Evans v. Trude

240 P.2d 940, 193 Or. 648, 1952 Ore. LEXIS 158
CourtOregon Supreme Court
DecidedJanuary 30, 1952
StatusPublished
Cited by27 cases

This text of 240 P.2d 940 (Evans v. Trude) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Evans v. Trude, 240 P.2d 940, 193 Or. 648, 1952 Ore. LEXIS 158 (Or. 1952).

Opinion

WARNER, J.

Jack L. Evans, the plaintiff, is a judgment creditor of Dale W. Trude. He brings this suit to set aside as fraudulent the debtor’s deed to the defendant, Pearl Trude, his mother. He also seeks a declaration that Dale W. Trude is the owner of an undivided one-half interest in the premises described therein subject to the lien of plaintiff’s judgment. The property is situated in Salem, Oregon. Prom a decree in favor of plaintiff and preserving the respective rights and interests of the defendants, Fred J. Champlin and Popira M. Champlin, his wife, and May Gfibson, the defendants, Pearl Trude and James A. Trude, her husband, alone appeal.

A rather full and chronological statement of events, both antecedent and subsequent to the giving of the disputed conveyance, with emphasis on significant dates, is essential to a correct understanding of the grantor’s and grantee’s relationship to the challenged deal and our conclusions.

Prior to August, 1945, the appellants Trude resided in the state of Minnesota. They came to Oregon that, year and established a home in Springfield, where they presently reside. Their son, Dale Trude, followed them to this state in September, 1947, settling in the city of Salem where he obtained employment as a field auditor with the State Tax Commission. Shortly thereafter, Dale learned that some houses in Salem were to be sold as salvage and, believing that their purchase offered an opportunity for making a profit on resale, inter *651 ested Ms father in the speculation. The defendant, James Trude, had experience as a builder and at various times acted as a contractor on his own account and was, indeed, then engaged in the building of houses for resale in the Springfield area where he operated under the name of Progress Construction Company. The proposition presented by Dale to his father contemplated the buying of one or more of the salvaged Salem houses, moving them to new premises, and there remodeling them for resale. Dale represented that he would be willing to put in what spare time he had from his job and handle all the business incident to the transactions, if his father would put up the required capital.

These negotiations between the father and son resulted in the purchase of three umts on October 4,1947, for a price of $500. James Trude advanced the necessary money for that purpose. Dale was entrusted with the responsibility of finding a lot upon which to move one of the houses for remodeling. He. found the property, which is the subject of this litigation. It was he who made all the arrangements for its purchase. It was acquired on October 23, 1947, from Mr. and Mrs. James Linn through Salem real estate brokers, and again James Trude laid out the $900 required as the sale price. The deed for this property, which we will hereafter refer to as the “Linn deed,” ran to Dale W. Trude and James A. Trude “as joint tenants.” Dale and his father thereafter spent all their spare time remodeling the house which was subsequently moved to it.

Although the Linn deed bespeaks the ownersMp of an undivided one-half interest in both the father and son, it is claimed by the appellants that under the true arrangement between them, Dale should only be paid for his trouble in handling the transaction and for the *652 labor expended by him on the house by receiving credit for one half of any net profit made on resale; but the profit, if any, was to be applied as credit on a debt which appellants claim Dale owed them by reason of loans which they had made to him while he yet lived in Minnesota and a further loan of $750 which they say they had made to him shortly after he came to Oregon.

On January 15, 1948, the plaintiff, Jack L. Evans, sustained severe personal injuries as the result of a collision with an automobile driven by Dale Trude. The severity of Evans’ injuries required, among other things, the amputation of his left leg. Prior to March 19, 1948, Dale was relying on an insurance company to protect him against claims arising out of the injuries sustained by Evans. Notwithstanding that he had at one time been an agent in the east for this very insurance company and was familiar with all the terms and conditions of its liability coverages, he made certain false and fraudulent representations to it concerning the automobile involved in the accident. This he confessed while on the witness stand in the trial of the instant case. The insurance company, after an extended investigation, formally advised Dale Trude, about March 19, 1948, that it would not protect him against the claims of Evans arising out of the accident referred to.

