JOHN E. BRYAN et ux. v. A. G. McCASKILL, GEORGE A. BURR. et al.; ARCHILUS E. ROBERTSON et ux., Appellants.
SUPREME COURT OF MISSOURI, In Banc
November 22, 1920
284 Mo. 583
JOHN E. BRYAN et ux. v. A. G. McCASKILL, GEORGE A. BURR. et al.; ARCHILUS E. ROBERTSON et ux., Appellants.
In Banc, November 22, 1920.
- QUIETING TITLE: Controversy Between Defendants.
Section 2535, Revised Statutes 1909 , authorizes any two defendants, brought in by plaintiff in a suit to ascertain and determine title to land, to make up an issue with each other and to try it as adversary parties and secure its determination by the court, although, before entry of judgment, plaintiff disclaims title and leaves only the defendants as parties. - ——: Former Judgment for Plaintiff: Effect of Reversal Upon Defendants. Where plaintiffs obtained judgment against two defendants in a suit to quiet title, and on appeal it was ruled that the plaintiffs’ title was invalid for any purpose against either or both defendants, and the judgment was reversed and the cause remanded with directions to grant defendants a new trial, there
was no adjudication of the rights of defendants as against each other. - ——: Title Subject to Trust: Merger: Sale Under Execution. Where M. was desirous of purchasing timber on land which Davis claimed, and they were advised by counsel that the title was in the county, and it was then agreed between them that M. would advance $1.25 per acre, procure a patent from the county to himself, and convey to Davis, reserving the right to remove the timber within five years, and on February 8th the patent was issued and duly recorded, and on June 8th M. conveyed to Davis, reserving the right to remove the timber within five years, but prior thereto and on April 23rd judgment was obtained in the circuit court against M., on which execution issued nearly three years later and the land was sold, the court, in deciding whether Davis or the purchaser at the execution sale acquired the title, will assume that the legal title alone is involved, for if M. held the title subject to a constructive trust in favor of Davis at the time he conveyed to Davis on June 8th, such trust became merged in the legal title conveyed to Davis by the deed which executed it.
- RESULTING TRUST: Consideration. Where Davis claimed to own land worth ten dollars an acre and was sued by another claimant, and losing in the trial court appealed, and while the appeal was pending was advised by counsel that the title was in the county and thereupon entered into an agreement with M. by which M. was to advance $1.25 per acre, secure a patent from the county, then convey to Davis, reserving the timber and the right to remove it within five years, and said patent having been issued, the moving cause for its issuance upon the payment of $1.25 per acre being that the county had previously attempted by ineffectual patent to convey to Davis, and when M. had conveyed to Davis, reserving the timber, he dismissed his appeal, having expended $900 in trying to perfect his title, there was a trust in favor of Davis, supported by a real money consideration.
- ——: Oral Declaration: Statute of Frauds: Created by Others: Ownership of Consideration. Although
Section 2868, Revised Statutes 1909 , declares that, “all declarations or creations of trust or confidence of any lands . . . shall be manifested and proved by some writing signed by the party who is, or shall be, by law, enabled to declare such trusts,”Section 2869 also declares that “when any conveyance shall be made of lands . . . by which a trust or confidence may arise or result by implication of law, such trust or confidence shall be of like force as the same would have been if this act had not been made;” and that section recognizes that all trusts are not expressly declared or created by the donors,but that some trusts are created by law in the interest of equity and good conscience, which recognize the true ownership of land beneath the formal deeds by which the law expresses it. The true ownership, although not disclosed by the muniments of title, may be given effect by recognizing the consideration upon which the title rests. In such case the ownership of the land follows the ownership of the consideration, and the grantee is held to be a trustee for that purpose. - ——: Statute of Frauds: Exemptions: How Far Applicable. Resulting trusts growing out of interest, legal or equitable, in the consideration paid for the acquisition of the legal title, were not the only ones exempted from the operation of the Statute of Frauds by
Section 2869, Revised Statutes 1909 . That section applies to all conveyances made under such circumstances that a trust should arise in respect thereto. Included in its exemptions are constructive trusts, arising ex maleficio, enforced on the ground that to apply the statute would make it an instrument of fraud. - ——: Deception: Under the Guise of Friendship. Courts of equity do not permit a person to interpose the Statute of Frauds to complete title to property; procured in the guise of friendship and a good will for another and under a promise to use it in the performance of friendly offices for such other.
