SHIPE v. Hillman

292 P.2d 123, 206 Or. 556, 1955 Ore. LEXIS 336
CourtOregon Supreme Court
DecidedDecember 30, 1955
StatusPublished
Cited by24 cases

This text of 292 P.2d 123 (SHIPE v. Hillman) 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
SHIPE v. Hillman, 292 P.2d 123, 206 Or. 556, 1955 Ore. LEXIS 336 (Or. 1955).

Opinion

WARNER, C. J.

This is a suit to establish a trust on real property situate in Grant, Harney, and Crook counties in Oregon, resulting in a decree declaring the defendant as holding title to said real property as trustee for the use and benefit of herself and the parties Plaintiff. It is from this decree that the defendant appeals.

The defendant-appellant, Bessie K. Hillman (hereinafter called “Bessie”), is a daughter of Clarence Dayton Hillman, deceased (hereinafter called “Hill-man, Sr.”). The plaintiffs-respondents are children or grandchildren of the decedent, and together with the appellant constitute all of Hillman, Sr.’s heirs.

Bessie’s title was derived in 1922 through four separate deeds from her father to her as grantee, absolute in form. Each contained the usual recital of consideration and had customary habendum clauses.

This litigation has its genesis in the eccentric business methods of Hillman, Sr. He was a “boomer”, with a firm belief that any land in the west had value *560 to someone, and was, as described in tbe briefs, “a most amazing and colorful character”. During his lifetime he had extensive land holdings in the states of Washington, Oregon, Nevada, California, and also in Canada. At one time he was the largest landholder in the state of Washington. It is said that at the peak of his operations Hillman, Sr. amassed a fortune of nearly $20,000,000. However, when he died in 1935 these values, as disclosed by the probate record had been reduced to $235,000. There is nothing in the record before us which remotely suggests that Hillman, Sr. was insolvent at any time, or was threatened with insolvency when he conveyed the instant property to Bessie.

Aside from exhibiting a domineering and patriarchal control over his sizeable family and his employees, he handled his various property holdings in a most unorthodox manner. We shall not attempt to enumerate his many departures from the conventional ways of conducting business, except to note here the one which seems to give greatest comfort to the plaintiffs-respondents as a basis for their claim. The business oddity to which we refer was Hillman, Sr.’s penchant, when purchasing land, for placing his titles in the names of others than himself—more frequently in the names of his children, even while in their minority, or in the names of his employees, and sometimes even employing fictitious names for grantees. It was a peculiarity which has no convincing record explanation.

The deeds to the property in controversy have , this more or less unique distinction: In all of the deeds wherein the defendant-appellant was grantee, her father and his wife were grantors; whereas, when the other relatives or employees of Hillman, Sr. were *561 grantees we are told that in most instances the grantors were parties from whom Hillman, Sr. purchased the property.

It is the position of plaintiff that Hillman, Sr. placed titles in various persons for his convenience, confident that he could on demand, as he always had in the past, control the grantees of his selection, and "by reason thereof compel them to execute any conveyance that he might require from time to time.

The only allegation bearing directly upon the alleged trust relationship is found in paragraph V of the Amended Complaint, and reads:

“That upon her attaining her majority in the year 1922 her Father placed legal title to many thousands of acres of his lands in Oregon and elsewhere in her name to facilitate his handling of it. That she took said naked title upon the understanding that she was holding it in trust for her Father. That the beneficial interest in said lands remained and at all times since has been in her Father and his lawful heirs. That she at no time paid or surrendered anything in exchange for said conveyances.”

It will be noted that the respondents make no effort to suggest what kind of a trust was the product of the dealing had between Hillman, Sr. and his daughter Bessie, i.e., whether an express, resulting, or constructive trust.

Although the Court below may not have been under any duty to define the particular kind of a trust it ultimately found as existent, we cannot here avoid so doing in our effort to discover if Bessie, in fact, holds title as a trustee; and, if Bessie is a trustee, then to determine what are the rules of law and evidence *562 giving support to the particular kind of trust from whence her trusteeship arises.

“A trust is an equitable obligation, either express or implied, resting upon a person by reason of a confidence reposed in him to apply or deal with property for the benefit of some other person,, or for the benefit of himself and another or others, according to such confidence, * * * ”, Templeton v. Bockler, 73 Or 494, 506, 144 P 405.

As a general rule trusts are divided into two> principal classifications: express trusts, and implied trusts. The latter classification, sometimes referred to as trust by operation of law, has been further subdivided into: (a) resulting trusts, and (b) constructive trusts. 1 Bogert, Law of Trusts and Trustees, § 1, p 7; 89 CJS 722, Trusts, § 10; 54 Am Jur 22, Trusts, § 5. Some other authors have made finer distinctions and have stated that four types of trust exist—express, implied, constructive and resulting. Both Professors Lewin and Perry define trusts as being of four types: Lewin, Trusts, (14th ed), 16, 82; Perry on Trusts, (7th ed), § 112. However, Professor Bogert, in his text, Bogert on Trusts, (2d ed), § 20, states, and we think correctly, that the prevailing rule in this country is contrary, and that implied trusts include resulting and constructive.

Notwithstanding the failure of any attempt by pleading or decree to demonstrate the type of trust, if any, which emerged from the transactions had between the senior Hillman and his daughter, the circuit court described the incident ligitation as * # a suit to impress a constructive trust upon certain real property * * Later in its opinion the Court holds in essence that there was no constructive trust * * because there wasn’t any agreement.” Indeed, the *563 circuit judge concluded Ms opinion with the statement: “I am not going to decide in this case now whether or not this amounts to a resulting or constructive trust. ’ ’

Express trusts are intentionally created by a direct and positive act of the settlor by some writing, deed, will, or declaration. In Oregon an express trust can come into existence only by writings subscribed by the party creating the trust, or his lawful agent, and executed with such formality as may be required by law. OES 93.020. The law is well settled in this state that parol evidence is not admissible to establish an express trust. Bowns v. Bowns, 184 Or 603, 200, P2d 586; Hornbeck v. Crawford 130 Or 230, 279 P 870; Howard v. Foskett 96 Or 446, 189 P 396. It is unnecessary, therefore, to here distinguish between an express trust and an implied trust in view of the fact that there is no contention made that the transactions had between Hillman, Sr. and his daughter were the product of an express trust.

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Bluebook (online)
292 P.2d 123, 206 Or. 556, 1955 Ore. LEXIS 336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shipe-v-hillman-or-1955.