Markel v. Transamerica Title Insurance Company

442 P.2d 97, 103 Ariz. 353, 1968 Ariz. LEXIS 268
CourtArizona Supreme Court
DecidedJune 5, 1968
Docket9210-PR
StatusPublished
Cited by40 cases

This text of 442 P.2d 97 (Markel v. Transamerica Title Insurance Company) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Markel v. Transamerica Title Insurance Company, 442 P.2d 97, 103 Ariz. 353, 1968 Ariz. LEXIS 268 (Ark. 1968).

Opinion

McFARLAND, Chief Justice.

This case is before us on a petition for review of the decision of the Court of Appeals, 6 Ariz.App. 585, 435 P.2d 714, affirming the judgment of the trial court. Decision of the Court of Appeals vacated.

In December 1939 plaintiff Edna Markel obtained a divorce from Earl E. Van-Y, hereinafter called Earl, in Sedgwick County, Kansas, where they were both living. The divorce decree approved a written property settlement in lieu of alimony, by which Earl agreed to give plaintiff “one-half interest in any funds that may be obtained through” the sale of a parcel of real estate located in Arizona. Subsequently Earl married defendant Virginia Van-Y, hereinafter' referred to as Virginia. The Arizona property passed, through several parties, to Virginia.

In 1957 she sold the property for $25,000, describing it as her sole and separate property. Transamerica Title and Trust Company (then called Phoenix Title and Trust Co.) was made escrowee and trustee. The transfer of the property to Transamerica, as trustee, was to expedite the deeding of part of the property each time a payment was made — an arrangement commonly known as a subdivision trust. Knowledge of this sale came to the notice of plaintiff, and, on April 30, 1959, she brought an action against Virginia and Transamerica, asking the court to hold that Transamerica hold the reversionary interest in the realty in trust for plaintiff; that Transamerica should hold $13,037.50 and interest for plaintiff’s use and benefit, and in due course should distribute same to plaintiff; that Virginia be ordered to pay plaintiff $11,865 wrongfully paid to her by Transamerica; and that each defendant be restrained from making any disposition of Virginia’s reversionary interest in the property or the proceeds of the trust, pendente lite.

Transamerica, though served, failed to appear, and a temporary' injunction was granted by the court on May 18, 1959, ordering Transamerica not to pay out any money from the trust until further order of the court. Plaintiff posted a five-hundred-dollar bond.

On June 18, 1959, the court issued a permanent injunction which enjoined Transamerica from making any disposition of Virginia’s reversionary interest, or her interest in the proceeds, until it paid her the sum of $13,037.50 and interest. The $500 bond was exonerated.

On January 22, 1960, the default judgment against Transamerica was set aside and the injunction necessarily fell with the judgment. Transamerica then made two payments to Virginia — $4,402 on February 17, 1960, and $4,214.57 on December 30, 1960.

Before any more payments were made, a hearing on the merits of the case took place, resulting in a judgment for defendants at the close of plaintiff’s case. An appeal was taken, and, on February 2, 1966, we reversed and remanded the case for trial, holding that plaintiff had made out a prima facie case for the imposition of a constructive trust, in the trial court. Markel v. Phoenix Title & Trust Co., 100 Ariz. 53, 410 P.2d 662.

In 1962, 1963, and 1964, while the appeal was pending, Transamerica received and disbursed to Virginia the rest of the payments due, from the sale of the real estate, totalling over $8,000 including interest. On April 7, 1966, after our decision, plaintiff filed a second amended complaint, setting forth the facts alleged in the original complaint which we held in Markel v. Phoenix Title, supra, had been sufficiently proven to constitute a prima facie case for the imposition of a constructive trust. The amended complaint set out a copy of Edna’s written property agreement with Earl, and alleged that it had been approved by her divorce decree; that Virginia had entered into an escrow and a secret trust agreement with Transamerica bearing number 2197; that thereafter Transamerica “received and wrongfully made disbursements' to Virginia Van-Y in the aforesaid trust *357 after this action was commenced, for the sum of $13,037.50”; that defendants “have fraudulently caused said funds to he transmitted to Virginia Van-Y * * * to deprive plaintiff of her rights to one-half the proceeds * * * and that defendants’ aforesaid wrongful transfer was in breach of defendants’ obligation, after being fully placed on notice of plaintiff’s rights and was in direct breach of its duty to plaintiff. * * * ” The prayer was for money damages only, in the sum of $13,037.50 and interest, and “for such other and further relief as to the court may seem meet and proper.”

The issues as stated in the first complaint were clear and would have permitted recovery. The second complaint, after setting forth the facts alleged in the first complaint in regard to the written property settlement in the divorce decree, the sale and the payments thereunder to Transamerica as trustee, further alleged the subsequent wrongful disbursements. As it is, the second amended complaint may be described by the words used in Barnes v. Eastern and Western Lumber Company, 205 Or. 553, 287 P.2d 929, in which the Supreme Court of Oregon said:

“ * * * The facts stated in the complaint would have permitted recovery, as we have indicated, on several theories. Among the possible theories were deceit, conversion * * *, money had and received, the recovery of specific property by constructive relief, or any other theory within the scope of restitution.”

The allegations of the second complaint in the instant case are sufficient to permit plaintiff to prove her original contention that defendants were, and still are, constructive trustees of the proceeds of the sale of the property. The new material is also sufficient to permit plaintiff to prove the elements of a conversion of those proceeds, as she alleges a wrongful transfer of the money by Transamerica after knowledge by it of plaintiff’s claim of the right to possession of the funds.

If defendants had any doubts of what was meant by the allegations of the second amended complaint, they could have moved for a more specific statement. Long v. Arizona Portland Cement Company, 89 Ariz. 366, 362 P.2d 741; Davidson v. All State Materials Company, 101 Ariz. 375, 419 P.2d 732. Rule of Civil Procedure No. 8 (16 A.R.S.) states that the complaint need contain only a “short and plain statement of the claim showing that the pleader is entitled to relief” and a “demand for judgment for the relief to which he deems himself entitled. Relief in the alternative or of several different types may be demanded.” See Lun v. Mahaffey, 94. Or. 292, 185 P. 746.

Transamerica filed a new answer, admitting — with the following exceptions — all of the allegations of the complaint: (1) It denied (on information and belief) that the property settlement agreement existed; (2) It denied that the trust agreement between it and Virginia was secret; (3) It denied that the $13,037.50 received by it and disbursed to Virginia was disbursed wrongfully; and (4) It denied (on information and belief) that it fraudulently transmitted funds from the trust to Virginia, and alleged that it had no information of any fraud or wrongdoing. The answer also alleged that it was not under any injunction when it disbursed the funds.

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Bluebook (online)
442 P.2d 97, 103 Ariz. 353, 1968 Ariz. LEXIS 268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/markel-v-transamerica-title-insurance-company-ariz-1968.