed to be paid by the order of the Master of the Rolls, and the costs
hereinafter directed to be paid : And it i s farther ordered, That such dividends be
applied in making good and replacing such portions of the principal trust funds
as shall have been sold for the purpose of raising and paying to Elizabeth Baker the
full annual sum of $200 : And it, is farther ordered, ‘That the coets of all parties to
the Appeal before the Lords Justices, and also of the Appeal before this Eouse, be
raised and paid by the sale of a competent par t of the said Bank 3 per Cents : And
with this order the cause was remitted.” Lords Journals, 23d March 1858.
E6331 A. R. CLARKE and C. N. P. CHAPMBN,-~~~eZZ~?2ts; THOiMAS IIART,--
~ e s ~ ~ n d e ? ~ t [March 18, 19, 22, 23, 18581.
[Rilews’ Dig. i. 365; iii. 1470, 1473, 1479 ; vi. -190; is. 1272, 1273; x. -157, 472;
xiv. 1115, 1729, 1759. S.C. 27 L.J.Ch. 615; 5 Jnr. N.S. 447; and, below, 6 De
G. M. and G. 232; 24 L.J.Ch. 137; 3 E9.R. 264; 3 W.R. 14’1. As to forfeiture
of shares in cost-book comptmy, see now 32 and 33 Vict. c. 19, s. 18. As to
startdiig-by and laches, applied in Pa&mer v. iWoore (1900), A.C. 293; dis-
tinguished in Bull v. Jewell , 1881, 18 Ch.D. 660. And cf. Garden Gully United
Quartz il.Z,inirLg Co. v. %‘Lister, 1875, 1 A.C. 57; Erlanger v. nTew Sonz6rero
PiLosphute Co., 1878, 3 A.C. 1283.1
.
i M i m e s 4 o s t Book-Principle-Forf e i t ure-Partnership-Costs.
Power in co-adventurers to forfeit the shares of one of their number for non-
payment of calls is not necessarily incident to a mining adventure conducted
on the cost-book principle.
Where such a power exists by agreement between the parties, it i s to be treated as
strictzssimz. juris, like U power of forfeiture with respect to an estate, and the
forins to be observed in declaring the forfeiture must be strictly followed.
Where an agreement to work mines on the costibook principle hm been entered
into by sewral persons, the written statement of one of them (made subse-
quently to the date of the agreement), that his shares are liable to forfeiture
on non-payment of calls, will not affect his rights under the agreement.
A. B. and C., in November 1818, entered into an agreement to work rnines on the
cost-book principle. A. did not pay up his calls. In a letter of November
1849, to his co-adventurers, he spoke of his shares as liable to forfeiture. He
received a notice of a meeting of the co-adventurers, to be held on the 3d May
1850, to declare his shares forfeited. He denied the right to forfeit them.
The meeting was held, but+ instead of declaring A.’s shares forfeited, the CO-
adventurers passed R resolution to give him time to the 15th &fay, after RILiC~t
it wits declared that if the calls were not paid up, the shares would be treated
as forfeited. The calls were not paid on the day n a m d , and a letter was
afterwapds written, stating that. the shares had been forfeited en the 318t
1443