Johnson v. Johnson

• Decision Date: 12 April 1949
• Docket Number: Case Number: 33052
• Citation: 1949 OK 68,201 Okla. 268,205 P.2d 314
• Parties: JOHNSON v. JOHNSON
• Court: Oklahoma Supreme Court

1949 OK 68

205 P.2d 314

201 Okla. 268

JOHNSON v. JOHNSON

Case Number: 33052

Supreme Court of Oklahoma

Decided: April 12, 1949

Syllabus

¶0 1. TRUSTS - "Resulting trust" defined.

A resulting trust arises by operation of law where 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 or be enjoyed with the legal title.

2. SAME - Resulting trust established by parol evidence.

A resulting trust may be established by parol evidence, but the law requires that the proof necessary to establish it should be of the most satisfactory kind.

3. APPEAL AND ERROR - Finding that resulting trust existed held not against clear weight of evidence.

A finding or decree of the trial court of the existence of a resulting trust based upon oral evidence as to the facts and circumstances will not be disturbed upon appeal where the evidence with reference thereto is clear, unequivocal, convincing and decisive.

Appeal from District Court, Oklahoma County; A.P. Van Meter, Judge.

Action by Samuel T. Johnson and wife against Thad B. Johnson and wife. From the judgment, defendants appeal. Affirmed.

Draper Grigsby and John F. Eberle, both of Oklahoma City, for plaintiffs in error.

C.C. Andrews, of Oklahoma City, for defendants in error.

O'NEAL, J.

¶1 This is an action commenced in the district court of Oklahoma county by defendants in error against plaintiffs in error, Thad B. Johnson and Marie Johnson and the First National Bank of Bethany, Oklahoma.

¶2 Samuel T. Johnson and Lola E. Johnson, the defendants in error and plaintiffs in this action, are husband and wife. Thad B. Johnson is a son of Samuel T. and Lola E. Johnson, and Marie is his wife. Mary G. Johnson, now Brown, is the daughter of Samuel B. and Lola E. Johnson and a sister of Thad B. Johnson.

¶3 The action is to set aside a deed made by Samuel T. and Lola E. Johnson to Thad B. Johnson and a deed made by Mary Johnson to Thad B. Johnson. The land involved is about 2 1/2 acres, being approximately the north half of the south half of the southeast quarter of the northeast quarter of the southwest quarter of section 27, township 12 north, range 4 west, Oklahoma county, Oklahoma. The action also involves the ownership of $2,500, the proceeds of a sale of an oil and gas lease covering the five-acre tract here involved.

¶4 Plaintiffs in their petition allege that on and prior to December 5, 1938, they were the owners in fee simple and in possession of five acres of land, the south half of the southeast quarter of the northeast quarter of the southwest quarter of section 27, township 12 north, range 4 west in Oklahoma county, Oklahoma, and that shortly before that date defendant Thad B. Johnson persuaded plaintiffs to divide said tract of land between their two children, Thad B. Johnson and Mary G. Johnson, now Mary G. Brown, so that their said children at the death of parents would not be required to go to the expense of probating the estate or partitioning the land; that defendants Thad B. Johnson and the sister Mary orally stated, promised and agreed to and with plaintiffs that if plaintiffs would put the title to said land in them, they, Thad B. and Mary G. Johnson, or either of them, would, if required by plaintiffs, reconvey said property or any part thereof to plaintiffs or to anyone whom plaintiffs might request, and that plaintiffs should have the possession, use and occupancy, together with rents, revenues, royalty monies and mineral lease money, and any other income from said land during the lives of plaintiffs or either of them, and that in the event of the sale or lease of said property plaintiffs were to have the entire proceeds of the sale or lease; that believing in and relying upon said statements, promises and agreements, plaintiffs, on December 5, 1938, executed and placed of record a deed conveying to defendant Thad B. Johnson a part of the north half of said five-acre tract, being a tract running west from the east line of said five acres, 300 feet and 150 feet wide, subject to a mortgage of $1,000 then against said parcel, which defendant Thad B. Johnson assumed and agreed to pay; and at the same time plaintiffs executed and placed of record a deed conveying the balance of said five-acre tract to their daughter, Mary G. Johnson, subject to a mortgage of $1,600, which Mary G. Johnson assumed and agreed to pay; that no consideration was paid for either of said deeds and that the mortgages for $1,000 and $1,600, respectively, were afterwards paid and satisfied by plaintiffs; that thereafter, at the request of defendant Thad B. Johnson, plaintiffs requested their said daughter Mary G. Johnson to execute a deed conveying the balance of the north 150 feet of said five-acre tract to Thad B. Johnson and that such a deed was executed by Mary G. Johnson and placed of record by plaintiffs; that thereafter, about January 15, 1945, plaintiffs leased said five-acre track for oil and gas purposes to the Phillips Petroleum Company for the consideration of $2,500, and that pursuant thereto their said son and daughter executed and delivered the lease and that a check for $2,500 in payment for the lease was given by the Phillips Petroleum Company payable to Thad B. Johnson and Mary G. Johnson; that said check was endorsed by them and delivered to plaintiffs. Shortly thereafter defendant Thad B. Johnson notified said bank not to cash said check and pay the proceeds thereof to plaintiffs, all of which said defendant bank refused to do; that defendant Thad B. Johnson is claiming all right, title and interest in and to said real estate standing in his name to the exclusion of plaintiffs and in direct violation of his promises and agreements with plaintiffs, and in breach of the confidence reposed in him by plaintiffs and is likewise claiming the proceeds of said check or a part thereof. Plaintiffs further alleged that said defendant Thad B. Johnson never intended to keep, observe and perform any of his statements, representations and promises when made and that same were made by said defendant with a fraudulent design, intent and purpose of having said title placed in him by plaintiffs without any consideration. Their prayer was for a decree declaring the existence of a constructive trust in favor of plaintiffs against defendant Thad B. Johnson and canceling said deeds of record and quieting title in plaintiffs and for judgment for the $2,500 held by said bank.

