Sykes v. Sykes, 6 Div. 393

• Decision Date: 16 December 1954
• Docket Number: 6 Div. 393
• Citation: 262 Ala. 277,78 So.2d 273
• Parties: Frances SYKES v. Pearl SYKES.
• Court: Alabama Supreme Court

Page 273

78 So.2d 273

262 Ala. 277

Frances SYKES v. Pearl SYKES.

6 Div. 393.

Supreme Court of Alabama.

Dec. 16, 1954.

Rehearing Denied March 10, 1955.

Silberman & Silberman, Birmingham, for appellant.

Earl McBee, Birmingham, for appellee.

GOODWYN, Justice.

Bill in equity by Pearl Sykes to have a resulting trust in real property decreed in her favor, or, in the conditional alternative, to have a lien in her favor fixed on said property for moneys expended by her for the benefit and protection of the property. This appeal is by Frances Sykes, one of the respondents, from a decree overruling her demurrer to the bill.

In substance, the bill alleges the following: On March 29, 1938, a quit-claim deed was executed by R. M. Kimbrough and wife conveying legal title to certain real property in Jefferson County to Wilmar Sykes, one of the respondents, for a consideration of $100 paid by complainant, appellee here; that it was not until several years thereafter that Wilmar Sykes learned that legal title had been taken in his name; that complainant is the equitable owner of said real estate by virtue of an implied trust, since she paid the entire purchase price for said property; that Wilmar Sykes has always recognized her as such owner even though legal title was taken in his name; that this was done 'in the erroneous belief that complainant was barred from taking title in her own name because she had been administratrix of the estate of Taylor Holmes, deceased, from which estate the said R. M. Kimbrough received title to said real estate'; that complainant took possession of said property under said deed and has always dealt with it as her own; that since the execution of said deed, said property has been assessed in the name of Wilmar Sykes but that complainant has paid all taxes thereon; that during January, 1940, the house on said property was repaired and improved and in order to pay for these expenditures the sum of $450 was borrowed in the name of Wilmar Sykes and said loan secured by a lien on said property which is now held by the Federal Housing Administration; that complainant has paid all payments made on this loan, the most recent being $5 made on August 13, 1951; that the balance now owing on said loan is $208.53; that she is ready, willing and able to pay this balance if the relief sought here is granted; that on August 20, 1949, said deed was reformed in a cause which originated in the circuit court on the law side wherein Wilmar Sykes and another were sued in ejectment and the cause was transferred to equity on motion by the defendants therein; that said decree of reformation refers to and makes a part thereof a photostatic copy of a map dated November 1941, prepared by Walter Schoel, civil engineer, on which Pearl Sykes, complainant, is shown as the owner of the property; that in connection with said reformation suit complainant expended $218.25 for attorneys' fees, court costs, and the survey by Walter Schoel; that on April 26, 1951, a final decree of divorce was rendered in favor of Frances Sykes, one of the respondents and appellant here, in the circuit court of Jefferson County, wherein the said Frances Sykes was respondent and cross-complainant and Wilmar Sykes was complainant and cross-respondent; that as a part of the said decree the said Frances Sykes was awarded whatever interest Wilmar Sykes had in the real estate here involved; that Wilmar Sykes was ordered to execute necessary instruments conveying, releasing and granting to Frances Sykes all his right, title or interest to said real estate and on his failure to do so the Register was authorized and directed to execute proper instruments in order to complete the conveyance to Frances Sykes; that said decree further provided as follows: 'Sixth: That the aforementioned real and personal property be awarded to the Respondent, Cross-complainant, subject to all mortgages, liens, or encumbrances existing thereon'; that a year or two prior to said divorce decree complainant permitted Wilmar Sykes to live on said property on the agreement that he would make the payments on the above mentioned F.H.A. indebtedness in lieu of paying rent to complainant; that Wilmar Sykes did not perform his agreement and did not make any payments on the said indebtedness; that Frances Sykes had notice of complainant's ownership of said real estate prior to the time that Frances Sykes filed her cross-bill in the divorce suit and that, therefore, the said Frances Sykes was not a purchaser for value without notice.

