Chirekos v. Chirekos

537 P.2d 608, 24 Ariz. App. 223, 1975 Ariz. App. LEXIS 684
CourtCourt of Appeals of Arizona
DecidedJune 30, 1975
Docket2 CA-CIV 1789
StatusPublished
Cited by12 cases

This text of 537 P.2d 608 (Chirekos v. Chirekos) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chirekos v. Chirekos, 537 P.2d 608, 24 Ariz. App. 223, 1975 Ariz. App. LEXIS 684 (Ark. Ct. App. 1975).

Opinion

OPINION

KRUCKER, Judge.

Appellants seek reversal of a superior court judgment in favor of appellee decreeing appellee to be the owner of an undivided one-half interest in certain real property and ordering appellant-corporation to execute a deed to such undivided one-half interest to appellee.

The sole question is whether there is sufficient evidentiary support for the lower court’s imposition of a constructive trust on the subject real property.

There is no set o unyielding formula in decreeing a constructive trust and courts will do so when a party is under an equitable duty to give another the benefit of property to which he has acquired legal title under circumstances making it inequitable that he be allowed to retain the property. Luplow v. Pasqualetti Properties, Inc., 101 Ariz. 90, 416 P.2d 414 (1966); L. M. White Contracting Co. v. Tucson Rock and Sand Co., 11 Ariz.App. 540, 466 P.2d 413 (1970). The defense of the statute of frauds was not available to appellants since the statute has no application to a constructive trust. King v. Uhlmann, 103 Ariz. 136, 437 P.2d 928 (1968); L. M. White Contracting Co., supra.

One seeking to impose a constructive trust must show by clear and convincing proof that he is entitled to it. Nitrini v. Feinbaum, 18 Ariz.App. 307, 501 P.2d 576 (1972). The question of whether the evidence is sufficient to be clear and convincing is primarily for the trial court and we do not disturb its finding unless we can say as a matter of law that no one could reasonably find the evidence to be clear and convincing. Murillo v. Hernandez, 79 Ariz. 1, 281 P.2d 786 (1955); King v. Uhlmann, supra. Our review of the evidence leads us to conclude that we should not interfere with the lower court’s determination.

The following evidence was presented at trial. Mr. and Mrs. Chirekos *225 were married in Illinois in 1946 and prior to 1972 visited Tucson on numerous occasions. The primary purpose of these visits was for Mrs. Chirekos’ health since she had suffered from rheumatoid arthritis for many years and her exposure to the Tucson climate made her condition less painful.

Prior to October, 1969, the Chirekos decided to purchase a home in Tucson. Mrs. Chirekos testified:

“Q You and he had a discussion as to whose house that would be?
“A He said it would be built for my health, it would be my home, and on my birthday and anniversary and Christmas after that he said, don’t expect any presents, I gave you a house.”

In October, 1969, the Chirekos, after examining a model townhouse at Tucson National, decided to purchase one. (Mrs. Chirekos had previously been in Tucson for a two to three week priod.) On October 20, 1969, a sales agreement for the purchase of a lot and the construction of a townhouse thereon was signed by both Mr. and Mrs. Chirekos. The sales agreement recited that the buyer was Nicholas Chirekos and Pauline Chirekos, that the total down payment was $9,400, that $1,000 earnest money had been received, and that a balance of $8,400 was due and payable within 15 days. The $1,000 earnest money was paid by Mr. Chirekos’ personal check.

Mr. Chirekos owned and operated a restaurant in Illinois, Plantation Inc. This corporation owned all the stock of Plantation Real Estate Corporation, an Illinois corporation.

After execution of the sales agreement, Mrs. Chirekos came to Tucson from Illinois and supervised certain details of the construction and purchased all the furniture. According to her, her husband had told her to pick out what she wanted for the house and she understood that it was her house. Although Mr. Chirekos testified that his original intent was to purchase the townhouse through Plantation Real Estate, Inc., there was no evidence that he communicated this intent to his wife. Mr. Chirekos testified as to his reasons for purchasing the property:

“Q . Why was this property purchased ?
A Very simply. It was the only way I could have purchased it at the time.
Q Was it purchased for any other reason?
A Well, for an investment, yes.
Q Is it your testimony you purchased this as an investment ?
A I think it’s a very good investment, yes.
Q And that’s the only reason you purchased it?
A And to live in.
Q For who to live in ?
A At that time my wife and I and my children.
Q You did intend to move to Arizona?
A When we retired I might if I like it.
Q When it was purchased it was purchased for your wife’s residence?
A I think I was part of my wife at the time, so was my children.”

On February 16, 1970, the Chirekos signed the closing statement for the purchase of the home. Mrs. Chirekos signed as vice-president and secretary of Plantation Real Estate, Inc., and Mr. Chirekos signed as president and treasurer of the corporation. The deed to the property was made out to Plantation Real Estate Inc. Mrs. Chirekos testified as to her signing in the foregoing manner:

“A We went down to close and to get the key for the house. And as was his usual procedure, Mr. Chirekos said sign, and I signed.
Q Do you know what documents you signed on that date ?
A I never questioned him. It wasn’t his policy to tell me or discuss it *226 with me, I just signed when he told me to.
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Q When is the first time you realized your husband claimed his corporation owned the house and that you didn’t ?
A Well, when I really realized it was after I filed for divorce.
Q Will you describe to the court what happened then ?
A He put the house up for sale and tole (sic) me to get out of it. He told me it wasn’t my house.
* * * * * *
Q What year was that ?
A 72.
Q Between October of ’69 when you signed the original purchase contract and the year 72, when you instituted a divorce proceeding, did you have any inclination whatsoever your husband took the position it was not your house?
A No. I always felt it was my house.

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Bluebook (online)
537 P.2d 608, 24 Ariz. App. 223, 1975 Ariz. App. LEXIS 684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chirekos-v-chirekos-arizctapp-1975.