Eckart v. Hubbard

602 P.2d 988, 184 Mont. 320, 1979 Mont. LEXIS 990
CourtMontana Supreme Court
DecidedNovember 21, 1979
Docket14700
StatusPublished
Cited by27 cases

This text of 602 P.2d 988 (Eckart v. Hubbard) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eckart v. Hubbard, 602 P.2d 988, 184 Mont. 320, 1979 Mont. LEXIS 990 (Mo. 1979).

Opinion

MR. JUSTICE HARRISON

delivered the opinion of the Court.

This is an action to quiet title to two tracts of land in Cascade County originally owned by Russell C. Hubbard.

Defendants Roderick Hubbard and Michael Jean Null are issue of Russell Hubbard’s second marriage to Constance E. Hubbard, who later became Constance E. Washburn and is now deceased. Plaintiffs John Hubbard and Mary Skelton are children of Hub *322 bard’s third marriage to Faye Hubbard, now Faye Eckart, who is also a plaintiff in this action.

Russell C. Hubbard, the father, acquired the two tracts of land in question from his mother by warranty deed dated March 1, 1939. On June 1, 1949, Hubbard conveyed Tract A of the lands by warranty deed to Ann Bladorn and Tract B of the lands by warranty deed to his very close personal friends, Alden and Ina Lohrke. Ann Bladorn thereafter came into default on Tract A and, on November 15, at Hubbard’s insistence, conveyed that said tract to the Lohrkes. Both deeds to the Lohrkes were made without their knowledge and lacked consideration. Hubbard did not inform Alden Lohrke of the conveyances of the land until approximately two years later when he casually remarked that the Lohrkes owned the land. Lohrke assumed that, since Hubbard’s financial condition was “marginal,”. Hubbard had placed legal title in the Lohrkes’ names to protect the land for his own purposes. Lohrke never treated the land as if it were his, only that he had a “bare” or “naked” title. Hubbard paid the taxes on the land, leased it and kept the income from the leases.

Prior to Hubbard’s conveyances of the two tracts of land to the Lohrkes, several liens attached to the tracts as well as to other property which Hubbard owned. These liens were the result of the terms of a divorce decree between Hubbard and his second wife Constance. The decree provided for support payments for the support of the couple’s two children, Roderick and Michael Jean. As the payments became delinquent, liens attached to Hubbard’s land. Some of the liens on land other than the two tracts were released after the divorce. Richard Eklund, Constance’s father, testified that Constance released these liens on Hubbard’s promise that the two tracts would be placed in trust for the children. The liens on the two tracts, however, were never released, and a written trust was never drawn.

On October 18, 1953, Hubbard married his third wife, Faye. Three children were born of this marriage, two of whom survived: John, born March 1, 1955, and Mary, born on July 4, 1956.

*323 Hubbard died intestate on April 3, 1972, in Cascade County, survived by his wife Faye and four children. Prior to his death, he informed Alden Lohrke on at least two occasions that he had hoped the two tracts of land would go to his children. One of these conversations took place approximately two or three years after Hubbard conveyed the land to the Lohrkes. The other took place between 1970 and 1972. Lohrke testified that the first was a casual, “off the cuff” remark in which Hubbard did not specifically identify what he meant by “his children.” Knowing Hubbard rather well, Lohrke felt that the term might be representative of a class and included not only his present but any future children. With respect to the second conversation, Lohrke understood Hubbard to mean all four of his children.

On May 18, 1973, Hubbard’s son Roderick, who is a practicing attorney in San Diego, obtained without consideration from Alden Lohrke two quitclaim deeds regarding the land. He also instituted proceedings for the probate of the estate of Ina Lohrke, who had. died intestate on June 13, 1966. The proceedings were instituted for the purpose of clearing up the legal title to the land, since the Lohrkes’ daughter, Linda Russell, had acquired an interest in the land upon her mother’s death. Linda, in turn, quitclaimed her interest in the two tracts of land to Roderick without consideration on June 14, 1973. The Lohrkes transferred the lands to Roderick with the understanding that the transfers were being made for the benefit of all four children.

Roderick, of his own volition, acquired the land in trust for the four children. In a response to a telephone call from Faye concerning the land, Roderick wrote:

“There is not much I can do as long as the title is in Alden’s name; therefore I suggest that Alden transfer his interest in the property to me ... I will hold the property in trust for the children.”

Sometime later, however, Roderick changed his position with respect to the land, instead of holding the land in trust for all four children, Roderick claimed the land for himself and Michael Jean *324 because of the liens for support payments on which his father had been delinquent. Roderick insists that, at the time of the conveyances from the Lohrkes to himself, he was unaware of the existence of the liens. When he became aware of them, he contends that he informed Alden Lohrke of the liens and that Lohrke agreed that the land should be Roderick’s and Michael Jean’s. Lohrke, on the other hand, denies these things. Roderick admits that he took no action of any kind to enforce the liens for the delinquent support payments when he served as the executor of his mother’s estate in 1973. He explained that he did not take any action because Lohrke purportedly agreed to the validity of his mother’s liens and to the fact that the land was his and Michael Jean’s.

Plaintiffs brought this action in District Court to quiet title to the two tracts of land, claiming that they had an interest in their ownership. Defendants claimed sole ownershp of the land on the basis that Hubbard created a constructive or resulting trust for them in satisfaction of delinquent support payments under the divorce decree between Hubbard and his second wife.

At trial without jury on July 10, 1978, the District Court made the following findings: that, no trust was created by the conveyances of the two tracts from Hubbard to the Lohrkes; that it was immaterial whether a trust was created because legal title to the property vested in Hubbard’s estate upon his death and, under the laws of intestacy, Faye became entitled to one-third of the property and the children shared equally in the remainder; and, that collection on the delinquent support payments was barred by the statute of limitations. From this judgment, appellants appeal.

The single issue presented for review is whether there was sufficient evidence to support the holding that no trust was created by the conveyances from Hubbard to the Lohrkes and that the property remained in Hubbard’s intestate estate.

Our attention is first drawn to the kinds of trusts that may be created in this state. Montana separates trusts into two classes: voluntary trusts, otherwise known as express trusts, and involuntary trusts, otherwise known as implied trusts. Section 72-20-101, *325 MCA; Platt v. Platt (1959), 134 Mont. 474, 480, 334 P.2d 722, 727. The most distinguishing characteristic between the two classes of trusts is that voluntary or express trusts depend for their creation upon a clear and direct expression of intent by the trustor.

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Cite This Page — Counsel Stack

Bluebook (online)
602 P.2d 988, 184 Mont. 320, 1979 Mont. LEXIS 990, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eckart-v-hubbard-mont-1979.