Masters v. Masters
Masters v. Masters
Opinion of the Court
delivered the opinion of the Court.
This is an appeal from a decree declaring the property No. 1814 Forest Park Avenue to be subject to a trust in favor of plaintiffs “to permit them and the survivor of them to use, occupy and enjoy the same” for their joint lives and the life of the survivor. [Italicized words not in the prayer of the bill.] Defendant, Jane Masters, is the widow of Elmo L. Masters, son of plaintiffs, Mr. and Mrs. Lee R. [and Verne M.] Masters. For brevity we shall follow the example of counsel by referring to Elmo L. Masters and his wife, defendant-appellant, as Elmo and Jane respectively, and to plaintiffs as plaintiffs or as the father and mother respectively.
Elmo was born on July 7, 1911. On January 1, 1932 he was injured in an automobile accident; as a result he was unable to work for about six months and was in a hospital for several months. His hospital expenses were $617.50, paid originally by his employer, American Stores Company, and refunded to it by his father, his two brothers and himself. A few days after the accident the father obtained employment with American Stores Company at $25 per week, of which $7 a week was deducted toward Elmo’s hospital expenses. The two brothers each contributed $100. At this rate the father paid about $182 before Elmo returned to work, leaving about $235 to be paid by Elmo and the father after Elmo returned to work.
Elmo and Jane were married on August 14, 1938. She was then about twenty-six, he about twenty-seven. They were then living with their respective parents. For almost four years they did not announce their marriage. Jane testified, “Neither Elmo or I were earning enough money to live together and make a home, and under
The property was bought for $4,300 and some odd dollars. The shore property cost $995 and they sold it for what they had paid for it. Only between $400 and $500 of this went into the new property. The remaining $500 went to buy a used Ford. The mortgage was originally $3,870. When they bought a new automobile in 1950 it was increased $1,500 to $3,900. It is now $3,400 and some odd. Life insurance to guarantee the payment of the mortgage (not increased when the mortgage was increased), $3,089.40, and also $5,000 of other life insurance, were collected by Jane.
For 1942 Elmo and Jane’s joint [state] income tax return shows net income, $3,634.83 [apparently, but not certainly, after deduction of the $2,000 exemption]. For 1943 [state or federal ?] her earnings [salary] were $1,569.47. For 1944, joint net income, $5,075.60; 1945, $4,596.40; 1946, $3,871.80 1947 [state], $4,798.49; 1948, $4,771.13; 1949, $3,746.80; 1950, $3,168.41. For 1945 and 1946, Jane’s parents, not Elmo’s, were listed as dependents, for 1948 and 1949 none. For the years 1948, 1949 and 1950 Jane had not been working.
Elmo’s mother testified that she is sixty-seven. “Elmo had gone around and looked at houses, and bought one, and I knew nothing at all of it. And after he bought it he said it was for me, and he wanted me to live there so that it would add fifteen or twenty years to my life so that I could raise all the flowers that I wanted. * * * For three months he tried to get us in. I did not want to take it because several of my friends said they did not think I should.” This conversation with Elmo “began about three months before I moved into the house.” Elmo had already acquired the property “before he told me”. He did not tell her whether he owned it alone or he and his wife. “I am not sure whether I knew [he was married] at that time or not. I know
Elmo had an automobile, which he acquired “when he took the last mortgage out on the house”, in January, 1950. It was a Nash, brand new. How much he paid for it, his mother does not know. “He had another car to trade in.” Whether he paid cash for the car or bought it on payments, she does not know. A few days after Elmo died, Jane came to see his mother about the automobile. “She assured me she was going to do just as Elmo wanted her to do, and I did not want the automobile. All I wanted was what Elmo wanted me to have. * * * The house and the garden. I did not hesitate only that she said I had to sign it, so I signed — * * * A paper to release the automobile.” The mother and father both signed. “She told me she was going to do the same as Elmo wanted her to do.” Jane knew about this arrangement Elmo had made with his mother and father “from the beginning. (The Court) Why do you say that? A. Well, because Jane once told me that before she and Elmo were married she was going to look out for her parents and he would look out for daddy and me. Her parents bought their house after they were married too. Q. You mean with the help of your son and their daughter? A. Yes, sir.” Elmo paid for this property $4,200 or $4,250 in fee. “He was allowed $300 because the cellar was so bad but I paid for the cellar. * * * (The Court) Did you know about Elmo putting a mortgage on the property? A. Not until it was done. * * * (The Court) Tell us something about that, how you came to know about the mortgage? A.
