Richmond v. Bloch

60 P. 385, 36 Or. 590, 1900 Ore. LEXIS 39
CourtOregon Supreme Court
DecidedMarch 12, 1900
StatusPublished
Cited by15 cases

This text of 60 P. 385 (Richmond v. Bloch) 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
Richmond v. Bloch, 60 P. 385, 36 Or. 590, 1900 Ore. LEXIS 39 (Or. 1900).

Opinion

Mr. Chief Justice Wolverton

delivered the opinion.

The plaintiffs commenced this suit November 6, 1897, to set aside the deed of the defendant Adelaide'Bloch, conveying certain real property to her children and co-defendants, Bessie, Viola, Sophie, and Bertha Bloch, and to subject said property to the satisfaction of a judgment given and rendered in the Circuit Court of the State of Oregon for Multnomah County, June 30, 1897, in favor of the plaintiff F. L. Richmond and against the defendant Adelaide Bloch and others, for the sum of $1,300, and $94.15 costs and disbursements. The action in which the judgment was rendered was commenced March 27, 1897, and was for a malicious prosecution instituted by the defendants therein against Richmond March 9,1897. The conveyance complained of was made March 31, 1897, which it is alleged was voluntary, and made for the purpose of cheating, wronging, and defrauding the plaintiffs, and preventing them from realizing the amount due on said judgment. The plaintiffs other than Richmond claim an attorney’s lien upon the judgment. The defendants, for a separate defense, set up that H. F. Bloch, who died May 6, 1884, was the husband of the defendant Adelaide [592]*592Bloch, and the father of Bessie, Viola, Sophie, and Bertha Bloch ; that prior to the-day of-, 1879, he was the owner of the real property in controversy ; that, being in feeble health, and contemplating a removal from his home, in Portland, Oregon, he did, at the solicitation and persuasion of the defendant Adelaide Bloch, convey said property to her, relying upon her verbal representation and agreement that she would hold the same in trust for their children, her co-defendants herein ; that she accepted said conveyance with the full understanding, agreement, and trust that she was to convey said property to their said children ; that meanwhile she merely held the same in trust for them, and with the purpose of terminating said trust, and not otherwise, she made the conveyance complained of. It is not averred that plaintiffs had any notice or knowledge of the alleged trust. A demurrer to this defense was sustained, and, a decree having been rendered for plaintiffs, the defendants appeal.

It is claimed on the part of defendants that, the verbal or parol trust having been executed by the deed of the property to the children, such deed cannot now be set aside ; while, on the other hand, it is contended that, as the alleged trust rests in parol, it is within the statute of frauds and is incapable of establishment, and that, not having been executed until plaintiffs’ claim for damages had accrued, the defendant Adelaide Bloch could not dispose of the property by voluntary conveyance, to the prejudice of plaintiffs, and therefore that it is subject to be applied to the satisfaction of the judgment. And this is the only question presented.

That Richmond is one of those protected by statute against the conveyance of any estate or interest in lands with the intent and for the purpose of defrauding “creditors or other persons of their lawful suits, damages, forfeitures, debts, or demands” (Hill’s Ann. Laws, § 3059), [593]*593does not seem to be controverted. We will proceed, therefore, upon the assumption that such was his status, and, the deed having been made subsequent to the date upon which the action accrued, he is entitled to have it set aside if fraudulent. This is unlike the ordinary case where suit is brought to set aside the conveyance of a debtor, in that the debtor in this case, and those claiming under her, aver that she was a mere trustee of the property for the use and benefit of her co-defendants; and, as tested by the demurrer, the averment must be taken as true. It is clear that an express trust resting in parol falls within the statute of frauds, and is incapable of being established: Hill’s Ann. Laws, § 781. “Wherever this statute,” says Mr. Perry in his valuable work on Trusts (vól. 1 [5 ed.] , § 79), “or the substance of the statute, is in force, express trusts in realty cannot be proved by parol. * * * They must be manifested or proved by some writing signed by the party to be charged with the trust. They need not be created and declared in writing, but only manifested or proved by writing; for, if there be written evidence of the existence of the trust, the danger of parol evidence, against which the statute was directed, is effectually removed.” In support of this proposition, see, also, Hansen v. Berthelson, 19 Neb. 433 (27 N. W. 423); Lawson v. Lawson, 117 Ill. 98 (7 N. W. 84); Kelly v. Karsner, 72 Ala. 106; Hutchinson v. Tindall, 3 N. J. Eq. 357; Smith v. Howell, 11 N. J. Eq. 349.

It is not necessary, however, that the writing declarative of the trust should have been executed contemporaneously with the instrument under which the trustee acquired and holds the property. Any subsequent acknowledgement thereof, by deed or other writing, sufficiently clear and explicit in its terms and conditions to manifest the purpose and capacity in which he holds, will [594]*594fulfill the demands of the statute, and supply the requisite evidence by which to establish the trust: Smith v. Howell, 11 N. J. Eq. 349; Cain v. Cox, 23 W. Va. 594; Price v. Brown, 4 S. C. 144; Gardner v. Rowe, 2 Sim. & S. 346. In Cain v. Cox the declaration of trust was in the nature of a title bond executed by the grantee some six years after the Conveyance to her by deed under which the trust was claimed. In Smith v. Howell the declaration of trust was signed ten years after the making of the deed, and in Gardner v. Rowe there was a declaration after an act of bankruptcy had been committed ; and in all these cases the writing was held to be sufficient and competent by which to establish the trust. The adjudicated purpose of the statute, however, is not to declare such a parol or verbal trust illegal, and therefore a nullity. But the trustee may elect to perform the conditions thereof, notwithstanding the absence of compulsory power ; and the courts will, if he chooses to act upon'his verbal promise, protect him in the execution of the. trust, and, as far as possible, will protect the beneficiaries in the enjoyment of the fruits of its execution, and when once the trust is executed it cannot be revoked : 1 Perry, Trusts (5 ed.), §§ 76, 77; Eaton v. Eaton, 35 N. J. Law, 290; Karr v. Washburn, 56 Wis. 303 (14 N. W. 189). In Sieman v. Austin, 33 Barb. 9, it was sought to subject the interest of an apparent owner of land to the lien of a judgment creditor after a conveyance to the real owner in execution of a trust which rested in parol. The trust was express in its nature, and the question was whether parol evidence could be received, under the circumstances, to support the deed to the cestui que trust. In deciding the case, Emott, J., said : “The law refuses its aid to enforce agreements creating trusts or charges upon lands when they rest altogether in parol, not because the trusts are therefore void, but because it will not permit them to be proved by such [595]*595evidence. But when a person who has received the title to lands purchased for the benefit of another, although without having declared the fact in writing, recognizes and fulfills the trust, it is not the duty of a court to deny its existence.

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Cite This Page — Counsel Stack

Bluebook (online)
60 P. 385, 36 Or. 590, 1900 Ore. LEXIS 39, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richmond-v-bloch-or-1900.