Russell v. Douglas

• Decision Date: 19 March 1962
• Docket Number: No. 42229,42229
• Citation: 138 So.2d 730,243 Miss. 497
• Parties: Leroy RUSSELL and Wife, Mary Frances Russell, v. Mrs. Gladys Posey DOUGLAS.
• Court: Mississippi Supreme Court

Page 730

138 So.2d 730

243 Miss. 497

Leroy RUSSELL and Wife, Mary Frances Russell, v. Mrs. Gladys Posey DOUGLAS.

No. 42229.

Supreme Court of Mississippi.

March 19, 1962.

Noble & Noble, Brookhaven, for appellant.

Allen & Patterson, Brookhaven, for appellee.

GILLESPIE, Justice.

This is a suit in equity by Leroy Russell and his wife, Mary Frances, against the maternal aunt of Leroy Russell, Mrs. Gladys Douglas, seeking a decree declaring certain land acquired by the defendant to be held by the defendant in trust for the complainants. When appellant is used hereinafter, it refers to Leroy Russell and Mrs. Douglas is referred to as appellee.

The facts are stated as we find them to be established by clear and satisfactory proof, either without dispute or manifestly appearing from all the proof.

In 1957, appellant's mother conveyed to him a residential lot in the City of Brookhaven, reserving unto herself a life estate. During that year appellant caused Deeb Construction Company to build on said lot a shell home at a cost of about $2,000. Appellant paid $10 down and executed notes for about $2,000, payable monthly. In addition to the new home there were two rental shacks on the lot. Appellant's mother, Mrs. Quinn, the owner of the life estate, did not sign the deed of trust to Deeb. Appellant defaulted in his payments to Deeb and the deed of trust was foreclosed in April 1958. At that time appellant and his wife were making their home on the property and because of the life estate held by Mrs. Quinn, Deeb could not get possession of the property. Appellant and his wife continued to live thereon and never parted with possession.

Appellant's mother became ill about September 1959, and appellee and her husband came from their home in Texas and spent considerable time in Mississippi. Appellant's mother, Mrs. Quinn, and appellee were sisters and very close, and appellee was very attentive to Mrs. Quinn until Mrs. Quinn died January 3, 1960. The death of Mrs. Quinn terminated her life estate. Deeb had theretofore sued appellant for a deficiency judgment based on the note given for the construction of the residence. After Mrs. Quinn died, Deeb did not intend to take judgment in the deficiency suit, and did not take judgment. Sometime in the spring of 1960, Deeb instituted eviction proceedings against appellant in order to get possession of the property.

Notwithstanding the deed of trust had long since been foreclosed, appellant made payments from time to time to Deeb and in February 1960, he paid Deeb $800 which he had received from the proceeds of a life insurance policy on his mother. This $800 was applied to appellant's indebtedness to Deeb.

Appellant's mother, Mrs. Quinn, left a purported will, under the terms of which appellee would receive 20 acres of land which is not involved in this suit. Appellant and appellee jointly employed Attorney Cohn in connection with the estate of appellant's mother and appellant sought to have the will giving appellee 20 acres of land upheld. The portion of Mrs. Quinn's estate which appellant would otherwise receive would be cut down if appellee received said 20 acres of land. The record indicates that said will was not valid and was not admitted to probate. Appellant and appellee had a joint lockbox in the bank wherein were kept certain papers apparently relating to the estate of appellant's mother.

After Deeb instituted eviction proceedings against appellant for the possession of the property in question, he went to see Attorney Cohn, who was the attorney for both appellant and appellee and had been jointly representing them in the estate matter. Appellant requested Attorney Cohn to work out a settlement with Deeb in order to get his property back. Sometime theretofore, appellant had some conversation with appellee in which he was led to believe that appellee would advance the money in order for appellant to redeem his property from Deeb. Appellant so told Attorney Cohn and said attorney wrote Deeb at Jackson, Mississippi, that appellant would get the money to redeem his home from his people in Texas. Attorney Cohn then had considerable negotiations by telephone and letter with Deeb and its attorney, and they agreed that upon payment of $1465.87, the amount owing by appellant plus expenses, Deeb would execute a quitclaim deed to appellant. Attorney Cohn contacted appellee and her husband who were then in Texas, and appellee or her husband told Attorney Cohn to have Deeb execute the deed in the name of appellee and to secure a quitclaim deed from appellant to appellee. An engagement was made for appellee and her husband to come to Mississippi, which they did, and had Attorney Cohn prepare the quitclaim deed for the signature of appellant and his wife, quitclaiming the property to appellee. Attorney Cohn had not had any further contact with appellant. When this quitclaim deed was prepared, appellee's husband called appellant and told him to come to Attorney Cohn's office. This was done and appellant and his wife executed a quitclaim deed to appellee. Appellant knew that he was executing a quitclaim deed to appellee but no one explained the transaction to him. This quitclaim deed was executed on June 21, 1960, and Attorney Cohn on that same day telephoned Deeb to make their quitclaim deed to appellee. At the time appellant and his wife executed the quitclaim deed in Attorney Cohn's office, appellee and her husband were present and nothing was said about appellant moving from the property. In fact, no agreement was had between them and no agreement was ever had by anyone with appellant.

Appellant was told by appellee when the quitclaim deed was signed that appellee would see appellant before she went back to Texas. Appellant understood this to mean that arrangements would be made at a later time with reference to repaying appellee for the amount paid out by her. On June 23, 1960, the quitclaim deed from Deeb Construction Company to appellee arrived at the Brookhaven Bank and appellee's husband paid the draft for $1465.87, placed the deed of record, paid some back taxes, paid Attorney Cohn a fee, and insured the house. He then went to the property in question and appellant was not at home. Appellee's husband told the two tenants of the rental shacks to move out. The next day appellee and her husband tried but failed to see appellant and then they left for Texas. As soon as appellee got to Texas, she wrote appellant to vacate the premises on a certain date. Before appellant received this letter, he telephoned appellee remonstrating with her for telling his tenants to move. Appellant has never recognized appellee as the owner of the property and offered to return her money with interest, and thereafter filed this suit.

Appellant is a young man who finished the eleventh grade in school, and has had no experience whatever in property transactions. Appellee's husband, who acted for her in this transaction, is a college graduate, and has retired. A qualified real estate appraiser valued the property in dispute at $4775. Appellee's...