Hampton v. Niehaus

Decision Date14 December 1959
Docket NumberNo. 47155,No. 1,47155,1
PartiesThomas J. HAMPTON, Appellant, v. Ruth Earline NIEHAUS and Clarice Marie Cowan, Respondents
CourtMissouri Supreme Court

Shifrin, Treiman, Agatstein & Schermer, Louis Shifrin, St. Louis, Morris A. Shenker, St. Louis, for appellant.

Michael J. Doherty, William Kohn, Leonard S. Williams, St. Louis, for respondents.

COIL, Commissioner.

Appellant Thomas J. Hampton, plaintiff below, married his second wife, Ollie, in 1947 or 1948 and they lived together as husband and wife until Ollie died intestate on June 24, 1955. On November 14, 1951, Nannie V. Castlen, by her warranty deed, conveyed the premises known and numbered as 5373 Theodosia Avenue to Ollie Hampton and the record title so conveyed was in Ollie at the time of her death. Respondents Mrs. Niehaus and Mrs. Cowan, defendants and cross-claimants below, Ollie's daughters by a former marriage, are her sole heirs.

Although by reason of plaintiff's voluntary dismissal of his original petition after trial had begun, the case proceeded upon defendants' cross bill and the subsequent pleadings, the issues litigated were whether, as plaintiff contended, a resulting trust in the property arose in his favor at the time the title thereto was placed in Ollie and, if not, whether defendants, as those in whom title vested at their mother's death, were entitled to an accounting from plaintiff for the rents and profits he derived from the real estate subsequent to Ollie's death, and, alternatively, whether plaintiff put the title in his wife's name to defraud his former wife, an alleged judgment creditor by reason of an alimony judgment, by preventing her from reaching the property in question on execution. The trial court adjudged that defendants, Mrs. Niehaus and Mrs. Cowan, had fee simple title to the real estate in question upon the death of their mother and that plaintiff had no right, title, or interest therein except dower, and that defendants were entitled to an accounting for the rents and profits from said real estate from and after June 24, 1955. The trial court entered a final judgment with respect to its ruling as to title and the right to an accounting and retained jurisdiction to later hear and determine the matters pertaining to an accounting and assignment of dower. Plaintiff has appealed from the final judgment so rendered.

A real estate broker, who drew the deed and at whose office the transaction occurred by which title to the Theodosia property was conveyed, testified that Ollie was not, and only plaintiff and the grantor were, present at the time the transaction was consummated; that at that time plaintiff paid to grantor the sum of $4,620.49. (The witness also said that he, at the time of the transaction, had prepared a deed of trust at Mr. Hampton's direction. The details of the deed of trust and of other matters with respect to it were excluded by the court on the objection of defendants, but it was clear from the statements made by counsel for plaintiff that the deed of trust, which was never executed, was on the property in question to be given to plaintiff Hampton by his wife Ollie for the money he paid to the seller. If so, a reasonable conclusion is that plaintiff was advancing the purchase price as a loan to his wife and thus it is probable that no resulting trust arose. Rest., Trusts 2d, Vol. 2, Sec. 445, p. 407. Inasmuch, however, as defendants' objections prevented plaintiff from developing the evidence with respect to the mentioned deed of trust, we should and do ignore the testimony and statements of counsel on that subject.)

Plaintiff testified that he furnished the cash to make the purchase; that the property was a 2-storied single residence in a state of disrepair; that he completely remodeled it and changed it into a 2-family residence; that he, without assistance from his wife, employed workmen and artisans to do the remodeling and did some of the work himself; that the work covered a period of two years, during which time the property was vacant; that he paid for all the repairs with his own money; that the property was rented about June 1953; that he collected the rents and did not account therefor to his wife; that at one time he offered the property for sale without consulting his wife; that he paid taxes on the property through 1956 with his money; and that there was a $1,200 deed of trust against the property which he paid when it became due during the lifetime of Ollie. (The warranty deed did not disclose an outstanding deed of trust.) He said further that his wife did not have any money during the time she was married to him and although she was working at the time of their marriage she quit and then had only $300; that thereafter he supported her and the household. Confusingly, however, plaintiff testified also that about two years prior to her death his wife was mentally ill and that he obtained from her about $10,000 in cash, which one of the defendants had testified was brought to that defendant's home in 1953 by her mother and that thereafter plaintiff and her mother came by the house and picked up the $10,000 and other papers, including some bonds. Plaintiff said further that he and his wife had a joint safe-deposit box and a joint checking account at the time of her death and had had those during a portion or portions of their married life. He testified, over defendants' objection that he did not intend to make a gift of the property to his wife but put it in her name as a straw party until it could be remodeled and sold. Mr. Hampton contended that he had spent $6,000 to purchase the property and $3,225.71 in remodeling and upkeep, all but about $1,000 of which latter amount had been expended prior to his wife's death.

