Kelley v. Kelley

575 S.W.2d 612, 1978 Tex. App. LEXIS 4026
Court of Appeals of Texas·Decided December 13, 1978·No. No. 16009·Published·Cited by 4 cases

Opinion

OPINION

KLINGEMAN, Justice.

This is an appeal from a judgment ordering appellant, and the defendant below, Russell Fred Kelley, to convey to each of the appellees, E. Lloyd Kelley and Ernest R. Kelley, an undivided one-sixth interest in a tract of approximately 48 acres of land in Medina County, Texas.

Appellees, plaintiffs in the trial court, are brothers of appellant. Upon the death of their mother in 1955, each of the three brothers received an undivided one-third interest in her onedialf share of the tract of land in controversy, with the remaining [614] one-half interest belonging to their father, Elbert V. Kelley. After the death of his wife, Elbert V. Kelley remarried, was “not in the best of health,” and had financial problems. Sometime in 1965 the father needed additional funds and desire to sell his one-half undivided interest in the land. Appellees were not interested in buying the land, but appellant evidenced some interest in the purchase if he could get a loan. Appellant was told that a loan could be obtained from a local savings and loan association but that the lending institution would make the loan only if the title to the property was in one person. Thereafter, in order to facilitate the loan for the purchase, appellees executed the deed in question to appellant.

Plaintiffs brought suit against defendant alleging that they agreed to execute the deed involved only for the purpose of obtaining the loan and with the agreement that their respective one-sixth interests would be reconveyed to them at a later date. Appellant denied any such agreement and asserted defenses including the statute of frauds and the three-year statute of limitations. Trial was to the court which after a hearing granted a judgment ordering defendant to convey to plaintiffs their respective one-sixth interests in the land in question. The trial court made extensive findings of fact and conclusions of law, the pertinent portions of which are set forth as follows:

Findings of Fact:
II. Prior to 1965, Plaintiffs’ and Defendant’s father remarried and moved to San Antonio, Texas. After such remarriage, Plaintiffs’ father felt that he needed additional money and approached the Plaintiffs about buying his one-half (½) interest in the land. The Plaintiffs, although offering to assist their father, declined to purchase his interest in the property. Defendant, Russell Fred Kelley wanted to and did agree, to purchase his father’s interest in the property.
IV. In 1965, Defendant Russell Fred Kelley, sought the assistance of his two (2) brothers in obtaining the remaining one-half (½) interst [sic] in the tract of land belonging to the Plaintiffs’ and Defendant’s father.
V. The assistance the Defendant required was for the Plaintiffs to transfer their legal title to the undivided two-sixths (⅜) interest in the land to Defendant in order that Defendant would thereby apparently have full legal title in the tract of land and thereby could acquire financing to purchase the father’s interest.
VI. That it was understood between Plaintiffs and Defendant that the one-sixth (⅛) interest of each of the Plaintiffs would be reconveyed by Defendant to Plaintiffs at a later date. Without such an understanding and without the feeling of love and trust created by their confidential family relationship between the Plaintiffs and Defendant, the August 4, 1965 transfer of Plaintiffs’ two-sixths (⅜) interest in the aforesaid tract would not have occurred.
VIII. That because of Plaintiffs’ transferring their title to Defendant, Defendant was able to acquire financing and thereby acquire the one-half (½) interest in the land owned by Plaintiffs’ and Defendant’s father.
X. Plaintiffs never intended to make a gift of the two-sixths (⅜) interest in the land to Defendant, but always intended that it be reconveyed to Plaintiffs by Defendant, upon demand but no earlier than payment by Defendant of the original mortgage.
XI. In early 1974, Plaintiff E. Lloyd Kelley, sought to have the Plaintiffs’ interest in the land reconveyed by Defendant to Plaintiffs. Defendant, however, refused to reconvey and this suit was brought on June 13, 1974.
Conclusions of Law:
I. That Plaintiffs are entitled to have two-sixths (⅜) interest reconveyed to [615] them because Defendant held the two-sixths interest in the land as a constructive trustee and he breached his obligation as trustee. (Authorities cited).
II. That Defendant could not avail himself of the Statute of Frauds defense against a claim for a constructive trust and that the admission into evidence of testimony in regard to a constructive trust did not violate the parol evidence rule (as amended by order of December 29, 1977).
III. That Defendant’s Statute of Limitations defense fails because Plaintiffs were never put on notice that Defendant was repudiating the trust until late 1973 or early 1974. (Authorities cited). Also the three year Statute of Limitations plead by Defendant was not the applicable Statute of Limitations in that the Defendant did not possess equitable title to the two-sixths (⅜) interest in question. (Authority cited).

Appellant asserts eight points of error which are hereinafter discussed.

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Kelley v. Kelley, 575 S.W.2d 612, 1978 Tex. App. LEXIS 4026 (Tex. Ct. App. 1978).

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