The principal questions presented on this appeal are (1) whether the allegations of the bill are sufficient on demurrer to establish a resulting trust in favor of the complainant or, in the conditional alternative, to establish a lien in her favor for moneys expended by her for the benefit and protection of the property; (2) whether the bill shows on its face that the cause is barred by the statute of limitations or laches; and (3) whether Frances Sykes is a bona fide purchaser of the property for value and without notice.

Resulting Trust.

We have held that 'where there is a transfer of property to one person and the purchase price is paid by another, a resulting trust arises by operation of law in favor of the person by whom the purchase price was paid, in the absence of circumstances rebutting such operation of law. Haney v. Legg, 129 Ala. 619, 30 So. 34, 87 Am.St.Rep. 81; Miles v. Rhodes, 222 Ala. 208, 131 So. 633; De Freese v. Vanderford, 220 Ala. 360, 361, 125 So. 228.' Jacksonville Public Service Corp. v. Profile Cotton Mills, 236 Ala. 4, 7, 180 So. 583, 585. See, also, Adams v. Griffin, 253 Ala. 371, 373, 45 So.2d 22; Young v. Greer, 250 Ala. 641, 643, 35 So.2d 619; Lauderdale v. Peace Baptist Church of Birmingham, 246 Ala. 178, 180, 19 So.2d 538. And we have said that 'a resulting trust is a creature of equity, based on the presumption that he who furnishes the consideration for the purchase of lands intends the purchase for his own benefit. Miles v. Rhodes, 222 Ala. 208, 131 So. 633.' Leonard v. Duncan, 245 Ala. 320, 322, 16 So.2d 879, 881.

It is true that where a husband or parent pays the purchase price for land and causes title thereto to be taken in the name of his wife or child, the presumption of intention to become the owner of the property arising from the payment of the purchase money is rebutted by the stronger counter presumption of an intention to make an advancement or gift to the wife or child. Johnson v. Johnson, 259 Ala. 550, 552, 67 So.2d 841; Swendick v. Swendick, 221 Ala. 337, 338, 339, 128 So. 593; Long v. King, 117 Ala. 423, 430, 431, 23 So. 534; Hatton v. Landman, 28 Ala. 127, 135. 'When, therefore, such relationship between the parties is shown by the averments of the bill, the presumption arising therefrom must be clearly rebutted by appropriate allegations.' Long v. King, supra [117 Ala. 423, 23 So. 536]. See, also, Swendick v. Swendick, supra.

The present bill avers that complainant paid the purchase price and had title placed in Wilmar Sykes, thus raising the presumption that the purchase was intended for complainant's own benefit. Leonard v. Duncan, supra. We do not find in the bill any showing of a relationship between complainant and Wilmar Sykes as would raise the stronger counter presumption of an intention to make a gift or advancement.

Complainant's Right to a Lien.

As to this aspect of the bill, appellant contends that it is without equity; that complainant, in making the alleged payments, was but a mere volunteer and, therefore, such payments were made at her own risk.

'The law is settled that a mere volunteer, who without any duty, moral or otherwise, pays the debt of another, cannot establish an equity in the property relieved by such payment. 25 R.C.L. 1324, § 11.' Barnes v. Powell, 241 Ala. 409, 412, 3 So.2d 80, 82. But, in Carter v. Carter, 251 Ala. 598, 600, 38 So.2d 557, we approved the following pronouncement from 9 Thompson on Real Property, Rev.Ed., § 5053, pp. 513, 514:

'One who has paid a debt under a colorable obligation to do so, in order that he may protect his own interest, or under an honest belief that he is bound, is entitled to be subrogated; and where one pays a debt in good faith believing that he has an interest to protect, he will be subrogated although he be mistaken in such belief.'

In an analogous situation, where improvements were made by one in good faith and under the mistaken belief that she was owner of the property, this court, in Lee v. Menefield, 249 Ala. 407, 411, 31 So.2d 581, 585, said:

'Under such circumstances equity will impress the property with a lien for the amount of the expenditures so made on the principle that 'where a person makes improvements upon property of another or otherwise increases its value, being induced by fraud, duress, undue influence, or mistake of such a character that he is entitled to restitution, he is entitled to an equitable lien upon the property.' Restatement, Restitution, p. 689, § 170, p. 640, § 160.'

The averments of the complaint clearly indicate that complainant paid out moneys for the benefit and protection of the real estate in the belief that she was the equitable owner of the property and, therefore, had an interest to protect. The...