Kohr v. Kohr

413 A.2d 687, 271 Pa. Super. 321, 1979 Pa. Super. LEXIS 3156
CourtSuperior Court of Pennsylvania
DecidedOctober 26, 1979
Docket1885
StatusPublished
Cited by29 cases

This text of 413 A.2d 687 (Kohr v. Kohr) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kohr v. Kohr, 413 A.2d 687, 271 Pa. Super. 321, 1979 Pa. Super. LEXIS 3156 (Pa. Ct. App. 1979).

Opinion

PRICE, Judge:

The instant proceeding in equity was brought by appellant to secure a money judgment and to establish a constructive trust arising from funds paid by appellant to her son, appellee Kenneth Kohr. After a hearing, the chancellor entered a decree nisi denying the requests and finding that the funds had not been secured by Kenneth Kohr through undue influence. Exceptions were dismissed and the rule made absolute, prompting this appeal. On appeal appellant contends that the chancellor erred in finding that Kenneth Kohr did not engage in undue influence, and in refusing to enter a monetary judgment, order a constructive trust, or at a minimum, order him, sua sponte, to account for his expenditure of the funds. Finding no error, we affirm the order of the court of common pleas.

The salient facts of this appeal are as follows. On January 23, 1973, appellant’s husband died. Shortly thereafter, appellant and appellees commenced residing together first in appellees’ home in Northampton, Northampton County and then in appellant’s home, also located in Northampton. As a result of the death of her husband, appellant received two checks totalling $11,000 from an insurance company and from a fraternal association. Appellant endorsed the checks over to Kenneth Kohr, who in turn deposited $10,000 in appellees’ joint checking account and $1,000 in their joint savings account. Kenneth Kohr utilized the funds in the checking account to pay the debts and funeral expenses of his deceased father and to pay the living expenses of appellant and of appellees and their family.

In May of 1973, appellant expressed a desire to move to Lebanon County to be near her other children. In that month, she had sold her home for a net price of $29,000. The $29,000 from the sale of the home and $1,000 from appellees’ savings account were transferred to a new checking account in a Reading bank in the name of appellant and Kenneth Kohr. In July 1973, appellant, appellees and their *326 family moved to Lebanon County where they resided with relatives. A lot was purchased by appellees and a home erected in February 1974. At appellant’s request, the plans for the home were modified to include a fourth bedroom for appellant to use. During the initial construction of the home, appellant stated that she would give appellees all of her money as a gift to aid in the construction. Kenneth Kohr refused to accept all of the funds, but did accept a gift of $10,000. Shortly thereafter, appellant began dispensing considerable sums from the joint checking account that she held with Kenneth to finance the construction of the home. The procedure for disbursement was for Kenneth to request a check from appellant. Appellant had possession of the checkbook and would give a check to Kenneth who would make it out to the proper payee in the proper amount and then present it to appellant for her signature. In total, approximately $23,000 was expended from the account on various items of construction, and apparently no agreement was made whether the funds were a gift or a loan. At one point Kenneth Kohr informed appellant and various other relatives that appellant could continue to reside with appellees and that appellees would support her forever.

From February 1974 to October 1975, the parties lived uneventfully in the Lebanon home. In October 1975, appellant vacated the home under a belief that appellees simply no longer wanted her to continue to reside with them. On July 20, 1976, appellant filed suit requesting various forms of relief. First, she requested a monetary judgment in the amount of $33,000, representing the proceeds from the insurance policies ($11,000 minus $1,000 transferred to the Reading account) and the $23,000 paid by appellant for construction of the Lebanon County home. Second, she requested that appellees be designated trustees of a resulting trust in her favor in the Lebanon County home in the amount of $33,000. Finally, the complaint prayed “for such other relief as the Court may deem.” The chancellor denied all recovery, and appellant appeals alleging various errors.

*327 First, appellant contends that the evidence establishes the creation of a resulting trust. In this respect, we note that in an appeal from an equity proceeding a chancellor’s findings of fact have the effect of a jury verdict and will not be reversed if supported by the evidence. See Brentwater Homes, Inc. v. Weibley, 471 Pa. 17, 369 A.2d 1172 (1977); Payne v. Kassab, 468 Pa. 226, 361 A.2d 263 (1976).

The principles relating to the creation of a resulting trust are well established. If a parent furnishes the purchase money and title to property is taken in the name of a child, a presumption arises that the parent intended the funds to be a gift. See Ehnes v. Yowell, 374 Pa. 17, 97 A.2d 56 (1953); Hughes v. Bailey, 202 Pa.Super. 263,195 A.2d 281 (1963). When, however, the parent advances funds and manifests an intent to retain a beneficial interest, the gift presumption is rebutted and a resulting trust arises in favor of the parent. As summarized in the Restatement (Second) of Trusts § 442 (1959):

“Where a transfer of property is made to one person and the purchase price is paid by another and the transferee is a wife, child or other natural object of bounty of the person by whom the purchase price is paid, a resulting trust does not arise unless the latter manifests an intention that the transferee should not have the beneficial interest in the property.” (Emphasis added).

See, e. g., McHenry v. Stapleton, 443 Pa. 186, 278 A.2d 892 (1971); Hughes v. Bailey, supra.

Applying the above principles to the instant case, the chancellor found that a resulting trust had not been established. While there had been a purchase of property by appellees, and appellant had paid a portion of the purchase price, 1 appellant never manifested an intent to retain a beneficial interest. To the contrary, appellant informed appellees that “a better home you two have you will never get.” (N.T. 35). While appellant initially promised to make a gift of only $10,000 towards the construction of the home, *328 the chancellor found that additional payments of over $13,-000 were made “voluntarily” without an express retention of interest. Thus, because of the relationship between the parties, appellant’s silence creates a presumption that the funds were intended as a gift.

Appellant argues, however, that a resulting trust arises in that the transfers were procured through undue influence on the part of Kenneth Kohr. Although appellant’s claim is more in the nature of a constructive trust rather than a resulting trust, the issue is properly presented as “[a] court of equity in decreeing a constructive trust is bound by no unyielding formula. The equity of the transaction must shape the measure of relief.” Chambers v. Chambers, 406 Pa.

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Bluebook (online)
413 A.2d 687, 271 Pa. Super. 321, 1979 Pa. Super. LEXIS 3156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kohr-v-kohr-pasuperct-1979.