¶5 Defendant bank answered admitting it held the $2,500 and that had it not been a party defendant it would have come in as an interpleader, and that it did not claim any interest in said money but stands able, ready and willing to pay the proceeds of the check to whomever the court may adjudge to be entitled thereto, or pay the same into court if ordered so to do.

¶6 Defendant Mary G. Johnson filed no pleading. Defendants Thad B. Johnson and Marie Johnson answered in the nature of a general denial, but later filed an amended answer and still later an amended answer and cross-petition. The amended answer after a general denial alleged in substance that, in 1923, the last will and testament of J.E. Bramble, the grandfather of the defendant Thad B. Johnson, was admited to probate in Cooke county, Texas, and that therein defendant Thad B. Johnson was devised three pieces of property located in Gainesville, Texas, describing it; that under said will Lola E. Johnson, the mother of Thad B. Johnson, was appointed executrix without bond, and as such executrix she took over the management of all of the property mentioned in said will, including that of defendant Thad B. Johnson; that thereafter plaintiff Lola E. Johnson, together with Samuel Johnson, managed said property, collected all of the rents and profits therefrom; that defendant Thad B. Johnson was at the time of the appointment of said executrix a minor; that plaintiffs and each of them represented to defendant Thad B. Johnson that under the will the mother, Lola E. Johnson, had the right and power to manage and control said property during her lifetime, all of which was false and untrue and was fraudulently made with the intent to mislead defendant Thad B. Johnson; that he, relying on said statements and representations and believing them to be true, permitted plaintiffs to take the rents and profits from his said property to use and manage as they might see fit, and thereafter plaintiffs induced defendant Thad B. Johnson to sign deeds deeding away each and every piece of property devised to him under said will and that plaintiffs kept and retained all of said rents and the proceeds of said sales and had never accounted to said defendant therefor; thereafter plaintiffs and each of them, as a gift and advancement and in part payment, settlement and restitution to defendant Thad B. Johnson for the money so held by them, by warranty deed conveyed to said defendant the tract of land first described in the petition of plaintiffs; that thereafter, on June 5, 1943, as an additional gift and advancement and in part payment and restitution to said Thad B. Johnson, plaintiffs procured their daughter, Mary G. Johnson, to execute the deed conveying the balance of the north half of said five-acre tract to defendant Thad B. Johnson; that said defendant did not learn until on or about March 5, 1945, that the representations made to him concerning the power of plaintiffs to manage and control defendant's property in Texas were false and untrue; that after learning the truth concerning said matters defendant Thad B. Johnson refused to sign any further papers concerning any of the property or proceeds thereof. They further alleged that the promises, statements and agreements claimed by plaintiffs to have been made by defendant Thad B. Johnson were not in writing and were not evidenced by any written instrument or...