Caprum v. Bransford Realty Co.

4 Tenn. App. 237, 1927 Tenn. App. LEXIS 186
CourtCourt of Appeals of Tennessee
DecidedFebruary 5, 1927
StatusPublished
Cited by2 cases

This text of 4 Tenn. App. 237 (Caprum v. Bransford Realty Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caprum v. Bransford Realty Co., 4 Tenn. App. 237, 1927 Tenn. App. LEXIS 186 (Tenn. Ct. App. 1927).

Opinion

CROWNOVER, J.

The bill in this cause was filed by complainant, a colored man, against the defendants Bransford Realty Company and Mrs. Lucy Crafton, to set up a parol trust and beneficial ownership in a house and lot in the City of Nashville, and to enjoin an unlawful detainer proceeding in the circuit court.

The defendants answered and denied all allegations concerning a parol trust, and denied all agreements out of which a parol trust could arise, and denied that complainant had any interest in said property. They pleaded the Statute of Flauds, and defendant Realty Company pleaded that it was a bona-fide purchaser without notice.

A volume of proof was read to the Chancellor at the hearing, and he dismissed the bill. Complainant appealed and has assigned errors.

The facts, as we find them, are that complainant, on June 30, 1921, bought in said property at a chancery sale at the price of $855 but was unable to comply with the terms of the sale. He, through a real estate man, induced J. W. Crafton to’ become interested, and transferred his bid to Crafton, who paid the $855, in cash, to >the court and took a deed from the Clerk and Master conveying a title in fee simple to himself and then verbally rented said property for $15 per month to complainant, who paid the rents each month up until Crafton’s death on March 26, 1924. Just before his death J. W. Crafton entered into a written agreement to convey said property to the Bransford Realty Company for $1000, and gave complainant notice to vacate, but died before the deed was executed. He devised his property, including this house and lot, to his wife, defendant Mrs. Lucy Crafton, who carried out the written agreement and conveyed by deed the said house and lot to defendant Realty Company for $1000.

The complainant failed or refused to vacate, and an unlawful detainer proceeding was instituted by the Realty Company against *239 bim before a Justice of the Peace, and a judgment was rendered against complainant, wbo appealed to the circuit court, and then filed this bill; bu'f he was required to confess judgment in the unlawful detainer case before injunction in this ease was granted.

Several errors are assigned, the main one being, that the Chancellor erred in holding that the allegations of the bill were not sustained by the proof and in dismissing the bill, it being insisted that when complainant found that he could not comply with the terms of the chancery sale, he transferred his bid to J. W. Craf-ton under a parol agreement that Crafton would pay the $855 and hold the property for complainant until complainant had repaid him said consideration, with interest, by installments at the rate of $15 per month, which installments had been regularly made each month until Crafton died on March 26, 1924.

It has long been held in Tennessee that constructive or resulting-trusts may be declared on parol evidence, but such proof must be of the clearest and most convincing character. It must be so clear, cogent and convincing as to overcome the opposing evidence coupled with the presumption that obtains in favor of the written instrument. See Haynes v. Swann, 6 Heisk., 560; Stone v. Manning, 103 Tenn., 232; McCammon v. Pettitt, 3 Sneed, 242; Holder v. Nunnelly, 2 Cold., 288; 12 Michie’s Tenn. Ency. Dig., 54-57.

The prevailing rule, upheld by many courts, is that a mere verbal agreement by which one of the parties promises to buy in lands at a judicial sale and to hold for the other’s benefit, or with an oral agreement to sell to the other party at the same price, does not create a trust enforceable in equity as it comes within the Statute of Frauds. (26 R. C. L., 1244; and notes in 5 Ann. Cas., 173). The latter proposition has been upheld in Tennessee (Parker v. Bragg, 11 Humph., 212), but our courts go further and hold that where one buys in property for another at a judicial sale under a verbal agreement, he acts as agent for the other, and a trust will be declared, as a verbal agreement does not come within the Statute of Frauds requiring that it be in writing, and such trust may be enforced in equity. See Woodfin v. Marks, 104 Tenn., 512; Thompson v. Thompson, 54 S. W., 145; Heard v. Hilliard, 3 Hig., 462.

However, we do not think the proof sustains complainant’s contention, as the preponderance of the evidence is to the contrary, and the facts are as we have hereinabove set out. It is true that complainant testified substantially to the facts as contended by him, and Crafton is dead and cannot testify; but complainant is not corroborated, and. there are too many facts established to the contrary. When complainant transferred his bid to J. W. Crafton, he executed a written assignment in which he stated:

*240 “In the above case, I hereby transfer and assign my bid to J. ~W. Crafton; and I make oath that I have not received, do not. expect to receive, and have no promise to receive any bonus . or valuable consideration for making this transfer. ’ ’

This assignment was signed by complainant and he made oath to it before a notary. Upon this assignment J. W. Crafton- was permitted to pay the purchase price and the sale was confirmed to him, and a deed was executed conveying the fee-simple title. Bach time that complainant paid the $1-5, J. W. Crafton, or his wife, Mrs. Crafton, gave him a receipt, stating in its face that the payment was for that month’s rent. Many receipts are filed and all of them show that the payments were made for rents. The property was assessed for taxes in the name of J. "W. Crafton, and he paid the taxes and insurance, and also for the repairs made on the property. Mrs. Crafton testified that her husband told complainant in her presence, that he was going to sell the property but wanted a cash payment of $150 or $200, and that complainant told him that he would be able to pay this much when he collected for a sale of his wife’s property; and that later she was present when Crafton told complainant that he had sold the property to the Bransford Realty Company, and he notified complainant to vacate, to which complainant made no objection, and agreed to move off the premises, provided the Realty Company gave him ten days’ notice, and at the time he asked Crafton whether he had another house that he would rent to the complainant.

The proof further shows that J. W. Crafton dealt in real estate to some extent, but was not a money lender. It does not seem reasonable that Crafton 'would have entered into a verbal contract to buy this property for $855 and then agree to sell to a stranger at the same price, with interest, on such long terms, and bind himself to pay the taxes and insurance and for repairs; hence we find that complainant induced Crafton to take the bid off of his hands and agreed to rent the property, and that the payments made were for rents, and not as part payment on the purchase price. This assignment must be overruled.

The 7th and. 9th assignments of error are that the Chancellor erred in sustaining defendant’s plea of the Statute of Frauds, and in sustaining defendant’s exceptions to complainant’s evidence as to the parol trust, as it is insisted that proof of a parol contract was not within the Statute of Frauds.

The defendants pleaded the 4th and 5th subsections of the Statute of Frauds, (Shannon’s Code, sec.

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4 Tenn. App. 237, 1927 Tenn. App. LEXIS 186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caprum-v-bransford-realty-co-tennctapp-1927.