Jackson v. Jackson

104 S.E. 236, 150 Ga. 544, 1920 Ga. LEXIS 226
Supreme Court of Georgia·Decided September 28, 1920·No. No. 1747·Published·Cited by 44 cases

Opinion

George, J.

(After stating the foregoing facts.) The doctrine of a resulting trust in favor of a third person paying the purchase-money of an estate is declared in Anon. (1683), 2 Vent. 361 (entitled Bird v. Blosse, 1 Vern. 366), as follows: “Where a man buys land in another’s name 'and pays money, it will be in trust for him that pays the money, though no deed declaring the trust, for the Statute of 29 Car. 2, called the Statute of Frauds, doth not extend to trusts raised by operation of law.” In Dyer v. Dyer, 2 Cox, 92, 93, 1 White and Tudor’s Lead. Cas. Eq. 203, Lord Chief Baron Eyre thus explained the doctrine: “ The clear result of all the cases, without a single exception, is that the trust of a legal estate, whether freehold, copyhold, or leasehold; whether taken in the names of the purchaser and others jointly, or in the name of others without that of the purchaser; whether in one name or several; whether jointly or successive, — results to the man who advances the purchase-money. This is a general proposition, supported by all the cases, and there is nothing to contradict it; and it goes on a strict analogy to the rule of the common law, that, where a feoffment is made without consideration, the use [546] results to the feoffor.” In the days of uses title to the bulk of ■land in England- was not in the owners, but in feoffees to the use of the owners. It was therefore, to the judicial mind, natural and logical to presume that one who received a conveyance from the seller, by direction of the payer of the purchase-money, was to hold in trust for the buyer or payer. After the statute of frauds (cf. Civil Code of 1910, § 3737) the courts continued to raise the presumption as a presumption of fact. Where A pays the purchase-money and the title is conveyed by absolute deed to B, who is legally a stranger to A, and who makes no express promise, a typical instance of a resulting trust is presented. The trust is said to result in law from the acts of the parties. Lloyd v. Spillet, 2 Atk. 148, 150; 1 Perry on Trusts (6th ed.), c. 5, § 124; 1 Beach on Trusts, c. 10. Such a trust is implied in fact. • Strictly speaking, as we shall presently see, it may be and is an intended trust; but the intention is inferable, as has been said, from the conduct of the parties and lack of family relationship. Where A pays the purchase-money and the title is conveyed by absolute deed to A’s wife or child or a person to whom A stands in loco parentis, and who makes no express promise, a trust does not result, the presumption of law being that a provision, advancement, or gift, was intended. In Dyer v. Dyer, supra, it was said by Lord Chief Baron Eyre: “The circumstance of one or more of the nominees being a child or children of the purchaser, is held to operate by rebutting the resulting trust; and it has been determined in so many cases that the nominee being a child shall have such operation as a circumstance of evidence, that it would be disturbing landmarks if we suffered either of these propositions to be called into question: — namely, that such circumstances shall rebut the resulting trust; and, that it shall do so as a circumstance of evidence. I think it would have been a more simple doctrine if the children had been considered as purchasers for valuable consideration.” See Lewin on Law of Trusts (12th ed. 1911), 191; 1 Perry on Trusts (6th ed.), § 143. Our code classifies trusts as “either express or implied.” Civil Code, § 3731. “Express trusts are those created and manifested by agreement of the parties. Implied trusts are such as are inferred by law from the nature of the transaction or the conduct of the parties.” § 3732. “ All express trusts must be created or declared in writing.” § 3733. “Trusts are implied — ■ (1) [547] Whenever the legal title is in one person, but the beneficial interest, either from the 'payment of the purchase-money or other circumstances, is either wholly or partially in another. (2) Where, from any fraud, one person obtains title to property which rightly belongs to another. (3) Where, from the nature of the transaction, it is manifest that it was the intention of the parties that the person taking the legal title shall have no beneficial interest. (4) Where a trust is expressly created, but no uses are declared, or are ineffectually declared, or extend only to a part of the estate, or fail from any cause, a resulting trust is implied for the benefit of the grantor, or testator, or his heirs.” § 3739. In several States, trusts resulting from the payment of the purchase-money and the taking of the conveyance in the name of another have been abolished by statute. The section of our code last above quoted is but a restatement of the general equity principles, and is simply declaratory of existing equity rules. Resulting and constructive trusts are not abolished and are not within the statute of frauds as enacted in this State. In the early case of Miller v. Cotton, 5 Ga. 341, 346, Lumpkin, J., speaking for the court, said: “ The eighth section [of the statute of frauds] exempts from the operation of the act trusts arising or resulting by the implication or construction of law. What then are resulting trusts, which before the act were disposable by a bare declaration by parol, and are considered since its passage on the same footing?” The learned judge answers the inquiry by quoting from Lord Iiardwick in Lloyd v. Spillet, supra. The suggestion is made, however, that Lord Hardwick’s enumeration is not exhaustive.- While it is beside the issue here, treating the trust as resulting and not constructive, it is interesting to note that Judge Lumpkin expressed the view that the fraud necessary to a constructive trust was active o-r positive fraud. Our code declares: “As between husband and wife, parent and child, and brothers and sisters, payment of purchase-money by one, and causing the conveyance to be made to the other, will be presumed to be a gift; but a resulting trust in favor of the one paying the money may be shown and .the presumption rebutted.” § 3740. Also: “In all cases where a trust is sought to be implied, the court may hear parol evidence of the nature of the transaction, or the circumstances, or conduct of the parties, either to imply or rebut a trust.” § 3741. In all cases, [548] üio counter presumption in favor of a grantee who is the wife or child of the purchaser is a presumption of fact, and not of law, and can be overthrown by clear and convincing proof of the real intention of the parties. Smithsonian Institution v. Meech, 169 U. S. 398, 407 (18 Sup. Ct. 396, 400, 42 L. ed. 793, 798).

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Jackson v. Jackson, 104 S.E. 236, 150 Ga. 544, 1920 Ga. LEXIS 226 (Ga. 1920).

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