Dorman v. Knapp

225 So. 2d 799, 284 Ala. 387, 1969 Ala. LEXIS 1097
CourtSupreme Court of Alabama
DecidedMay 1, 1969
Docket1 Div. 394
StatusPublished
Cited by3 cases

This text of 225 So. 2d 799 (Dorman v. Knapp) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dorman v. Knapp, 225 So. 2d 799, 284 Ala. 387, 1969 Ala. LEXIS 1097 (Ala. 1969).

Opinions

COLEMAN, Justice.

Complainants appeal from a decree granting relief to a respondent on his cross bill wherein he seeks to have declared in his favor a resulting trust on a parcel of land.

Complainants commenced this suit by filing their bill of complaint praying that two parcels of land be sold for division of the proceeds of the sale among the complainants and respondents. There are four complainants and three respondents. They are the seven children of George W. Knapp, sometimes referred to as G. W. Knapp, and his wife, Mary, both of whom died prior to commencement of this suit. Complainants allege that complainants and respondents own the land as tenants in common and [389]*389that each owns an undivided one-seventh interest.

As to the land designated Parcel 1, the homeplace of G. W. Knapp, it is agreed that each complainant and respondent does own an undivided one-seventh interest and the appeal presents no question with respect to Parcel 1.

The respondent, Robert Knapp, filed a cross bill wherein he alleges that he owns Parcel 2 and that neither of the other two respondents and none of the complainants has any right in or claim to Parcel 2. The trial court found and decreed that Robert Knapp did own the entire interest in Parcel 2 by virtue of a resulting trust and that none of the other parties had any interest in Parcel 2. The complainants appeal and assign as error the decree granting relief to Robert Knapp.

G. W. Knapp, the father, died intestate on or about January 3, 1958. The mother died May 13, 1963. This suit was begun March 9, 1965.

The two respondents, other than Robert Knapp, have executed deeds conveying to him their respective interests in Parcel 2 and have suffered decrees pro confesso to be rendered against them in this suit. They take no part in the prosecution of this appeal. The contest on the appeal is between complainants and Robert Knapp. For convenience, we will sometimes refer to him as the respondent in the singular.

In January, 1946, J. H. Taylor and wife executed a deed conveying Parcel 2 to G. W. Knapp. The deed was recorded February 7, 1946.

The parties stipulated that Parcel 2 was assessed for taxation and payment made as follows:

“J. H. Taylor 1944-1946 inclusive
“G. W. Knapp 1947-1965 inclusive
“Robert C. Knapp 1960-1965 inclusive”

Complainants contend that Parcel 2, containing 107 acres, was owned by G. W. Knapp and,-.at his death, descended to his seven children in equal shares.

Respondent Robert Knapp contends that he was the real purchaser of Parcel 2; that the purchase price was $2,000.00; that at the time of purchase in 1946, he paid $1,000.00 of the purchase price with his own money; that the other $1,000.00 was paid with money advanced by his father; that title was taken in the name of the father as security for the money advanced by the father; that the $1,000.00 advanced or loaned by the father was obtained by a loan from the Chatom State Bank; that the father and mother executed a mortgage to the bank to secure the loan; that the mortgage covered Parcel 2 and also Parcel 1; that the loan was subsequently refinanced by a mortgage to one Odom, and by a still later mortgage to the Federal Land Bank; that, in December, 1951, Parcel 2 was leased under an oil lease and that, thereafter until 1958, the rent from the oil lease was applied to pay the mortgage payments; that, after the father’s death, respondent paid the entire balance of the mortgage debt to the Land Bank, which was $523.91; that, within a few months after the purchase in 1946, respondent terminated the tenancy of a tenant who was living on Parcel 2 at the time of purchase; that respondent moved into the house on Parcel 2 and lived on the land continuously thereafter except for a few months during which he tore down the old house and built a new house on Parcel 2 in 1957 or 1958; that respondent has lived in the new house since it was built and is living there now; that respondent has been in the possession of Parcel 2 since 1946 and has made improvements thereon; and that the father acknowledged respondent’s ownership of Parcel 2.

Respondent contends that, under the facts and circumstances, the transaction created a resulting trust in his favor and that he is entitled to have Parcel 2 conveyed to him.

After hearing testimony ore tenus, the trial court denied the relief sought by complainants and decreed that “a resulting trust [390]*390was created in George W. Knapp in favor of Robert Knapp and upon payment of the final balance due of the $1,000.00 provided by the said George W. Knapp, that Robert Knapp was entitled to have .... Parcel Two .... conveyed to Robert Knapp.” Complainants appealed.

Complainants assign for error the decree overruling their demurrer to the cross bill. They say the cross bill is insufficient to show that a resulting trust in favor of respondent was created because respondent failed to aver clearly and precisely that, at the time of purchase in 1946, he paid the purchase price or “had undertaken an absolute and binding obligation to pay” G. W. Knapp “a certain sum at a stipulated time or on the happening of a specified event.” Duncan v. Leonard, 251 Ala. 333, 335, 37 So.2d 210, 211. The court said:

“In order for a resulting trust to arise, one essential element is that, as a part of the original transaction, the consideration must • have come from the complaining party at or before the time of the conveyance; of the property. There must have been either payment of the agreed consideration or an unconditional and binding promise to pay. Talley v. Talley, 248 Ala. 84, 26 So.2d 586 and cases cited; Milner v. Stanford, 102 Ala. 277, 14 So. 644; Lehman v. Lewis, 62 Ala. 129.” (251 Ala. at 334, 37 So.2d at 211)

Also:

“ . . . . Persons seeking to establish a resulting trust in land must not only ' show that the consideration moved from them, but that it was paid contemporaneous with the purchase of the land. . . . .” Gandy v. Hagler, 245 Ala. 167, 171, 16 So.2d 305, 308.

■ Complainants argue also that the evidence is insufficient to support the decree. They say that the evidence fails to show that, at the time of purchase in 1946, G. W. Knapp made - a loan to Robert or that Robert made any promise or incurred any binding obligation to pay the balance of the purchase price; that, on the contrary, the evidence affirmatively shows that Robert was not bound to pay and that he acquired at most merely a privilege to pay at his election; and, therefore, that he has failed to show a right to have declared a resulting trust in his favor as to Parcel 2.

Complainants also argue that Robert’s claim is barred by laches.

The respondent has filed a motion to strike complainants’ brief on the ground that they have argued their assignments of error in bulk. We do not think that the motion is well taken. The first section of complainants’ argument in their brief is in support of assignments 1 and 2 which challenge the decree overruling demurrer to the cross bill.

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Cite This Page — Counsel Stack

Bluebook (online)
225 So. 2d 799, 284 Ala. 387, 1969 Ala. LEXIS 1097, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dorman-v-knapp-ala-1969.