Taylor v. Kelly

37 P. 216, 103 Cal. 178, 1894 Cal. LEXIS 745
CourtCalifornia Supreme Court
DecidedJune 23, 1894
DocketNo. 15218
StatusPublished
Cited by9 cases

This text of 37 P. 216 (Taylor v. Kelly) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor v. Kelly, 37 P. 216, 103 Cal. 178, 1894 Cal. LEXIS 745 (Cal. 1894).

Opinion

Haynes, C.

This action was brought by Taylor against Michael Joseph Kelly, to compel the conveyance to him of an undivided interest in certain real estate situate in the city and county of San Francisco. M. J. Kelly died before the cause was tried, and Annie A. Kelly, to whom he had conveyed the land after the commencement of the action, was substituted as defendant. The defendant had judgment, and the plaintiff appeals from an order denying his motion for a new trial.

A brief outline of the facts, as found by the court, is as follows:

That on April 9, 1887, Michael J. Kelly entered into an agreement in writing with one Driscoll to purchase the lands in question for the sum of six thousand one hundred dollars, and paid thereon twenty-five dollars, the purchaser to have thirty days for examination of the title. That on or about April 15, 1887, Kelly made a verbal agreement with the plaintiff, whereby the plaintiff should pay one-half of the purchase price on or before the expiration of the time allowed for examination of the title, and thereupon should be equally, interested with Kelly in the purchase. That on May 7, 1887, the title being satisfactory, Kelly demanded from Taylor the payment of one-half the purchase money, but Taylor neglected to pay it. On May 9, 1887, Kelly paid in full for the land, and took a conveyance in his own name, and on the same day had the deed recorded. On August 29, 1887, the plaintiff inclosed in an envelope a check, payable to Kelly or order, for three thousand and fifty dollars, and caused the same to be delivered to Kelly, who refused to accept it; that at the same time the check was drawn and offered to Kelly, plaintiff had in the bank on which it was drawn two thousand nine hundred and forty-seven [181]*181dollars and forty-six cents, and no more, and that this was the only offer of payment he ever made. The court further found that certain allegations of the complaint, viz: that plaintiff had paid ten dollars for a search of the title; that the deed was taken by Kelly for the mutual benefit of both; that he reposed confidence in Kelly, and that by reason of such confidence and the promises of Kelly the contract and deed were taken in Kelly’s name, were untrue; that Kelly did not at any time admit that the purchase was for their mutual benefit; that he did not act in bad faith or fraudulently toward the plaintiff, and that plaintiff neither paid nor gave any consideration for the verbal agreement made by Kelly with him.

Appellant specifies several particulars, in which he claims that the findings are not justified by the evidence. Several of these may be considered together.

It is insisted that the verbal agreement mentioned in the findings was made before the written agreement between Kelly and Driscoll was made; that the purchase was in fact made for the joint benefit of Kelly and the plaintiff; that therefore it was not a subsequent agreement by Kelly to share his purchase, or to sell to plaintiff a half interest in the property, and that the plaintiff negotiated the purchase from Driscoll pursuant to the verbal agreement; that “ there is no evidence that it was only on Taylor’s payment on or before the time the purchase money would become due and payable that Taylor should become equally interested in the property.”

The only finding about which there is any doubt as to its being justified by the evidence is the one which finds that the verbal agreement between appellant and Kelly was made on or about April 15th, which was after the date of the contract between Kelly and Driscoll. But a doubt will not authorize us to set aside the finding. But if the finding was that the verbal agreement was made with Kelly before the date of the contract with Driscoll it would not avail the appellant.

[182]*182Defendant, as one of her defenses, pleaded the statute of frauds. It is also conceded that appellant did not pay for his interest, and, treating his check as a tender, did not tender payment until some three months after the purchase had been consummated and the whole of the purchase price paid. The agreement alleged in the complaint was that plaintiff and Kelly should purchase; not that Kelly should purchase, and upon payment by Taylor to Kelly of one-half the purchase money at some time in the future, Kelly would convey. It is not claimed by plaintiff' that Kelly agreed to purchase for their joint benefit, though it is claimed that he did so purchase. The only agreement alleged in the complaint, and which appellant, by his exception to the findings, insists was made before the contract of sale between Driscoll and Kelly, required appellant to join in the purchase (not necessarily in' the contract of purchase), by furnishing his proportion of the purchase money at the time the purchase was consummated. This was not done. The contract with Driscoll having been made by Kelly alone, he was bound to fulfill it •whether Taylor kept his verbal agreement to join in the purchase or not. If Taylor declined to join in the purchase and pay his proportion of the purchase money, it was not in Kelly’s power to compel him to keep his verbal agreement. A tender of a deed to Taylor for an undivided half of the property, and a demand of payment of one-half the purchase price, the whole of which Kelly was obliged to pay, would have been fruitless, as Taylor could have successfully pleaded the statute of frauds to any action brought to compel payment. Certainly Taylor is in no better position, for he must rely upon a verbal contract, and that contract one that he had himself failed to comply with.

It is insisted by appellant that Kelly became a trustee of the interest in the land in question for his benefit; that “ a trust arises when personal confidence is reposed in one and accepted by the other.” But there was no relation of trust or confidence between these parties, [183]*183unless the verbal agreement itself created such relation. Here there was no trust or confidence other than that which is manifested in all business affairs in which the honor or ability of the party is relied upon for performance. There was in this case no reason for the confidence reposed, other than the opinion entertained by appellant that he could rely upon Kelly. “It is not every case where parties trust each other that the law recognizes as confidential.” (Brison v. Brison, 75 Cal. 528; 7 Am. St. Rep. 189, and cases cited.)

Appellant, however, states his proposition in another form, thus:

“A person who gains a thing by fraud . ... in violation of a trust (that is, confidence reposed) or other wrongful act, is an involuntary trustee of the thing .gained for the benefit of the person who would otherwise have had it.”

In support of this proposition he cites Civil Code, section 2224, and Greiner v. Greiner, 58 Cal. 122. The section of the Civil Code referred to is as follows:

“ One who gains a thing by fraud, accident, mistake, undue influence, the violation of a trust or confidence,- or other wrongful act, is, unless he has some other and better right thereto, an involuntary trustee of the thing gained, for the benefit of the person who would otherwise have had it.”

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Cite This Page — Counsel Stack

Bluebook (online)
37 P. 216, 103 Cal. 178, 1894 Cal. LEXIS 745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-kelly-cal-1894.