Osterberg v. Osterberg

563 P.2d 696, 278 Or. 277, 1977 Ore. LEXIS 935
CourtOregon Supreme Court
DecidedMay 3, 1977
DocketNo. 410-459, SC 24508
StatusPublished
Cited by4 cases

This text of 563 P.2d 696 (Osterberg v. Osterberg) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Osterberg v. Osterberg, 563 P.2d 696, 278 Or. 277, 1977 Ore. LEXIS 935 (Or. 1977).

Opinion

PER CURIAM.

This is a suit to establish a constructive trust in certain real property which was conveyed by plaintiff to defendants. Defendant Melba Osterberg agreed to reconvey the property upon plaintiff’s request.1 Defendants appeal from a decree granting plaintiff’s prayer for relief.

We affirm. The evidence supports plaintiffs contention that a constructive trust should be imposed upon defendants. All of the evidence in this case is analyzed in a well written opinion by the trial judge, which follows and which we adopt.

"Plaintiff has sued his ex-wife and three adult sons to establish plaintiff’s ownership of certain real property described in his complaint. He alleges that when he executed a deed of the property to the defendants on April 11, 1972, he was induced to do so by defendant Melba; that it was without consideration; that she promised at the time of the deed to return the property to him upon demand, and has refused to do so. Defendants deny the plaintiffs claim, allege that the conveyance was an irrevocable gift and that plaintiff is estopped from asserting that the property was not a gift. Plaintiff denies the affirmative defenses.
"There was no timely request for special findings. None will be made. However, the court will, in this decision, discuss what facts appear to be established by the evidence, taking into consideration all of the tes[280]*280timony and exhibits, with particular attention to the demeanor of plaintiff and Melba as witnesses.
"Plaintiff and Melba were divorced in this county by decree dated March 19, 1971 in a proceeding in which Melba was awarded all of the real property of the parties, other than that with which we Eire concerned in this case.
"For many years prior to the divorce, plaintiff was a heavy drinker, if not, indeed, an alcoholic. In February of 1972 Melba and 'another friend’ took plaintiff to Dammasch Hospital for in-patient treatment for alcoholism.
"In August of 1971 Melba, plaintiffs sister and the sister’s husband, had a conversation at Melba’s kitchen table in which Melba told Mr. and Mrs. Butler that she, Melba, was afraid for plaintiff and that something would happen to cause him to lose this property and that she would like for him to turn the property over to her to protect his interest until he was well. While plaintiff was in Dammasch, Melba agEiin informed plaintiff’s sister, Mrs. Butler, that Melba was worried about plaintiffs condition, the possible loss of the property and that she wanted plaintiff to turn over the property to her, Melba, and wanted to take care of him so he would have a place to live for the rest of his life.
"On or about March 10,1972 plaintiff was involved in an automobile accident for which he had no insurance.
"It is not clear from the evidence whether plaintiffs stay in Dammasch was interrupted by the automobile accident, or if he actually went to Dammasch sifter the automobile accident.
"In any event, some two or three days after he left Dammasch, plaintiff came to Melba’s home (the former family home awarded to her in the divorce proceedings) and there stayed until the day of execution of the deed in question. During that time he was drinking, but according to Melba, not 'stinking drunk.’ Melba, at one point in her testimony, denied there was any discussion concerning the possible effect of liability arising out of the automobile accident concerning the property in question.
"On approximately April 8, 1972 plaintiff signed the document received in evidence as Plaintiff’s Exhibit No. 5. This document was prepared by Melba and signed by [281]*281plaintiff, although plaintiff denied any recollection of ever having seen this document at the time it was executed. The document had no legal effect, but purported to be a transfer of the property from plaintiff to defendants, in effect reserving a life estate in plaintiff and requiring him to pay the taxes and adequately insure the property.
"Melba contends that on April 11, 1972 plaintiff showed to her the deed received in evidence as Plaintiffs Exhibit No. 1 and that she had never seen the deed before. She testified that plaintiff insisted on going to a bank branch office and there having the deed notarized. Melba caused it to be recorded forthwith.
"Plaintiff, on the other hand, denied having ever seen the deed until Melba produced it on April 11, 1972 and contends that Melba suggested he put the property in her name and the names of the children because of his condition. He contends that Melba suggested that plaintiff trust her. He contends that he suggested that he deed the property to his sister, Mrs. Butler, but that Melba told him this was not necessary and that he would get the property back when the automobile case was cleared up.
"The evidence is undisputed that there was no consideration for the deed, although Melba’s story that plaintiff produced the deed himself would indicate that he had some sort of advice in the preparation of the deed. At the time of the alleged preparation of the deed, plaintiff was represented in his legal affairs by attorneys Charles Guinasso and John Ryan. The only direct evidence as to whether plaintiff had independent legal advice was that of Charles Guinasso who testified that the plaintiff did not consult him and that as far as Guinasso knew, did not consult John Ryan.
"From the evidence I have drawn the conclusion of fact that Melba caused the deed to be prepared, which necessarily entails my finding that she is intentionally false in this part of her testimony and is, therefore, to be distrusted in others. This, however, does not dispose of the matter completely.
"The Supreme Court has had occasion to examine somewhat similar situations quite recently in the case of Adamson v. Adamson [273 Or 382, 541 P2d 460 (1975)], [282]*282hereinafter called Adamson, and in Penn v. Barrett [273 Or 471, 541 P2d 1282 (1975)], hereinafter Penn.
"In Adamson, the court quoted with approval from Ingersoll v. Ingersoll, 263 Or 376 [502 P2d 598 (1972)], as follows:
" ' "* * *A confidential relationship exists between two persons when one has gained the confidence of the other and purports to act or advise with the other’s interest in mind.” ’
« * * *
" ' "* * * If one person is in a confidential, but not in a fuduciary relation to another, a transaction between them will not be set aside at the instance of one of them unless in fact he placed confidence in the other and the other, by fraud or undue influence or otherwise abused the confidence placed in him.”
« * * *
" ' "* * * The burden of showing an abuse of a confidential relation is upon the person seeking to set aside the transaction.” ’ (Emphasis added) [273 Or at 391.]
"Likewise, the oft-cited case of Hanscom v. Irwin, 186 Or 541, 565, teaches us as follows:

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Bluebook (online)
563 P.2d 696, 278 Or. 277, 1977 Ore. LEXIS 935, Counsel Stack Legal Research, https://law.counselstack.com/opinion/osterberg-v-osterberg-or-1977.