Streeter v. State Ex Rel. Shull

1932 OK 40, 7 P.2d 636, 154 Okla. 160, 1932 Okla. LEXIS 377
CourtSupreme Court of Oklahoma
DecidedJanuary 19, 1932
Docket20425
StatusPublished
Cited by8 cases

This text of 1932 OK 40 (Streeter v. State Ex Rel. Shull) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Streeter v. State Ex Rel. Shull, 1932 OK 40, 7 P.2d 636, 154 Okla. 160, 1932 Okla. LEXIS 377 (Okla. 1932).

Opinion

ANDREWS, J.

This is an appeal from a judgment of the district court of Kay county in favor of the defendant in error, the plaintiff in the trial court, against the plaintiffs in error, the defendants in the trial court. Since the issue herein will be determined by a decision as to the rights of the plaintiff in error A. E. Streeter, for convenience we will hereinafter refer to the defendant in error as the plaintiff and the plaintiff in error A. L. Streeter as the defendant.

The action was begun for the purpose of vacating and annulling certain conveyances of real estate from David Allison and subjecting that real estate to the satisfaction of certain judgments and claims against David Allison and in favor of the Deposit Guaranty State Bank of Ponca City, an insolvent state banking corporation which had been taken charge of by the State Bank Commissioner for the purpose of liquidation as provided by law.

The plaintiff alleged that the land in question belonged to David Allison and that it had been conveyed by him for the purpose and with the intention of hindering, delaying, and defrauding his creditors. Those allegations were denied. Thereby two issues of fact were created. The burden was on the plaintiff to sustain its contentions and to show, first, that the property belonged to David Allison, and second, that it had been conveyed by him for the purpose and with the intention alleged. 27 C. J., sec. 553, p. 712. It was not incumbent upon the defendant to prove the negative thereof, although the answer contained an allegation negativing the same. 27 C. J. sec. 712, p. 786. A statement in the answer of matters provable under a general denial does not place on the defendant the burden of proving such facts.

If David Allison was not the owner of the property in question, the plaintiff cannot recover in this action, for the rights of the plaintiff 'in the property are no greater than the rights of David Allison therein at the time the legal title thereto was in his name.

It is contended by the plaintiff that, since the defendant alleged in his answer that he paid the purchase price of the land and that the title was taken in the name of David Allison for the use and benefit of the defendant, the burden is on the defendant to establish the trust agreement pleaded by the defendant by that quantity of evidence necessary under the decisions of this court as stated in Hayden v. Dannenberg, 42 Okla. 776, 143 P. 859; Rollow v. Taylor, 104 Okla. 275, 231 P. 224; Craig v. Craig, 114 Okla. 302, 247 P. 67; Boles v. Akers, 116 Okla. 266, 244 P. 182, and Teuscher v. Gragg, 136 Okla. 129, 276 P. 753. That rule would be applicable in cases where it was sought to establish a trust in real estate. The object in this case is not to establish a trust in real estate. The plaintiff alleged the title of this real estate to be in Allison. The allegation of the trust was in denial of that allegation of the plaintiff. The burden was on the plaintiff, and the cases with reference to the establishing of a trust are- not applicable. The defendant i-n this action could defeat the claim of the plaintiff by showing by competent evidence that Alli-son was not the owner of the property in question, but the burden wag not on the defendant to show that Allison was not the owner; the burden was on the plaintiff to show thát Allison was the owner thereof.

This is an equitable case and, on appeal, it is the duty of this court to affirm the judgment of the trial court if it is not clearly against the weight of the evidence, but, if it is clearly against the weight of the evidence, this court will reverse the judgment and render such judgment as the court below should have rendered. Tittle v. Wade, 129 Okla. 228, 264 P. 200.

The record in this case consists of 716 pages of typewritten matter. We think that nothing could be gained by abstracting the evidence herein and that it is sufficient to state that an examination of the evidence discloses that the judgment of the trial court is against the clear weight of the evidence as to the ownership of this land by David Allison. The judgment of the trial court could be sustained only by adopting the theory of the plaintiff, which is that “the whole theory of the defense as presented by this record is a glaring absurdity and we submit 'in all candor and fairness, does not rise to the dignity of a material defense”; that “no credence or credibility should be given evidence of this character”; that the defense is “a-fabrication and wholly false,” and that the real estate transactions “were handled in -a manner which is probably unheard of in the history of real estate transactions.” An examination of the evidence discloses little, if anything, to support that *162 theory. The testimony of the defendant is that he gave Allison the money with which to purchase the real estate through an agent of the Department of the Interior, and that Allison made the purchase for him And held the legal title in hi® name in trust. We do not agree that the manner of purchase was “probably unheard of in the history of real estate transactions.” If the purchase was not handled in the manner stated by the defendant the records of the Department of the Interior in the office of the Indian Agent, so far as this record shows, were available to the plaintiff to disprove the testimony offered by the defendant. The plaintiff did not so attack the testimony and it cannot be stricken down by the statement that it should be given no credence and that it is a fabrication and wholly false. The evidence of the defendant was much more than sufficient to rebut the presumption arising from the legal title to the land having been in Allison, and the clear weight of the evi-dance is to the effect that Allison was not the owner of the land and that he held the legal title thereto only in trust. Whether he held the legal title thereto in trust for the defendant or someone else is immaterial in this case, for in either event he Was not the owner thereof and the right of the defendant to recover is dependent on proving the ownership of the property by Allison.

In 27 C. J., sec. 713, pp. 786, 787 and 788, it is said:

“Fraud is never to be presumed when the transaction may be fairly reconciled with honesty, especially where it is alleged to have occurred many years before the bringing of suit; and hence the burden of proof, where the rule is not affected by special statutory provisions, is on the attacking creditor to show fraud in the conveyance; and the presumption of honesty and legality prevails in favor of ordinary business transactions, irrespective of whether an existing or subsequent creditor seeks to impeach the transaction, or whether the fraud is set up as a cause of action, or as a defense. If the fraud is pleaded as a basis of an action, plaintiff is under the necessity of establishing his case before defendant is obligated to offer any evidence in defense. The difficulty of proving fraud cannot in any way affect the necessity of proving it.”

It was announced in Lemp Brewing Co. v. Guion, 17 Okla. 131, 87 P. 584, by the territorial Supreme Court, as follows:

“In an action to set aside the title to reál estate upon the ground of fraudulent conveyance, the fraud must be distinctly pleaded and clearly and satisfactorily proven, and will not be implied from doubtfui circumstances which only awaken suspicion” —and it has been followed by this court in Culp v. Trent, 99 Okla. 112, 226 P. 348, and State ex rel. Mothersead v. Mobley, 112 Okla. 152, 241 P. 155.

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Bluebook (online)
1932 OK 40, 7 P.2d 636, 154 Okla. 160, 1932 Okla. LEXIS 377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/streeter-v-state-ex-rel-shull-okla-1932.