*1
consideration,
it
recovery notwithstanding
had received without
preclude Chilleen’s
sellers
by the
known
bargained-
to which was
performed
fact that she
answer
consideration,
given
had
con-
they
superior
action
sellers.
If
fact
sideration,
Builders,
obligation
the broker’s
by
their
filed
Inc.
Phoenix Norcraft
discharged,
completion
did
commission
not have been
not render
the contract
consideration,
they
impossible
give
no
complaint’s prayer
and if
did
of the
view
sought
they
praying
showing
was made
that the sale
alternative
them.
of the
as to
Set
secure dissolution
order
trust be
aside or
constructive
imposed
by
proceeds
upon the
received
superior court
the sellers.
affirmed.
that were
clear
Furthermore
McFARLAND,
J.,
STRUCK
C.
suit, the trans-
superior court
not for
MEYER, BERNSTEIN,
LOCK
fixed
the date
have closed
action would
WOOD, JJ., concur.
ex-
cross
On
escrow instructions.
they
amination,
testified
Arthen
Mrs.
Mrs.
conversation
as sellers
filed said
the suit was
after
Chilleen
completed
could
did not feel
sale
precluded them
filing
suit
because
At that time
title.
giving clear
bankruptcy had order complete buyers ready to and the George Ellis, Appellants, Roy H. KING these circumstances the sale. Under complete the refusal to sale sellers’ Peil, Jr., and and Richard Ernest UHLMANN did not the title alleged cloud on Title Guarantee & Trust Arizona brokerage discharge obligation their Co., Appellees. Chiate, supra. commission. See Diamond UHLMANN, Appellant, Ernest Regarding restraining order issued court, bankruptcy are satisfied from the we George ELLIS, Appellee. impos- supervening the defense of Nos. 7423. sibility application no here. has Chilleen tract between sellers and Supreme of Arizona. Court e., partially executed, had ren- i. Chilleen In Banc. consideration, bargained-for dered the Feb. 1968. pay promise sellers’ unconditional Rehearing Denied March the broker’s commission was not rendered impossible. Equitable ownership in the inability to
property, subject sellers’ title,
convey good already ac- been
quired by time the re- buyers issued, if straining order was intended,
escrow October 7 as had closed on problem restraining by the presented
order issued on 22 would never October
have arisen. must be remembered sellers
'acquired bankrupt from the restraining
some months before order ground
'was issued.
Norcraft was that claimed *3 Madden, Schaper, Phoe- E. S. John John
nix, ap- appellants and Ellis for pellee Ellis. Wilmer, Wilmer, Phoe-
Snell & Mark nix, appellee appellant, for Uhlmann. Shaw, by Johnson, & Marvin Johnson Peil, Phoenix, appellee, Richard for Jr. Perry, Head, by A. R. Perry, & Coulter Phoenix, appellee, Arizona Title Guar- & Trust Co. antee McFARLAND, Chief Justice: action was in which an is a case This against plaintiff George Ellis as brought Gaffey, Uhlmann, Tracey Ernest A. defendants, Jr., ad- Peil, as Richard prop- certain judication of the superior held the title erty. negoti- sale Uhlmann, subject by Ernest to be ated trust, the date and that since constructive Ernest defendant Billie Uhlmann and his wife Uhlmann held an undivided one-half premises plaintiff George analysis supporting posi- benefit of An extensive subject to a lien in favor of Ernest tion is set forth in 77 A.L.R.2d $10,000. repeal Defendant connection with the sum of re-enactment statute, appealed. apply but the rule same repeal a con- re-enactment of sep- Roy King, plaintiff, brought provision. stitutional Peil, Uhlmann, against arate action brought upon Arizona Title & Trust Guarantee Co. “If an action is a cause * * * action, depends upon deedholder-defendant. The two actions statute, were consolidated. The court rendered continued existence of a *4 judgment against King, repeal by and failed and action is not abated the perfect appeal. pending his re-enactment of statute * * *” 345 trial. A.L.R.2d at 77 Uhlmann first contends the rule supporting Other cases are Jessee jurisdiction trial not court did have Shong Tex.Civ.App, De (1907); S.W. the case had been tried filed and under 1011; Wayne In- Private v. Bureau of system court existing prior to the amend vestigators Cal.App.2d Adjusters, and ment of Article of the Arizona VI Con Cal.Rptr. 194. stitution, brought A.R.S. The action was act, provisions repealed of a but no was rendered re-enacted, which force are continue in until after the amendment of Article VI. previ interruption, rights all without and repeal Defendant contends ously preserved incurred are Article VI Arizona Constitution 336, 345; enforced. 