Catron v. First National Bank & Trust Co. of Tulsa

1967 OK 107, 434 P.2d 263
CourtSupreme Court of Oklahoma
DecidedApril 25, 1967
Docket40475
StatusPublished
Cited by37 cases

This text of 1967 OK 107 (Catron v. First National Bank & Trust Co. of Tulsa) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Catron v. First National Bank & Trust Co. of Tulsa, 1967 OK 107, 434 P.2d 263 (Okla. 1967).

Opinions

HODGES, Justice.

The plaintiff, Laura L. Catron, instituted this suit against the defendant, The First National Bank & Trust Co., Tulsa, Oklahoma, the Executor of the will and estate of J. M. Catron, and the defendants, Le-Roy Earl Catron, Donald Jesse Catron, Fred Charles Catron and Marvin Clay Ca-tron, all the sons of J. M. Catron, to establish a trust by operation of law for her benefit in one half of the estate of her deceased husband, J. M. Catron.

The plaintiff and Mr. Catron established a common law marriage in 1937. They went through a ceremonial wedding in Arkansas in 1952. Both parties had been married previously. Mr. Catron had four sons by his first marriage, defendants in this action. Mrs. Catron had one son by her first marriage, not involved in this dispute. Mr. and Mrs. Catron had no children from their union. Mr. Catron was 65 years of age at his death, on December 29, 1959, and Mrs. Catron was 53.

At the time of their marriage in 1937, neither Mr. Catron nor the plaintiff possessed any substantial assets, but during the period of the marriage a sizable estate was accumulated. The estate was valued at $286,821.76 by the appraisal of the executor bank, and has subsequently appreciated in value to more than $400,000.00. Record title to all property forming the estate was in the name of Mr. Catron except the homestead which was in joint tenancy with the plaintiff. It is clear that Mr. Catron possessed keen business judgment, an aptitude for investment, and a talent for making money. Mrsi Catron was not gainfully employed during the marriage, and contributed little, if any, direct service to the business endeavors of her husband, but it is not disputed that she fulfilled her marital duties [267]*267and responsibilities as a wife to the deceased.

Under his will, Mr. Catron left one third of his estate in trust to his wife, the plaintiff, and two thirds of his estate to be divided equally among his four sons, the defendants. Ownership of the homestead, valued at over $25,000.00, vested in the plaintiff by virtue of the joint tenancy arrangement. The will provided that the plaintiff should receive $1,000.00 per month for life from the portion of the estate held in trust for her. The plaintiff elected to take the property devised to her under the provisions of the will rather than her statutory share which would also have been one third of the estate (free of the trust). The plaintiff approved the general inventory and appraisement of the estate by the Executor and the estate tax returns. Later the plaintiff concluded that her share of the estate would probably be insufficient to provide her an income of $1,000.00 per month for the remainder of her life. She then instituted this suit asserting that one half of the estate was being held in trust for her by operation of law and should be set aside to her as the owner thereof. She further contends that the half of the estate belonging to her husband should be charged with $80,000.00 lost in useless oil ventures and with $12,000.00 in gifts made by the deceased to his sons without her consent.

In addition to the claims of one-half ownership and that Mr. Catron’s portion of the estate should be charged with $92,000.00 expended in oil ventures and gifts, the plaintiff continues to assert the right to receive one third of the remainder of the estate, in trust, under the terms of Mr. Catron’s will. The net effect of the plaintiff’s claims is that she should receive approximately three fourths of the property of the estate in addition to the homestead. The defendants contend that the plaintiff’s entitlement is limited to one third of the estate and the homestead, as provided in Mr. Catron’s will. Assuming the present value of the estate to be approximately $400,000.-00, the plaintiff’s position is that she is entitled to about $300,000.00 and the four defendants are entitled to about $25,000.00 each; while, under the terms of the will, her share would be about $133,333.00, and each of the defendants would receive abortt $66,667.00.

The trial of this case consumed seventeen days. Both parties presented numerous witnesses including friends and relatives of Mr. and Mrs. Catron, and business associates of Mr. Catron. Both the plaintiff and the defendants introduced testimony 'of, and exhibits compiled by, certified public accountants in an attempt to determine the sources of income and to trace the use'of funds from various individual and joint bank accounts of Mr. and Mrs.' Catron. Because of a lack of records, either .lost or destroyed, including bank statements and cancelled checks, particularly for the years from 1945 through 1949, the ■conclusions of the accountants for both parties is to a considerable extent based -on conjecture and speculation. The evi'dence'pr.e-sented was in conflict to a significant! extent and the inferences drawn by the parties from the evidence not in' conflict'are irreconcilable. ■ • ■ ' ¡"J V: ' : = >'•!

The trial court concluded , (jie' evidence was insufficient to establish’⅝ by operation of law as alleged by the plaintiff, that the ownership of tti'e property comprising the estate was vested in the'deceased, and that judgment should be rendered for the defendants. The plaintiff appeals to this court from- that judgment and the order of the trial court overruling her motion for a new trial. . ■ . , . . :

On appeal the plaintiff contends that she is the beneficiary of ¿. trust arising by operation of law for an undivided óne-half interest ‘ in all property acquired by her husband in his name by virtue’ of the fact that this property was purchased by her husband with their joint assets. 60 O.S. 1961, § 136(3). According to th.e plaintiff, this trust for her benefit may be considered to be either a resulting,¡trust or a constructive trust.

[268]*268A resulting trust was defined in Gammel v. Enochs, Okl., 353 P.2d 1106:

“A resulting trust arises where the legal estate in property is disposed of, conveyed, or transferred, hut the intent appears or is inferred from the terms of the disposition, or from accompanying facts and circumstances, that the beneficial interest is not to go to or be enjoyed with the legal title. In such a case a trust is implied or results in favor of the grantor whom equity deems to be the real owner.”

The foundation of a resulting trust is consideration. Both under the common law and under the provisions of 60 O.S.1961, § 137, a trust is presumed to result in favor of a person by or for whom payment is made when title to real property is taken in the name of another. This court has held in a number of cases where property was conveyed to a husband in consideration of money or assets furnished by, or belonging to, his wife, that a trust results in favor of the wife, absent evidence of circumstances showing a contrary intention. Mendenhall v. Walters, 53 Okl. 598, 157 P. 732; First Nat'l Bank v. Sanders, 169 Okl. 192, 35 P.2d 889; Guyer v. London, 187 Okl. 326, 102 P.2d 875; Wilhelm v. Pfinning, 191 Okl. 321, 129 P.2d 580.

A constructive trust is imposed to prevent unjust enrichment where the party holding title to property acquired it in some unconscionable manner. In Dike v. Martin, 85 Okl. 103, 204 P. 1106, this court said: “ * * * All instances of constructive

trusts may be referred to what equity denominates fraud, either actual or constructive, including acts or omissions in violation of fiduciary obligations.

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Bluebook (online)
1967 OK 107, 434 P.2d 263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/catron-v-first-national-bank-trust-co-of-tulsa-okla-1967.