Correale v. Hall

9 S.W.3d 624, 1999 Mo. App. LEXIS 1965, 1999 WL 787891
CourtMissouri Court of Appeals
DecidedOctober 5, 1999
DocketNo. ED 74738
StatusPublished
Cited by5 cases

This text of 9 S.W.3d 624 (Correale v. Hall) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Correale v. Hall, 9 S.W.3d 624, 1999 Mo. App. LEXIS 1965, 1999 WL 787891 (Mo. Ct. App. 1999).

Opinion

KENT E. KAROHL, Judge.

Defendant Karen Corréale is the daughter of defendants Herman and Alice Corr-éale and, during part of the relevant period, she was the fiancée of Michael Hall (plaintiff).1 Plaintiff filed a petition against Karen and her parents to establish a purchase money resulting trust in residential real estate located in St. Charles County. In a separate count against Karen and Herman, plaintiff alleged conversion of personal property having a value of $3018.74. In the petition’s other counts, he alleged causes of action for quiet title, constructive trust, breach of contract, quantum meruit and breach of oral contract. The last three counts sought repayment of the value of improvements on real estate. The trial court heard the equitable proceeding, entered findings of fact and conclusions of law and a judgment in favor of plaintiff and against all defendants. The judgment impressed a resulting trust for plaintiff as a joint owner of a house and lot, known as # 5 Savoy, purchased in 1992 in the name of “Karen C. Corréale” only. Defendants appeal the judgment recognizing a resulting trust. The court also entered judgment for plaintiff and against Karen and, perhaps, against Herman for conversion of personal property. The money judgment on the claim for conversion is not the subject of any points on appeal. It is affirmed. Two points on appeal argue the judgment recognizing plaintiffs one-half interest in # 5 Savoy, St. Charles County, Missouri, was not based on clear, cogent and unequivocal evidence to support finding: (1) he paid any consideration for the house; or, (2) there was any intent he have a specific interest. A third point argues, in the alternative, the court erroneously calculated the value of his interest, assuming he had an unspecified interest. The judgment on Count II was sufficient to reject plaintiffs alternative theories alleged in Counts I, III, IV, V and VI. The parties agree that we have jurisdiction to review a final judgment.

We adopt and incorporate the analysis of Missouri law regarding resulting trusts as it appears in the opinion of this court in Dallas v. Dallas, 670 S.W.2d 535 (Mo.App.1984). We need only highlight what was there said. “A resulting trust is implied by law from the conduct and acts of the parties and the circumstances and facts as they existed at and attendant to the transaction out of which the trust arose.” Dallas v. Dallas, 670 S.W.2d 535, 539 (Mo.App.1984). A person claiming an interest based on a resulting trust must furnish, in part at least, some of the consideration for the conveyance to the title owner. Id. citing Fulton v. Fulton, 528 S.W.2d 146, 153 (Mo.App.1975). Thus, the general rule is that one who pays the purchase price for land titled in the name of another thereby creates the basis for a [627]*627presumption that the title owner holds an interest under a resulting trust for the payor. Dallas, 670 S.W.2d at 539 citing Ravenscroft v. Ravenscroft, 585 S.W.2d 270, 272-73 (Mo.App.1979); 2 Bogert, Trusts, section 454. However, “a resulting trust must arise, if at all, at the instant the deed is taken.” Dallas, 670 S.W.2d at 539. Subsequent payments on a note are relevant only if at the time the note was given as part of the consideration, there was an existing understanding or obligation that the claimant would pay it. Id. (further citations omitted). Evidence pertaining to such agreement is relevant only to support finding an agreement or obligation to make payments on the note. A constructive trust may be found on the basis of an agreement or contract. In that respect it differs from a resulting trust, which is implied by law and is not based upon agreement or contract.

The claimant of a resulting trust must bear the burden of proving the claim by clear, cogent and convincing evidence. Ellis v. Williams, 312 S.W.2d 97, 102 (Mo.1958). “It has further been held that oral evidence to establish a trust in opposition to the record title must be so clear and convincing ‘as to exclude all doubt from the mind of the court’ ” Id. quoting Swon v. Huddleston, 282 S.W.2d 18, 25 (Mo.1955).

To establish an implied trust, whether a resulting or constructive trust, an extraordinary degree of proof is required and vague or shadowy evidence or a preponderance of the evidence is not sufficient. The evidence must be so unquestionable in its character, so clear, cogent and convincing that no reasonable doubt can be entertained as to its truth and the existence of the trust.

Ellis, 312 S.W.2d at 102 quoting Aronson v. Spitcaufsky, 260 S.W.2d 548, 549 (Mo.1953) (further citations omitted). With this preface, we review the evidence in accord with Rule 73.01c, as interpreted in Murphy v. Carron, 536 S.W.2d 30 (Mo. banc 1976).

In order to state a cause of action for a resulting trust, plaintiff alleged the following: (1) on or about October 23, 1992 plaintiff and defendants purchased real property described as “Lot 13 Lake St. Louis Plat 2;” (2) the purchase price was $87,000; (3) prior to closing he paid $1400 to Herman for closing costs, $375 for insurance costs and $30 for inspection fees “thereby obtaining his interest in said property”; and, (4) on October 23, 1992 plaintiff and Karen closed and took possession of the property in her name only “with the agreement that the real property was owned jointly by both Plaintiff and Defendant.” He further alleged that the sole reason for placing the title in Karen’s name was that the mortgage lender would not permit his name on the deed, “for security interest reasons.” He alleged that for the period of November 1, 1992 through January 1995 he paid the monthly installment payments on Karen’s note, which was secured by a deed of trust on the property. In fact, he alleged that he paid additional sums over and above the monthly installment payment. He alleged that: (1) on May 8, 1993 he paid Herman $500 to further his ownership; (2) on July 30, 1993 he paid Herman an additional $500 to further his ownership; (3) on October 8, 1994 he paid Herman $5000 to further his ownership; and, (4) in 1993 and 1994 he paid association fees of $925. Written memoranda, in the form of can-celled checks, for each payment to Herman were attached as exhibits. He also alleged that between October 23, 1992 and January 1995 he improved the property “totaling approximately $20,000.00.” He alleged defendants sold the property for $128,000 in June 1996, which resulted in equity proceeds amounting to approximately $50,-000; and, plaintiffs one-half equity interest was worth approximately $25,000, a sum held in escrow. He prayed for a judgment of a resulting trust and an order that $25,000 be released from escrow and paid to him for “his share of the equity proceeds from the sale.”

[628]*628Plaintiff offered all testimony and documentary evidence at trial. He called two friends who testified regarding improvements he added to the house and yard.

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Bluebook (online)
9 S.W.3d 624, 1999 Mo. App. LEXIS 1965, 1999 WL 787891, Counsel Stack Legal Research, https://law.counselstack.com/opinion/correale-v-hall-moctapp-1999.