Butler v. Shelton

408 S.W.2d 530, 1966 Tex. App. LEXIS 2696
CourtCourt of Appeals of Texas
DecidedNovember 2, 1966
Docket11426
StatusPublished
Cited by7 cases

This text of 408 S.W.2d 530 (Butler v. Shelton) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Butler v. Shelton, 408 S.W.2d 530, 1966 Tex. App. LEXIS 2696 (Tex. Ct. App. 1966).

Opinion

PHILLIPS, Justice.

In 1949 the appellees, plaintiffs below, conveyed 3.18 acres of land to five grantees, designated in the deed as trustees, to be used “as a park for educational and recreational purposes” for all persons who had purchased or would purchase property from the appellees within a particular 500 acre tract owned by them.

The instrument of conveyance was in the form of a general warranty deed.

In March, 1965 three of the original five grantee-trustees reconveyed the property to appellees. The remaining two trustees refused to join in this conveyance back to the appellees. Consequently, appellees executed and filed an instrument purporting to revoke and cancel the original conveyance executed in 1949 and filed suit against the two trustees who refused to join in the above-mentioned deed recon-veying the property to appellees.

This suit was for a declaratory judgment seeking an adjudication of appellees’ title, and right of possession.

*532 The trial court held that there was no genuine issue as to any material fact, that title to the land was determined by the instruments involved, 1 that the original deed created a trust revocable under the provisions of the Texas Trust Act, Art. 7425b-41, Vernon’s Ann.Civ.St., and that the revocation by the trustors, coupled with the reconveyance by the majority of the trustees, revested title in the appellees. Wherein, the trial court granted the ap-pellees’ motion for summary judgment and it is from this judgment that appellants have perfected their appeal to this Court.

We affirm the judgment of the trial court.

Appellants are before this Court with six points of error, the first being that the judgment for appellees is void because the Attorney General of Texas was not a party to this lawsuit.

We overrule this point.

Appellants’ position here is that if the conveyance in question is a trust, as contended by appellees, it must be a charitable trust and that the Attorney General of Texas was a necessary and indispensable party under the requirement of Article .4412a, V.A.C.S. 2

We do not agree with the appellants here. In the first place, we hold that the abovementioned conveyance constituted a trust and is subject to the provisions of the Texas Trust Act. See Subsections 2 and 7, Article 7425b; 57 Tex.Jur. 2d, page 403 and the cases cited. The conveyance created an express trust in the land involved, with the legal title vested in the trustees for the benefit of certain landowners of a particular tract of land.

We also hold that while the purposes of this trust are compatible with the *533 recognized objectives of a charitable trust, it fails as such because of the type beneficiary affected. Trusts for a charitable purpose must be for the benefit of an indefinite number of persons. If individual beneficiaries are designated, the trust would not be for a public charity but would be for a private charity. Powers v. First National Bank of Corsicana, Tex.Comm.App., 138 Tex. 604, 161 S.W.2d 273. Here the property owners of the area involved are the beneficiaries of the trust and are easily and readily identifiable at any given time from the deed records of Travis County, Texas. Also, see Scott v. All Saints Hospital, Tex.Civ.App., 203 S.W. 146; Paschal v. Acklin, 27 Tex. 173, 174.

Appellants’ second point of error is that of the trial court in determining that the deed of conveyance of 1949 was a voluntary trust as contemplated by Section 41 of the Texas Trust Act.

Appellants contend here that ap-pellees’ motive in 1949 in conveying the 3.18 acres as a park was an inducement to lure prospective buyers into this area for the purpose of purchasing property from the plaintiffs; that this motive was supported by the affidavit of one of the purchasers in the area who stated therein that when he purchased the property, the ap-pellees Shelton, his son, and the seller of the property, all represented to him that the property was a permanently dedicated park. From this, appellants contend that the 1949 conveyance was not a voluntary conveyance but was contractual in origin based upon a valid consideration.

The relevant provision of the Texas Trust Act, Art. 7425b-41, is as follows:

“Every trust shall be revocable by the trustor during his lifetime, unless expressly made irrevocable by the terms of the instrument creating the same or by a supplement or amendment thereto.”

Since we have determined that the conveyance in question is a trust subject to the Texas Trust Act and since the trust was not expressly made irrevocable (discussed further under appellants’ third point of error below) Art. 7425b-41 of said Act, is applicable.

It is not necessary to this opinion to discuss the question of revocability of trusts created for a valuable consideration as the record here does not furnish any basis for this theory. Neither by their affidavits nor in any other manner, do appellants contend that appellees received or were paid any consideration of any kind at the time of the execution and delivery of the trust deed; or that the appellants, or anyone else, purchased property in consideration of any commitment by the appellees to execute the deed, or that any purchaser bought any lands from appellees thereafter in reliance upon any promise or commitment by the appellees to alter or enlarge the rights created under it.

Appellants’ third point of error is that of the trial court in determining that the conveyance was revocable when by its own terms it was made irrevocable.

Appellants’ position here is that the conveyance in trust was in the form of a general warranty deed wherein in warranting the title into the trustees the customary words “to WARRANT and FOREVER DEFEND * * * ” were used, however, the warranty above quoted follows the statutory language, except for the substitution of the words “and their successors as trustees,” for the statutory words “his heirs and assigns forever.” Thus the word “forever” is omitted from the latter phrase. Also, the habendum clause of this deed, which immediately precedes the warranty does not follow the statutory form: “To have and to hold the above described premises * * * unto the said * * *, his heirs and assigns forever.” Rather, it reads: “To have and to hold the above described premises * * * unto the said *534 trustees and their successors for the use and benefit of property owners in the above described 500 acre tract. * * * ”

The deed throughout indicates the trust nature of the instrument. It binds the grantors at all times to defend the title of the property while in the hands of the trustees, and their successors as trustees. It would be a strained and unwarranted construction to hold that the statutory form of general warranty in a trust deed has the effect of expressly making it irrevocable. To make a trust irrevocable the act requires express terms of irrevocability. McCauley v. Simmer, Tex.Civ.App.,

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