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90 N.C. 239

Bond v. . Moore

Supreme Court of North Carolina

Decided February 5, 1884

Supreme Court of North Carolina · decided 1884-02-05

Civil Action tried at FalL Term, 1883, of Chow AN Superior Court, before Avery, J. John M. Jones, owning the lot of land in the town of Eden-ton described in the complaint, and the recovery of possession of which is the object of this action, on February 9th, 1866, conveyed the same by deed executed by himself of the first part, Thomas W. Hudgins of the second, and Martha A. Jones, his wife, of the third part, to the said Thomas W. Hudgins in fee upon the following declared…

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Decided 1884-02-05

How this case has been cited

Cited by 3 later decisions — most recently May 1923

2 state decisions

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Sjutii, C. J.,

¶1 after stating the case. The question to be decided arises from the construction of the deed, and is, whether an equitable estate in remainder vests in the plaintiffs, entitling them to demand a conveyance of the legal estate from the heirs-at-law of the trustee and possession from the defendant Moore:

¶2 ' It is not important to consider the force and effect of the terms used in the declaration of the trust in favor of the wife, and the necessity of words of inheritance to enlarge an estate for life into a fee. This trust is, as are the others, executory, and not an cxeexded trust — created by a direction to the trustee to convey — not itself a conveyance; and the same technical rules of construction do not prevail in interpreting both. When the trustee is required to act in execution of the trust, in order to effectuate the expressed purpose of the instrument, that purpose is ascertained by employing the ordinary rules of interpretation; and a direction to convey the lot, in the absence of restriction or qualifying words, when applied to instructions given to the trustee, is a direction to convey the full estate vested in him, and the trust consists in the right to have it performed. In the latter case the intent is ascertained by giving a fair and reasonable meaning to the language in which it is expressed, and in this sense the trust is enforced. This is the distinction taken in Levy v. Griffis, 65 N. C., 236, and is warranted in Holmes v. Holmes, 86 N. C., 206.

¶3 But it is a settled rule in the interpretation of written instruments to look to other provisions for light to guide in arriving *243 at the meaning of any doubtful clause. In applying the rule, we think it plainly appears that a life estate only was intended to be secured to the wife, associated with a power of disposition of the whole estate, by a written instrument in the form prescribed. The recitals in the deed show that it is drawn in pursuance of the agreement between Jones and his wife, and in precise fulfillment of its terms; for it declares the promise to have been to convey the lot to a trustee for her use “ upon the trusts hereinafter declared.”

¶4 Among the trusts enumerated, the third undertakes to provide for the contingency of the death of the wife without having exercised the power conferred, clearly contemplating a remainder and limiting her estate under a preceding clause for the term of her life. Nor is it material whether this final limitation of the trust estate is effectual or inoperative by reason of an insufficient description of the party to take under it. In either case the clause subserves the same purpose in showing the character and extent of the estate secured to the wife.

¶5 Her death, then, without her having exercised the dispositive power, her husband still being alive, and his estate also becoming extinct, which endured only during their joint lives, presents the very contingency upon whoso happening the trustee is required to convey “ to the party or parties entitled by the laws of North Carolina.” Who is the party meant? The plaintiffs .appropriate this designation to the grantor, the defendants to the heirs of the wife, and there being none, to the University •substituted in their place under the law of escheat.

¶6 In our .opinion, the words do not and were not intended to point out any particular persons to take the inheritance remaining, but to leave it to pass under the law' as undisposed of property. They show srrch estate, depending on a contingency, to have been in the mind of the grantor as capable of subsisting beyond the life of the wife and of his own, and to place it under the control of the lawn

¶7 This being the proper construction of the clause upon well *244 .established principles, the undisposed of remainder was freed from the intervening life estate in the wife, became united with the then expiring life estate of the husband, and he became the equitable owner of the entire inheritance.

¶8 “Another form in which a resulting trust may appear,” says-Mr. Justice Story, “is where there arc certain trusts, created, either by deed or will, which fail in whole or in part, or which are of such an indefinite nature that courts of equity will not carry them into effect, or which are illegal in their nature’ or character, or which are fully executed and yet leave an unexhausted residuum. In all such cases there will arise a resulting trust to the party creating the trust, or to his heirs or legal representatives, as the case may require.” 2 Story Eq. Jur., §1106a; Lewin on Trusts, 175; Mosely v. Mosely, 87 N. C., 69; Robinson v. McDiarmid, Ib., 455.

¶9 But the defendants contend that inasmuch as the husband was permitted to receive the purchase money of the wife’s land, under his agreement to convey his lot in trust for her, this money constitutes the consideration of his deed and the trust arises to her. The rule which raises a trust in favor of one whose money was used in payment for land bought, has no-application to the facts of the present case. The deed to which she consents in becoming a party contains all the trusts, and, in the very form he agreed to make and sebure to her, the full fruits of his contract. He stipulates to make precisely such a conveyance, and with such declaration of trusts as are found in the present deed. This exhausts her equity in the premises. Her money is the consideration of, and given for, the interests and. benefits secured to her in its provisions, and for no other portion of the trust estate. The land was her husband’s, not her’s; and whatever estate remains after all the trusts in her, behalf' have been executed, must be vested in him. This does not belong to the class of cases.in which the purchase money of ouo party has been used and the title to the land conveyed to another.

¶10 “ The doctrine,” remarks the same author, “is strictly limited to cases in which the purchase has been made in the name of *245 ■one person and the purchase money has been paid by another.” 2 Story Eq. Jur., §1201a. The authorities cited in the argument sustain this view of the law. Unless the constructive trust was raised in such case, a successful fraud would be perpetrated by the grantee. King v. Weeks, 70 N. C., 372; Cunningham v. Bell, 83 N. C.,328; Kisler v. Kisler, 27 Am.Dec., 308.

¶11 We, therefore, affirm the judgment overruling the demurrer, •and remand the cause to be proceeded with in the court below.

¶12 No error. Affirmed.

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