Kraft v. Smith

11 A. 370, 117 Pa. 183, 1887 Pa. LEXIS 250
CourtSupreme Court of Pennsylvania
DecidedOctober 3, 1887
DocketNo. 81
StatusPublished
Cited by10 cases

This text of 11 A. 370 (Kraft v. Smith) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kraft v. Smith, 11 A. 370, 117 Pa. 183, 1887 Pa. LEXIS 250 (Pa. 1887).

Opinion

Opinion,

Me. Justice Green:

The third assignment of error must be sustained, because the reply made by the learned court below to the defendants’ eighth point was no answer to it. The defendants presented certaM hypothetical facts in the point and requested the instruction of the court upon the effect of those facts if believed by the jury. The answer given by the court was, “TMs point raises a question of fact for the jury; its weight is entirely for them.” This was no answer at all, as it gave the jury no mstruction as to what they might or should do if they believed the facts submitted in the point. There was evidence supportmg the truth of the facts stated and therefore the defendants were entitled to an affirmance of the point if the facts were believed. But the answer was neither an affirmance nor a demal, nor did it submit any question whatever to the jury, and it was therefore erroneous.

The answer to the plaintiff’s sixth point was still more erroneous, because it contained a binding instruction upon the very same facts covered by the defendants’ eighth pomt, and took away from the jury the consideration of those facts, notwithstanding the court also told the jury the facts were for them. The answers to these two pornts are in direct antagonism and therefore misleading, but they are also incorrect on their merits. For tMs reason the fourth assignment of error is also sustained.

The second assignment must be sustained because the transaction in question was in no point of view a mortgage; and in fact it was presented in the general charge as a sale exclusively and not as a mortgage; and to say it was both, upon the same facts, was necessarily confusing and misleading to the jury. The plaintiff could only recover on the theory that [192]*192' Lawrence Kimmel was a trustee ex maleficio for the plaintiff because of fraud in the making of the parol agreement to convey the land to the’plaintiff. Upon that theory the case was tried, and there was none other upon which it could have been tried. The sale to Kimmel was a judicial sale made- by the sheriff, who of course had no power to accept a mortgage. The character of such a transaction is well determined in the case of Fox v. Heffner, 1 W. & S. 372, where we said: “ It is now settled by repeated decisions that if one buys property at sheriff’s sale and verbally agrees to hold it in trust for the defendant, with a right of redemption in defendant within a limited period, it is a contract resting in parol merely and not transferring any title in the land.” It was claimed in that case that the transaction might be regarded as a loan of money, but we said: “ The deed was from the sheriff, who could not, by law, accept a mortgage; he was bound to make an absolute deed to the purchaser of all the title of the debtor to the land.” In the ease of Jackman v. Ringland, 4 W. & S. 150, which was also a judicial sale, we said: “ To hold this to be a mortgage, when in truth it is a sale, would be a virtual repeal of the act of frauds; besides the same attempt was made in Fox v. Heffner without success.”

The first assignment is sustained because the defendants’ first point is undoubtedly true as a légal proposition, and it is certainly applicable to the facts of this case.

