Hermitage Methodist Homes v. Dominion Trust Co.

387 S.E.2d 740 (1990)

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Nature of the Case

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Facts

In 1956, Jack Adams, a resident of Lynchburg, executed his will establishing the trust in question. In 1964, the testator executed a codicil to the will. In 1968, Adams died testate. The will and codicil, drafted by a Lynchburg attorney, were duly probated. A codicil provides that the residuum of Adams' estate be held in trust and that so long as Prince Edward School Foundation (D), Prince Edward Co., Va., admits to any school, operated or supported by it, only members of the White Race . . . my said Trustee shall pay the net income . . . to the Trustees (or other governing body) of such Foundation, to be expended by them . . . for the benefit of any of said schools.' The codicil also stated, that if the Prince Edward School Foundation (D) should cease to operate for one year, or should at any time permit to matriculate in any of the schools operated or supported by it any person who is not a member of the White Race, no further payment of income shall be made to the said Foundation. Successive gifts over first to Seven Hills School, Inc., located in Lynchburg, and then to Hampden-Sydney College, in the event of the occurrence of the same contingencies were made. The final beneficiary of the successive gifts over is Hermitage Methodist Homes of Virginia, Inc. (D), without the limitation of the described contingencies. A state statute held gifts made to white only or colored persons only were valid and were valid from one of the two races, but not from both. That act was repealed in 1975. D sought advice and guidance on 'whether the determinative event or contingency of the codicil [was] legal, valid, and enforceable.' Prince Edward stated that the codicil was illegal under the state and federal constitutions and it was entitled to the money. Millder School said cy pres would apply and it should be entitled to the money because the testator's 'primary charitable intent' was to benefit the Miller School. Seven Hills School also asserted that the trust provisions are unconstitutional and also asked the court to apply the cy pres doctrine to find that it 'should be entitled to all or such portion of the income from said trust as may be determined proper without enforcing the illegal racially discriminatory provisions thereof.' Hampden-Sydney College, asserting that it has accepted students 'without regard to race, color, creed or religion,' asked the court to construe and interpret the will, and to award it all sums to which it may be entitled under the will and trust. Hermitage Methodist Homes of Virginia, Inc., asked the court to construe the will and trust, stating that it employs no racially discriminatory conditions upon the admission of persons into its homes for the aging and that it would 'accept all sums which may be due it under the will and trust,' if the court found it so entitled. Prince Edward asked the court to strike the discriminatory language from the will, give effect to the primary charitable intent of the testator to promote the education of children by the Prince Edward School Foundation and order the trustee to pay it all trust income. The court found, 'All racially discriminatory conditions of the Trust are unconstitutional and void.' The court further determined that Prince Edward 'shall continue as the principal and sole beneficiary of the Trust, as long as the school remains in operation.' Hermitage, Miller School, and Seven Hills School all appealed.