77 Middleton A.L.R.2d 1960 and the enactment of new Article (1896), 282. Taber S.Ct. S.E. VI superior abolished court in which office, public If a the re statute creates a pending action was and established peal statute, accompanied by the superior new He court. asserts it, does re-enactment of the substance a savings omission of clause in the new a new not abolish the and substitute office complete Article VI resulted in the in it; one the old effect is to continue ability superior new court continue All- one in force. 77 A.L.R.2d case; the handling therefore, of the good Co. Steel & Iron v. Sloss-Sheffield jurisdiction motion to dismiss for lack of (1916), 196 Ala. 71 So. Watts should been have sustained. cases Ala.App. (1926), State 109 So. support position cited to are appli not cable. The situation in the instant case is even stronger. The amendment constitutional The correct rule governing the in adopted court was to create an intermediate stant case stated in 82 Statutes § C.J.S. reorganize appeals, and at the time same page at 1010: judicial integrate the whole structure. provided: The amendment repeal “The of a operate statute does “* ** impair or affect rights otherwise any The continued existence of
which have been vested or accrued while legally office heretofore or established the statute was in force. This rule repealed held shall be abolished or applicable rights acquired alike to adoption under article. The stat- contracts and to of action relating authority, to re- utes and rules * * * damages cover jurisdiction, Where torts. a new in force time at the provisions statute continues adoption in force of this article and not statute, an although old herewith, shall, form it re- ap- consistent far as so peals plicable, * * *” apply courts, them the passage, govern moment of its to and such right Ariz.Const., VI, of action created the old Art. § destroyed.” statute not thereby (1960) There equal-division is even another reason to hold any profits basis over continuity
that there was break $12,000 purchase-price no figure. King also jurisdiction superior money crop court. cantaloupe some invested provide A.R.S. 12-123 and 124 §§ was raised some superior failure, jurisdiction had, shall such Ellis was a and this venture $8,000 is conferred King. Constitution. resulting an loss to statute, prior This books agree- date, At later undisclosed action, commencement remains un- King ment orally so modified changed day, provides to this addi- $20,000 top would recover off continuity, tional cd, be need- should profits split. This sale before the would be
adjustment made to to re- allow money he had lost in the canta- cover court, superior We hold that loupe venture. amendment, prior constitutional large quantities of Ellis had interests in amendment, as it has existed since that adjacent property in Bell and Scotts- one there been no same and that has area, in order to assist dale Roads *5 jurisdiction. in All that was hiatus its up proposing agreements Ellis were drawn a accomplished by was the amendment development the of these Uhl- properties. reorganization the and the creation of parties’ mann, Gaffey, Peil, other and appeals. court of appear in Dur- names these transactions. (1) Ernest Uhlmann next that: contends agree- negotiations the these ing leading to sup- to there is insufficient or evidence no ments, other in the placed Ellis confidence its port findings the of the trial court and complete of a and made disclosure parol- subsequent (2) judgment, the and forty holdings. Although the his financial frauds rule the statute evidence and of this was acres of suit which the were violated. in the de- the under included questions requires a these Disposing of velopment admit agreements, defendants King be- summary Roy of evidence. inter- that Ellis them his one-half told acquainted George Ellis when came with development property. est in this These they get that suggested a mutual friend inability to agreements failed might possibly together King in order that acquire financing. necessary in straightening assist out Ellis’s fi- Ellis that this shows The evidence in resident King was not a nancial affairs. dealings throughout and ar- the financial Arizona, stopped Phoe- but he often and placed faith rangements, great Ellis flying nix when to the west coast on busi- The evi- the defendants. confidence ness, some and transact and he Ellis did that handled dence further shows Peil a King business. Ellis showed finding in first Uhlmann for forty-acre near the piece correspondence, deal, doing later tersection Bell Scottsdale Roads and involved drawing up instruments and King that Maricopa County, informed and King Uhlmann. in the from to might purchased it a for reasonable deposition that in his Uhlmann admitted purchase sum. contracted to King him. acting Peil was for price the Osbornes sale property from for development failed agreements After the $12,000 King testi- February