Dale, from his negotiations with the insurance company, had reason to anticipate its final refusal to accept any responsibility and grew apprehensive, for on March 17,1948, he and his wife executed a quitclaim deed conveying all their right, title and interest in the subject property to Pearl Trude, Dale’s mother, for a recited consideration of $10. This, so Dale tells us, was done at his father’s direction. He retained the deed, how *653 ever, and did not deliver it until after he was certain that Evans would sue him.

On April 6,1948, the plaintiff herein filed a damage action in the circuit court for Marion county, Oregon, praying for general and special damages against Dale Trude in amounts aggregating $40,234.80. The very next day the quitclaim deed from Dale and his wife to Pearl Trude was delivered to the defendant, James Trude, and by him recorded on April 8, 1948.

Pursuant to arrangements made by Dale Trude, the defendants, James Trude and his wife, on May 17 obtained a mortgage loan of $1,800 on the property. This mortgage was later assigned by the mortgagee to May Gibson, who at the time of trial was its owner and holder, together with the note secured thereby. It is by reason of her ownership of this lien that she was made a party defendant.

On June 26, 1948, the appellants sold the property here involved under a land sale contract to the defendants-respondents, Fred J. Champlin and Popira M. Champlin, his wife, for a price of $5,750. This, too, was the result of negotiations carried on by Dale in the names of his father and mother. At the time of trial, the Champlins were in possession of the property under this contract, and for that reason they were properly made parties defendant herein.

Through his attorneys, Dale filed an answer to the complaint in the damage suit. That case was tried before a jury on October 19, 1948, without, however, the presence of Dale for the reason that earlier in October of that year he had absconded from the state, fleeing to the state of Arizona in an automobile owned and supplied by his father. There he remained for some time. The trial in the damage case resulted in a verdict in favor of the plaintiff Evans for the full sum of *654 $40,238.80 and costs. The entry of judgment was followed by the issuance of an execution on the judgment, which was returned by the sheriff unsatisfied. Nothing has ever been paid thereon.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Morris v. Nance
888 P.2d 571 (Court of Appeals of Oregon, 1994)
Walsh v. Walsh
841 P.2d 831 (Wyoming Supreme Court, 1992)
Emmett Valley Associates v. Woodfield
978 F.3d 516 (Ninth Circuit, 1992)
Page Family Preservation Trust B v. Commissioner
1991 T.C. Memo. 223 (U.S. Tax Court, 1991)
Hitchman v. Warren
781 P.2d 1237 (Court of Appeals of Oregon, 1989)
Hughey v. Lind
758 P.2d 431 (Court of Appeals of Oregon, 1988)
Matter of Marriage of Smith and Smith
705 P.2d 197 (Court of Appeals of Oregon, 1985)
Coleman v. Medgin
630 P.2d 404 (Court of Appeals of Oregon, 1981)
Troutman v. Erlandson
605 P.2d 1200 (Court of Appeals of Oregon, 1980)
Albino v. Albino
568 P.2d 1344 (Oregon Supreme Court, 1977)
Matter of Estate of Reed
566 P.2d 587 (Wyoming Supreme Court, 1977)
Nelson v. Hansen
565 P.2d 727 (Oregon Supreme Court, 1977)
Lane County Escrow Service, Inc. v. Smith
560 P.2d 608 (Oregon Supreme Court, 1977)
First National Bank of Fairbanks v. Enzler
539 P.2d 80 (Alaska Supreme Court, 1975)
Clearwater v. Wagner
537 P.2d 532 (Oregon Supreme Court, 1975)
Davis v. Howard
527 P.2d 422 (Court of Appeals of Oregon, 1974)
Smith v. Popham
513 P.2d 1172 (Oregon Supreme Court, 1973)
Mohar v. McLelland Lumber Company
501 P.2d 722 (Idaho Supreme Court, 1972)

Cite This Page — Counsel Stack

Bluebook (online)
240 P.2d 940, 193 Or. 648, 1952 Ore. LEXIS 158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/evans-v-trude-or-1952.