Houston v. Tillman
234 N.C. App. 691
| N.C. Ct. App. | 2014Background
- Plaintiff Geraldine Grier Houston sues Juanita Tillman and the Estate of Clifford Medlin, Jr. for personal services, a constructive trust, parole trust, and parole gift.
- Jury found Coburg Avenue residence and a 2005 Dodge Stratus were subject to a constructive trust and awarded Houston $120,000.
- Medlin acquired title to the Coburg residence; Houston and her family continued living there after foreclosure, with Medlin paying the mortgage and Houston providing care.
- Tillman, as Medlin's sister and personal representative, repossessed the Coburg residence and Dodge, evicted Houston, and sold the Dodge with proceeds to the estate.
- Suit was amended; trial proceeded on the constructive trust theory, with the jury instructed on that claim and verdict for Houston.
- Trial court denied motions for judgment notwithstanding the verdict; defendants appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court erred in denying directed verdict/JNOV on the constructive trust claim | Houston contends constructive trust validly imposed | Tillman/Medlin estate contend no wrongful acquisition, thus no trust | No error; proper under controlling law |
| Whether the evidence supports imposition of a constructive trust under Variety Wholesalers | Some other inequitable circumstance supports trust | No wrongdoing or unconscionable conduct proven | Constructive trust may be imposed without wrongdoing; evidence sufficient |
| Whether amended complaint mooted the prior mootness arguments and related rulings | Amendment supersedes original pleadings | Mootness to the original complaint undermines prior rulings | Amendment renders pre-amendment issues moot; no reversible error |
Key Cases Cited
- Variety Wholesalers, Inc. v. Salem Logistics Servs., LLC, 365 N.C. 520 (2012) (constructive trust may apply without fiduciary duty if unconscionable or inequitable conduct shown)
- Sara Lee Corp. v. Carter, 351 N.C. 27 (1999) (discusses constructive trust concepts in context of unconscionable conduct)
- Wilson v. Crab Orchard Dev. Co., 276 N.C. 198 (1970) (definitive articulation of constructive trust origins in unconscionable circumstances)