68 W. Va. 339 | W. Va. | 1910
The object of the bill in this cause was an accounting by the estate of Patrick F. Duffy, deceased, for one-half of the proceeds of the sale of a large number of town lots, and partition of a few lots remaining unsold out of the property, all of which the bill alleges, was conveyed to Duffy to hold in trust for himself and the plaintiff, John B. Floyd. The plaintiff proceeds upon the theory of a purchase of 137 lots, constituting what is known as the McClung Addition to the City, of Charleston, at the price of $30,000.00, none of which was paid or intended to be paid at the date of the conveyance, but all to be paid out of the proceeds of the sale of the lots, at prices per lot agreed upon between McClung, the grantor in the deed to Duffy, on the one hand, and Duffy and Floyd oh the other, if the lots could be sold within a specified time, and, if not, the balance to be paid or. settled by a re-conveyance of the unsold lots at the prices agreed upon in the collateral agreement. While the deed from McClung to Duffy recites the payment of $6,000.00 in cash and the execution of three promissory notes for $8,000.00 each, the contention of the plaintiff is that no money was paid nor any notes executed at the inception of the transaction and that no interest on the purchase money was contemplated or paid for a period of three years after the date of the deed, at which time all purchase money was to be paid out of the sales of lots and by reconveyances of the unsold lots, if any. The deed from
As the trust alleged in the bill is predicated on parol evidence, it becomes necessary to determine, in the first instance, whether it can be so established. Assuming the agreement between Floyd and Duffy to have been made, before the deed was executed and delivered to the latter, it nevertheless remains that no money was paid on the purchase price by the plaintiff, nor,
By the great weight of authority, if not, indeed, by all courts, an agreement on the part of one purchasing land with his own money and taking the conveyance in his own name, to hold it in trust for another person, or to re-convey it to the grantor, is within the statute of frauds. 15 A. & E. Enc. Law 1188. Likewise, if a voluntary grantee in a conveyance orally agree to hold the land in trust for the grantor, or re-convey it upon
No doubt the McClungs could have declared a parol trust in favor of Floyd, under the principles just stated; but there is no evidence of any such declaration. They dealt with Duffy
Though the evidence gives no support to' the theory 'of a declaration of trust by the grantors in favor of Floyd and the bills cannot be read as asserting one, and it is clear that the latter never had any prior interest in the land, it seems reasonably clear that he may invoke the general principle declared and illustrated by the authorities, just cited, if he has established a state of facts, constituting an independent equity, a right in respect to the propérty, resting in justice, equity and
But the theory of this bill goes even beyond that. Floyd and Duffy may be said to have formed a partnership for the purchase and re-sale of this land, imposing upon each an equal burden for purchase money and expenses, and conferring, upon each the right to an equal share of the profits, in pursuance of which Duffy took the legal title in his own name for their common benefit. That such a purchase is not within the statute, is attested by an abundance of authority. Dale v. Hamilton, 5 Hare 369; Essex v. Essex, 20 Beav. 442; Miller v. Ferguson, 107 Va. 249; Chester v. Dickerson, 54 N. Y. 1; Fairchild v. Fairchild, 64 N. Y. 47; Traphagen v. Burt, 67 N. Y. 30; Clagett v. Kilbourne, 1 Black. (D. S.) 346; Burnell v. Taintor’s Admr., 4 Conn. 568; Holmes v. McCray, 51 Ind. 358; Hirbour v.
We think the evidence is sufficient to sustain Floyd’s claim to an equal interest with Duffy in the land. Numerous witnesses testify to admissions by the latter. Some of these witnesses go so far‘as to say he admitted that they were equally interested in the land. This evidence is re-enforced by the conduct of the parties. Floyd was associated with Duffy in the very inception of the enterprise. ITe seems ¿o have devised or arranged the plan under which the lots sold were to be disposed of. He was active in the sale of them. Other persons were employed to make the sales on a commission, and there is no intimation in the evidence that Floyd got any share of the commissions allowed them on the sales. - Prospective purchasers were referred to him, upon disagreements as to price: He and Duffy together endorsed paper for MeClung, and, in one instance, Duffy refused to endorse a note for MeClung because Floyd declined to do so. A ditch was made for the benefit of these lots and to promote the sale of them. It was agreed that the cost of the construction of this ditch should be divided equally among, MeClung, Duffy and Floyd. Opposed to all this evidence is some conduct on the part of Floyd which counsel for the appellants regard as sufficient to outweigh it. While sales were being made by Duffy’s attorney in fact, Floyd did not interfere, nor set up any claim to the land. These sales did not continue for a long period of time. The power of
Laches is also relied upon, but we think this defense not applicable under the circumstances. The trust was not repudiated nor disavowed until a very short time before the suit was brought, and this -was before all the property had been sold. The trust had not’ then been fully executed.
A question of practice, remaining for disposition, has been postponed until now, under the belief tfiat consideration thereof will be aided and simplified by the foregoing discussion of the facts and principles involved. The original bill sought an accounting for money, arising from’ the sale of lots, and partition of the unsold lots. The object of the amended bill was to correct certain errors of fact in the original bill, relating to the consideration for the deed to Duffy, and the physical condition of the property, to make it conform more nearly to the evidence. The latter did not mention the collateral agreement. It ex-' hibited the deed, reciting payment of $6,000.00 in cash and the execution of three notes for $8,000.00 each, as the consideration, without any express statement as to who paid the money or executed the notes. The bill alleged that Floyd and Duffy had agreed to purchase the land for which they were to pay $6,000.00 and execute three such notes. It alleged a joint purchase, and also a conveyance to Duffy for convenience. It also described the land conveyed as a tract of land. The amended bill, correcting these errors, did not change the nature of the demand, nor materially alter the basis thereof. The original bill set up an absolute joint purchase. As corrected,
An assignment of error is based on the allowance of the amendment of plaintiff’s bill. An amendment of a bill or declaration will always be allowed when substantial justice will be thereby advanced. Even in this Court, cases are remanded
Perceiving no error in the decree, complained of, we affirm it. Affirmed.