Spencer v. Pettit

2 S.W.2d 422
Texas Commission of Appeals·Decided February 15, 1928·No. No. 874-4356·Published·Cited by 26 cases

Opinion

SPEER, J.

J. H. Pettit and Amanda Elizabeth Pettit had nine children when on April 1, 1910, the mother died. At the time of her death the Pettits owned considerable property, both personal and real, in Lubbock county, where the husband was engaged in the ranching business. Amanda Pettit died intestate and there was no administration whatever upon her estate. J. H. Pettit married again. From and after the death of his first wife he continued the ranch business as it had been conducted before her death, without making any sort of partition of the property with his children. This suit was instituted by the children against their father, W. E. Spencer, J. E. Spencer, and a number of other defendants, to recover their interest In certain properties, alleging that the same had been purchased by their father after their mother’s' death with properties and the proceeds of properties belonging to them; that the Spencers were the owners of such property, with notice of their rights, and further prayed for a partition. The pleadings were broader than here stated, but, in view of the issues submitted and the judgment rendered, the other allegations become immaterial. [424] The cause was submitted upon special issues, and a judgment entered in favor of six of the plaintiffs, who were minors, and against the other three, adults, with a partition of the lands as prayed for. The Spencers and the adult plaintiffs appealed. The Court of Oivil Appeals affirmed the judgment in all respects. 268 S. W. 779.

As already indicated, the scope of the pleadings was very much broader, but, as finally resolved, the case was one for recovery of title and partition of certain lands purchased by the Spencers' from J. H. Pettit. The issues submitted to and found by the jury were as follows:

“(1) Was the property that was sold by J. H. Pettit on July 2, 1919, and described in the contract of said date between W. E. and J. E. Spencer and J. H. Pettit and others, acquired by the use and investment of the proceeds of the property, real or personal, owned and held by J. H. Pettit and his deceased wife, A. E. Pettit, or either of them, at the time of her death, or from the increase of said property?
“(2) Did the defendants W. E. and J. E. Spencer, or either of them, have notice of any claim of plaintiffs to the property in controversy other than sections 8, 10, and 12, at the time of the execution and delivery of the deed?”

The jury answered each of these issues in the affirmative. Upon this verdict the court rendered judgment for the six minor plaintiffs for their interest in the lands and for a partition of the same.

The defendants, the Spencers, objected to special issue No. 1 in substance, because it submitted whether or not the properties involved were acquired by J. H. Pettit by the use and investment of the proceeds of the property of plaintiffs because there was no evidence that all of such property was thus acquired, and at the same time requested the following instruction, which was refused:

“Was the property in controversy, or any part thereof, acquired by the labors, credit, or business ability of J. H. Pettit and his present wife, Mamie Pettit?”

The specific properties in which the plaintiffs recovered an interest were acquired by J. H. Pettit through various deeds after his second marriage. It is therefore apparent the minor plaintiffs have recovered upon the theory of a constructive trust in their favor because of their father’s use of funds and properties belonging to them in the acquisi- > tion of the properties in controversy, title to which was taken in his own name.

There can be no dissent from the views expressed by the Court of Civil Appeals as to the law upon the main issues discussed in that court’s opinion.

Upon the death of Amanda Elizabeth Pettit her one-half of the community estate of herself and husband immediately vested in her children. Thereafter, in the absence of administration or guardianship with partition, the surviving husband and children became tenants in common of the property, each being entitled to the occupation, but neither entitled to the right of disposition of the whole. The father’s continued occupation and use of the property was not wrongful, but his disposition thereof was. It can make no difference that such disposition was without fraudulent or other wrongful intention, and upon such disposition the children would have their choice of remedies as between a proceeding against their father for the value of the properties wrongfully disposed of, with interest, or for the recovery of other properties into which they could trace their own property or its proceeds. In either case the burden would be upon the children to allege and prove the facts entitling them to recover, which in the latter case, would impose upon them the duty of tracing their funds or property into the acquisition of the specific property sought to be recovered.

The recovery of such specific property would, of course, ihcludetits increase or enhanced value, and would not in any wise be affected by the fact that the father had bestowed labor and care in the transaction by which it was acquired. His disposition of the children’s funds under such circumstances would in law be wrongful, and his holding would in law be in trust for them. He would not be allowed to charge'them for his services or otherwise to make a profit out of his own wrong. These principles are elementary, and are fully recognized and discussed by the Court of Oivil Appeals. To cite further authorities for them would be carrying coals to Newcastle.

The specific properties recovered in this case were acquired by the father through deeds showing that in the purchase a small payment of cash or property, in each instance was made, and a note or notes executed for the balance of the purchase money. The properties thus incumbered, along with other -property, personal and real, were conveyed to the Spencers in exchange for other property ; the Spencers in each instance assuming to pay the outstanding notes as liens against the property. None of such notes was ever paid by Pettit, nor it seems by the Spencers, but the same remained a charge upon the land at the time of the judgment in this suit.

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