- ——: ——: Oral Agreement. Where M. agreed with Davis to purchase land from the county and then convey it to Davis, reserving the timber thereon for himself, although the agreement was oral, if the consideration above the mere purchase price of $1.25 per acre eminated from Davis, and it was recognized by both the county court and M. that Davis had a valuable interest therein, and M. conveyed to Davis, after patent issued, by a deed expressing the agreement, it will not be held, in favor of an execution purchaser under a judgment rendered before M. conveyed to Davis, that the duty of M. to convey depended upon an oral contract made before the title was acquired and was therefore an express trust and void under the Statute of Frauds. But it is held, that a constructive trust in favor of Davis existed from the time M. acquired the title from the county, and as the purchaser at the execution sale under the judgment rendered against M. before he executed said trust knew all about its existence and was in no sense an innocent purchaser, he did not take the title.
- ——: ——: How Created: Oral Agreement. An agreement of an agent to convey land acquired by him for another does not create a resulting trust, but simply goes to the method by which the trust is to be executed. The refusal of the agent to execute his oral agreement does not destroy the equitable right.
——: Claimants to Land: Pooling Interest: Constructive Trust: Innocent Purchaser. Davis claimed to own land worth ten dollars an acre and M. desired to acquire the timber thereon, and being advised that the title was in the county they pooled their interests and orally agreed that M. should advance $1.25 an acre and acquire a patent from the county and then convey to Davis, reserving the timber and the right to remove it within five years, and M. did advance the money and acquired a patent from the county. Held, that M. took the title subject to a constructive trust in favor of Davis, and a purchaser at an execution sale under a judgment rendered against M. before M. conveyed to Davis, being in no sense an innocent purchaser, but having full knowledge of the existence of the trust in favor of Davis from its inception, took nothing by his sheriff‘s deed.
Appeal from Mississippi Circuit Court.—Hon. Frank Kelly, Judge.
REVERSED AND REMANDED (with directions).
Andrew W. Hunt for appellants.
(1) The circuit court erred, after having stated that Robertson and wife had proved the facts pleaded, that such pleading and facts were within the Statute of Frauds (
Henson & Woody for respondents.
(1) All of the parties to this controversy were parties defendant in the case of Bryan v. McCaskill, 175 S. W. 961. They presented their several titles to the court and the court passed upon them deciding that Burr had the title. That decision is a final determination of the matters in issue here. When the Bryans disclaimed
BROWN, C.—On July 26, 1911, Bryan and wife filed their petition in the Stoddard Circuit Court for an adjudication of title to the north half and southeast quarter of Section 10 in Township 28 of Range 11 in said county, against A. G. McCaskill, Achilus E. Robertson and Florence B. Robertson his wife, George A. Burr, R. E. L. Johnson, Mary E. Holmes, and several others who
The cause was tried in said court on December 7, 1911, resulting in a judgment for the plaintiff declaring and quieting his title to the entire tract. From this an appeal was taken by the answering defendants Burr, Johnson and the Robertsons to this court, where the judgment of the Circuit Court was, on March 2, 1915, reversed, and the cause remanded to the Stoddard County Circuit Court “with directions to the trial court to set aside the judgment rendered in favor of plaintiffs, to grant defendants a new trial, and to proceed with the cause thereafter in accordance with the views heretofore expressed and as modified.” [175 S. W. 1. c. 966.] The title of defendants was deraigned through a decree of the St. Louis Circuit Court of April 13, 1888, in the case of Charles P. Chouteau v. Cairo & Fulton Railroad Company, Henry H. Bedford and others, which the plaintiffs desired an opportunity to impeach for want of jurisdiction of the subject-matter. This court gave them an opportunity to do so, if they could, in the court to which the cause was remanded. It turned out that the infirmity they suspected did not exist, so that the judgment for appellants stood unaffected in that respect.
Up to this time no issue had been made between the several defendants, but all had apparently joined hands in the circuit court as well as in this court to defeat the plaintiffs.
That on April 23, 1908, one Joseph Sibole obtained judgment in the circuit court for said county for $1179.95 against McKinnies, on which an execution was issued on April 12, 1911, and delivered to the sheriff of said county, under which all the right, title and interest of McKinnies was sold by the sheriff at public sale on October 6, 1911, to the defendant Burr, and a sheriff‘s deed executed to him therefor for the consideration of $75, the amount of his bid. The answer sets up these facts with much detail, alleging fraud and conspiracy in the transaction for the purpose of extinguishing the
To this answer and cross-petition the defendant Burr answered on October 25, 1915, and in March following applied for a change of venue, which was granted to the Circuit Court for Mississippi County. The answer consists of a general denial and prayer for affirmative relief.