Mr. William Reid, who at the time of its purchase and continuously to trial time lived next door to the property in question, testified that during the period when plaintiff, as well as his wife Ollie, were working at the premises assisting in the remodeling and refurbishing, he became friendly and talked with them frequently. Because Reid's testimony and the total effect to be given it is important in our disposition, we set forth the most material portion in question and answer form.

'Q. When, after the house was purchased, did you have your first conversation with them? Have you any idea? A. I don't recall just when it was, but I talked to them after they purchased it. As I say, I don't know how long----

'Q. (Interrupting) To whom did you speak? A. 1 spoke to Mr. and Mrs. Hampton and I though possibly they were going to move in there, and they said no, they didn't intend to live there, that they just bought it to resell.

'Q. Who were you talking to? A. Mr. Hampton. Mrs. Hampton, they were both present.

'Q. Where was it, in the house? A. No, it was outside in the back yard.

'Q. Do you recall when that conversation took place? A. No sir, I don't. It was shortly after they bought the house, but we became quite friendly over a period of a couple of years, and Mrs. Hampton and I had a mutual interest. That is, flowers, gardening, and she helped me with different types and so on, and I got like both of them very well; and I tried to induce them to move in when I got them. I thought they would be very good neighbors and I recall that was about a year and a half after they bought the house. I asked them again if they wouldn't think about moving in. I would like to have them for neighbors, and they made the same statement that, you know, they didn't intend to move in, that they had their own home and just bought that to resell; they intended to finish remodeling that house and she had mentioned to myself in front of Mr. Hampton and also to my aunt who lives upstairs in my home, she's 78 years old; she also became friendly with Mr. and Mrs. Hampton, and she mentioned in our presence that the house was in her name, but it was Mr. Hampton's. He bought it. That was more than once. Now my aunt, she's not able to go out. She's semi-invalid. She has a heart condition, but you can obtain a statement from her any time to that effect. * * *

'[Q] Within the first year this property having been bought in 1951 in November, you recall discussing with Mr. and Mrs. Hampton the fact they were both working so hard to get it fixed up? A. That's right.

'Q. Tell us what that conversation was about. A. Well, it was on the same lines that they were going to resell the house and they intended to rejuvinate, you know. It was pretty decrepit when they bought it. In fact, it was eyesore around there. It didn't look like it had had any paint for many years.

'Q. How long had you lived there? A. Seven years.

'Q. How long had you been there when he bought it? A. About a year.

'Q. The houses adjoin each other, with back yards adjoining each other? A. There is a fence in between, but, yes right next door.

'Q. You recall any conversations with Mr. and Mrs. Hampton about the fact he was working so hard there? A. There was one. That was about the second year, I suppose. She was talking to my aunt and I said before we were pretty friendly, and Mr. Hampton was inside, I don't know what he was doing; he was banging--we could hear him hammering. It was on a Sunday afternoon, so I kidded her. I said, 'Aren't you ashamed to let your husband work so hard like this? This is Sunday afternoon--never gets any time off.' She said, 'Well, he knew what he was getting into.' She said, 'I belive that he realized how much work there was to remodel this place.' She said, 'However, that is his worry. The house is in my name, but really it was his.' She said, 'I was what they call a Straw party, or something like that.' That's what she said in the presence of my aunt and myself. That was the one time.

'Q. Was that ever repeated during this two year period? A. Do.'

Mrs. Niehaus, one of the defendants, testified that prior to her mother's marriage to plaintiff her mother...

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