McWilliam v. Mitchell

177 S.E. 579, 179 Ga. 726, 1934 Ga. LEXIS 386
Supreme Court of Georgia·Decided November 16, 1934·No. No. 10195·Published·Cited by 3 cases

Opinion

Beck, P. J.

On July 12, 1920, Rhocla Mitchell purchased from Simon Friedman a house and lot in the City of Atlanta on Larkin Street for a residence. She paid all cash, $4900, for the property. She had a younger sister, Daisy Thomas, who had some education and who was engaged in signing criminal bonds for pay in Atlanta. Daisy took charge of the actual closing of the sale after Bhoda had agreed to purchase the property from Friedman; and after Bhoda had gone to the bank and drawn the cash from the bank to pay Friedman for the property, Daisy had the deed made to herself, although all of the purchase-price was paid by Bhoda Mitchell. Daisy Thomas wanted the title to the property in her name so as to strengthen her credit or enable her to sign more criminal bonds for pay. She claimed no interest in the property at any time during her life. When the property was purchased Bhoda Mitchell moved into the house as her own home, occupied and still occupies it as her home, exercising all the rights of ownership, paid all state and county and city taxes in her own name, and had all improvements made and paid for them in her own name. Daisy Thomas died six or seven years later. D. H. McWilliam was appointed administrator of her estate; and finding the deed placing the paper title to the property in Daisy Thomas, he applied, in June, 1927, for leave to sell the real estate belonging to Daisy Thomas, including the Larkin Street property bought, paid for, and occupied by Bhoda Mitchell. Bhoda Mitchell filed objections to the granting of leave to sell the property, and filed her petition to the July term, 1927, of the superior court, praying for cancellation of the deed from Simon Friedman to Daisy Thomas, dated July 12, 1920, and for injunction restraining McWilliam as administrator from selling the property as the property of Daisy Thomas.

McWilliam, administrator, filed his plea and answer. A trial resulted in a verdict and judgment in favor of Bhoda Mitchell, finding the title to be in her, and that the deed should be canceled, and permanently restraining the administrator from interfering with Bhoda’s possession of the property. The administrator made a motion for new trial, which was overruled, and he excepted.

Considering the facts in the record, those that were not in dispute and those that were established by the verdict where the evidence was conflicting, it appears that all of the purchase-price of the property in controversy was paid at the time of the purchase [728] by Rhoda Mitchell, who immediately went into possession of the property as owner and has ever since exercised all right of ownership, paid all the taxes, and has borne all the other burdens of ownership. The title to the property was placed in Daisy Thomas, the deceased, for the purpose of increasing her credit, or, rather, increasing her ability to become surety on bonds, for pay, in the criminal courts of Fulton county. Daisy Thomas was never in possession of the property, and never claimed any right, title, or interest therein during her lifetime. Rhoda Mitchell, of course, knew that the title had been taken in the name of Daisy Thomas; and the controlling question in the case is, was there an implied trust created for the benefit of Rhoda Mitchell, who furnished the money for the purchase of the property ?

Under the facts it appears that an implied trust was created, and the equitable title was in Rhoda Mitchell, the plaintiff. Trusts are implied “whenever the legal title is in one person, but the beneficial interest, either from the payment of the purchase-money or other circumstances, is either wholly or partially in another.” Civil Code, § 3739. As appears from the evidence, Rhoda Mitchell went immediately into possession of the house, continued in possession, and the legal title was permitted to be in Daisy Thomas for the purpose merely of giving her credit as a bondsman in the criminal courts of Fulton County. Of course, under some circumstances Rhoda Mitchell, inasmuch as she knew the title was taken in the name of Daisy Thomas, would be estopped from asserting her equity; as in a case where a creditor of Daisy Thomas, in ignorance of the equity of Rhoda Mitchell, might have extended credit to Daisy Thomas. But the question of any claim on the part of a third person as giving him the right to assert such an estoppel is not involved in the case under the evidence.

One of the grounds of the motion for new trial assigns error in allowing a witness to testify, over objection, that “Rhoda told me she was the purchaser; she told me she is buying it for herself, and she has been living in it ever since as far as I know.” The court properly admitted this evidence. “Declarations accompanying possession, and serving to explain or give character to the same, are admissible as a part of the res gestee. Verbal claim of ownership by the occupant of the premises, made pending his actual holding, is admissible evidence, though his entry was originally without [729] claim of right.” Brown v. Cantrell, 62 Ga. 257; Jackson v. Jackson, 150 Ga. 544 (104 S. E. 236).

The rulings in the third aud fourth headnotes require no elaboration.

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McWilliam v. Mitchell, 177 S.E. 579, 179 Ga. 726, 1934 Ga. LEXIS 386 (Ga. 1934).

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