The cause was tried in the Mississippi County Circuit Court on February 15, 1917, resulting in a judgment for the defendant Burr, that he was the owner in fee of the north half of said Section 10 and that Robertson and wife had no interest in it. The plaintiff John E. Bryan having died before the trial, the judgment also went against the plaintiff Ida M. Bryan, who had filed a disclaimer of title, as well as against all other parties who had been defendants in the suit, and thereupon Robertson and wife, after motion for a new trial overruled, perfected their appeal to this court.
In 1906 the Bryans, husband and wife, instituted a similar action against R. F. Gardner and Alfred Davis only, to quiet title to the north half and southeast quarter of Section 10. They both answered, Davis claiming to be owner of the north half of the section and Gardner claiming the southeast quarter. This suit resulted in a judgment for the plaintiffs as prayed. An appeal was taken by both defendants to this court and a supersedeas bond given. The cause stood upon our docket to October 17, 1910, when the case was called, and the appeal dismissed for failure to comply with the rules of this court.
On June 28, 1916, R. F. Gardner filed his petition in the Stoddard County Circuit Court in two suits, one against M. E. Holmes and William D. McKinnies, who claimed all the north half of the southeast quarter of
The land involved in this case was swamp and overflowed lands granted to this State by Act of Congress, September 8, 1850, and by the State to Stoddard County and by Stoddard County to Lewis M. Ringer by patent, dated May 1, 1869, and by mesne conveyances thereafter culminated in a deed from Henry M. Bedford and wife to Bryan and wife, the plaintiffs, dated June 1, 1900, and duly recorded September 21, 1900. This is the title under which Bryan claimed in this suit until it was held void by this court in a former appeal in this case. [Bryan v. McCaskill, 175 S. W. 961.]
The title asserted by the defendants Robertson has its inception in a conveyance of the same land by Stoddard County to the Cairo & Fulton Railroad Company, dated March 11, 1859. The railroad company mortgaged these lands, and they were sold under a decree of foreclosure rendered by the St. Louis Circuit Court, and conveyed by a commissioner appointed by that court to Charles P. Chouteau, the plaintiff in said decree, by deed dated October 2, 1888, and on the 26th of the same month Chouteau conveyed the lands to Stoddard County.
The contest on the former appeal was between Bryan and wife, plaintiffs, on the one hand, and Burr and the Robertsons claiming by the same title, on the other hand. The Bryans were eliminated by that judgment and entered a formal disclaimer, and this contest is solely between Burr on the one hand and the Robertsons on the other.
I. No question has been made in this case as to the right of these defendants to proceed with the trial of their own controversy without the presence of the plaintiffs, who, before the entry of the judgment below, disclaimed title and left only the defendants as parties. Of these only three are left; George E. Burr on one side, and Robertson and wife on the other. It is unnecessary for us to determine which of these, if either, occupies the position of plaintiff or defendant. The statute under which the proceeding was inaugurated (
What we have said should be confined strictly to the connection in which we have said it. The parties here have voluntarily assumed the relation which has made them adversaries in this appeal, and in doing so were within their rights and are properly before us. We do not wish to be understood as expressing any opinion as to whether they were or could have been forced into that position by the action of the plaintiffs in bringing their suit; or whether a plaintiff by bringing his suit under the section cited may make everybody parties and thereby force them to disclose all their differences with each other. Many phases of this question may hereafter come before us, but none of them have obtruded themselves here.
II. The respondent contends that the questions presented here were decided against these appellants by the previous judgment in this case. [Bryan v. McCaskill, 175 S. W. 961.] We do not understand that anything was then decided against them. The case came before us upon the appeal of Burr and the Robertsons, respectively respondent and appellants now. The suit of Bryan was against both of them, and the judgment of the trial court was against both. This court passed upon the effect of the title under which the victorious plaintiffs held, and determined it to be invalid for any purpose against either or both the appellants. Our judgment entered upon motion for rehearing with both Burr and Robertsons before us was as follows: “The cause is reversed and remanded with directions to the trial court to set aside the judgment rendered in favor of plaintiffs, to grant defendants a new trial, and to proceed with the cause thereafter in accordance with the views heretofore expressed and as
III. Respondent claims under a sheriff‘s deed, dated October 6, 1911, upon judgment of the Stoddard Circuit Court in favor of one Sibole and against McKinnies, rendered April 23, 1908.
