Floyd v. Duffy

69 S.E. 993, 68 W. Va. 339, 1910 W. Va. LEXIS 130
CourtWest Virginia Supreme Court
DecidedDecember 6, 1910
StatusPublished
Cited by35 cases

This text of 69 S.E. 993 (Floyd v. Duffy) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Floyd v. Duffy, 69 S.E. 993, 68 W. Va. 339, 1910 W. Va. LEXIS 130 (W. Va. 1910).

Opinion

POEEENBARGER, JuDGE:

The object of the bill in this cause was an accounting by the estate of Patrick F. Duffy, deceased, for one-half of the proceeds of the sale of a large number of town lots, and partition of a few lots remaining unsold out of the property, all of which the bill alleges, was conveyed to Duffy to hold in trust for himself and the plaintiff, John B. Floyd. The plaintiff proceeds upon the theory of a purchase of 137 lots, constituting what is known as the McClung Addition to the City, of Charleston, at the price of $30,000.00, none of which was paid or intended to be paid at the date of the conveyance, but all to be paid out of the proceeds of the sale of the lots, at prices per lot agreed upon between McClung, the grantor in the deed to Duffy, on the one hand, and Duffy and Floyd oh the other, if the lots could be sold within a specified time, and, if not, the balance to be paid or. settled by a re-conveyance of the unsold lots at the prices agreed upon in the collateral agreement. While the deed from McClung to Duffy recites the payment of $6,000.00 in cash and the execution of three promissory notes for $8,000.00 each, the contention of the plaintiff is that no money was paid nor any notes executed at the inception of the transaction and that no interest on the purchase money was contemplated or paid for a period of three years after the date of the deed, at which time all purchase money was to be paid out of the sales of lots and by reconveyances of the unsold lots, if any. The deed from [342]*342McClung to Duffy bears date May 7, 1890. Lots were conveyed by Duffy as early as July., 1890, and lie continued to make conveyances for a number of years, but having later become financially embarrassed, and bis creditors having acquired liens on the property, he was unable to proceed further with the enterprise. Two of the lots were judicially sold, at the instance of his creditors. About the year 1901, a friend of his purchased a number of the judgments and allowed him to make private sales of sufficient property, through an attorney in fact, aiijiointed for the purpose, to pay off all, or practically all, of his debts. In this way, all of the McClung property, except about 33 lots, was sold, and the proceeds went into the hands of Duffy or to his creditors. In March, 1905, Duffy died. At and immediately before the conveyance to Duffy, and from that time until he became financially embarrassed, Floyd undoubtedly had relations with him respecting the property. He was active in effecting sales of the lots. He seems to have incurred some expense in cutting a ditch for the benefit of the property and otherwise interested himself in the promotion of the enterprise. W. E. R. Byrne, the attorney in fact, and Duffy’s heirs deny all knowledge of any claim on the part of Floyd to any interest in the property until after the death of P. F. Duffy, and say they understood from the latter that Floyd was selling the lots on a commission. Declarations of P. F. Duffy to this effect are put in evidence by witnesses. A large amount of testimony was taken on both sides and the circuit court of Kanawha county rendered a decree, declaring that Duffy took title to the lots in trust for himself and the plaintiff, and referred the cause to a commissioner to state an account between the parties as a basis for a decree giving the relief prayed for in the bill. Pending the suit, the lots remaining unsold at the institution thereof were conveyed by Duffy’s heirs to Isaac Loewenstein, in consideration of $27,000.00, the purchaser paying $7,000.00 in cash and executing notes for the residue.

As the trust alleged in the bill is predicated on parol evidence, it becomes necessary to determine, in the first instance, whether it can be so established. Assuming the agreement between Floyd and Duffy to have been made, before the deed was executed and delivered to the latter, it nevertheless remains that no money was paid on the purchase price by the plaintiff, nor, [343]*343indeed, anything more than a nominal sum by Duffy. All that was ever paid on the property seems to have been paid after the delivery of the deed. There was no agreement to pay anything otherwise than out of the proceeds of the sale of lots, as such sales should he made, Duffy and Floyd taking the excess of purchase money over the prices named in the collateral agreement, as their profit. Counsel for the appellee frankly admit that the trust is not in writing. They assert it is not a resulting trust, nor a constructive trust, but is an express trust which the law permits without writing. At common law no particular form of creation or declaration of a trust or use was required. It could he by deed, or will, or writing not under seal, or by mere word of mouth. Dses and trusts were simply averred and proved like any other facts and writing was not required. Currence v. Ward, 43 W. Va. 370; 28 A. & E. Enc. Law 869; Saunders on Dses and Trusts 152, m. p. 210; Perry on Trusts, section 75. In 1676, the English statute of frauds was passed, the seventh section of which required all declarations or creations of trusts or confidences in any land, tenements or heredita-ments to be proved in some writing signed by the party, enabled to declare such trust, or by his last will in writing. Saund. Dses & Trusts, Id.; Perry on Trusts, Id. Dot being made expressly applicable to thé Colonies, this statute was never in effect in Virginia, 28 A. & E. Enc. Law 873, but, in 1787, Virginia enacted a statute of'frauds, the same, in many respects, as that of England, but omitting said seventh section, relating to declarations of trust. Dor has it ever been incorporated in the statutes of this state. lienee, trusts in land may be declared in this state as at common law. Currence v. Ward, cited. However, every contract relating to land is not a declaration or creation of a trust. There is no pretense that Floyd obtained the legal title to the land. The utmost that he could have had was an equitable title, based upon his parol contract. If he had paid money, his right would have rested, not upon the agreement, but upon the payment, upon a fact of 'which the agreement was a mere attendant. Dnder the principles declared in Currence v. Ward, it suffices that the payment be made at or before the vesting of the legal title in the trustee. That did not occur in this case. Do purchase money was ever paid until after the delivery of the deed. As to this, there is neither con[344]*344troversy nor doubt. It is insisted, however, that an express oral agreement on the part of the grantee to hold in trust for a third party, antedating the vesting of the legal title, and to which the grantor was not a party, creates an express trust, permissible in this state, because our statute of frauds does not require the creation or declaration of a trust to be in writing. WouM such an agreement be anything more than a contract to sell land? The purchaser takes the whole title in himself. Nothing is paid by the third party, and, consequently, his claim is based solely upon the agreement, and that agreement calls for the beneficial ownership of all, or a portion of the property, giving a right to call, in a court of equity, for the conveyance of the legal title. Such third person has no interest whatever in the land. Having had no previous right in it, and not having paid anything, there seems to be nothing upon which a court of equity can predicate relief, resting in conscience and not upon contract alone.

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Bluebook (online)
69 S.E. 993, 68 W. Va. 339, 1910 W. Va. LEXIS 130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/floyd-v-duffy-wva-1910.