Lutz v. Matthews

37 Pa. Super. 354, 1908 Pa. Super. LEXIS 290
Superior Court of Pennsylvania·Decided October 12, 1908·No. Appeal, No. 20·Published·Cited by 5 cases

Opinion

Opinion by

Rice, P. J.,

This case arose in a proceeding by a purchaser at a sheriff’s sale to obtain possession of the premises under the Act of April 20,1905, P. L. 239. The case was tried before a jury and resulted in a verdict for the plaintiff directed by the court and judgment thereon. The questions raised by the assignments of error will appear as we proceed.

In April, 1900, Benjamin Southam was the owner of the land in dispute. Being indebted to the Messrs. Mucldow'in the sum of $400 upon two promissory notes, he agreed by parol to turn over the property to them in discharge of that indebtedness and a credit of $100 on their books, and Matthews agreed with the Mucklows to take the property. These parol agreements were consummated by the execution, at the instance of the Mucklows, of a deed from Southam to Matthews and the delivery thereof, together with other title papers appertaining to the property, to him. Matthews thereupon paid to the Mucklows $50.00 on account of the purchase money, and for the balance, $450, gave them a judgment-note which the Mucklows entered of record on July 20, 1900.

A short time after the delivery of the deed and the other title papers to Matthéws, he took actual possession of the premises and occupied them for a year and a half or two years. Then he rented them to Southam, who went into possession and regularly paid the rent to Matthews until the latter part of July, 1905. The taxes on the land for the years 1900 to 1905 were assessed in the name of Matthews, the taxes for two of those years were paid by him, and he also paid to the Mucklows $33.00 on account of interest on the judgment he had given them.

[358] We stop here to consider a legal question raised by one of the defendants’ points. It is claimed that the consideration that moved directly to Southam was the discharge by the Mucklows of his indebtedness to them, and therefore a resulting trust arose in their favor. But it must be remembered that a trust of this nature rests upon presumption merely, and that this presumption is not one juris et de jure but of fact merely and open to rebuttal: Bispham’s Equity (7th ed.), sec. 83. As was said in Zimmerman v. Barber, 176 Pa. 1, it may be rebutted by evidence which satisfactorily shows that it was not the intention of either party that the beneficial interest should be in the party paying; in other words, the presumption will be overcome by proof that it is at variance with the intention or understanding of the parties. It is to be remembered, further, that to establish a trust by parol the evidence must be full, clear and convincing. “It is not enough that it satisfies a jury, it must also satisfy the mind and conscience of the court sitting as a chancellor reviewing the testimony, and if it fails in this respect it must be withdrawn from the jury: ” Olinger v. Shultz, 183 Pa. 469; Fidelity Insurance Trust and Safe Deposit Co. v. Moore, 194 Pa. 617. The irresistible conclusion from the testimony is that no trust was intended, but that what was contemplated in the execution and delivery of the deed directly from Southam to Matthews is precisely what would have occurred so far as the question of title is concerned, if Southam had deeded the land to the Mucklows, and they, at once, had deeded it to Matthews.

Resuming the statement of the facts, on July 24, 1905, the lien of the Mucklows judgment having expired, Lutz and Scherer, creditors of Matthews, obtained from him a judgment note for the amount of their debt, containing a waiver of inquisition and a confession of condemnation of real estate, which they entered of record on the following day. At this time, it must be borne in mind, the absolute title to the premises was in Matthews as above shown, and nothing had occurred to dissolve or suspend the relation of landlord and tenant between him and Southam. The fact that in the early part of July, prior to the giving of this note, Matthews had expressed his inability to pay the balance of the purchase money note given, to the [359] Mucklows, and had placed his deed and other title papers in their hands to enable them to negotiate a sale of the land, does not militate against the foregoing conclusion..

On August 1, 1905, the above-stated conditions being unchanged, and the Mucklows having actual knowledge of the existence of the deed from Southam to Matthews as well as of the judgment in favor of Lutz and Scherer, Southam and his wife executed and delivered a deed for the premises to the Mucklows. At the same time a lease from the Mucklows to Southam was executed by the parties. After the execution and delivery of this deed from Southam to the Mucklows, Matthews, in the presence of William Mucklow and Southam, burned his deed.

The next legal question to be considered is, what was the legal effect of these acts. In general, an estate once vested cannot be divested by mere annulment and cancellation of the deed; the cancellation is but the destruction of the evidence of the title, not the annulment of the title itself: Tate v. Clement, 176 Pa. 550. A fortiori, it cannot extinguish rights of third persons that have accrued in the meantime. Therefore the burning of the deed by Matthews, even if it was done with the approval of Southam and the Mucklows, had no effect upon his title or the lien of the Lutz and Scherer judgment. It is argued that the deed from Southam to Matthews, not having been recorded within ninety days after its delivery, cannot prevail against the later deed from Southam to the Mucklows, which was duly put on record. But the grantees in the later deed were not purchasers for value without notice. As was said in the last cited case, so it may be said here, it is doubtful if in equity they could be treated as anything more than volunteers, but in any case they took with actual notice of the conveyance to Matthews, and of the title thereby vested in him, and therefore with notice that their grantor, as against the prior conveyance, had no title to convey. It follows that the title was still in Matthews on August 7,1905, when Lutz and Scherer issued a fi. fa. upon their judgment and levied upon the land; that it passed to Lutz, the purchaser at the sheriffs sale thereunder, upon the execution, acknowledgment and delivery to him of the sheriff’s deed; and that he was entitled to possession of the land in De[360] cember, 1905, when he instituted these proceedings under the act of April 20,1905, to recover possession.

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Lutz v. Matthews, 37 Pa. Super. 354, 1908 Pa. Super. LEXIS 290 (Pa. Ct. App. 1908).

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