Elmo’s father testified that he is seventy-one. Elmo told him, just before he bought the property, “Dad, I own a shore. I am going to sell it and buy you a home.” He did not say where he was going to buy it at that time. In the next conversation, probably a month or two months later, he said “I sold the place and I have bought you a home at 1814 Forest Park Avenue”, “I sold the shore for the down payment”. “And if I am not mistaken he said, T will have to pay $10.00 a week until it is paid out, and that takes care of everything but the water bill’. I said, ‘We will take care of the water bill.’ * * * He said we were to live there as long as we lived, pay nothing. I said, ‘Well, we will pay the taxes anyhow’. He said, ‘No, you pay nothing. That is all taken care of in the building association’. He said, ‘It is insured, and if anything happens to me why it is paid for’. I believe that is all I knew then. * * * I would say between three and four months” after that they moved into the property. “I talked to [Jane and Elmo both] lots of times and different times [after we moved in] but Jane always told me that that house was bought for us as long as we lived.”
Elmo became seriously ill in 1950. He had been ill for several years. He was in the hospital three times in the last six months of his life. Feryl Lee Masters, now twenty-five, a grandson of plaintiffs, whom Elmo’s mother “raised from a baby”, who was regarded by plaintiffs as their son and regarded them as his parents, lived with them the whole time they occupied the Forest
Plaintiffs, besides testifying themselves, produced thirteen witnesses who testified to statements made by Elmo at various times or by Jane before or after his death. These thirteen witnesses were: (1) Caswell Nuger and (2) Nancy F. Masters, Feryl’s wife, who testified to the statements above mentioned at the meeting in January, 1951 just before Elmo went to the hospital. (3) Feryl Masters, who besides testifying regarding the January, 1951 meeting, testified that before his grandparents moved in Elmo “told Mama and Dad, that is whom I called my grandparents, that he wanted them to have the house, that he had bought it for them to live in the rest of their lives, and on numerous other occasions I have heard him say the same thing”. (4) Martin L. Bassford, who testified that on a blackberry picking trip, Elmo, “told me that he had bought this place for his mother and father to live there the rest of their lives”, and also “He said T wanted to buy my mother and father a home for the rest of their lives, that is what I sold it [the shore property] for’.” (5) Mrs. Melva C. Bassford, wife of the witness last mentioned, who testified “that on one occasion, when she, her husband and baby were brought to the home of plaintiffs by Elmo and Jane for the purpose of having their baby’s picture take on a bear skin rug belonging to plaintiffs, Elmo stated that ‘he had bought this home for his mother and father to live in because the time would come when his father would be pensioned and would not be able to work any longer, and he expected them to live there as long as they lived’,” and also “that on another occasion, when Elmo came to her home for the purpose of making out an income tax return ‘he spoke
In some respects Jane’s testimony was in conflict with the testimony of some of these thirteen witnesses. We have not mentioned such parts of her testimony. The lower court having seen and heard all the witnesses, counsel (wisely we think) have refrained from asking us to review the credibility or accuracy of the thirteen witnesses. Assuming their testimony to be true, it is still our responsibility to interpret it.
