Wood v. Rice

85 S.E. 838, 143 Ga. 647, 1915 Ga. LEXIS 566
Supreme Court of Georgia·Decided July 3, 1915·Published·Cited by 4 cases

Opinion

Lumpkin, J.

(After stating the foregoing facts.)

While the contracts, agreements, or understandings alleged in the petition are not expressly stated to have been in parol, yet, from the petition as a whole, it may fairly be inferred that such was the fact; and counsel on both sides argued the case on that basis, each treating the alleged contract or agreement relied on as having been in parol. We will so consider it.

At the time when the alleged agreement was made, the property had been sold by the sheriff, and bought by Harris. Neither J. N. Wood Sr., nor his wife, nor his children had any right or interest whatsoever in or in regard to it. Harris, the absolute owner, was willing to let Wood repurchase the property for $4,500, but Wood was unable to raise the money. According to the allegations, Eice agreed to buy the property from Harris and pay his own money for it; and it was “the understanding and agreement” that the $4,500 paid by Eice was to be repaid to him with interest at seven [651] per cent., and that when this amount had been paid he “was to have no further interest in said property, and was to relinquish all claim thereto in favor of your petitioners.” It was alleged that there was no restriction in the agreement preventing Eice from selling any part of the property, but that it was “understood and agreed” that he was to account to the plaintiffs for all money so received. Most of the property was realty. In so far as it was sought to create an express trust in favor of the plaintiffs, this could not be done by parol, especially not as to the realty. Civil Code (1910), § 3733. In the petition the expression is several times used that J. N. Wood Sr. did certain things, “acting for petitioners.” Sometimes it is stated that he acted “for the benefit of petitioners.” Considering the allegations together, it is apparent that it was not intended to allege that he was acting as agent for his wife and minor children, and that they were the real principals in the contract or agreement, but merely that he desired to obtain the property from Harris for the benefit of his family. Neither Wood nor any of the plaintiffs paid anything to Rice or to Harris. The cases in which an owner has conveyed land to another, and in which a resulting trust in favor of the grantor or his heirs has been declared on account of fraud or other circumstances, are not applicable. Neither are those decisions applicable in which a parol contract in regard to land has been held to be taken out of the statute of frauds by reason of full performance by the party seeking to enforce it, such as full payment of the purchase-money; or by such part performance on his part as would make it a fraud not to enforce the contract against the other party. Neither Wood nor Harris is here seeking to enforce any contract made by Eice with either of them. Stripped of all surplusage, the proceeding is an effort by Mrs. Wood and her children to enforce an alleged parol agreement made by Wood with Eice, by which the latter was to buy certain land and personalty, and, after receiving back the amount advanced by him, with interest, to deliver what remained, or its proceeds, if sol'd, to the plaintiffs. There was not even a direct allegation that Eice was to sell the property and reimburse himself, but it was alleged that “there was no restriction in the agreement aforesaid that said Eice should not sell off any part of the property so deeded to him by the said Harris, but it was understood and agreed that he should account to petitioners for all moneys so re[652] ceived by him in the sale of said property.” At another place it was alleged that after Eice should have received the $4,500 paid by him, he was to have no further interest in the property. It was also alleged that the petitioners were allowed to remain upon the land without payment of rent for four years. How their being permitted to use the land free of rent gave them any rights in regard to it, which they did not possess before, is not apparent. Eice was not in the position of an agent or attorney who buys property for his principal and takes the title in his own name. There are various rather indefinite allegations as to agreements, understandings, and impressions of parties, and as to Wood and his wife and children acquiescing in sales of parts of the property by Eice upon the understanding that they were being made for the purpose of paying back to him the $4,500 which he had paid to Harris for the land, with interest thereon, and upon the understanding and agreement that any surplus received by him would be paid to the plaintiffs. The allegations do not show an implied trust under the Civil Code (1910), § 3739. The plaintiffs’ right to recover, if any, must at last rest upon the alleged parol agreement above indicated, together with the fact that Eice sold the property for more than the amount which he had paid for it, with interest. They seek to recover a judgment for the excess. There is nothing to take the agreement, as to the land, out of the statute of frauds.

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Wood v. Rice, 85 S.E. 838, 143 Ga. 647, 1915 Ga. LEXIS 566 (Ga. 1915).

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