Murphey v. Cook
Murphey v. Cook
Opinion of the Court
This was an action to recover certain real
property. Judgment for defendant, and plaintiff appealed. The facts may be briefly stated as follows: In 1876, William M. Vinson was the owner of the property in controversy, and in Jannary of that year he, together with his wife, executed an instrument, the material parts of which read as follows: ‘ ‘Know all men by these presents that we, William M. Vinson, and Clara Vinson, of the County of Union, and territory of Dakota, for the consideration of the sum of seventeen hundred sixty seven and 88-100th dollars in hand paid by E. W. Laird, as assignee of Putman & Bender, of the county of-Union, in said territory, the receipt whereof is hereby acknowledged, do hereby grant, sell and convey unto the said E. W. Laird, as
The only questions discussed by counsel and that will be considered by the court are: Were the conclusions of the court and the judgment correct under the findings of fact? The important question' arises on the so-called deed of trust from Vinson and wife to Laird as trustee. Was this a valid deed, and, as such, did it convey the title to the lands in controversy to Laird, as assignee of Putman & Bender? The respondetit contends that this deed is void for three reasons: (1) Because the deed is not authorized under the provisions of our Code relating to trusts; (2) because it does not contain any power under which Laird was authorized to do any act in reference to the property, and does not, therefore, constitute a power in trust under the statute; (3) because Laird was not shown to be an assignee of Putman & Bender, and hence there was no grantee in the deed. By Section 2789, Comp. Laws, it is provided that “uses, and trusts in relation to real property are those only which are specified in this title.” The effect therefore, to he giveti a purported deed of trust must be determined
‘‘Sec. 3916. A trust may be created for any purpose for which a contract may lawfully be made, except as otherwise prescribed by the titles on uses and trusts and on transfers.
“Sec. 3917. Subject to the provisions of Section 2795, a voluntary trust is created as to the trustor and beneficiary, by any words or acts of the trustor, indicating with reasonable certainty: (1) An intention on the part of the trustor to create a trust; and (2) the subject, purpose and -beneficiary of the trust.
“Sec. 3918. Subject to the provisions of Section 2795, a voluntary trust is created, as to the trustee by any words or acts of his, indicating with reasonable certainty (1) his accept
The provisions of these sections therefore do not qualify the provisions contained in the former sections. Our conclusions are that no estate was vested in the trustee by the so called trust deed, and that the instrument is invalid as a power in trust. No estate being vested in Laird, none, of course, could be vested in Murphey; and his deed to plaintiff was a nullity. The views here expressed render it unnecessary to discuss the other questions presented. The judgment of the circuit court is affirmed.
Reference
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- 1. By Comp. Laws, tit. 4, part 2, § 2789, uses and trusts in real property are restricted to such as are specified in that title. Section 2795 provides that no trust in real property is valid unless created (1) by a written instrument signed by the trustee or his agent, (2) by an instrument under which the trustee claims the estate affected, (3) by operation of law; and Section 2798 allows such trusts to be created (1) to sell real property, and apply the proceeds in accordance with the terms of the instrument; (2) to mortgage or release real property for the benefit of annuitants or legatees, or to satisfy a charge thereon; (3) to receive rent and profits, and apply them to the use of a person, subject to the rules of part 2, tit. 2; and (4) to receive and accumulate rents and profits for the purposes and within the limits prescribed by that title. Held, that a deed conveying land to “L., as assignee of P. & B.,” without any purpose declared, where there was evidence that P. & B. never made an assignment, and that L. was never appointed their assignee, was void for want of a grantee; and inoperative under the statutes to create a trust. 2. Comp. Laws, § 2795, provides that “no trust in relation to real property shall be valid .unless created or declared (1) by a written instrument subscribed by the trustee [trustor] or his agent,” etc. Held, that the word '‘trustor” in brackets is incorrect, and no part of the, statute. 3. Comp. Laws, 2814, defines a power as an authority to do some act in relation to real property, or the creation or revocation of an estate therein, or a chai'ge thereon which the owner * * * might himself perform. Section 2801 provides that when a trust in realty is created for a purpose not enumerated in preceding- sections, such trust vests no title in trustees; hut, if it directs the performance of a lawful act under a power, it is valid as a power in trust. Held, that where an instrument creating an invalid trust did not provide for the doing of any act or the creation of any charge or revocation of any estate in the land conveyed, it was not valid as a power in trust. 4. The statutes providing for the creation of trusts in land (Comp. Laws, $ 2795 'et seq.) are in no way qualified by Comp. Laws, $ 3916-3918, which provide how and for what purpose trusts may be created; such sections being made expressly subject to the preceding sections.