financing, it de- lack was because of negotiated that the deal fied Ellis an interest of record expected cided if Ellis had that he Osbornes also and acres, forty in the he then would be able eye keep Ellis to on his' borrowing against acquire funds development King some possibilities. an executed possibility, Pursuing this interest. agreement and Ellis which him between February Ellis called on or about provided sale of event idea, and split King informed him of forty acres, King on an would King Peil the tele- payable then introduced over three annual installments Peil phone. King anniversary he both testified told annual dates of close help one-half, it and Ellis that if would Ellis of escrow first which was $20,000 pic- granted step Norton, take out of the to be under would deed. Dan agent, Peil ture. himself stated the stand estate at the trial testified agreement forty $60,000 substance of acres was worth at King interest, conveyance. had a time Ellis one-half himself forego profit easily willing pretty admitted would that would sell $40,000. step $20,000 help out for There if would was a later interim ar- telephone rangement Ellis. Pursuant to this conver- the transaction altered prepared sation Peil from certain documents east undivided one-halves to an one- cerning forty half acres them King and mailed and west one-half. executed King for him to execute. two and his wife deeds the east one-half go Peil about $10,- also contacted Uhlmanns when first acquiring paid, an interest 000 was pertaining and the escrow quit- Peil King documents mailed the west On was to start one-half then. April claim $10,000 deed from and his wife as or before the first grantors paid, interest was & undivided one-half Arizona Title Guarantee forty acres (the to Ellis his wife Trust Co. agent) escrow recorded grantees for a Kings consideration ten dollars deed Uhlmanns purchase-option .and a agreement forty re- east one-half acres maining purchase dealing interest in the agreement undivided one-half recorded the property. King did not these execute docu- with west one-half. *6 ments, but sent Peil a letter dated March any conveyance There has been never 1956, wherein he not to he want stated did despite Ellis, and, from the Uhlmanns to placed position in he looking to an a frequent his questioning Peil and Uhl- undivided his one-half interest obtain to close, mann as to when he escrow would ‘$20,000. He thought further wrote that he granted was never the one-half interest .any quit-claim to Ellis be delivered and right. to which he claims option when the up, was taken and that he King- Peil both that after testified willing forego any was profit to above they requested Ellis Uhlmann transaction '$20,000 concerning the forty acres he but writing to show them some evidence did want to be left in the situation of that entitled inter- Ellis was to a one-half (cid:127)conveying a interest to Ellis for one-half forty est in the that acres. Ellis denied only ten and dollars then leave Ellis with request made, such a testi- was ever but did option purchase .an remaining to one- negotiations Peil fy that in earlier with $20,000 half placing only for after $200 King-Ellis given copy he had Peil a down. memorandum that was executed After Peil had talked to Uhlmann re- and document, Peil had not seen this n ceived March 3, 1956, King, letter from possession approximately had for Peil explaining sent another letter that that three evidence weeks. The shows help Ellis accompanying documents would King July Peil wrote a letter negotiations King with which just him to inform Peil to requesting requested The letter that familiar. King- King’s understanding of the what n deedan in the undivided one-half interest asking and if forty $10,000 acres to Uhlmann and anything showing that Ellis had record put this There was also a escrow.
'
forty
interest in the
acres.
a one-half
had
purchase agreement
one-
remaining
that
nothing
There is
to
record
show
$10,000.
’half
to be
which was
sold for
paid
This second one-half
ever answered.
was to be
letter was
forty
standing
pos-
that one-half of the
acres
Peil and Uhlmann
discussed the
conveyed
sibility
acquiring
an interest in
would be
to Ellis.
Peil’s
pursuant
forty
these discus-
acres and
to
finding
The court’s
was that at a later
The
prepared
Peil
three
first
sions
deeds.
agreed
time Uhlmann refused to
convey
Realty
ran
Uhlmann to Paradise
deed
from
pro-
one-half to Ellis unless Ellis could
(Peil’s organization). The second was
duce evidence of title
aliunde.
conveyed
convey
portion
a
judgment granted
in its
Ellis
construc-
deed,
ran
Paradise
first
and
from
tive trust
in an
one-half of the
undivided
Realty
Tracey Gaffey
wife.
forty-acre tract, subject
$10,-
lien of
evidence.
