Stone v. Fitts

160 S.W.2d 1013, 1942 Tex. App. LEXIS 179
CourtCourt of Appeals of Texas
DecidedMarch 13, 1942
DocketNo. 14348.
StatusPublished
Cited by1 cases

This text of 160 S.W.2d 1013 (Stone v. Fitts) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stone v. Fitts, 160 S.W.2d 1013, 1942 Tex. App. LEXIS 179 (Tex. Ct. App. 1942).

Opinion

SPEER, Justice.

This is a trespass to try title suit instituted by Earl C. Fitts against Jerome S. Stone and his wife, Beatrice K. Stone, to recover title and possession of an undivided one-half interest in 122.6 acres of land in Montague County. The whole tract is described by metes and bounds and no point is made by either party that the land in controversy is not sufficiently identified. Stone and wife answered with general denial and pleas of not guilty. They also filed a cross-action against Fitts for the title. . . .

*1014 Fitts’ proof, of title consisted of a conveyance to J. E. Kuteman, the common source, that he died intestate, leaving no wife, no children or their descendants, and that Mrs. Beatrice K. Stone was his only sister, that there were no surviving brothers, no surviving children of either deceased brothers or sisters, and that Mrs. Nellie Kuteman Gaydon was his mother. That after the mother had been divorced from Gaydon, and remarried to Lee Fitts, a conveyance from the mother, then Mrs. Nellie Kuteman Fitts, and husband, was made to Earl C. Fitts.

In the cross-action the Stones pleaded a written contract and agreement made between them and Mrs. Stone’s mother (whom for obvious reasons we will hereinafter refer to as Mrs. Kuteman), whereby they had each obligated themselves not to sell or convey any' of the large landed interests inherited by them from J. E..Kute-man, deceased, for a period of two years; that the deed from Mrs. Kuteman (Fitts) to Earl C. Fitts was made during the period restricted by the contract. Further allegations show, however, that Earl C. Fitts, an attorney, had performed legal services for Mrs. Kuteman and was endeavoring to collect a fee from her; that in a meeting between all parties at Wichita Falls, Mrs. Kuteman told Fitts that she had turned the matter of settlements over to the Stones and whatever they did would be satisfactory with her; that Fitts was threatening suit unless payment was made of his fees; that at a conference in which Mrs. Kuteman was not present, Fitts said to the Stones that Mrs. Kuteman was willing to deed him the land in controversy, and having knowledge of the contract between them, asked the Stones to join in the conveyance. They declined to do so but allege in that connection as follows: “But in order to protect the estate, defendants (the Stones) agreed with plaintiff (Fitts) that if he would obtain a conveyance of title of an undivided one-half interest in and to the land described in plaintiff’s petition from said Mrs. Kuteman, then married to Lee Fitts, that although they would not join in said conveyance, that he could take title in his name, hold same in trust for the said Mrs. Stone, and that she would pay him therefor the sum of Eight ($8.00) Dollars per acre. He (Fitts) agreed that he would attempt to obtain from the said Mrs. Kuteman, as above, a conveyance and that he would hold the title in trust for Mrs. Stone.” Further allegations are to the effect that Fitts did in fact take said conveyance in payment of his said fees; that within a few days after said conveyance was made the Stones made tender to him of the $8 per acre agreed by them to be paid and demanded a conveyance to them by him and Fitts refused and still refuses to make said conveyance of the land to Mrs. Stone. The Stones kept their tender good at all times until the date of trial.

The trial was to a jury, but after the court had excluded from consideration by the jury testimony offered by the Stones, in support of their allegations of trust, an instructed verdict for Fitts was given. Judgment being entered on the instructed verdict, the Stones have appealed. They base their appeal and right of reversal upon the alleged error of the court in excluding their testimony and in giving the summary instruction.

We must first determine if the pleadings of the Stones were sufficient, if proven, to establish a parol trust for Mrs. Stone, in the property conveyed by Mrs. Kuteman to Fitts. We have no doubt that such a trust can be so established. Fitts’ counsel concede it. It seems to be the rule that to establish a parol trust in property, at least three things must appear; they are, (1) an agreement between the parties that such a trust shall exist, (2) that the beneficiary has furnished the money with which the purchase is to be made, or has obligated himself to pay it in a way that the purchaser can enforce it, and (3) the conveyance was made to the grantee in pursuance of such agreements and obligations. It has often been held that where the beneficiary has obligated himself in a manner which is enforceable by the one in whose name the property is taken in trust, it is equivalent to the furnishing of the money by the beneficiary to pay the purchase price in the first place. Bailey v. Harris, 19 Tex. 108, 109; Lucia v. Adams, 36 Tex.Civ.App. 454, 82 S.W. 335; Vicars v. Quinn, Tex.Civ.App., 154 S.W.2d 947; Elbert v. Waples-Platter Co., Tex.Civ.App., 156 S.W.2d 146.

As we view the pleadings of the Stones, this is not a case in which they and Fitts had contracted for Fitts to buy the land and to thereafter sell it to the Stones at a specified price as contended for by Fitts. If it could be so construed then no trust was created; it would simply be a parol agreement to convey land, which *1015 would violate the Statute of Frauds, Vernon’s Ann.Civ.St. art. 3995, and could not be enforced. Wade v. Cohen, Tex.Civ.App., 173 S.W. 1168; American National Ins. Co. v. Warnock, Tex.Civ.App., 143 S.W.2d 624, writ dismissed, correct judgment; Thorp v. Gordon, Tex.Civ.App., 43 S.W. 323, writ refused; Lobban v. Wierhauser, Tex.Civ.App., 141 S.W.2d 384, writ refused; Wheeler v. Haralson, 128 Tex. 429, 99 S.W.2d 885; Schutz v. Harris, Tex.Civ.App., 149 S.W. 242, writ refused.

Measured by every standard laid down in the authorities which draw the line of distinction between the two classes of cases, we think the pleadings alleged a parol trust, by which Fitts was to get a conveyance from Mrs. Kuteman and hold the legal title in his name in trust for Mrs. Stone, and that when she should thereafter pay him the amount agreed upon he would make conveyance to her. One might speculate why, under the circumstances, the parties did not pursue a more direct course by having Mrs. Stone advance to her mother 'the $400 for payment to Fitts of the fee and let Mrs. Kuteman make conveyance of the land directly to Mrs. Stone; but we think we can see the motive that prompted Mrs. Stone not to do this. There is evidence in the record that the land was really worth on the market $16 per acre, and that Mrs. Kuteman preferred to convey the land in payment of the fee over making payment in money; at that price the undivided one-half interest in the 122.6 acres would be worth more than double the amount of the fee owing by Mrs. Kuteman; perhaps Mrs. Stone did not want to buy from her mother the interest at less than half its value, but having authority under the contract between them to prevent a sale by her mother, Mrs. Stone chose the method pleaded by her, to get the title conveyed to Fitts in trust for her for a consideration of about half its value.

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Related

Fitts v. Stone
166 S.W.2d 897 (Texas Supreme Court, 1942)

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160 S.W.2d 1013, 1942 Tex. App. LEXIS 179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stone-v-fitts-texapp-1942.