Russell v. Roach

217 N.W. 115, 173 Minn. 314, 1928 Minn. LEXIS 1003
CourtSupreme Court of Minnesota
DecidedJanuary 6, 1928
DocketNos. 26,319, 26,320.
StatusPublished
Cited by5 cases

This text of 217 N.W. 115 (Russell v. Roach) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Russell v. Roach, 217 N.W. 115, 173 Minn. 314, 1928 Minn. LEXIS 1003 (Mich. 1928).

Opinion

Taylor, C.

Plaintiffs brought an action against Frederick Roach and Ida Roach, Bis wife, to impress a constructive trust upon a parcel of real estate in the city of Minneapolis designated as No. 116 Henne-pin avenue. Plaintiffs brought another action against Frederick Roach and Ida Roach, his wife, and Arthur M. Roach and Nellie Roach, his wife, to impress a constructive trust upon the funds received by defendants Frederick and Arthur for the sale of another parcel of real estate in the city of Minneapolis designated as No. 515 Hennepin avenue. The two actions were tried together. Near the end of the trial Fred Russell withdrew as plaintiff and had his name stricken from the pleadings, and Jeannetta Russell continued the action as sole plaintiff. The court made findings and directed judgment for defendants in both, and plaintiff appealed from orders . denying new trials' therein. Both actions are' submitted to this court on the same record and briefs.

The property known as No. 116 was owned by Chester Roach in his lifetime; that known as No. 515 was owned by his wife and was the family home during their married life. She will be referred to as Mrs. Roach to distinguish her from a daughter of the same Christian name. Chester Roach died intestate February 3, 1892. At the time of his death No. 116 was subject to a mortgage of $8,000 and No. 515 to a mortgage of $20,000. He left surviving *316 his wife and five children, Adelaide, Jeannetta, Frederick, Angeline and Arthur. The two eldest were married, Adelaide to A. E. Mc-Cracken, Jeannetta to Fred Russell. Upon the petition of Mrs. Roach, Frederick, then 24 years of age, was appointed administrator of his father’s estate. A claim of Mrs. Roach against the estate for something over $15,000 was allowed by the probate court. Under license of the probate court No. 116 was sold to Mrs. Roach for the sum of $18,000, its appraised value, and she became the owner of that property thereby. The final decree made May 9, 1893, found the residue of the estate remaining for distribution amounted to ‘the sum of $6,299.79, and awarded the sum of $2,099.94, being one-third thereof, to Mrs. Roach, and $839.97, being one-fifth of the remainder, to each of the five children. The children were not paid .their shares in cash, but accepted the promissory notes of Mrs. Roach therefor.

Mrs. Roach was not familiar with business and committed the management of her business affairs to Frederick, who managed and conducted them as he saw fit but with her full knowledge and acquiescence. He became practically the head of the family, and provided for his mother and his younger sister and brother, who were in school at the time of their father’s death, Arthur being then only 12 years of age. In 1898 the older girls demanded payment of the notes given them by their mother for their shares in their father’s estate. Mrs. Roach conveyed No. 116 to Frederick, ■ and Frederick paid the notes held by the three girls then aggregating the sum of $3,497.74; and these notes together with the notes held by Frederick and Arthur were canceled and surrendered.

Frederick had started in the bicycle business in 1890 in the rear of the home at No. 515. He found 'the bicycle business profitable and continued in it for 26 years. The house at No. 515 was an old frame structure. Not long after his father’s death he rented an apartment elsewhere for his mother and the two younger children, and occupied one side of the house at No. 515 for his bicycle business and rented the remainder. In 1898 he removed the old building and erected in its place a two-story brick building which was completed the following year at a cost of $25,000. The mortgage of *317 $20,000 was taken np and a new mortgage of $27,000 placed on the property. In 1903 Mrs. Roach conveyed this property to Frederick and Arthur, subject to the mortgage. In 1908 it was sold for $90,000. The payment of the mortgage, commissions and other expenses reduced the amount actually realized to about $55,000. In connection with this sale Mrs. Roach executed a quitclaim deed to the purchaser at his instance, and for the purpose of perfecting the title procured the entry of a final decree in the estate of her mother through whom her title had come.

Arthur, while still in his teens, began working for Frederick in the bicycle business and continued working for him for' several years after becoming of age. Arthur married in 1901. Angeline had married previously. Frederick built a house for Arthur, apparently in 1903. Mrs. Roach lived with Arthur and his wife for about 18 years. In 1919 she was suffering from senile dementia to such an extent that she was taken to a private sanatorium or hospital where she remained until her death in February, 1925, at the age of 87 years. The expense for her care and nursing at the sanatorium was borne by Frederick and Arthur, Frederick paying the greater part of it.

The complaints charged that Frederick took advantage of the confidence placed in him by his mother and induced her to convey these properties by fraudulently promising that he would hold them in trust for all her children and that each would receive a pro rata share at her death; and that she made the conveyances in reliance upon such promises and in the belief that they were made in trust and not absolutely in fee. The trial court, after a careful and painstaking consideration of all the facts and circumstances and all the evidence bearing thereon, found that there had been no fraud or undue influence on the part of Frederick and that no such promises had been made. The evidence fully justified these findings, and it is doubtful if contrary findings could be permitted to stand.

Plaintiff does not claim to have shown that Frederick exercised any undue influence over his mother or ever promised or represented *318 that the other children ^should share in the property; but rests her present contention upon the claim that Frederick stood in a confidential and fiduciary relation to his mother, that these properties were conveyed to him without consideration or for an inadequate consideration, that his mother’s mind became affected, and that the burden was on him- to establish the validity of the transfers by showing that he had acted fairly' and in good faith. We shall merely refer to some of the outstanding facts. Mrs. Roach conveyed one of these properties 27 years before her death and the other 22 years before her death — long before she became afflicted with the mental malady from which she suffered in her later years. When No. 515 was sold she perfected the title" by employing an attorney and having the probate of her mother’s estate completed, and ratified the sale by executing a quitclaim deed to the purchaser. This was 17 years before her death, when she was in full possession of all her faculties; and there is nothing to indicate that she recognized or considered that anyone other than Frederick and Arthur had any interest in the property or its proceeds.

Mrs. Roach being dead, whatever agreement may have been made between her and Frederick is not shown. But the fact appears that she turned the management of the property over to Frederick and permitted him to use and deal with it as if it were his own, and thereafter conveyed the title as hereinbefore stated; and that Frederick supported and provided for her throughout the remainder of her life. He provided a home for her and the two younger children until they were married.

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Bluebook (online)
217 N.W. 115, 173 Minn. 314, 1928 Minn. LEXIS 1003, Counsel Stack Legal Research, https://law.counselstack.com/opinion/russell-v-roach-minn-1928.