Both
these documents were
Uhlmanns,
000 for sums advanced
Realty
ran
Paradise
third deed
that
this trust be executed.
ordered
George
although this
deed
The court further
that
deed
decreed
evidence Peil
he had
admitted
drawn
purporting
convey
an interest
Peil testi-
such a document. Uhlmann and
forty
Realty to
same
acres from Paradise
came about.
transactions never
fied
void,
Gaffey
and his
null
conveyance be-
Uhlmann never made
instructions
and ordered
the escrow
such
against
cause his tax advisor advised
Trust
and deeds
Arizona Title and
held
reason,
left
a sale. For some unknown
Peil
Company
according to the
be executed
Uhlmann;
then on
these
with
documents
thereof, subject
terms
trust.
Gaffey somehow
July
trust
constructive
Proof
Paradise
which ran from
second deed
convincing
must be established
clear and
Realty
wife,
recorded
to him
testimony.
Hernandez,
Murillo v.
the same.
passing
prepared
any
honor
claim
Young, 20
Wright v.
not be shown.
such
produce
an
Were
However,
P. 583.
when
true,
inter-
explanation
its
rational
it
appear
render
thought
circumstances
pretation is that defendants
the holder
unconscionable
on the
good
a
deal
had made such
bene-
enjoy
and
easily
legal
retain
title to
therein
that a
one-half
theory of
interest,
equity, on
ficial
$20,000
not hesitate
they would
worth
and
fraud, impresses
construc-
implied
a
an
an owner
convey
any
one not
one-half
thus
tive trust on
interpretation
of record. Defendant’s
truly and
the one who is
in the favor of
doubtful,
is clear
the evidence
rather
”***
equitably entitled to
same.
support the trial court’s
convincing
at
“The law is settled in this
proper
court’s
this
case
is not a
express
impose
that an
based
an
in which to
trust
a constructive trust
promise modifying
oral
a
the agreement
of
terms
entered
into
may
fraud,
good
retain the
not in
conscience
faith,
precluding an actual
good
thus
interest, equity
him
converts
beneficial
constructive
and there is no evidence of a
* *
*
equity
into
A
a
court of
trustee.
fraud.
decreeing
bound
trust is
constructive
facts and
is abundant with
The record
unyielding
equity of
no
formula. The
Ellis, due to his
testimony
which show
shape
measure
perilous
position, had disclosed all
financial
Cardozo,
J.,
Beatty v.
of
C.
relief.’
defendants, and
financial
interests
Co.,
Guggenheim Exploration
225 N.Y.
certainly
they
well
as
aware
380,
378,
380,
122 N.E.
381.”
equal
bargain
an
foot-
position to
on
in no
58,
at
judgment decreeing and interest spouse having right the title or aforesaid hereto and to possession spouse without other premises the aforesaid and under and to joining conveyance or incum- incurred, deeds, costs herein brance.” 11 A.R.S. 33-452 § further relief as such other and It legislature is evident that proper.” the court seem prevent intended to a husband from con Uhlmann, answer, gen- Defendant veying or encumbering community property erally allegations; denied how- most unless it acknowledged was executed and ever, dealings he had had admitted some wife, object apparent of which is negotiations plaintiff without prevent —to "defrauding husband from same, stating that he the nature of the the wife. Roy purchased H. plaintiff contention of King, premises Uhlmanns hold the as constructive “ * * * that he to be Ellis; admits claims trustees for the benefit of that title fee premises the entire property passed owner of recognize and admits that he does not structive trust and was not a
147
community.
Boardman,
community property;
Munger
v.
53
or encumbrance of
536;
271,
Ariz.
88 P.2d
Intermountain
for
com-
obtained
Allen,
Realty
228,
subject
Co.
60 Idaho
P.2d
munity
to the constructive
v.
90
704,
held,
122
previously
A.L.R. 647.
trust.
Shreeve
We
35,
641, that
Greer,
v.
173
Morgan
v.
Tire
Rubber
Firestone
&
into
right
enter
the husband has the
al.,
976,
et
68
201
Co.