The appellants claim through a quitclaim deed made by McKinnies to Dr. Davis, dated June 8, 1908, and recorded June 15, 1908.
McKinnies is the common source of title, and the question is: Which of these deeds constitutes the better titles as between themselves? Although the contest has been directed principally to the question whether or not at the time of the rendition of the judgment through which the respondent claims, McKinnies held the title subject to a trust in favor of Davis, it is evident that such trust, if it existed in fact, would become merged in the legal title conveyed by the deed which executed it. We will, therefore, assume that the legal title alone is involved. With this explanation we will take up the questions relating to the capacity in which McKinnies held the title acquired under his patent from the county, at the time the judgment against him became a lien upon his interest in the land.
The land involved was among the swamp lands granted to the State of Missouri under the
At and before the issue of the patent to McKinnies on February 8, 1908, the county was in the position of having granted this same land to Ringer by patent, dated May 1, 1869, and reacquired it by conveyance from Chouteau, dated October 26, 1888. The title of the county through Chouteau was held by us in the former appeal to be paramount to the title of the Bryans through the patent to Ringer and it is this holding which left the case without plaintiffs by the disclaimer of Mrs. Bryan.
The conveyance to Ringer, a judgment creditor of the county, was made in pursuance of an arrangement called in this record the Phelan-Hicks compromise, from the names of the lawyers employed for that purpose by the Stoddard County Court. It is natural that the county, through its court, should feel reluctant, after having once taken pay for this land from Ringer and other purchasers under his judgment, to sell it again without giving them an opportunity to recoup, and the evidence shows that these purchasers were, so far as might be, given preference in the acquisition of the Chouteau lands. Dr. Davis claimed an interest through the Ringer purchase, the exact nature of which does not clearly appear in this record. In 1906, the Bryans sued Davis, with whom they impleaded Gardner, to quiet their title to this land, which resulted in a judgment for plaintiff,
We have made this statement of the conditions surrounding this transaction in 1908 that they may be considered in so far as they explain the transaction in which the patent to this land was issued to McKinnies, and from which the appellants now claim that a trust resulted to Davis, their grantor. McKinnies up to that time claimed no interest in the land, nor was he in any way connected with any title growing out of the Phelan-Hicks compromise. He simply had a saw mill, and desired to purchase the timber standing on the land, with sufficient time in which to remove it, and for that reason approached Davis as the party with whom to deal. He promised Davis, when the first suit was instituted against him by Bryan, to pay the costs and expenses of its defense. They consulted lawyers who advised them that the title was still in the county. This necessarily involved the assertion that the Bryans had no title, a conclusion that was subsequently confirmed by this court in the former appeal. It was also held in the former appeal that Bedford, his grantor, stood in such a relation to the Chouteau suit that his title inured to Chouteau, and through Chouteau to Stoddard County, so that it was not available to invoke the Ringer equity under the compromise as applicant for a patent, so that McKinnies had no choice but to secure Dr. Davis as an instrument to obtain the county‘s paramount title for $1.25 per acre, while, according to his own admission appearing in the record, it was worth $10 per acre. This the evidence shows he did. He testifies that he asked no aid from Davis, but simply went to the county court, and, unaided, secured a patent for the land at that price, thus pulling Davis out of the Bryan case, pending in this court, by the roots. Davis not only disputes this, testifying in detail to his negotiations with McKinnies and his own assistance in securing the patent, but brings numer-
Instead of making a deed to Davis immediately upon receiving the patent, it took some importunity on the part of the latter to obtain the performance of that part of the agreement, but, on June 8, 1908, McKinnies, with his wife, executed a quitclaim deed conveying the land to Davis, reserving the timber thereon to be removed within five years, which was duly recorded on the 15th day of the month. During this interval and on April 23, 1908; Sibole obtained the judgment under which the respondent purchased on October 6, 1911, and claims title. The question which dominates this case is whether a trust resulted in favor of Davis from the facts we have stated. The theory of the respondent is, or seems to be, that to create a trust in such a case it is necessary that the party asserting it should have had an interest in the land or paid the purchase price therefor, and that in this case neither of those conditions existed. He assumes that one dollar and twenty-five cents per acre constituted the entire consideration for the purchase, and that Davis had no interest whatever which contributed to its acquisition. That while the evidence was to the effect that at the time of the issue of the county patent to McKinnies the land was worth very much more than the price then paid the county, and that the timber alone was sold by him to one Gant in the same transaction for several times that amount, yet the purchase price for the acquisition of the completed title must be measured by that sum alone. The fact is that a suit was then pending in this court upon the appeal of Davis, in which Bryan was asserting the title held invalid in this case. Upon the issue of this patent he suffered his appeal to be dismissed. He was satisfied with the paramount title received by the patent to Mc-
IV. The respondent, in his presentation of the case here, wastes no time in denying the facts as we have stated them, but plants himself upon the theory that the law affords no remedy. He says that the whole moral duty of McKinnies was defined by an oral contract, void by the terms of the Statute of Frauds requiring it to be evidenced by writing. He seeks to confine the interests of all the parties to the six hundred dollars which he paid the county for patents to four hundred and eighty acres of land claimed by Davis and Gardner, while it was worth, as he had stated in another suit, five thousand dollars.
