Union Savings & Trust Co. v. Manney

172 P. 251, 101 Wash. 274
CourtWashington Supreme Court
DecidedApril 22, 1918
DocketNo. 14272
StatusPublished
Cited by6 cases

This text of 172 P. 251 (Union Savings & Trust Co. v. Manney) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union Savings & Trust Co. v. Manney, 172 P. 251, 101 Wash. 274 (Wash. 1918).

Opinion

Ellis, C. J.

In this action plaintiff, a judgment creditor of defendants as a marital community, seeks [275]*275to set aside a deed from defendant husband to defendant wife conveying block 1, and lots 4 to 9, both inclusive, in block 2, of Manney’s addition to the city of Seattle, and to subject that property to the lien of the judgment.

The facts are these: Defendants were married in 1883. They came to Seattle some twenty-seven years ago, at which time, the wife testified, “We had just barely enough money to bring us here.” In the fall of 1904, the partnership of W. F. Manney & Company was' formed, consisting of defendant Walter Manney and his two sons, W. F. Manney and Henry Manney. The firm was engaged in the business of street and highway contracting until the fall of 1914, when it became insolvent through heavy losses on three contracts. Frequent loans were secured from the plaintiff bank, and it appears that, from February 20, 1907, up to the commencement of this action, the firm was only twice free from debt to plaintiff, once from September 10 to October 9, in 1908, and again from August 5 to August 7,- in 1912. Though the fact is disputed, we think the evidence fairly establishes that, at the time of the failure, defendant Walter Manney had overdrawn his account with the partnership to the extent of at least $7,000.

On June 28, 1915, plaintiff recovered a judgment for $4,770 and attorney’s fees against Walter, W. F. and Henry Manney and against the three communities composed of these men and their wives. This judgment was based upon three notes of the partners for loans from plaintiff for $1,500, $1,200 and $2,000, respectively, and respectively dated August 17, 1914, August 24, 1914, and October 5,1914. Hpon this judgment an execution was issued and returned unsatisfied. On April 13, 1915, while the action on the notes was pending, Walter Manney executed to his wife a deed of the [276]*276property here involved on an expressed consideration of love and affection, with a recital that the deed was given “in confirmation of my act of giving to my said wife all my community interest, if any, in the above described real property at the time said land was purchased and the instrument of conveyance taken in the name of Amelia Manney, ’ ’ and further reciting that it was their intention, at the time of such purchase, that the land should be and remain her separate property, for which purpose the deed was taken in her name and payment was made from sale of property owned by her.

Defendants’ version of the acquisition of this property is as follows: In the spring of 1901, they purchased twelve lots in G-ilman Park addition to Seattle for a consideration of $960, paying $500 cash and giving a $460 purchase money mortgage. It was then agreed between them that the property was to be the wife’s separate property as a gift from the husband. The initial $500 was raised, $95 from the sale of two cows which the wife testified had been given her by the husband, who added $65, and they borrowed $340 from W. P. Manney, who was to receive half of the profits in cáse of sale. Title was taken in the wife’s name, and both defendants executed a mortgage upon the lots for the balance of $460 to one Polhemus, the seller. The husband was not willing to build a home on these lots, and in the fall of 1901 and summer of 1902, they were sold for about $2,100. The money was collected, put in his own bank account and disbursed by defendant Walter Manney. He paid the mortgage and gave one-half the profits to W. P. Manney. The money was mingled with his other funds, which were checked against'indiscriminately for these and his general business purposes. Both defendants testified that, when these lots were sold, it was with the understanding that [277]*277other property more suitable for a home would be purchased .and given to the wife in her name for her “separate support against any loss he might sustain in business.” Accordingly they looked at lots 3, 4, 5, 6 and 7 of Leary Acre Tracts, and on October 26, 1901, Walter Manney entered into a contract with Ferry-Leary Land Company for their purchase. This contract recited that the vendor will sell to W. Manney the tracts mentioned for a consideration of $800, of which $100 was to be paid in cash and $700, with interest, in deferred installments. On this contract seven payments were made as follows: October 26, 1901, initial payment $100; January 29, 1902, $100; May 12, 1902, $120; August 30, 1902, $200; April 13, 1903, $180; November 24, 1905, $100; April 17, 1907, $74.50; total, $874.50.

Touching these payments the husband testified that the first was made from proceeds of sale of the Gilman Park lots, that he did not know where he got the money with which he made the second, third and fourth payments, and that he made the fifth from money paid to him for a homestead relinquishment. The last two payments were made by Mrs. Manney with checks drawn on the funds of W. F. Manney & Company, signed by her husband or W. F. Manney. These payments matured the contract, and defendant Amelia Manney took the contract to the land company and, at her request, the deed was made in her name. Tract 6 was later sold and the other tracts were replatted as Manney’s addition, both of defendants joining in the dedication as owners and both joining in the acknowledgment. The husband improved the property and constructed a house on lot 5, block 1, and has paid all taxes assessed against the lots since the purchase. W. F. Manney identified checks of the partnership aggregating over $7,000, which checks he testified were given for labor and material which went into the con[278]*278struction of the house and for taxes and disbursements in connection with the property. Mrs. Manney estimated that the house cost only about $3,000, but whatever its cost, there is no question that it was paid for by her husband with community funds drawn from the partnership business. He testified that the money he paid for the lots, excepting the first $100 and the money he afterwards expended for improvements and taxes, he considered as gifts to his wife, but it is not pretended that he ever actually gave her any of this money in specie. Over plaintiff’s objection, several witnesses were permitted to testify that, at various times, the husband had stated that the Gilman Park lots, and subsequently the lots here involved, belonged to his wife. W. P. Manney, son of the husband and step-son of the wife, though he had lived with defendants till 1909, testified that he never heard of any such arrangement between defendants, that he assumed the property was community property, and in September, 1911, listed this property as an asset in the sum of $20,000, in a statement to the bank.

In June, 1908, defendants joined in the execution of a mortgage to one Siegley on lot 4 of the Leary Tracts for a loan of $1,500. This money was turned into the firm and credited to Walter Manney’s account. When lot 6 of the Leary Tracts was sold to one Joslin the cash payment was treated in the same way. After-wards the partnership purchased this tract from Joslin and took up a mortgage which he had given thereon to Amelia Manney as a part of the purchase price. This $1,200 was credited by the firm to the account of Walter Manney. None of this money was turned over to Amelia Manney as owner of the property from which it was derived, nor was there any evidence tending to trace this specific money into the improvements on the property. It was evidently treated by all parties as [279]*279community property of defendants and was placed and remained in the husband’s control.

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Cite This Page — Counsel Stack

Bluebook (online)
172 P. 251, 101 Wash. 274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-savings-trust-co-v-manney-wash-1918.