Elliott v. Wood

212 P.2d 906, 95 Cal. App. 2d 314, 1949 Cal. App. LEXIS 1113
CourtCalifornia Court of Appeal
DecidedDecember 23, 1949
DocketCiv. 17091
StatusPublished
Cited by9 cases

This text of 212 P.2d 906 (Elliott v. Wood) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elliott v. Wood, 212 P.2d 906, 95 Cal. App. 2d 314, 1949 Cal. App. LEXIS 1113 (Cal. Ct. App. 1949).

Opinion

VALLÉE, J.

Appeal by defendant from a judgment decreeing that plaintiff and defendant each own an undivided half interest in a parcel of improved real property and in certain furniture and furnishings therein and in the rents, issues and profits therefrom, that they hold title as tenants in common, that the record title of the real property is in the defendant alone, that she holds title to the real and personal property as trustee for the equal benefit of plaintiff and herself, and decreeing an accounting and partition. Defendant appealed from the judgment and from an order denying her motion for a new trial.

The court found these facts. About the first part of June, 1946, plaintiff and defendant orally agreed to purchase the real property and that each would receive ,a half interest therein. On June 18, 1946, plaintiff and defendant purchased the property as tenants in common for $8,500, making a down payment of $1,250, escrow charges of $67.88, and a first payment of $90 on a trust deed given to secure the balance due. Each party paid and contributed half of these sums. Defendant caused title to be taken in her name and thereafter refused to cause the record title to be changed to show the half interest of plaintiff. As to the furniture and furnishings the court found that it was agreed between the parties (the date of the agreement is not stated) that plaintiff would do certain re *316 modeling of the premises and that in consideration therefor defendant would furnish the premises with certain household furniture in her possession, and that plaintiff performed the remodeling work. The value of the work was not found. The court concluded that defendant held title to the real property as trustee for the equal and mutual benefit and enjoyment of plaintiff and defendant, and that the furniture and furnishings (without describing them) acquired by defendant after June 26,1946, is the property of both plaintiff and defendant, each having an equal interest therein, and that possession thereof is in defendant as trustee for the equal and mutual benefit and enjoyment of plaintiff and defendant.

Appellant claims that the evidence is insufficient to support the findings that plaintiff and defendant purchased the real property as tenants in common and that plaintiff paid and contributed half of the sums mentioned, and says that the conclusion that defendant holds title as trustee for the equal benefit and enjoyment of plaintiff and defendant is without support in the record. The point is good.

The evidence supports the finding that the parties orally agreed to purchase the property and that each would receive a half interest therein. Appellant does not contend otherwise. The agreement was made just prior to or on April 26, 1946. The evidence bearing on the question whether a trust was created, stated in the light most favorable to respondent, is as follows: On April 26, appellant Wood with her own funds made a deposit of $500 on the purchase price and opened an escrow. The escrow instructions called for a down payment of $2,500. Respondent Elliott did not pay any money and before close of escrow Mrs. Wood persuaded the seller to reduce the down payment to $1,250. On May 22, 1946, Mrs. Wood, using her own funds, paid $750, the balance of the down payment to the escrow holder. Before the close of escrow she paid the escrow charges of $67.88 with her own funds. On June 18,1946, a grant deed of the property from the sellers to Mrs. Wood alone was recorded and thereafter mailed to her. Mrs. Wood with her own furniture and furnishings moved into the property on June 25, 1946. She thereafter purchased additional furniture and furnishings.

On June 26, 1946, Elliott gave Mrs. Wood a check for $614, and a check payable to the sellers for $90, being the first installment due on a note representing the balance of the purchase price over and above the down payment of $1,250. The $90 check was never cashed. Elliott had not, prior to June *317 26,1946, paid or contributed any money for or toward the purchase of the real property. Thereafter, Elliott made various improvements to the building on the property by way of carpenter work in remodeling, and paid Mrs. Wood $20 with which to buy some bedspreads. On September 30. 1946, Mrs. Wood returned the $614 to Elliott in United States money orders. Prom the time she moved into the premises Mrs. Wood operated it as a rooming house.

It is impossible to ascertain from the record whether the court below predicated its conclusion that appellant holds a half interest in the real property in trust for respondent upon the theory that a constructive trust was created or upon the theory that a resulting trust was created. The judgment cannot be sustained upon either theory.

Respondent says that he does not claim a resulting trust. He says the vital inquiry is whether there was evidence of the creation of a legal obligation on the part of appellant to convey the half interest to him. He does not point us to any such evidence. We have examined the transcript and found none. The oral agreement was invalid and unenforceable as to the real property. (Civ. Code, § 1624, subd. 4.) A mere violation of an unenforceable contract does not raise a constructive trust as to real property. Where a party orally promises to buy land for another and thereafter buys it for himself with his own money there is no basis for a constructive trust. (Mazzera v. Wolf, 30 Cal.2d 531, 537 [183 P.2d 649]; Bradley v. Duty, 73 Cal.App.2d 522, 526 [166 P.2d 914]; Bauman v. Wuest, 32 Cal.App. 217 [162 P. 434]; cf., Neet.v. Holmes, 25 Cal.2d 447, 464 [154 P.2d 854].) The agreement is unenforceable under the statute of frauds in the absence of actual or constructive fraud. The mere failure to perform an oral promise to convey real property is not itself fraud. (Mazzera v. Wolf, 30 Cal.2d 531, 535, 537 [183 P.2d 649].) There is neither proof of actual nor constructive fraud in the case at bar.

We discuss the question whether a resulting trust was created for the reason that respondent apparently attempted to allege such a trust. A resulting trust arises where title to property is vested in the trustee while the consideration or a part thereof is paid by the beneficiary. (Bradley v. Duty, 73 Cal.App.2d 522, 526 [166 P.2d 914].) In McQuin v. Rice, 88 Cal.App.2d 914 [199 P.2d 742], we stated the principles applicable to the creation of a resulting trust as follows, pages 917, 918; “To charge a resulting trust upon any specific prop *318 erty it must be shown that trust funds went into the purchase of the property (Taylor v. Morris, 163 Cal. 717, 724 [127 P.

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Bluebook (online)
212 P.2d 906, 95 Cal. App. 2d 314, 1949 Cal. App. LEXIS 1113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elliott-v-wood-calctapp-1949.