Harnish v. Peele, 78-2711
| Decision Date | 04 June 1980 |
| Docket Number | No. 78-2711,78-2711 |
| Citation | 386 So.2d 8 |
| Parties | John L. HARNISH and Virginia P. Harnish, his wife, Appellants, v. Paul F. PEELE, Appellee. /T4-338. |
| Court | Florida District Court of Appeals |
Michael R. Walsh, Orlando, for appellants.
Calvin J. Faucett, Orlando, for appellee.
Paul F. Peele, the plaintiff, paid a $300.00 deposit and signed a contract to purchase a building for use as his chiropractic office. His inquiry into financing with a savings and loan left him doubtful he would be approved for a loan. His sister, Virginia P. Harnish and her husband, John L. Harnish, the defendants, agreed to apply for the loan. They did and were approved. Prior to the closing, the Harnishes indicated their desire to have title taken in their names to protect them against any claims of Peele's ex-wife and his heirs. Upon closing in October 1972, the title was conveyed to the Harnishes by the seller and they executed the mortgage to the savings and loan association and paid approximately $8,100 cash at closing.
Thereafter, Peele, with the help of the Harnishes, renovated the building into an office suitable for his chiropractic practice. Peele made monthly payments to the Harnishes in an amount equal to the monthly mortgage payment, the monthly payment due on a Title I loan obtained by the Harnishes in order that Peele could remodel the building, and a variable amount equal to any sums advanced by the Harnishes for materials or costs related to the building.
Before the closing Peele and the Harnishes agreed that anytime Peele paid them back the money the Harnishes would deed the property to him. In the words of Peele:
They informed me anytime that I could pay them back this money for those two months, two years, or ten years, they would gladly, with no hassle, sign the property back over to me with me paying them their money.
In 1977 Peele sold his chiropractic practice to another chiropractor. He demanded the Harnishes deed him the property and they refused. Peele then leased the property to the other chiropractor. The Harnishes notified the tenant they owned the property and the tenant thereafter paid the rent to them or their attorney.
Peele sued the Harnishes, contending in one count the Harnishes loaned him the money to purchase the property, agreed to hold title as security and to convey title to him when he paid them. Peele also sued for intentional interference with Peele's advantageous business relationship. After a trial before the court, judgment was entered finding the Harnishes held title in a resulting trust and ordering the Harnishes to convey the property to Peele upon payment to the Harnishes of $9,047 plus 71/2% simple interest from the date of the closing. The trial judge also awarded Peele compensatory damages for the Harnishes' interference with Peele's business relationship with his tenant.
There are three situations in which the trust which arises is properly called a resulting trust:
(1) where an express trust fails in whole or in part;
(2) where an express trust is fully performed without exhausting the trust estate;
(3) where property is purchased and the purchase price is paid by one person and at his direction the lender conveys the property to another person.
In each of these cases there is an inference that the person taking title to the property is not intended to have the beneficial interest. . . .
V Scott, The Law of Trusts, sec. 404.1 (3rd ed. 1967).
A resulting trust arises when the legal estate in property is disposed of, conveyed or transferred, but the intent appears or is inferred from the terms of the disposition, or from accompanying facts and circumstances, that the beneficial interest is not to go to or be enjoyed with the legal title.
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