The contention of plaintiffs, and the decision of the trial judge, is that Elmo’s and Jane’s statements to plaintiffs — and the “agreement” evidenced thereby — gave rise to a constructive trust on which Elmo and Jane held the legal title to the property for the benefit of plaintiffs for their lives and the life of the survivor. The conflict between this position and Jane’s contention is vividly reflected in four questions by the court to Jane and Jane’s answers, “(The Court) What was your un
In the bill of complaint and in the oral opinion of Judge France the father’s contributions to Elmo’s hospital expenses in 1932 and the repairs or improvements made after plaintiffs moved in are, “either or both”, regarded as legal consideration for Elmo’s — and Jane’s— alleged promises. In plaintiffs’ brief no mention is made of the hospital expenses. We find no real relation between these expenses and the purchase of the Forest Park Avenue property ten years later or the occupancy of it by the plaintiffs. Plaintiffs, Elmo and Jane and, so far as appears, their respective families, all seem to have had an unusual sense of family responsibilities, legal and moral. Until this litigation arose, they seem to have felt their responsibilities no less than their rights. We do not think that either Elmo or his father considered whether Elmo’s “emancipation” had relieved his father of legal responsibility for his hospital expenses when he was twenty years old, or that the father expected, or Elmo — and Jane — intended, a return so out of proportion — in amount, if not in spirit — as a life estate for the parents and the survivor.
The decree “reserves for future determination” the question as to the amount of the lien, if any, to which plaintiffs may be entitled for improvements. In this court Jane concedes the right of plaintiffs to such a
“As with the proof of express and resulting trusts, so in the case of the establishment of constructive trusts, the courts have announced that they require ‘clear and convincing’ evidence. Other judicial expressions are even stronger in their demands. ‘If the evidence is doubtful or capable of reasonable explanation upon a theory other than the existence of the trust, it is not sufficient to support a decree declaring and enforcing the trust.’ Sometimes the requirement is stated to be that the facts' leading to the decree establishing the constructive - trust must be proved ‘by greater weight than the mere preponderance of the evidence’, or beyond a: reasonable doubt. These statements reflect judicial caution in accepting oral evidence which is intended
In the instant case what the parties and the thirteen witnesses did not say seems no less significant than what
No witness testified to any statement by Elmo regarding support of his father and mother after his death. The only mention by Elmo of the possibility of his death was his reference to mortgage insurance in his talk with his father before the property was acquired, and at the meeting at his home in January, 1951 as testified to by Feryl’s wife, Nancy. Even at that meeting Feryl’s testimony shows that Elmo was not contemplating death before his parents. Feryl testified that the agreement was that “after my grandparents’ death if he [Elmo] sold the house he would repay me out of the house”. If the deed had expressly declared a trust for Elmo’s father and mother for their lives and the survivor’s, such a trust could not ordinarily be cut down to their lives before his death. But in fact the deed vested the property in Jane at Elmo’s death. To contradict the plain effect of the deed, something more is needed than íóose talk which did not expressly purport to do so.
Judge France thinks “the most significant thing in determining whether the parents were tenants at the will of Elmo, or whether they had a life tenancy, using those words broadly”, is that “when Elmo was entering on his last illness a month before he died, when he and his wife were not only practically but actually down to their last few dollars”, he called this conference, not to sell the property, but to work out some method whereby he could be temporarily relieved of the monthly payments on the mortgage. We cannot take this view of the conference. Elmo had kept his parents on the property for over eight years. He did not want to let them go if he could help it. He did not know “he was entering on his last illness”, or that he had only a month to live, or that at his death he and Jane would be reduced to $28. Evidently Jane had not told him. Jane testified that she used the mortgage insurance money to pay hospital bills and other bills. Judge France said, “I feel Jane is subject to absolutely no criticism for using that insurance money for other purposes.” This question is not before us. If we shared Judge France’s view of the case, viz., that plaintiffs were beneficiaries of a trust for their lives, superior to Jane’s legal title, it would seem at least doubtful that plaintiffs
The matter of the mortgage insurance is one of the several questions involved in the decree but left unanswered. Plaintiffs, like Tudge France, felt the inaptness of “life tenancy” to describe the non-technical statements ascribed to Elmo. In their bill they set up a trust “to permit them to use and occupy” the property for life. In the decree the trust is expanded to “use, occupy and enjoy”. Does this permit plaintiffs to rent or sell their “life tenancy” or unite in a sale of the fee? Or does their interest terminate if, from ill health or otherwise, they or the survivor becomes unable to occupy the property? If plaintiffs cannot unite in a voluntary sale, then neither plaintiffs nor Jane can realize anything from the property except by a sale under the mortgage. If plaintiffs’ “life tenancy” ranks ahead of Jane’s interest — as it does under the decision and decree below — two joint-and-survivor “life tenancies” would represent the greater part of the entire value in fee and more than the entire equity over the mortgage. Wolfe on Inheritance Tax Calculations, (2d Ed.) pp. 35-36. Except that, as between plaintiffs and Jane, plaintiffs’ interest is apparently everything and Jane’s nothing, the testimony is anything but clear as to just what plaintiffs’ interest is.
