Court Opinion

ID: 9524535
Source: CourtListenerOpinion
Date Created: 2023-08-07 02:53:50.40888+00
Date Added: 2024-06-11T13:10:49.903179
License: Public Domain

DISSENTING OPINION
Martin, J.
I cannot agree with the majority opinion.
The facts in this case, as substituted from the case of McClellan v. Beatty (1944), 115 Ind. App. 173, 53 N. E. 2d 1013, 55 N. E. 2d 327, clearly show that when *254Mrs. Tobin assigned the contract covering the purchase of the property in question to the appellee he took the equitable title in trust for the benefit of the cestui que trust, appellant Beatty, as the appellant Beatty was the real equitable owner of the property in question and title was held by the trustee to secure money advanced on the purchase price. McClellan v. Beatty, supra.
The facts further show that the appellee, McClellan, merely holds the legal title to said property as trustee, as security for the purchase money and has a mere lien upon the real estate. Kimberlin v. Templeton (1913), 55 Ind. App. 155, 102 N. E. 160. In this case the court said:
“We think it may be conceded as a general rule that where there is a contract for the sale of real estate, the vendee becomes the equitable owner thereof, the vendor simply holding the title as security for the purchase money. The vendee being the equitable owner, secures all the benefits, and assumes all the risks of ownership. This doctrine is amply sustained in 1 Pomeroy, Eq. Jurisp. § 368; 4 Pomeroy, Eq. Jurisp. § 1406. This being an appeal to the equity side of the court, it is our duty to construe the contract so as not to give either party an unfair advantage. In the case of Hunter v. Bales (1865), 24 Ind. 299, 302, it is said: ‘In equity, a contract for the sale of land is not merely executory, but the vendee becomes the owner, and the vendor is seized in trust for him, and has a mere lien on the land for the purchase money, upon the maxim that “equity looks upon that as done which is agreed to be done.” The contract, however, which in equity will make him the owner, must be a valid contract; must be such that he has a right to pray a specific performance of it. Equity looks upon that as done which is thus agreed to be done, and it relates back to the contract.’ In the case of Sutherland v. Goodnow (1884), 108 Ill. 528, 48 Am. Rep. 560, the court quotes with approval from Bouvier’s Dictionary as follows: ‘See Bouv. Law Dic. 495, title “Sale”, 15. At law a deed is essential to vest title to real estate, but in equity the title will be treated and *255protected as being where the parties have contracted it shall be, for that purpose holding the vendor as trustee of the legal title for the benefit of the vendee, while the latter is looked upon as trustee of the purchase money for the benefit of the vendor. Bisph. Eq. (2d ed.) 423; 2 Bouv. Law Dic., supra.’ See also, Wiseman v. Beckwith (1883), 90 Ind. 185, 190; Thompson v. Norton (1860), 14 Ind. 187; Broker v. Scobey (1877), 56 Ind. 588, 593; Caldwell v. Bank of Salem (1860), 20 Ind. 294, 296; Webster v. Major (1904), 33 Ind. App. 202, 213, 71 N. E. 176.”
I take it, therefore, that this must be accepted as the sound doctrine to be applied to the facts in this case.
When the appellee, McClellan, took the deed to the real estate in question from the bank he took it with notice of the contract between the bank and Mrs. Tobin. One who takes property with notice of a resulting trust takes subject to it. McClellan v. Beatty, supra; 3 Scott on Trusts, §408; 4 Pomeroy’s Eq. Jur. (5th ed.), § 1043.
When McClellan took the assignment of the contract from Mrs. Tobin he assumed the payments to the bank under said contract, which payments he paid, and Beatty then became indebted to McClellan for the purchase money paid on said real estate. When McClellan took the deed from the bank, who was merely holding legal title as trustee, he was placed in the same position as the bank as trustee, holding legal title to said property with a lien on said real estate for the purchase money.
It follows, therefore, that the verdict of the jury is contrary to law and the court erred in overruling the appellants’ motion for a new trial.
This case should be reversed.
Note. — Reported in 96 N. E. 2d 675.