Lalley v. Lalley

260 P.2d 905, 43 Wash. 2d 192, 1953 Wash. LEXIS 301
CourtWashington Supreme Court
DecidedSeptember 4, 1953
Docket32382
StatusPublished
Cited by12 cases

This text of 260 P.2d 905 (Lalley v. Lalley) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lalley v. Lalley, 260 P.2d 905, 43 Wash. 2d 192, 1953 Wash. LEXIS 301 (Wash. 1953).

Opinion

Weaver, J.

This is an action in equity to determine the status of certain real and personal property. Issue was tendered by defendant’s cross-complaint that “she was entitled to one half the value of the property by reason of an agreement between the parties.

Defendant (Mrs. Lalley) appeals from a decree (a) declaring the real property and an automobile to be the separate property of plaintiff; and (b) granting her a lien against the real property in the sum of $2,206, “which said lien shall be paid within three years from date hereof [November 24, 1952].”

Appellant’s eighteen assignments of error are directed against all of the trial court’s findings of fact except two, and against all of the conclusions of law and judgment.

*194 Appellant and respondent were the only witnesses. Two theories were presented. The trial court, as the trier of the facts, rejected one and accepted the other. The record does not disclose that the evidence preponderates against the findings of fact. Peterson v. Schoonover, 42 Wn. (2d) 621, 257 P. (2d) 209. Appellant’s first twelve assignments of error are not well taken.

Appellant and respondent were divorced in 1945. A complete property division was made at that time. They had been married for twenty-nine and a half years. Appellant went east to live, where she found employment; respondent remained in this state. The parties corresponded occasionally.

In 1948, appellant returned to Washington. She went to Longview, where respondent lived and worked. Shortly thereafter, the real property here involved was purchased. It was unimproved except for a small shack. The purchase price was approximately one thousand dollars, paid entirely with respondent’s separate funds. Without appellant’s knowledge, title was placed in the name of both of them.

They both moved upon the property. For five or six months, she lived in a trailer and he in the small shack. They both worked remodeling and building a house. The property is now valued at sixty-eight hundred dollars. Respondent admitted that appellant did half of the construction labor.

When construction was sufficiently advanced, both moved into the house, each in separate rooms. The trial court found:

“That said parties did not live together as husband and wife and had no marital relations therein and there is no substantial evidence herein to the effect that said parties held themselves out as husband and wife. That each of said parties had their own rooms and lived their own lives with the exception of the fact that the plaintiff [respondent] herein purchased and paid for all food and utilities used in and about said premises by the parties during the time they both lived on said property.”

*195 The relationship between the parties was not meretricious, a fact which distinguishes this case factually from a number of our prior decisions. Hynes v. Hynes, 28 Wn. (2d) 660, 184 P. (2d) 68 (1947); Creasman v. Boyle, 31 Wn. (2d) 345, 196 P. (2d) 835 (1948).

During this period, an automobile was purchased. Appellant made the down payment of eight hundred dollars, and title was taken in her name. Shortly thereafter, respondent paid her one hundred fifty dollars of her down payment. All subsequent monthly payments, maintenance and insurance, were paid by respondent from his separate funds. He used the car.' Appellant did not drive.

The parties kept their financial affairs separate. Each had separate funds. Respondent paid for all materials used in building the house, except $106 paid by appellant for a sink. On occasions, respondent borrowed small sums from appellant. The loans were always repaid. Appellant purchased the lot adjoining the property in dispute. She had it bulldozed and planted fruit trees. She purchased certain apartments in another part of town. Respondent did some work for her on the apartments. She paid him for his labor. For a month, appellant was employed elsewhere doing housework. With her own funds, she bought furniture, a kitchen range, and an electric washer. She took them with her when she left.

As to the automobile, appellant testified:

“Q. What was said by Mr. Lalley when he gave you the $150? A. He told me he would pay the balance on the car and I told him when he would pay me the balance I would give him the title to the car. Q. Your intention was to hold the title until you were paid is that right? A .Yes. . . . Q. I understand the down payment was $800? A. I paid $800 for it. Mr. Lalley paid me $150 out of that $800. Q. So actually, $650 is your money? A. Yes, $650 is what he owes me on the car.” (Italics ours.)

In view of the particularity with which they managed their own financial affairs, it is apparent, in view of appellant’s testimony, that she took title to the car only as security for the down payment made by her. The trial court did not *196 err in awarding the automobile to respondent as his separate property. As we will discuss later, appellant was given security for the $650 still due her.

In In re Cunningham’s Estate, 19 Wn. (2d) 589, 592, 143 P. (2d) 852 (1943), this court said:

“The character of the transaction is determined as of the time of conveyance; the status of the property is fixed either as a gift or a trust at the time grantee takes title. The intention of the donor is determined as of the date of the deed [citing cases].”

A careful reading of the testimony treating with the circumstances surrounding acquisition of the deed, leads to but one conclusion: naming both parties as grantees was more an inadvertent act than it was a conscious act manifesting an intention upon respondent’s part to vest appellant with an interest in the property. Appellant testified that, although she was present when they inspected the property, she was not present when respondent signed the purchase contract or received the deed. Respondent testified (and it is not disputed) that he did not know that they had both been named as grantees until he had “looked in the record in the court house.”

Restatement, Trusts, 1343, § 440, provides:

“Where a transfer of property is made to one person and the purchase price is paid by another, a resulting trust arises in favor of the person by whom the purchase price is paid, except as stated in §§ 441, 442 and 444.”

None of the exceptions to the rule applies to the case before us. There are no circumstances manifesting an intention on the part of respondent that a resulting trust should not apply. Restatement, Trusts, 1347, § 441. Appellant is neither a wife, a child, nor other natural object of respondent’s bounty. Restatement, Trusts, 1355, § 442. See In re Cunningham’s Estate, supra. It was not the purpose of the transaction to accomplish an illegal purpose. Restatement, Trusts, 1359, § 444.

In Walberg v. Mattson, 38 Wn. (2d) 808, 812, 232 P. (2d) 827 (1951), this court said:

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Bluebook (online)
260 P.2d 905, 43 Wash. 2d 192, 1953 Wash. LEXIS 301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lalley-v-lalley-wash-1953.