Welch v. Brown

46 Colo. 129
CourtSupreme Court of Colorado
DecidedApril 15, 1909
DocketNo. 5719
StatusPublished
Cited by1 cases

This text of 46 Colo. 129 (Welch v. Brown) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Welch v. Brown, 46 Colo. 129 (Colo. 1909).

Opinion

Mr. Justice Hill

delivered the opinion of the court:

Appellant brought this action to recover $2,-250, which was the sum received by the appellee from the sale of an interest in lands situate in Los Angeles county, California, owned by appellant, by her deeded to the appellee, which he sold for the above amount, and for which she claims to have received nothing.

[130]*130Trial was to the court without a jury, which made a finding of facts in substance that the property mentioned was deeded to appellee by appellant and A. L. Welch, and was accepted under the following conditions: At the time of the making of said deed, A. L. Welch (the husband of appellant), was indebted to The Western Bank (of which the appellee was president), and desired to obtain further credit from the said bank and for the purpose of getting security for said indebtedness, as well as any indebtedness that might thereafter be incurred by him to the bank, the bank demanded of said A. L. Welch that he should give security for the purposes aforesaid. In compliance with said demand, the said A. L. Welch caused the appellant to-join with him in the execution of said deed to appellee, as trustee for the said bank, with authority toappellee to- sell the same and use and apply the proceeds to moneys then owing and which might thereafter become owing by said A. L. Welch to- said bank. At the- time of the making of said deed by appellant to appellee, the appellee had no communication or understanding with the appellant, and never at any time agreed with her, or on her behalf, or her account to purchase said real estate from her or to pay her the proceeds or any part from any sale he might' make of the property. Appellee never dealt with, or intended to deal with, the appellant in connection with said transaction, nor did he ever contract with her that she should receive any money whatsoever in the sale and disposal of said property, nor did he have any knowledge or belief that she had any other interest in said property than the mere legal title.

The court further found that appellant was advised, at the time of making said deed, as to the purpose for which it had been demanded, and consented; [131]*131she knew at the time the property was sold that it had been sold, and for $2,250, and made no demand for the proceeds; knew it was being used for the purposes aforesaid, and made no objection to her husband using the proceeds of said property. That-in August, 1901, after she was advised the money had all been used by her husband for the benefit of himself, her and her children, she gave no notice to said bank or said Brown, that the said A. L. Welch had used it without her authority; in fact, she never made any demand upon the bank for said money, and never made any claim thereto until about the month of November, 1902.

The court further found that, by her silence and acquiescence in the use of said money by her husband, she fully ratified and confirmed his acts, both in delivering said deed and in using the proceeds derived therefrom; upon which findings judgment was rendered in favor of the appellee, from which the appellant appeals.

The errors assigned, in substance, are that the judgment is contrary to both the law and the evidence, and that certain evidence was admitted which should have been rejected.

The uncontradieted evidence is, that the property originally belonged to A. L. Welch (the former husband of the appellant) who executed a deed to her for it, without her knowledge and without any money consideration. The appellee was the president of The Western Bank, in which bank Mr. Welch had overdrawn his account some $1,500, which amount was unsecured; he was also' owing the bank other sums, for which it held as collateral a deed to an interest in this same property. The appellee insisted upon protection to the bank for the overdrafts; Mr. Welch consented, and a few days thereafter returned with a quit-claim deed executed by appellant [132]*132and himself to the appellee for this undivided interest in the property. The understanding between Brown and Welch was, that he (Brown) was to sell it, together with the other interests held hy the hank and, when sold, the proceeds for this interest were to go to pay the overdrafts and the balance to he placed to Mr. Welch’s credit in the hank. Brown had been led to believe it was Welch’s property, although the legal title stood in the name of Mrs. Welch. After making the sale, March 1, 1901, he paid the. overdrafts from the proceeds, and placed the remainder to Mr. Welch’s credit, against which he (Welch) gave checks ilntil it was finally checked out, September 12, 1901. At no time during this period had he (Brown) seen Mrs. Welch, and he never made any effort to ascertain her position concerning the transaction. A. L. Welch was the agent for the appellant, and the deed to Brown was given December 18, 1900; but the appellant never saw the appellee in reference to the property or proceeds until November, 1902, although she knew the property had been sold in the fall of 1901. The appellant and her husband had trouble in 1902, and were divorced in 1903.

There was a conflict of evidence as to the other findings.

The first contention urged is that, as the deed of conveyance from A. L. Welch to Minerva C. Welch was absolute and contained no trust clause, the appellee could not show that the appellant held the property in trust for her husband and the appellee, as a third person, could not attack the conveyance collaterally, as he attempted to do. Several Colorado cases are cited in support of the rule “that, in the absence of fraud, an express trust cannot be established hy parol testimony.” With this law .we have no . contention, hut the findings of the trial court [133]*133were not that the property was that of the husband. The. evidence was competent for the purpose for which it was introduced, namely, as to whether the appellant was advised, at the time she signed the deed, concerning the purposes for which it was to be used, and consented thereto and made the deed for that purpose. The facts and circumstances under which she received the property might have a mate-' rial bearing upon the question of allowing her husband to dispose of it for his benefit or theirs jointly as testified by him.

The second contention is that, as the deed of conveyance from appellant to appellee was an absolute deed, the appellee could not show any trust arrangements under the Statute of Frauds, and that the court erred in permitting testimony showing the arrangement between the appellee and A. L. Welch whereby the agent got the benefit of the proceeds, and the appellee secured the payment of the indebtedness to his bank. This evidence was not for the •purpose of defeating the deed. The deed was made for the purpose of conveying the legal title, and there is no contention that it did not. The appellant herself attempted to show by parol evidence that the consideration was other than that named in the deed ($1.00). If it was admissible on her part to show by parol evidence that appellee promised to pay her a price other than that named in the deed, certainly it was permissible for appellee, by the same kind of testimony, to overcome that offered by the appellant. It is conceded that the true consideration for which a deed is given can be established by parol evidence, to which we agree, and add that, in a disputed case, the disposition of the consideration, how it was to be paid, what became of it, etc., usually have some bearing upon the main question, and can likewise be established by parol evidence.

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Bluebook (online)
46 Colo. 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/welch-v-brown-colo-1909.