Faulk v. Rosecrans

1953 OK 358, 264 P.2d 300, 1953 Okla. LEXIS 619
CourtSupreme Court of Oklahoma
DecidedDecember 8, 1953
Docket35506
StatusPublished
Cited by7 cases

This text of 1953 OK 358 (Faulk v. Rosecrans) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Faulk v. Rosecrans, 1953 OK 358, 264 P.2d 300, 1953 Okla. LEXIS 619 (Okla. 1953).

Opinion

BLACKBIRD, Justice.

Prior to September 17, 1935, John A. Carter and his wife, Mary E. Carter, who thereafter died, owned a quarter-section of land in Oklahoma County, Oklahoma. They had five children: Anna E. Dyche, Martha Beal, Myrtle Carter Faulk, Mary Milner, and John Kimber Carter. On the above date, Mr. and Mrs. Carter conveyed the aforementioned property to their son, John Kimber’ Carter, by an ordinary warranty deed, containing no restrictions, reservations or qualifications. Thereafter, Myrtle Carter Faulk brought Cause No. 114652, in the District Court of Oklahoma County, as plaintiff, aganist her said brother, John Kimber Carter, as defendant, to establish that the aforementioned deed was a conveyance in trust for her and the grantors’ other children. The State of Oklahoma, on relation of its Department of Public Welfare, intervened, claiming, in effect, that the conveyance was a ruse to take the record title to the property out of the names of the grantors in order to make them appear eligible for old-age pension benefits; that subsequent to such establishment of said grantors’ apparent eligibility for such benefits, a sum in excess of $4,600 in such benefits had unlawfully, been paid to said grantors, and praying that such funds so wrongfully received by them be reimbursed or repaid to said Department, or a lien for such sum be established against the property and foreclosed for the *302 satisfaction of said debt. Sáid action terminated in a judgment in which the court upheld the claims of the State Welfare Department, finding that Mr. and Mrs. Carter had entered into a scheme with their son, John Kimber Carter, and daughter, Myrtle Carter Faulk, “to make themselves eligible for old-age assistance by transferring” the property as said Department alleged, and further finding that the property “was to be held in trust by * * John Kimber Carter, for himself” and his four sisters, above named. The court further found that by the terms of said trust arrangement, the profits from the property were to be received and used by Mr. and Mrs. Carter during their lifetime and, upon their death, the property was to be distributed in equal- undivided shares among said children. The court further found that in said arrangement, the parties thereto perpetrated a fraud upon the State of Oklahoma enabling Mr. and Mrs. Carter to receive old-age assistance from its Welfare Department, in the sums of $2,322 and $2,280, respectively, between April, 1937 and April, 1947, for which they were ineligible. The judgment established a total sum of $6,233.22, with interest at the rate of 6 percent per annum, as a debt against John A. Carter, rendered judgment against him therefor, and established said debt as a lien against said property. In said judgment the court also ordered the property sold at sheriffs sale to satisfy this lien, and decreed that unless said judgment was paid within 30 days from the date thereof, together with costs, an order of sale should be issued to the Oklahoma County Sheriff, commanding him to advertise and sell the property and apply the proceeds of the sale as follows: (1) in payment of the costs of the sale and the action; (2) in payment of any taxes due on the property; (3) in payment of the judgment to the Welfare Department; and (4) “that the residue, if any, be paid to John Kimber Carter to be held for him in trust, the income therefrom to be paid to John Aaron Carter during his lifetime and, upon the death of said John Aaron Carter, the corpus to be distributed to Anna Dyche, Martha Beal, Mary Milner, Myrtle Faulk and John Kimber Carter, or the survivors in equal shares. * * * ”

No appeal was taken from said judgment, and upon issuance of an order of sale in said action, the property was sold at Sheriffs sale for a total price of $7,000, to an individual hereinafter referred to merely as: “R”. After Mrs. Faulk, on the one hand, and Mr. Carter and the son and trustee, John Kimber Carter, on the other hand, had filed separate objections to confirmation of said sale, and the latter two parties had tendered and paid the amount of the judgment, with interest and court costs, the court vacated the sale and a satisfaction of the judgment was duly entered.

The funds with which Mr. Carter and his son satisfied the above judgment were derived from their sale of the surface rights and an undivided 3/4ths interest in-the minerals lying in and under the land to-L. T. and Mary Rosecrans, husband and wife. Thereafter, Carter and his son deeded l/8th of the mineral rights to their attorneys LeRoy Powers and DeWayne Hays, in consideration for their legal services in connection with the vacation of the previous sale to R., and the release of the property from the Welfare Department’s lien, as above described.

Thereafter, the present action was commenced by Mr. and Mrs. Rosecrans, and Messrs. Powers and Hays, as plaintiffs-against Myrtle C. Faulk and her sister, Mary Milner, as defendants, to quiet their title to the entire fee in the property, less-the undivided one-eighth mineral interest which remained in 'John A. Carter and his-son, John Kimber Carter, after their conveyances above described. After a trial by the court, judgment was rendered in favor of said plaintiffs and said defendants have appealed. Where suitable, our continued reference to the parties will be by their trial court designations.

The defendants contend that the trial court erred, when by its judgment, it upheld the conveyances by their father and brother of the surface rights and seven-eighths of the mineral rights as described above, for the reason that said property was a part of *303 the trust estate in which they had an interest as decreed by the judgment in Cause No. 114652, supra. They say these conveyances were illegal because (1) neither the settlor of the trust, John A. Carter, nor his son, the trustee John Kimber Carter, could convey valid title to the trust property or employ an attorney to assist them as hereinbefore described, without the consent of, or joinder by, the defendants who were cestuis of the trust and owners of remainder or reversionary interests in said property; (2) the conveyance to the Rosecranses could not validly be upheld because the consideration paid therefor was grossly inadequate.

With reference to (1), there is much argument in the briefs as to the character of the trust established by the judgment in Cause No. 114652, supra. There appears to be ground for disagreement as to whether, on the one hand, the trust was an active and express one, in both of which events the trustee has the power of sale, or, whether, on the other hand, the trust was a passive, dry, and/or resulting trust. In this connection see Bryant v. Mahan, 130 Okl. 67, 264 P. 811, and compare Kimberly v. Cissna, 161 Okl. 17, 16 P.2d 1090, with Scott v. Nelson, 198 Okl. 392, 179 P.2d 116. Defendants, apparently on the basis of the premise that the trust was created merely to effect a transfer of title from Mr. and Mrs. Carter, with no duties for the trustee and grantee, John Kimber Carter, to perform, say that the trust was a dry or passive one, and present the excerpts from 2 Perry on Trusts, quoted in Burns v. Bastien, 174 Okl. 40, 50 P.2d 377, as authority for their position that said trustee was without authority to diminish the trust estate by conveying a part of it away. We find it unnecessary, for the purpose of passing upon the correctness of the trial court’s judgment, to determine how, in relation to the above named types of trusts, the present one should be classified.

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Bluebook (online)
1953 OK 358, 264 P.2d 300, 1953 Okla. LEXIS 619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/faulk-v-rosecrans-okla-1953.