The county court is far from being open to the imputation implied in this assertion, even had the Phelan-Hicks compromise exceeded the powers entrusted to it. The payment for the land by Ringer, though he acquired no title thereby, gave the county the moral right to return, in some form, the amount so received, and this respondent is not in position to question its right to do so by issuing a patent to a claimant under the Ringer purchase at one dollar and twenty-five cents per acre, although the land may have been worth eight times that amount. The question of title was then a live one. Bryan and Davis were then locked in a judical contest over it in this court, and Judge Harper of the Stoddard County Court that issued the patent testified in substance that one of the objects of the court was to have the title of the county judically determined. It is absurd to say that the interest of Davis was valueless, and constituted no part of the consideration, for the evidence shows that it was that part which was the moving cause of the issue of the patent. Its value was liquidated by
V. Our Statute of Frauds (
Resulting trusts growing out of interest, either legal or equitable, in the consideration paid for the acquisition of the legal title, were not the only ones exempted from the operation of the Statute of Frauds by
Constructive trusts are barriers erected by equity against fraud, and are particularly designed to prevent the use of the Statute of Frauds as an instrument of fraud and oppression. This is usually attempted, as in this case, by procuring the title to property in the guise of friendship and good will under promise to use it in the performance of friendly offices and then interposing the Statute of Frauds to complete the title so acquired. Courts of equity do not permit this. They consider the transaction in its entirety. They do not consider the trust a matter lying in contract, but as arising from the nature and circumstances of the act by which the title is acquired.
The respondent contends that McKinnies, being the owner of the land through his county patent under an oral agreement to convey it (reserving the timber) to Dr. Davis, the duty to make the conveyance depended upon an oral contract made before the title was acquired and was therefore an express trust, and void under the Statute of Frauds. The same argument would apply with equal force to a case in which the agent should be given the money by his principal to purchase land and told to have the title taken to himself and to convey it to the principal on his return, and should promise to do so. The same formula in which we have stated our impression of respondent‘s argument would apply in case the agent should purchase the property and refuse to convey it to his principal. The principal might say: “The Statute of Frauds does not apply, because the fact that I furnished the money for the purchase of the property raised a resulting trust in me which the court will enforce.” The agent might reply, like respondent:
As we have already indicated this agreement is proven by evidence so direct and convincing as to remove every shadow of doubt. The respondent in his argument does not attempt to analyze it, or otherwise question its conclusiveness. That the division agreed upon was fair and equitable, and made upon a theory which orginated in the desire of McKinnies to procure the timber is equally evident and that he executed it as made by his deed after waiting until, by prompt action, the Sibole judgment against him could be procured, appears upon the face of the record. That an agreement existed between Sibole‘s attorney and McKinnies that the latter should be notified before steps should be taken to enforce the judgment, appears from the statement of both McKinnies and Burr in their petition in the
The judgment of the Mississippi Circuit Court is accordingly reversed and the cause remanded to said court, with directions to enter in proper form its judgment declaring these appellants, Robertson and wife, to be the owners in fee by the entirety of the north half of Section 10, Township 28, of Range 11, and that this respondent has no right, title nor interest therein. Ragland and Small, CC., concur.
PER CURIAM:—The foregoing opinion of BROWN, C., is adopted as the opinion of Court in Banc. All of the judges concur.
