Williams v. Thrasher

62 F.2d 944, 1933 U.S. App. LEXIS 3886
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 17, 1933
DocketNo. 6654
StatusPublished
Cited by4 cases

This text of 62 F.2d 944 (Williams v. Thrasher) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Thrasher, 62 F.2d 944, 1933 U.S. App. LEXIS 3886 (5th Cir. 1933).

Opinion

HUTCHESON, Circuit Judge.

Trespass to try title for an undivided one-fifth interest in 160 acres of oil producing land in Texas, which plaintiff’s grandfather, J. M. Mays, had owned, and which, the trial court instructed the jury, unless prevented by the creation of a trust as alleged by defendants, descended to and was owned by her, and for damages. The verdict was for the defendants on a finding that J.' M.- Mays, the common source of title, had by parol gift settled on his son, J. H. Mays, under whose deed defendants claim, certain vendor’s lien notes seemed by an express lien on the property, in trust to realize upon them and distribute the proceeds to the heirs, and that the son, by retaking the property in cancellation of the notes and conveying it for a sum which he distributed among the heirs, had executed the trust in accordance with its terms.

The other defenses in the ease all passed out of it in the course of the trial, except bona fide purchase and ratification by the plaintiff of the act of her uncle in selling the property. The court determined that the record did not support these defenses. He charged the jury that plaintiff had the legal title to the interest sued for, and that she was entitled to recover in the suit unless the jury found, under the instructions of the court, that a trust was created as claimed by defendants.

Upon the question whether the record'sup[945]*945ports the finding of the jury under the instructions of the court that a parol trust was created authorizing Mays to make a binding sale of the land, the briefs argue interestingly and exhaustively whether, if a trust was' created, it was for more than to collect the notes and divide the proceeds.

Appellants argue that this was the only authority, upon the most extreme view of the evidence, that the settlor gave the trustee. They say that the superior title was not trusteed; that being real estato it could not have been trusteed by parol under the circumstances of this ease; that it descended to the heirs on the death of Mays; and that when J. H. Mays canceled the notes on which no principal had been paid, and only a small part of the interest, by taking from the vendee a reconveyance of the land, he reunited in the heirs full title, the superior title and the claim of the vendee, thus discharging the duties of his trusteeship, if they ever existed, by realizing on the notes through the recovery of the land. Appellees argue that the trusteeing of the notes for the purpose of realizing upon them carried with it the power to do so, either by sale of the notes or the retaking of the land, and the sale of it. Much argument was pressed and authorities cited on these points. Appellants advanced as .authoritative in support of their claim that the reserved superior title was the real, the only title, Johnson v. Smith, 115 Tex. 193, 280 S. W. 158. While appellees, countering in support of their proposition that the superior title, except when necessary to protect the notes it secures, is no title at all, cite Humphreys-Mexia Co. v. Gammon, 113 Tex. 247, 254 S. W. 296, 29 A. L. R. 607.

We do not find it necessary to decide these interesting questions, for in no view of 'the evidence does it establish the creation of any kind of trust. What the testator said was with the purpose and intent of making a testamentary disposition of his Texas property, without regard to whether it consisted of the notes, or because of the long and great default in payment, of the land itself. What he wanted done was to have his son, after his death, carry out his instructions. The son testified on direct examination: “He wanted me to take those papers in the business and straighten it up, and divide it up among the heirs. These were my instructions; take the place and manage it, settle it up to the best of my ability and divide up the proceeds and keep the minor’s part until she became of age or married.”

In answer to the court’s question, ho said, “Well, of course that was the only piece of property my father hád at that time. He wanted me to settle it up, and take care of it, and dispose of the proceeds among the heirs,” while his testimony on cross-examination, question and answer, was:

“Q. I believe that your testimony was that he wanted you at his death to take charge of his affairs and distribute all the property he had among his children? A. Yes sir; that is about the substance of it.

“Q. He directed you, as I understand it, to collect these notes and get the money out of them and divide it among his children ? A. Yes sir and wind up the affairs of his estate.

“Q. You got the notes after his death, did you not? A. Yes sir.

“Q. You haven’t any recollection of having possession of these notes before his death? A. No, sir.”

This evidence shows one thing, and one thing alone: That the father, desiring to make provision for the handling of his estate after his death, and ignorant of the formalities necessary to make such disposition effective, was undertaking to and did give to his son, not the present dominion over his property, but testamentary instructions for distributing it among his heirs after his death. Such an attempt, of course, fails in Texas as elsewhere. Barnes v. Horn (Tex. Civ. App.) 233 S. W. 859; Milam v. Stanley (Ky.) 111 S. W. 296, 17 L. R. A. (N. S.) 1126; Drake v. Security Co., 203 Ky. 733, 263 S. W. 4; Re Lindhorst’s Estate, 216 Mo. App. 473, 270 S. W. 150; Moore v. Tiller (C. C. A.) 61 F.(2d) 478.

Both appellants and appellees have argued this ease as though what was sought to be proven here was a parol gift, either inter vivos or causa mortis, and proof therefore of delivery was essential. There are authorities outside of Texas laying it down that though proof of delivery is essential to the establishment of a parol gift of personalty, either inter vivos or causa mortis, a parol trust of personalty may be settled without delivery. Krankle v. Krankle, 104 Ky. 745, 47 S. W. 1084, 1086; Williamson v. Yager, 91 Ky. 282, 15 S. W. 660, 34 Am. St. Rep. 184; Roche v. George’s Executors, 93 Ky. 609, 20 S. W. 1039.

No Texas authorities have been cited to us differentiating as to the essentiality of proof of delivery between eases of parol gifts and parol trusts. All of the Texas eases cited as requiring proof of delivery make that requirement indifferently in all cases. There are Texas eases, however, Brown v. Fore (Tex. Com. App.) 12 S.W.(2d) 114, 117, 63 [946]*946A. L. R. 435; Cowen v. First Nat. Bank, 94 Tex. 547, 63 S. W. 532, 64 S. W. 778; Weems v. First Nat. Bank (Tex. Civ. App.) 234 S. W. 931, 932; Schauer v. Von Schauer (Tex. Civ. App.) 138 S. W. 145, which suggest, if they do not establish, that delivery is not essential where the thing given is an intangible.

In arriving at our conclusion that no ease of parol trust is made out, we have not, though we think it plain that the evidence fails to show delivery, rested our conclusion on this failure of the proof, but upon the view that wholly apart from delivery, the casé fails because it clearly shows that there was neither intent nor attempt to do more than make a testamentary disposition. We therefore do not determine, as we should have to do if the defect in the proof was in the matter of delivery alone, whether under the circumstances of this case proof of delivery was essential.

Farther, since we believe that under either the strict rule of proof of parol trust which prevails generally,1 or under the preponderance rule which appellees, on the authority of Lord v. N. Y. Life Ins. Co., 95 Tex.

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