Whether plaintiffs had any interest that was enforceable against Elmo and Jane during Elmo’s life, we need not decide. His mother’s acquiescence in the mortgage to buy the Nash strongly indicates that they had no such interest. It would seem that then, and not after Elmo’s death, plaintiffs had to choose between continued bounty and claim of right. Dorsey v. Stone, 197 Md. 220, 224, 78 A. 2d 757, 759. We think the testimony relied on by plaintiffs falls far short of showing any interest in them superior to Jane’s legal title by survivorship. Elmo’s alleged statements to plaintiffs were not the language of the law or the market place, but of Santa Slaus or Cinderella’s Fairy Godmother.
In Flanagan v. Flanagan, 133 Md. 332, 105 A. 299, a widow obtained by will from her husband a life interest, with remainder to her two sons, in a leasehold lot. She and one son conveyed their entire interest to the other son. Six years later the grantee died. The mother filed a bill to set aside her deed, on the ground that the real consideration was an oral agreement of the son to support her and furnish her a home for the rest of her life. This court affirmed an order, dismissing the bill on demurrer, on the ground that the son had supported the mother and performed his contract until prevented by death from continuing to do so.
In the instant case Elmo, as long as he lived, made good all his statements (enforceable or not) to his parents. His death made it impossible for him to continued to provide them a home and left Jane without means to do so, however much she might have desired to do so. Neither Elmo nor Jane ever belonged to the small wealthy class (now and in 1942 being fast liquidated through taxation) who were able after death to continue to do per alios, what they in life had done per se.
This case must be remanded for determination of the amount of the lien to which plaintiffs are entitled for moneys expended in improving and enhancing the value of the property. In this determination attention should be given, not unduly to differences between improvements and repairs for accounting purposes, but primarily to enhancement of value. If a property is abnormally out of repair, such “deferred maintenance” may constitute “accrued depreciation” in the value of the property. Expenditures to put such a property in normal repair enhance value no less than expenditures for new improvements to a property already in normal repair. Of course, allowance for recurrent repairs can be made
Plaintiffs filed a motion to dismiss' the appeal for failure to print sufficient testimony in appellant’s appendix, viz., the testimony of plaintiffs’ thirteen witnesses and of their witnesses as to repairs and improvements. In appellant’s brief she disclaimed any intention to ask us to review conflicts between her testimony and the testimony of the thirteen witnesses or to review the incomplete testimony regarding repairs and improvements. Plaintiffs in their brief printed fully and concisely, the testimony, mentioned in this opinion, of of the thirteen witnesses and a summary of the father’s testimony regarding improvements and repairs. No issue of fact was raised as to any of this testimony, and our decision is based on the assumed truth of all of it for the purposes of this appeal. In the circumstances plaintiffs’ selection and printing of this undisputed testimony was the simplest and cheapest way to deal with it, and appellant’s printing was sufficient to comply with our rule. Klein v. Dougherty, 200 Md. 22, 87 A. 2d 821, and cases cited. The motion to dismiss is therefore overruled.
Decree reversed with costs, and cause remanded for further proceedings in accordance with this opinion.
Dissenting Opinion
delivered the following dissenting opinion.
I find no room in the testimony for “interpretation”, whereby a condition subsequent can be attached to the
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