Idaho
community
a contract on
behalf
purchase
husband had
a contract to
made
purchase
property,
for
realty
community.
part
certain
for the
As
join in
necessary for the
is not
wife to
contract,
consideration for the
signing
contract. We said:
property
husband
to lease back the
“
*
* *
the seller. The
Heap,
com
seller breached
con-
head of his
tract, claiming it
munity,
lawfully
to act for
was void because
wife
entitled
sign any
contract
Section
to encumber com-
on behalf of
and bind it.
munity
63-303, A.C.A.1939;
La
and the
an
realty
lease was such
en-
La Tourette v.
cumbrance. The
Tourette,
Ann.
court held:
137 P.
Moser, Ariz.
Cas.1915B,
Bristol v.
31-913, I.C.A., prior
“Section
to 1945
I,
113—
Vol.
sections
amendment, effective when the transac-
116, Principles
Community Property
made, provided:
tion was
“
(de Funiak). Any contract he made look
community prop-
‘Husband’s control of
ing
purchase
toward the
of the real estate
erty.-
management
husband
has
—The
presumably
a contract made for
community
control of
”
* * *
community and its benefit.
except the earnings of the wife
for
Ariz. at
question community then is —what did Kohny Dunbar, Idaho munity. acquire negotiations of the husband ? L.R.A.N.S., 258, 121 P. manager Ann.Cas.1913D, 492. As such generally courts The hold funds, community may purchase apply similar statutes do not to invalidate upon acquisition is com property which purchase agreements by the husband made 31-907, munity property under I.C. Sec. behalf of which result A. acquisition of encumbered join unnecessary wife “It is test whether the is encum of an in the execution with her husband acquisition. bered at the time or before its real instrument necessary party is not a if acquired. Intermountain property is encumbrance is made before or at the time Allen, Realty Idaho Co. acquisition. unnecessary It is 2d A.L.R. 647. join wife to with her in the exe husband cution of an instrument est in real acquired, which an inter and the “ * % * [*] ‡ husband, manager # J{i # for, pur- community, can manager agent pur agent or husband —as or —can property subject real which is chase to liens chase *12 148
liens,
exceptions.
690,
reservations and
See National Bank
41
(1925),
Idaho
241 P.
Boardman,
271,
1023,
88
Munger
53 Ariz.
Grocery
v.
and Gerken v. Davidson
536,
page
dealings Company
at
538. Such
315,
(1931),
Idaho
P.
50
296
prohibited by
are
the statute.
cases,
not
Washington
These
like the
only
acquires
cases,
after
once
are
mechanics’
foreclosure of
31-913,
upon
I.
placed
title that
cannot under Sec.
property by
liens
the hus-
C.A., supra, convey
or encumber
acquired by
band after
was
com-
community property
munity, and,
cases,
without
wife
Washington
like the
joining
applicable
with him
the execution
distinguishable
not
and are
acknowledgment of the instrument of
from the
case
bar.
conveyance or encumbrance.
While
However,
in the
even
of a fore-
rule is well settled that
character of
closure
aof mechanics’ or materialmen’s
community property
time
fixed at the
lien,
the authorities are divided.
ma-
acquisition
of its
and the wife’s interest
jority rule is that the
not have
wife does
(Pendleton
Brown,
vests at that time
v.
to be made party
to the suit.
In Yearout
604,
213;
221 P.
McDonald v.
v.
Pipe
Corporation,
American
&
74
Steel
Lambert,
78,
v.
27,
43 N.M.
85 P.2d
120
139,
Cal.App.2d
174,
which was
250;
Estate,
A.L.R.
In re Woodburn’s
against
a foreclosure of a
lien
materialmen’s
141,
190
1138),
Wash.
66
it is not
the husband
for debt
the hus-
fixed,
so
nor
in
does the wife have
band had
the com-
contracted
behalf of
therein,
acquisi
terest
until the time of
munity
premises,
for material used
tion.”
153
referee
entitled to
that since
“Since the
^Furthermore,
majority holds
n Raymond
held
the naked
clude that
trust
a constructive
imposition of
**
*
Harry
as
legal
held for
title
trustee
property
one-half
property interest
any com-
there was no substantial
precludes
Ellis
benefit of
(cid:127)the
the com-
vesting
Raymond
could
become
-munity
property interest
unnecessary
Bertha
munity property
Raymond and
Uhlmanns, it
therefore
n agreement.”
under
their
transmutation
a defendant.
join Billie
added.)
