Adams v. Griffin

• Decision Date: 22 December 1949
• Docket Number: 4 Div. 570
• Citation: 253 Ala. 371,45 So.2d 22
• Parties: ADAMS et al. v. GRIFFIN et al.
• Court: Alabama Supreme Court

Page 22

45 So.2d 22

253 Ala. 371

ADAMS et al. v. GRIFFIN et al.

4 Div. 570.

Supreme Court of Alabama.

Dec. 22, 1949.

Rehearing Granted March 9, 1950.

E. C. Orme and J. G. Clower, of Troy, for appellants.

John C. Walters, of Troy, for appellees.

LAWSON, Justice.

This is a bill by the administrator and heirs at law of H. P. Griffin, deceased, to establish a resulting trust in favor of the estate of the said H. P. Griffin in real property situate in Pike County. At the hearing on pleadings and evidence, a decree was entered for complainants. The respondents appeal.

It was undisputed that appellees' intestate, H. P. Griffin, furnished to the appellants, Lloyd Adams and wife, Estelle Adams, the sum of $1,500 for the purpose of purchasing approximately fifty acres of land from Frank Wilson. It is also undisputed that appellants used the said sum of $1,500 for the purpose for which it was furnished and took title to the land in their own names.

The rule is well established that where one buys land in the name of another and pays the consideration money, generally the grantee will be regarded as holding the land in trust for the person who paid the consideration. Lauderdale v. Peace Baptist Church, 246 Ala. 178, 19 So.2d 538; Montgomery v. McNutt, 214 Ala. 692, 108 So. 752. This rule does not require that the person who furnishes the money must actually pay it over to the grantor. The rule arises if he furnishes the money to the grantee at the time of or before the sale, and the grantee pays the money over to the grantor and takes title in his own name. Young v. Greer, 250 Ala. 641, 35 So.2d 619; Marshall v. Marshall, 243 Ala. 169, 8 So.2d 843; Lehman et al. v. Lewis, 62 Ala. 129; Bibb v. Hunter, 79 Ala. 351; Taliaferro v. Heirs of Taliaferro, 6 Ala. 404.

But this is only a rule of presumption, which may be rebutted or overcome. Lauderdale v. Peace Baptist Church, supra. This presumption does not arise where the one who furnishes the consideration money is the father or husband of the grantee. In such cases the presumption is that the consideration money was a gift to the grantee. Marshall v. Marshall, supra; Montgomery v. McNutt, supra.

There is no such relationship in this case. Appellees' intestate and the appellants were not related by blood or marriage. Hence, under the undisputed facts of this case, the presumption does arise that the purchase of the lands here involved was for the benefit of appellees' intestate. The rule here involved has its foundation in the natural presumption that he who supplies the purchase money intends the purchase to be for his own benefit and not for another. Lauderdale v. Peace Baptist Church, supra. Appellants sought to overcome the presumption by evidence going to show that the purchase money was given to them for the purpose for which it was used. The aforementioned presumption having arisen, the burden was upon the grantees in the deed, the respondents below and appellants here, of establishing by clear and convincing evidence that the purchase money was given to them by appellees' intestate. Bowline v. Cox, 248 Ala. 55, 27 So.2d 574. In Montgomery v. McNutt, supra, it was said: '* * * the undisputed fact that intestate purchased the property with his own funds devolved upon defendant the burden of proving the alleged gift by that character and quantum of evidence required to establish any other disputed fact upon which a judicial tribunal is authorized to act. Hartley v. Hartley, 279 Ill. , 602, 117 N.E. 69; Walston v. Smith, supra [70 Vt. , 25, 39 A. , 253]. This means, of course, that the relationship between the parties to the conveyance and their circumstances are to be considered in connection with other relevant and competent facts. * * *' 214 Ala. 695, 108 So. 754.

The evidence was not taken ore tenus before the court, but it appears to have been taken before the register, so none of the witnesses were seen and heard by the trial court. The review here, therefore, of the conclusion of the trial court on the facts is without any presumption in favor of the finding of fact by the trial court. Armstrong v. Armstrong, 217 Ala. 581, 117 So. 195; § 17, Title 13, Code 1940.

The evidence for the respondents consisted of the testimony of several witnesses who stated that they had heard the complainants' intestate make the statement that he had given the money to the respondents, and the evidence of the respondent Adams himself to like effect. Under the decision in the case of Warner v. Warner, 248 Ala. 556, 28 So.2d 701, we have considered the testimony of the respondent Lloyd Adams as to conversations and transactions which he had with the deceased, inasmuch as no specific objection as to his incompetency to testify to such matters was interposed.

We have given careful consideration to the testimony offered by respondents for the purpose of showing that the money used in the purchase of the property was given to them by complainants' intestate. In our opinion it falls short of demonstrating clearly and convincingly that the money was given to them. We do not think that respondents have by clear and convincing evidence overcome the presumption that Mr. H. P. Griffin, complainants' intestate, supplied the purchase money for his own benefit. As to the testimony of Lloyd Adams, there was evidence offered by the complainants in rebuttal which shows statements made by Adams which are directly opposed to his evidence in this case that the purchase money was given to him and his wife. None of the witnesses who testified that they heard Mr. Griffin, the complainants' intestate, say that he had given the purchase money to the...