Von Zastrow v. Schiffbauer

California Court of Appeal Dec 2, 1952 No. Civ. 19078Published

Before: McComb

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Holding. The court held that a resulting trust was created when the decedent paid the full purchase price for property titled in the defendant's name, and that the action was not barred by the statute of limitations or laches because the trust was not repudiated until 1948.

Issues

Was there substantial evidence to sustain the trial court’s finding that defendant and his wife held the Beverly Hills property in trust for Hermann Beinssen?
Was plaintiffs’ cause of action barred by the statute of limitations?
Was plaintiffs’ claim barred by laches?

Disposition. Affirmed

Quotations verified verbatim against the opinion

“where a conveyance of land is made to one person and the consideration for the transfer is paid by another, the latter may claim and prove he is the beneficial owner of the real property and the grantee is merely the holder of the legal title.”

“In the case of a “resulting trust” the statute of limitations does not begin to run until there has been a repudiation of the trust and the adverse claim of the trustee clearly and unequivocably made known to the cestui que trust.”

McCOMB, J.

From a judgment in favor of plaintiffs in an action to establish a resulting trust in certain real property, hereinafter known as the Beverly Hills property, defendant appeals.

Facts:

On or about January 27, 1934, Hermann Beinssen purchased a piece of real property, having the title thereto placed in the name of his friends, Agnes Schiffbauer and her husband, Dr. H. E. Schiffbauer. The entire purchase price was paid by Mr. Beinssen.

Dr. Schiffbauer first learned of the deed with his name on it more than six years after the deed was executed. From the date of the deed until 1939, rents from the property were collected by an agent of Mr. Beinssen. Thereafter Mrs. Schiffbauer collected the rents until her death on July 2, 1940. On April 18, 1940, Mrs. Schiffbauer transferred the property by deed to her husband, Dr. Schiffbauer.

After Mrs. Schiffbauer’s demise, Dr. Schiffbauer collected the rents, paid all bills, upkeep and expenses on the property and reported the income as his own to the state and federal taxing authorities.

In February or March, 1948, plaintiff Gerda Von Zastrow, who lived in Australia and was the daughter of Hermann Beinssen, came to California to settle her father’s estate. At this time she had a conversation with defendant in which he indicated that the real property in question belonged to him. The instant action was filed December 16, 1949.

Questions:

First:

Was there substantial evidence to sustain the trial court’s finding that defendant and his wife held the Beverly Hills property in trust for Hermann Beinssen?

Yes.

The undisputed evidence establishes that decedent Beinssen furnished the entire purchase price for the Beverly

[502]

Hills property and directed that it be taken in the name of defendant and his wife.

Such facts make applicable the rule that where a conveyance of land is made to one person and the consideration for the transfer is paid by another, the latter may claim and prove he is the beneficial owner of the real property and the grantee is merely the holder of the legal title. The transaction creates what is known as a

Von Zastrow v. Schiffbauer

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