(Emphasis
A equity suit compel delivery equality in recognize but to also to objective compulsion deed rights disposition has com- as its wife’s in the parties required convey. those munity property. who to real As we said Shaw Since Greer, v. A.R.S. 33-452 invalidates a con- 194 P.2d § veyance community unless 433. property business, operated and com- was statutes real estate
“Our married woman
independent
property
adopted
business
of her husband in
munity
laws were
sole,
be-
establishing equality
manner of
feme
an
purpose of
received
community
foreclosing
extension of time for
mort-
and wife. Our
tween husband
honesty;
gage
property
property
purchased
which she had
law
conceived in
was
policy
give
mortgage.
The record in
its
to
to
wife
community
equal dignity with
case revealed sufficient facts to war-
an
marital
equal
rant the
conclusion that the wife was
her
husband and to make
an
agent
community.
gains.”
(Em-
husband’s
for the
Yet in
factor
the matrimonial
phasis
completely
the instant
the record
added.)
case
indicating
devoid
a scintilla of evidence
rights
wife’s
in the marital
any
that Ernest Uhlmann had
authorization
nullity
would be reduced to a
a suit
if
agent
dealing
to act as Billie
Uhlmann’s
compel
to
aof
to real
deed
event,
any
with the
In
property
rights
could foreclose her
Boardman,
Munger
supra,
support
v.
cannot
property
opportunity
without an
defend
majority’s
conclusion
Billie Uhl-
her rights.
If the wife
defense
has a valid
joined
party,
mann need
as
for in
not be
to the enforcement of
the contract
the Munger
joined
spouses
both
convey, and she
joined
need not be
defendant.
suit,
certainly
she
bring
will not be able to
Finally,
majority
her
defense to the
concludes
attention of the court.
jurisdiction
judg-
trial
enter
court had
In
majority’s
addition to the
defect
ordering
ment
Billie Uhlmann
Ernest and
title,
legal
equitable
distinction between
convey
the one-half
to Ellis.
is their
recognize
legal
failure to
a basic
They hold that
committed
no error was
concept.
In the instant case
deed from
judgment
because the
to refer
used
expressly
to Uhlmann
Uhl
named
merely
individually,
to Billie Uhlmann
wife, Billie,
grantee.
mann’s
as a
Where
identify
community.
the trial
How
the wife is a
grantee
named
she must be
judgment against
com-
court can enter
joined
party
as a
before
her
munity
majority
when the
states that
can be
affected. Oliver
community property
never became
Oliver,
216 Ga.
Luns
S.E.2d
completely
comprehension.
escapes my
Witt,
ford
;
(Ky.)
1. dissent. See Justice low personal judgment against entered this one-half vested share her: Today a mere nominal interest. women relegated Arizona to a second-class ORDERED, “IT IS HEREBY AD- Ages. comparable only Middle status AND DECREED that de-
JUDGED fendants Ernest A. Uhlmann and Billie I must dissent. TJhlmann, wife, hold an undivided one- half premises interest in the hereinafter
described plaintiff the benefit of * * George Ellis sup- (Emphasis
plied.)
That
personam
an in
judgment
“It principle is a of general applica- tion in Anglo-American jurisprudence Supreme Court of Arizona. that one is by judgment bound In Bane. personam in litigation in which he is not Feb. designated party as a or which he has not been party made service of process. Pennoyer Neff, 714,] Otto [5 95 U.S. 24 L.Ed. 1 Freeman on Judgments, 5th ed. 407. A § rendered in such circumstances is not entitled full faith and credit which the Constitution and statute of States, United R.S. 28 U.S.C. § 687, 28 § prescribe, U.S.C.A. § [cita- judicial
tions] action enforcing it against person or property party absent is not that process due the Fifth and Fourteenth Amendments
require.
Lee,
Hansberry v.
[Citations.]”
40-41,
U.S. 32 at
61 S.Ct.
L.Ed.
which the majority arrive at their ultimate cannot,
conclusion. I however, pass on
without expressing one further thought.
The most elemental considerations of fair
play require that person no lose his
without the opportunity heard. The assumption
court-conceived that a wife is represented husband, although husband in fact representa- disclaims such a
tion, works a virtual destruction of the con-
cept property as it is known
in Arizona. Its effect is to reduce the wife’s
