Shong v. Farmers' & Merchants' State Bank, Inc.

70 N.W.2d 907, 1955 N.D. LEXIS 112
CourtNorth Dakota Supreme Court
DecidedJune 7, 1955
Docket7494
StatusPublished
Cited by22 cases

This text of 70 N.W.2d 907 (Shong v. Farmers' & Merchants' State Bank, Inc.) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shong v. Farmers' & Merchants' State Bank, Inc., 70 N.W.2d 907, 1955 N.D. LEXIS 112 (N.D. 1955).

Opinion

JOHNSON, Judge.

This action comes to us for a trial de novo upon an appeal from a judgment of the district court of Renville County, North Dakota, decreeing that the plaintiff, Peter M. Shong, and' the defendants, Gladys Schmidt, Grace Conway, Frances Shong, Franklin Shong, Hazel Shong, Barton J. Westergren, and Alice B. Sul-ster, the children of Alfreda Shong, deceased, are the owners as tenants in corn-mon of the South Half (Sj4) of Section 23, Township 163, Range 84, Renville County, North Dakota. This real prop-was purchased from Renville County under a contract for deed in the name of Peter Shong on the 15th day of January, 1942, and a county deed was issued to him on the 26th day of January, 1945. He brought an action to quiet title to the premises on the 21st day of March, 1952, claiming to be the absolute owner thereof. The answering defendant, Gladys Schmidt, claims that he holds the title in trust.

If the facts in this action warrant the determination that the plaintiff holds title to the premises for himself and his brothers and sisters, the trust arises by implication and would be in the nature- of a resulting trust.

The trial court decided the issues between the parties apparently on the theory of an implied trust. An implied trust is one which is created by operation of law. Section 59-0105, NDRC 1943.

“Implied Trust; How Created. An implied trust arises in the following cases: [subsections 1, 2 and 3 not applicable under the facts]
“4. When a transfer of real property is made to one person and the consideration therefor is paid by or for another, a trust is presumed to result in favor of the person by or for whom such payment is made.” Section 59-0106, NDRC 1943.

A trust in land created by operation of law may be established by parol evidence. Fox v. Fox, 56 N.D. 899, 219 N.W. 784. Parol evidence is admissible to prove an implied trust resulting from payment or ownership of the purchase money for the conveyance to another and to show that the consideration paid belonged to the person claiming the trust. 65 C.J. 385 et seq.; 89 C.J.S., Trusts, § 116; Sheffield Milling Co. v. Heitzman, 192 Iowa 1288, 184 N.W. 631. *911 Such trust does not depend upon contract, but arises by operation of law and is not affected by the statute of frauds. Redman v. Biewer, 78 N.D. 120, 48 N.W.2d 372.

The record in this case reveals that Alfreda Shong was married twice. Her first husband was Michael H. Conway. Peter M. Shong and Grace Conway, Alice B. Sulster and Barton J. Westergren are children of the first marriage of Alfreda Shong. One son of the first marriage of Alfreda Shong was killed in the war. The testimony is silent as to what war, but it must have been World War II. None of the children of the first marriage ever lived on the premises involved in this action except Peter M. Shong, the plaintiff. Sometime in the 1920’s, Alfreda Conway married Ray Shong. On March 6, 1931, under a land sale contract, Ray Shong and Alfreda Shong, his wife, purchased the premises involved in this action from the Farmers’ and Merchants’ State Bank of Hutchinson, Minnesota, for the sum of $5,000.

It appears that four children were born of the marriage of Ray Shong and Alfreda Shong, to wit: Gladys Schmidt, also known as Mrs. Gordon Schmidt; Frances Shong, Hazel Shong and Franklin Shong. About 1936, Ray Shong abandoned and deserted his family. The address of Ray Shong is unknown. The evidence does not show whether he is dead or alive. The taxes on the premises were not paid and Renville County acquired title thereto for nonpayment of taxes on the 10th day of April, 1940. At that time Peter M. Shong, the plaintiff, a child of the first marriage of Alfreda Shong, was about twenty years of age and the other ■children were between twelve and seventeen years old.

,- The dispute in the evidence in this action ^centers around a disagreement as to whether the plaintiff paid for the premises or whether the $2,000 paid therefor was made to Renville County by the combined efforts of Alfreda Shong, now deceased, and Peter M. Shong. It also involves the question of whether the premises were purchased by Alfreda Shong, not only for Peter M. Shong, but for his half brother and sisters, already mentioned, or whether they were purchased by Alfreda Shong for all of her children, both of the first and the second marriage.

Peter M. Shong testified that he had two full sisters and two full brothers, one of whom was killed in the war. The record does not disclose the whereabouts of Grace Conway. The address of Alice B. Sulster, as shown by the record, is Solvang, California. But the record does show that except for Peter M. Shong, the children of the first marriage of Alfreda Shong did not live on the premises which are the subject of this action at any time after the purchase thereof in the name of Peter M. Shong from Renville County, North Dakota, nor did they in any way contribute to the common effort of Peter M. Shong and his half brother and sisters, and Alfreda Shong in maintaining the family and keeping it together on this farm. '

There are two types of'implied trusts, constructive and resulting.. Section 59-0106, NDRC 1943. If a trust is involved here, it is a resulting trust. ..

The existence of a resulting trust depends upon the- acts or expressions of the parties indicating an intent that a trust relation result from their transaction. For a discussion of resulting trusts see Volume 29, North Dakota Law Review, pages 75-80.

The courts are reluctant to ingraft a trust by parol on the legal title to real estate,' and there is perhaps no better established doctrine than the one which requires a high degree of proof in order to establish the trust by parol evidence. 23 A.L.R.' 1500, 1502 and cases cited; Carter v. Carter, 14 N.D. 66, 103 N.W. 425; Holler v. Amodt, 31 N.D. 11, 153 N.W. 465; Bernauer v. McCaull-Webster Elevator Co., 41 N.D. 561, 171 N.W. 282. These cases hold that the proof of an implied or resulting trust must be clear, specific, substantial, and satisfactory.

Whether a trust has been created is primarily, a question of intention. Reel v. *912 Hansboro State Bank, 52 N.D. 182, 201 N.W. 861.

The issue in this case is whether or not an implied or resulting trust has arisen under the facts and t circumstances. The intent of the parties, is to be gathered from the evidence of their actions and expressions at the time of the purcháse of the property from Renville County in the name of Peter Shong, and their actions and expressions subsequent thereto. It has been held that where the issue is whether the settler intended to set up a trust in his own favor or to make a settlement on another, his declarations, either before or at the time of the transactions in question, are admissible to prove his intention in the matter. Smithsonian Institution v. Meech, 169 U.S. 398, 18 S.Ct. 396, 42 L.Ed. 793.

••Here we have the difficult situation that the mother of the contending parties is deceased. Her testimony is no longer available to show her intent at the time the property was purchased. ' •

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70 N.W.2d 907, 1955 N.D. LEXIS 112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shong-v-farmers-merchants-state-bank-inc-nd-1955.