Haliday v. Haliday

11 F.2d 565, 56 App. D.C. 179, 1926 U.S. App. LEXIS 2540
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 1, 1926
DocketNo. 4284
StatusPublished
Cited by18 cases

This text of 11 F.2d 565 (Haliday v. Haliday) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haliday v. Haliday, 11 F.2d 565, 56 App. D.C. 179, 1926 U.S. App. LEXIS 2540 (D.C. Cir. 1926).

Opinion

GRAHAM, Acting Associate Justice.

The appellee filed his bill in equity against appellant on March 23, 1922, praying that a resulting trust in his favor might be declared in certain real estate, to wit: Lots-34 and 35 of Schneider’s subdivision in Square 79 as per plat recorded in Book 20, page 27, of the surveyor’s office in the District of Columbia, and for other relief. Appellant answered, denying the equities of appellee. The court below, after hearing, entered a decree granting the relief prayed, and from that deeree appellant brings the cause here.

The record shows that on the 2d day of August, 1910, James B. Haliday, a widower, about 67 years of age, was stationed at Et. Sam Houston, Tex., as a superintendent of buildings, for which he received $150 a month. His wife died in 1908. At the time of her death she left approximately $400 in money, which she had saved from his salary. In 1910 Haliday returned to Washington, and while there, in company with one Andrew Graham, a real estate broker, looked at the properties in question here with the idea of buying them. He then talked with some, if not all, of his children, eight in number, about his proposed purchase, and particularly with the appellant, whom he asked to act as his trustee in effecting said purchase, to which appellant consented. Appellee then agreed with Graham as to the purchase price, which was to be $5,500, and testifies that he told the said Graham, at the time, he wanted the rents as long as he lived. Appellee testifies that his purpose in buying these properties was to have a home in his old age, and that, when he asked his son to act as trustee, it was expressly understood and agreed that the purchase was being made for all of his children, but that appellee was to have the rent as long as he lived.

Appellee then returned to his work, and sent various sums of money to the appellant and to his daughter, Anna J. Dowden, to be applied on the purchase of the properties in question. These sums were paid to Graham, and thereafter, on August 2, 1910, Graham procured a deed to be made from the owners [567]*567of the property to the appellant as trustee, which deed included the following habendum clause:

“First. In trust to hold said parcels of land and premises, subject to the power of sale and disposition hereinafter granted, for the use and benefit of Raymond E. Haliday, William A. Haliday, Harry C. Haliday, Welford Haliday, Nettie Dowden, Edith M. Fowler, Florence E. Matter, and Grace M. Barnard,'hereinafter called the said beneficiaries, in fee simple, share and share alike, as tenants in common.

“Second. Upon the further trust, to sell, lease, or incumber said parcels of land and premises, or any part thereof, 'upon such terms and conditions, in such manner, quality, and quantity of estate, and by such forms of instrument, as the party hereto of the second part may, in his discretion, from time to time, deem most for the benefit of the said beneficiaries, their respective heirs or assigns, and to convey the said parcels of land, or any part thereof, by good and proper conveyance according to the nature of the estate, either in fee simple or by deed of trust or mortgage, or otherwise, and without any obligation on the part of any purchaser, or person lending money, to see to the application of the purchase money or money lent.”

This deed was made and recorded in the absence of either party hereto, and neither of them knew of its provisions until a considerable period thereafter. Evidently its language was framed by the real estate broker.

At the time the deed was executed, in addition to the cash payment made for the appellee, a trust deed was made to secure a note or notes to the Riggs National Bank of Washington, securing a loan of $4,000, which was executed by the appellant as trustee; in 1912 or 1913, this loan was replaced by one by the Perpetual Building Association of Washington, which was fully paid off and released November 10, 1919. Some time thereafter appellant sold one of the properties for $4,500, which he now has, and was at the time of filing the bill herein about to sell the other. AH the payments upon the property were made by remittances from the appellee and from the rents which were collected from the property. The appellee remarried in 1916, and returned to Washington, with his wife, in 1920. Through his son, Welford Haliday, appellee then requested appellant to pay him the rents from the properties, and for six months thereafter this was done, appellee receiving in aH $220 ^herefrom. In February, 1921, appellant informed appeHee he could pay him no more rent, because the other children had notified him not to do so, and thereafter appellee filed his biU herein.

In addition to the testimony of the appeHee, as heretofore stated, on the hearing, his daughter, Anna J. Dowden, who transacted much of the business of making payments upon the property for him, corroborates him in most essential particulars.

A son, James Welford Haliday, also stated that it was his personal opinion his father was to get the rent, and that when he asked his brother, the appeHant, to pay the rent to his father, the appeHant said he was willing to do so, if it was agreeable with the rest. The wife of the appeHee, Mamie Haliday, also testified that, in a conversation which she overheard between the appeHee and the appellant, the appellant admitted there was an agreement such as the appellee alleges in his bül of complaint. A daughter, Edith M. Fowler, testified on behalf of the appeHant that her father had stated, in her presence, that he was going to use some money left by his deceased wife, and some of his own, to buy these houses for his ehUdren, and that he never, at any time, said in her presence that the rents were to be paid to him, but did say that they were to go to help pay for the houses. The appeHant stated that the appellee had proposed to him to purchase his property as a gift to his ehHdren, and desired to appoint him trustee, and that the rents and profits of the property would be applied in the payment thereof, but said nothing, at that time, about what disposition of the rents and profits should be made after the property was paid for; that the dispute between his father and the other heirs relative to the payment of rent began about a year after the appellee married his present wife.

Implied or resulting trusts are recognized by the law in force in the District of Columbia. Section 1118, Code D. C. 1924. And it is well settled in this jurisdiction that such trusts may be established by parole evidence. Cohen v. Cohen, 1 App. D. C. 240; Cooksey v. Bryan, 2 App. D. C. 557; Smithsonian Institution v. Meech, 18 S. Ct. 396, 169 U. S. 398, 42 L. Ed. 793. In fact, this is the rule in most jurisdictions. Perry on Trusts, § 137; Sidmouth v. Sidmouth, 2 Beav. 455; Willard v. Willard, 56 Pa. 119; Deck v. Tabler, 23 S. E. 721, 41 W. Va. 332, 56 Am. St. Rep. 837; Jeans v. Cooke, 24 Beav. 521; Redington v. Redington, 3 Ridg. 196.

[568]*568On the trial, testimony was offered and admitted, over objections, of certain acts and conversations of the parties after the time the alleged trust was created. This testimony was not admitted or considered as tending to establish a trust, but only to throw sueh light upon the intent of the parties as might be furnished by their subsequent acts and statements. For this purpose sueh evidence has been generally held to be admissible. The modus vivendi of the parties, since the transfer, is an indication of their intent. Ward v. Ward, 22 A.

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Bluebook (online)
11 F.2d 565, 56 App. D.C. 179, 1926 U.S. App. LEXIS 2540, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haliday-v-haliday-cadc-1926.