First Trust & Savings Bank v. Coe College

California Court of Appeal Jun 28, 1935 No. Civ. 5346Published

Before: Ross

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Holding. The court held that a charitable subscription note is supported by sufficient consideration when the donee relies upon the subscription to secure other contributions and fulfills the donor's request to establish a memorial fund.

Issues

Whether a charitable subscription note is supported by sufficient consideration to be a valid debt against the estate of the deceased donor.

Disposition. remanded

Quotations verified verbatim against the opinion

“It was used by Coe College with other personal subscriptions to induce the Carnegie Corporation and General Education Board to contribute funds to the college, and these bodies made their contributions on the strength of the various personal subscriptions”

“Carrying out Mrs. Condit’s wish that her husband’s name be remembered, and compliance with her request that a memorial fund be created, supplied a consideration for the giving of the note.”

“the testimony in the instant case not only did not rebut or dispel the presumption of consideration, but showed that there was ample consideration, and the claim of Coe College on the note should be paid.”

ROSS, J.,

pro tem.

Doctor Robert A. Condit was professor of ancient languages at Coe College, Cedar Rapids, Iowa, from 1881 to 1906. After his retirement, he and his wife, Margaret E. Condit, moved to California. A pension was received by him, and, after his death, by his widow. It appears that what property Doctor Condit accumulated, and which his widow succeeded to on his death, was savings from his salary at

Coe

College, and from his pension obtained for him by the college.

[197]

About February, 1925, Coe College was endeavoring to raise a fund of $500,000 for its endowment. On February 24, 1925, Lloyd Morris, vice-president of the college, paid a social call on Mrs. Condit, then a widow, at her Pasadena home, and on that occasion she volunteered to subscribe $2,500, payable on her death, and executed the following instrument:

“2500.00 1920 Fund 5196

“Endowment Note

“Feb. 24, 1925.

“With the desire to aid the cause of Christian education in Coe College, and with the purpose not only that the endowment of the College shall be increased by this gift, but also that it may be used in securing gifts from others to the same object, I promise to pay to Coe College, Cedar Rapids, Iowa, Twenty-five Hundred & 00/100 Dollars on or before Jan. 1-1960. Provided, in the event of my death prior to said date of maturity, this note shall become due upon the date of my death, and shall thereafter bear interest at the rate of five per cent per annum. This gift is to provide a memorial endowment to be known as the Dr. Robert A. Condit Scholarship Foundation. The principal to be kept forever intact, and the income to be used toward the maintenance of the college.

“ (Mrs.) Margaret E. Condit.

“Witness: Lloyd Morris

“C. W. Harris.”

On April 1, 1930, Mrs. Condit made a declaration of trust by which she conveyed all her property to First Trust & Savings Bank of Pasadena, the respondent herein, with the provision that she should receive all the income during her lifetime, and on her death, her funeral expenses and all debts which were presented as claims to the trustee within sixty days of her death, were to be paid, and the balance was to go to certain beneficiaries, about eleven in number, some being nephews, some cousins, and one a friend only.

First Trust & Savings Bank v. Coe College

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ROSS, J.,

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