Diel v. Beekman

499 P.2d 37, 7 Wash. App. 139
CourtCourt of Appeals of Washington
DecidedAugust 1, 1972
Docket950-1
StatusPublished
Cited by37 cases

This text of 499 P.2d 37 (Diel v. Beekman) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diel v. Beekman, 499 P.2d 37, 7 Wash. App. 139 (Wash. Ct. App. 1972).

Opinion

Callow, J.

This matter comes before this court for the second time having been returned previously for trial following reversal of the granting of summary judgment in favor of Hilkeline G. Beekman. Diel v. Beekman, 1 Wn. App. 874, 465 P.2d 212 (1970). Following a nonjury trial on the merits, the trial court entered judgment for Mrs. Beek-man and Harold F. Diel and his wife again appeal.

Separate actions to quiet title to real property were consolidated for trial. Hereafter we refer to the plaintiff-lessees-appellants as Diels and the defendant-lessors-respondents as Beekmans. The difficulties arose between longtime acquaintances over farm property near Monroe, Washington.

The Diels claim that although the property was purchased in the Beekmans’ name and so reflected on the real estate contract that it was the intent of the parties that Beekmans would purchase the property and hold it in their *142 name in trust for the Diels. It is the position of Mrs. Beek-man that the intent of the parties was reflected by the written documents, the real estate contract and the lease, and that no trust was ever intended.

On February 10, 1953, Arnold and Hilkeline Beekman contracted to buy real property from the Harders. The Beekmans paid $5,000 down on the $30,000 purchase price and were to make monthly payments on the real estate contract at the rate of $200 per month until April 1956 when the payments were to be reduced to $150 per month until paid in full, and the purchaser was to pay taxes and insurance. The evidence reflects that payments on this contract were made to a bank, as collecting agent, from 1953 to 1967. In March of 1953, the Beekmans entered into possession. They paid rent from that time on at the rate of $200 per month as reflected on the checks admitted into evidence, and the amount of taxes and insurance was to be paid also.

Arnold Beekman died June 24, 1955. Thereafter Harold Diel served as an appraiser of his estate and signed, on October 14, 1955, the appraisement which reflected the subject property in the estate. The value placed on the property by this appraisement was the amount of principal paid on the real estate contract to the date of death of Arnold Beekman. On July 30, 1956, the Diels entered into a 5-year lease with the surviving spouse, Hilkeline Beekman, as lessor. Under this lease, rent was to be $200 per month, there was no right to sublet without permission, and the lessees had an option to purchase for $25,000 with the rent paid to be applied to the purchase, price if the option was “taken up.” The rent proved to be too difficult for the Diels to meet, and it was reduced to $150 per month with taxes and insurance to be paid by Diels as under the prior lease.

The court found the facts recited and also found that the interest acquired by Beekmans was a community interest, that the funds used for the downpayment on the real estate contract were borrowed from a bank by the Beekmans and paid to the Harders, and that Diels did not assume an absolute obligation to repay the downpayment to the Beek-mans at or prior to the time Beekmans purchased the prop *143 erty from the Harders. The court further found that Diels have occupied the property since the day of the purchase, have made improvements, and that after the land was purchased, two fields were transferred to Beekmans which Beekmans have used since. (No deed or other document of transfer was in evidence.) The court also included in its findings that taxes, insurance and rent were paid by the Diels to the Beekmans until the present controversy commenced, whereupon Hilkeline Beekman refused to accept further payment. Finally, the court found that Diels did not file a claim in the estate and that the decree of distribution distributed the property to Hilkeline Beekman.

The trial court was confronted with arguments proposing alternative interpretations of the evidence. We appreciate its difficulty. We note in passing that the lease described in the initial opinion, 1 Wn. App 874, 875, and referred to by counsel for Diels in his opening argument, was offered but not admitted into evidence. The record contains substantial evidence to support the findings as signed, and therefore they must be accepted as verities. Friedlander v. Friedlander, 80 Wn.2d 293, 494 P.2d 208 (1972); Michielli v. U. S. Mortgage Co., 58 Wn.2d 221, 361 P.2d 758 (1961); Thorndike v. Hesperian Orchards, Inc., 54 Wn.2d 570, 343 P.2d 183 (1959).

Express Trust

An express trust of real estate may not be established by parol evidence but must be in writing. Zucker v. Mitchell, 62 Wn.2d 819, 384 P.2d 815 (1963); Kausky v. Kosten, 27 Wn.2d 721, 179 P.2d 950 (1947); Moe v. Brumfield, 27 Wn.2d 714, 179 P.2d 968 (1947); Georges v. Loutsis, 20 Wn.2d 92, 145 P.2d 901 (1944); Farrell v. Mentzer, 102 Wash. 629, 174 P. 482 (1918). RCW 19.36.010, 64.04.010 and 64.04.020 preclude establishing an express trust in land by parol evidence. Dowgialla v. Knevage, 48 Wn.2d 326, 294 P.2d 393 (1956). If one agrees to purchase land and give another an interest in it, then does so, pays his own money and takes title in his own name, no trust can result. Cushing v. Heuston, 53 Wash. 379, 102 P. 29 (1909). See In re *144 Estate of Cunningham, 19 Wn.2d 589, 143 P.2d 852 (1943), for a concise statement of the principles in this area.

We note the alleged agreement by which Diel was to repay the downpayment loan, an oral promise to transfer title to two fields, would violate the statute of frauds. RCW 64.04.010; Beckendorf v. Beckendorf, 76 Wn.2d 457, 457 P.2d 603 (1969).

However part performance by a beneficiary in possession may remove the transaction from the requirements of the statute. Restatement (Second) of Trusts § 50 (1959); Restatement of Contracts § 197 (1932). While this is true, we must consider whether the facts in this case reflect sufficient part performance to establish an express trust in spite of the absence of a written memorandum.

Farrell v. Mentzer, supra; Spaulding v. Collins, 51 Wash. 488, 99 P. 306 (1909); and Borrow v. Borrow, 34 Wash. 684, 76 P. 305 (1904), discussed the acts which may satisfy the statute and supplant the necessity of a writing. Factors weighed to ascertain if an express trust of land is enforceable, when with the consent of the trustee the beneficiary enters into possession are: (a) making improvements, (b) paying consideration, and (c) changing position in reliance on the trust. The same factors are considered in establishing part performance whether the subject is an express trust of real property or an oral contract for transfer of an interest therein.

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Bluebook (online)
499 P.2d 37, 7 Wash. App. 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diel-v-beekman-washctapp-1972.