Lehman v. Lewis

62 Ala. 129
CourtSupreme Court of Alabama
DecidedDecember 15, 1878
StatusPublished
Cited by65 cases

This text of 62 Ala. 129 (Lehman v. Lewis) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lehman v. Lewis, 62 Ala. 129 (Ala. 1878).

Opinion

BRICKELL, C. J.

The bill was filed by the appellee, a married woman, and alleges, in substance, that in the latter part of 1869 her husband purchased for her, of one King, a tract of land, at the price of three thousand dollars. At the time of the purchase, one Henry -Clark had in his hands about three thousand dollars, the statutory estate of the appellee, and her brother, M. B. Locke, was the agent for its collection. To enable her husband to make the purchase of the lands, said Locke advanced to him, as a loan to her, the purchase-money of said lands, on the agreement that he was [131]*131to be repaid from tbe moneys in Clark’s hands when cob lected; and the moneys were by him collected subsequently, and that she assented to the appropriation of the same to Ms reimbursement of the money loaned. The conveyance of the title to the lands was made to Locke, but of this fact the appellee avers her ignorance until after the death of Locke. On the 22d April, 1870, Locke, by absolute deed, intended as a mortgage to secure pre-existing debts, conveyed the lands to the appellants, who had commenced against the husband of appellee an action of ejectment for the recovery of possession thereof. The prayer of the bill is, that the action of ejectment be perpetually enjoined, and the appellants required to convey the lands to appellee, and for general relief.

TLe answer of the appellants is a general denial of all the material averments of the bill, or a general disclaimer of all knowledge or information of them, demanding full proof.

Two questions arise: 1. Whether the transaction, as averred in the bill, resting wholly in parol, creates an equity in favor of the appellee, which can be enforced* 2. Whether the evidence is sufficient to establish the equity. The statute declares, “ no trust concerning lands, except such as results by implication or construction of law, or which may be transferred or extinguished by operation of law, can be created unless by an instrument in writing, signed by the party creating or declaring it, or his agent, authorized in writing.” — Code of 1876, § 2399. - This is a substantial reenactment of the seventh and eighth sections of the English statute of frauds, and by its terms, the creation, and consequently the proof by parol of all direct or express trusts, springing from and dependent upon the agreement of parties, not arising or resulting by implication or construction of law, is prohibited. There not being any declaration in writing of the trust now asserted, no memorandum of the agreement it is averred Locke entered into, the first question must be limited to the inquiry, whether, from the facts stated, a trust of the legal estate taken to himself by Locke, results by construction of law to the appellee.

It is the unquestionable doctrine of courts of equity, in the absence of statutes providing otherwise, that if the purchaser of lands, paying the price with his own money, takes the conveyance in the name of another, the trust of the lands results by construction to him from whom the purchase-money moves. Or, if the purchase is made through an agent, who takes title to himself, the trust will result to the principal, who advances the purchase-money. Or, if a trustee employs the funds of the cestui que trust, or an agent, the [132]*132moneys of the principal, in the purchase of lands, at the election of the cestui que. trust, or of the principal, the trustee, or the agent, may be made personally liable, or the money followed into the land, or af trust of the legal estate will result by implication of law. f This class of trusts, not arising from or dependent upon any agreement between the parties, implied by the law from facts proved, are specially excepted from the operation of the statute of frauds, and it is said the exception, if not expressed, would have been a necessary implication. — Hoxie v. Carr, 1 Sumn. 187.

The whole foundation of this class of trusts is the payment before, or at the time of the purchase, of the money by the cestui que trust, or by the trustee, or the agent, of funds which are the funds of the cestui que trust, or of the principal./ Mere parol agreements, or parol declarations of the purchaser that he is buying for another, or that the purchase is intended for the benefit of another, without the employment of the money of the other, will not create a resulting trust. In Botsford v. Burr, 2 Johns. Ch. 405, said Ch. Kent: “ The trust must have been coeval with the deeds, or it cannot exist at all. After a party has made a purchase with his own moneys or credit, a subsequent tender, or even reimbursement, may be evidence of some other contract, or the ground of some other relief; but it cannot, by any retrospective effect, produce the trust of which we are speaking. There never was an instance of such trust so created, and there never ought to be, for it would destroy all the certainty and security of conveyances of real estate. The resulting trust, not within the statute of frauds, and which may be shown without writing, is when the purchase is made with the proper moneys of the cestui que trust, and the deed not taken in his name. The trust results from the original transaction at the time it takes place, and at no other time; and it is founded on the actual payment of money, and on no other ground. It cannot be mingied or confounded with any subsequent dealings whatever. They are to be governed by different principles, and the doctrine of a resulting trust would be mischievous and dangerous, if we once departed from the simplicity of the rule. It is a very questionable doctrine in the view of policy, even under this limitation, and it has been admitted with great caution.” Following this authority, we said in Tillford v. Torry, 53 Ala. 122, in which a cestui que trust asserted an equity to follow trust funds into lands, or a resulting trust therein : “ To create the equity either to charge the lands or to raise a resulting trust, a payment of the trust funds at the time of the purchase is indispensable. A subsequent payment by the trus[133]*133tee of the debt he may have contracted in the purchase of the lands, will not, by relation, attach any trust or lien to the original purchase.”

The trust resulting at the time of the purchase, if at all, and arising from the fact that the moneys, the consideration of the purchase, is the money of the cestui que trust, and not of the grantee, in whom the legal estate resides, oral agreements, without the ownership of the money, though cotemporaneous with the purchase, will'not create it. — Perry on Trusts, §§ 133-35. These, though broken, if there be not fraud or imposition, are within the operation of the statute of frauds.— Kisler v. Kisler, 2 Watts, 323; McDonald v. May, 1 Rich. Eq. 91; Johnston v. Lamotte, 6 ib. 347 ; Taliaferro v. Taliaferro, 6 Ala. 406. “ Where a man employs another person by parol, as an agent, to buy an estate for him, and the latter buys it accordingly in bis own name, and no part of the purchase-money is paid by the principal, then, if the agent denies the trust, and there is no written agreement or document establishing it, he cannot, by a suit in equity, compel the agent to convey the estate to him; for (as has been truly said) that would be decidedly in the teeth of the statute of frauds.” — 2 Story’s Eq. § 1201.

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Bluebook (online)
62 Ala. 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lehman-v-lewis-ala-1878.