The eleventh point of the defendants raised a question which was vital to the whole of the plaintiff’s case. It was in these words: “ That the evidence in the case fails to make out such a fraud upon part of Lawrence Kimmel as to invalidate the sheriff’s sale and the verdict must therefore be for defendants.” The answer was, “Refused.” After a patient and critical study of the whole testimony in the case, we are of opinion that this point should have been affirmed and the cause withdrawn from the jury. The status of this class of cases is well defined by the -decisions of this court. In construing the fourth section of the act of 22d April, 1856, we held in Barnet v. Dougherty, 32 Pa. 371, that the plain meaning of the enactment is that a trust in land can now be proved in no other way than by writing. The proviso excepts from its operation resulting trusts such as the law implies, and these are raised [193]*193only from fraud in obtaining tbe title, or from payment of some part of the purchase money when title is acquired. In the case of Kellum v. Smith, 33 Pa. 158, we held that a promise to purchase real estate at a sheriff’s sale, and to convey it to the defendant in the execution whenever he should repay to the purchasers their advances to him, does not raise a resulting trust in favor of the defendant. Such agreement vests in the former owner no interest in the land which can be taken in execution by a judgment creditor, unless there was fraud in the purchase. Mr. Justice Strong, in delivering the opinion of this court and referring to the ruling of the court below in regard to raising a resulting trust upon a parol agreement at a sheriff’s sale to hold in trust for the defendant, said: “ A resulting trust cannot be raised in such a way. Such a trust can arise only from the payment of the purchase money or from fraud in the purchase; fraud perpetrated by the grantee. Here the purchase money of the sheriff’s sale was paid by Bell & Co., and consequently the beneficial interest as well as the legal estate went to them. Had there been fraud in that purchase they might have been held trustees ex maleficio. But the fraud which will convert the purchaser at a sheriff’s sale into a trustee ex maleficio of the debtor, must have been fraud at the time of the sale. Subsequent covin will not answer, any more than subsequent payment of the purchase money will convert an absolute purchase into a naked trust. When the purchaser at a sheriff’s sale promises to hold for the debtor and afterwards refuses to comply with his engagement, the fraud, if any, is not at the sale, not in the promise, but in its subsequent breach. That is too late. It is abundantly settled that equity will not decree such a purchaser to be a trustee, unless there is something more in the transaction than the mere violation of a parol agreement.” Both of the foregoing decisions were reaffirmed by this court in Kistler’s App., 73 Pa. 393, in which Mr. Justice Agnew fully reviewed the whole subject and all the authorities, and also defined the character of the testimony which is necessary to establish a trust ex maleficio in this class of cases. On pp. 399-400 he said: “ The evidence to establish a resulting trust, especially one arising ex maleficio, which is an imputation of fraud, should be clear, explicit and unequivocal: McGinity v. Mc-[194]*194Ginity, 63 Pa. 38; Nixon’s App., 63 Pa. 279; Lingenfelter v. Richey, 62 Pa. 123.”

Applying the foregoing principles to the facts of the present case, let us inquire whether there is enough to sustain the verdict of' the jury and therefore to warrant the submission of the cause to them. It is entirely undisputed, indeed it is alleged by the plaintiff, that Lawrence Kimmel purchased the property in question at sheriff’s sale; that he paid the whole of the purchase money, none of it being contributed by the plaintiff; and that the agreement of Kimmel to buy and hold the property for Smith, the plaintiff, was a verbal agreement only. It is alleged by Smith, but denied by Kimmel, that a written agreement was to be signed after the sale, but none such ever was signed, and the case therefore stands upon a verbal agreement only. In order to bring the case within the decisions, an allegation of fraud in the inception of the title is set up.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Contractors Contract Noy 5948 v. Morris
18 So. 2d 247 (Supreme Court of Florida, 1944)
Moyer v. Yoder
12 Pa. D. & C. 544 (Bucks County Court of Common Pleas, 1929)
Justice v. Watkins
119 A. 824 (Supreme Court of Pennsylvania, 1923)
Modern Baking Co. v. Orringer
114 A. 264 (Supreme Court of Pennsylvania, 1921)
Jourdan v. Andrews
102 A. 33 (Supreme Court of Pennsylvania, 1917)
Cushing v. Heuston
102 P. 29 (Washington Supreme Court, 1909)
Silliman v. Haas
25 A. 72 (Supreme Court of Pennsylvania, 1892)
Huffnagle v. Blackburn
20 A. 869 (Supreme Court of Pennsylvania, 1890)
Gaines v. Brockerhoff
19 A. 958 (Clearfield County Court of Common Pleas, 1890)
Salsbury v. Black
13 A. 67 (Supreme Court of Pennsylvania, 1888)

Cite This Page — Counsel Stack

Bluebook (online)
11 A. 370, 117 Pa. 183, 1887 Pa. LEXIS 250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kraft-v-smith-pa-1887.