Lukens v. Wharton Avenue Baptist Church

145 A. 587, 296 Pa. 1, 1929 Pa. LEXIS 465
CourtSupreme Court of Pennsylvania
DecidedJanuary 21, 1929
DocketAppeal, 21
StatusPublished
Cited by11 cases

This text of 145 A. 587 (Lukens v. Wharton Avenue Baptist Church) 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
Lukens v. Wharton Avenue Baptist Church, 145 A. 587, 296 Pa. 1, 1929 Pa. LEXIS 465 (Pa. 1929).

Opinion

Opinion by

Mr. Justice Simpson,

In this action of ejectment, both parties derive title through John Scott; plaintiff by a deed in fee simple, and defendant by virtue of an alleged resulting trust in its favor. The verdict and judgment were for defendant, and plaintiff in this appeal specifies five alleged errors, which do not question the trial judge’s rulings on the admission or rejection of evidence, but challenge the following conclusions only: (1) that the evidence, if believed by the jury, was sufficient to establish a resulting trust in favor of defendant; and (2) that plaintiff, who *4 is an employee of Scott, was not a bona fide purchaser from him, but was simply holding the legal title for him.

Scott, while a member of an unincorporated religious' association and a deacon, trustee and financial agent of it, purchased the property in dispute, and caused to be erected a church on it, from plans approved by defendant’s officials, in order that he and the other members of the congregation might worship in it. At the trial, the dispute regarding this purchase and construction was whether, as plaintiff alleged, Scott did these things under an agreement that he would underwrite the transaction, saying to the congregation that it might thereafter get the title by repaying the amount spent by him; or, as defendant alleged, Scott agreed, before the purchase of the land, that he would buy it and erect the building with money loaned by him to the congregation, — he, as its financial agent, expending it for the purposes stated —and would hold the property for them until they paid him $8,000, with interest beginning two years thereafter, the balance of the cost, whatever it might be, to be contributed by him as one of the church members. It further appeared by defendant’s evidence (which must be accepted as true, when considering whether or not plaintiff was entitled to binding instructions (Fluke v. Lang, 283 Pa. 54; Kohn v. Burke, 294 Pa. 282), that, when municipal improvements were required, Scott said the property was defendant’s and not his, and it had to pay them; that defendant did so and paid also for the repairs to and improvements of the property; that, with Scott’s knowledge and approval, the property was exempted from taxation because it belonged to the church; that when the two years were about expiring, Scott called the attention of the board of trustees to the fact that interest on the $8,000 would begin to run from June 1,1924, and asked that it be paid to him each six months thereafter. This was agreed to, and it was further agreed that, if the church continued to pay the interest at the rate of six per centum per annum, Scott would *5 hold the property for it, and, after its incorporation, it was to take title and give him a mortgage for the $8,000. He admitted this arrangement except as to the mortgage; he said he wanted the $8,000 in money. In accordance with this agreement the treasurer of the congregation gave to him, on three several occasions, and he accepted and used, three checks: One for $240, which specified on its face that it was for “6 months int. Wharton Avenue Baptist Church”; one for $240, which specified on its face “Wharton Avenue Baptist Church”; and one for $480, which specified on its face “interest on Wharton Avenue Baptist Church to June 1,1926.” Subsequently, Scott got into a dispute with the pastor and some of the congregation, resulting in a statement by him, when the trustees, after incorporation, sought to arrange with him for the payment of the $8,000, that he would not transfer the property to the church at any price. Later he conveyed it to plaintiff, who had long been and still is one of his employees, who said he raised such money as he alleged was paid, by borrowing it from friends of his, who were unnamed and unknown, and were not called to corroborate him; that he had a written agreement of purchase with Scott, which he did not produce; that he knew there was some arrangement between Scott and defendant regarding the property, but not its exact terms, nor did he make any inquiry on the subject, though he knew defendant was in possession under that arrangement; that he took out no searches, and did not attempt to ascertain whether or not there were any taxes, liens or claims against the property, but accepted a deed, stating the purchase price as $1 only, without referring to any other consideration. This is the title under which he now claims.

As to the first point being considered, the trial judge (upon ample evidence to justify the submission), charged the jury as follows: “The law says the evidence to establish a trust must be clear and precise and indubitable, and you should be fully convinced that the trust *6 alleged by the defendant actually existed, and that the actual loan claimed by the defendant was made by Mr. Scott to this church, and afterwards on account of that loan, or loan agreement, this money was advanced.” The verdict of the jury decided, therefore, that the evidence as to the trust was clear, precise and indubitable, and, this being approved by the trial judge, who was the chancellor in the case, the fact of the trust was conclusively established, though plaintiff, by his oral evidence, attempted to contradict it in part: Hess v. Calender, 120 Pa. 138; Ott v. Oyer’s Exrx., 106 Pa. 6, 17; Boyertown Nat. Bank v. Hartman, 147 Pa. 558; Burt v. Burt, 221 Pa. 171. That oral evidence being disbelieved by the jury and the chancellor, thereafter had no probative effect so far as this case is concerned.

That an enforceable resulting trust necessarily followed the finding stated, is no longer an open question. In Gates v. Keichline, 282 Pa. 584, 592, we said: “While the law contemplates payment of the purchase money by the beneficiary at the time of the creation of the trust, yet the funds may be advanced by another on his account (Kauffman v. Kauffman, 266 Pa. 270, 276), and this other may be the trustee himself where, as in the present case, the payment is made under an arrangement which contemplates the refunding of the amount advanced, in a subsequent accounting between the trustee and his cestui que trust; particularly is this true if, as here, the person in whose name title is taken acts at the time as [financial] agent for the claimant: Cook v. Cook, 69 Pa. 443, 447-8 ; Schrager v. Cool, 221 Pa. 622, 625. There are cases in which the trustee agreed at the time of acquiring title that the one for whom he was to hold should refund the purchase money to him in installments, and the trust was sustained: Gilchrist v. Brown, 165 Pa. 275, 283; Kauffman v. Kauffman, 266 Pa. 274, 275, 276.” See also Kern v. Smith, 290 Pa. 566.

Plaintiff alleges, however, that he is protected by section 1 of the Act of June 4, 1901, P. L. 425, which pro *7

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Bluebook (online)
145 A. 587, 296 Pa. 1, 1929 Pa. LEXIS 465, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lukens-v-wharton-avenue-baptist-church-pa-1929.