Title: Calcote v. Calcote

State: mississippi

Issuer: Mississippi Supreme Court

Document:

583 So. 2d 197 (1991) Willis E. CALCOTE v. Bobbie Bert CALCOTE. No. 07-CA-59452. Supreme Court of Mississippi. July 3, 1991. K. Maxwell Graves, Jr., Meadville, for appellant. John H. Ott, McComb, for appellee. *198 Before DAN M. LEE, P.J., and ROBERTSON and McRAE, JJ. McRAE, Justice, for the Court: This is an appeal from the Chancery Court of Franklin County, involving a land transaction in which it was alleged that the twenty (20) acres of land conveyed to the appellee was held in a constructive trust, that she continued to hold the constructive trust and that she should be required to reconvey the land to the appellant. The chancellor dismissed the complaint, and we affirm. Willis E. Calcote filed a complaint on September 9, 1987, in the Chancery Court of Franklin County, Mississippi, to confirm title to twenty acres of land described as follows, to-wit: This case involves two brothers, Frank and Willis Calcote, and Frank's ex-wife Bobbie Calcote. The record in the instant case shows that: (1) on November 12, 1974, Frank A. Calcote, et al., conveyed the above described twenty acres in fee simple to Willis Calcote; (2) in 1978 Willis and Frank verbally agreed that, because Willis was involved in a marital property dispute, Willis would convey said twenty acres to Frank in a constructive trust; (3) on September 13, 1978, Willis conveyed said lands to Frank; (4) Frank and Willis executed two agreements dated October 3, 1978; (5) Frank conveyed the 20 acres to Bobbie on March 25, 1983; (6) Frank and Bobbie filed the September 13, 1978, Willis/Frank conveyance on April 6, 1983; (7) Frank and Bobbie filed the March 25, 1983, Frank/Bobbie conveyance on April 6, 1983; (8) on March 29, 1983, Frank executed a waiver and disclaimer of right of homestead in favor of Bobbie; and (9) Bobbie Bert Calcote and Frank A. Calcote were divorced January 8, 1987. The trial testimony demonstrated that Willis and his wife were having marital problems in 1978 and the Willis/Frank conveyance was an attempt to circumvent a possible property dispute and keep the land in the Calcote family. Evidence also established that Frank loaned Willis an undetermined amount of money, and two agreements executed by Frank and Willis on October 3, 1978, provided for satisfaction of the debt in exchange for the land. Bobbie Bert Calcote testified that Frank deeded her the property as a birthday present on March 25, 1983, and it was recorded April 6, 1983, along with the September 13, 1978, deed. She denied any knowledge of a trust and stated that she had no knowledge of Willis paying Frank the money that he borrowed. The chancellor found as follows: Appellant, in the case sub judice, argued that the lower court correctly found a constructive trust existed between Willis and Frank; but that the court erred in its determination that the trust terminated by the October 3, 1978, agreements. Because appellee conceded that a constructive trust existed prior to the 1978 agreements, we will only address the termination of the trust. American Jurisprudence defines constructive trust as follows: 76 Am.Jur.2d Trusts § 221 (1975). Appellee contended and the chancellor found that she neither fraudulently nor coercively urged Frank to convey her the property in 1983. Additionally, appellee points out that the lapse of time between the 1978 and 1983 conveyance does not evidence any fraudulent intent, but that the evidence shows the 1983 conveyance was a gift. In Allgood v. Allgood, 473 So. 2d 416 (Miss. 1985), Hershel Allgood, son of Aletha Allgood, asked his mother and she agreed to purchase for him thirteen acres of land. Allgood, 473 So. 2d at 418. Thereafter she negotiated the loan and ultimately purchased the land in her name. Id. at 419. The chancellor, finding that subsequent to the purchase, Hershel had paid all loan installments and all the taxes, Id., and that Aletha had held the land in trust for Hershel, declared Hershel the true owner. Id. at 420. This Court affirmed and explained as follows: Id. at 421 (citations omitted). Based upon Willis' and Frank's testimony, the chancellor found that Willis established a constructive trust and met the burden of proof of same by clear and convincing evidence. On the other hand, the chancellor also found that Willis failed to show, by clear and convincing evidence, a continuation of the constructive trust evidenced by the October 3, 1978, agreements. The chancellor's judgment is supported by this Court's decision in Allgood and because this Court does not sit as a trier of fact, we affirm. Since Willis asked for equitable relief, we must be cognizant of the clean *200 hands doctrine. Willis and Frank intended to defraud the Florida courts if and when a property settlement became a reality. This is evidenced through Willis' admission that he conveyed the land to Frank so that his wife could not get it in case there was a divorce. Willis was under the mistaken belief that since the divorce never materialized he was guilty of no wrongdoing. This argument is contrary to the clean hands doctrine: "He who comes into equity must come with clean hands." Griffith explains this maxim as follows: V.A. Griffith, Mississippi Chancery Practice § 42 (1950). In Cain v. Thomas, 373 So. 2d 812 (Miss. 1979), complainant requested the court to establish a constructive trust in her favor reqarding one-half interest in 640 acres of land, which she had previously conveyed to her mother. Cain, 373 So. 2d at 813. At trial complainant admitted that she and her deceased husband had conveyed the land for fraudulent purposes. Id. at 813-14. This Court affirmed the chancellor's dismissal of the complaint and stated as follows: Id. at 814. In the case sub judice, Willis admitted to wilful misconduct. He did not come into court with clean hands and pursuant to Cain, will not be afforded an equitable remedy. AFFIRMED. ROY NOBLE LEE, C.J., HAWKINS, P.J., PRATHER, ROBERTSON, SULLIVAN, PITTMAN and BANKS, JJ., concur. DAN M. LEE, P.J., concurs in results only.