Melickian v. Halstead

DORAN, J.

The complaint herein seeks to impose a trust as to an undivided one-half interest in certain real estate, an accounting in relation to income therefrom, the quieting of plaintiff’s title, and the sale of the property by a commissioner with an equal division of the proceeds.

It appears that in 1940 Mr. and Mrs. Meliekian made the acquaintance of William E. and Essie Halstead, an elderly couple who were operating a restaurant on rented premises in Montrose. The parties became good friends and so remained until the death of Mrs. Halstead (September, 1950), and Mr. Halstead (August, 1951). From time to time various favors were rendered the Halsteads by the Melickians; on two occasions money was given to the Halsteads, $125 at one time, and $100 on another occasion, payment of which was never requested or made. The defendant conceded that Meliekian “had done a great deal for my family.”

The record discloses that beginning in 1943 Mr. Meliekian frequently suggested that it would be prudent for the Halsteads to purchase the restaurant property, and in that connection said: “Well, Ed (Halstead), if you ever do decide to buy it and want me to go in with you as a partner, you just let me know—this property is well worth what they will sell it for.” In May of 1946 Mr. Halstead informed plaintiff that the property was for sale and that the real estate broker would give Halstead the first chance to buy it, and said: “I remember, Ara, what you had told me and as it’s our livelihood, if you still meant what yóú said, I’d like to go in with you as "'a' partner.” To' this Mr Meliekian replied: “I told yoü I would and I will. You go ahead and attend to the details.” ' lS

[471]

Halstead had only $500 and Melickian wrote out a check for $2,100 to make the necessary down payment. At that time it was planned to buy the property in the names of Halstead, Melickian, and their wives. A few days later Mr. Halstead stated that “he didn’t want Mr. Boyer (the seller’s agent) to know that we were purchasing it with him”; that the title would be taken in the Halsteads’ name alone; that a second trust deed would be given Melickian, “and that later, after the escrow had been closed, that he would settle the details and the partnership.” All negotiations were handled by Halstead and Ara Melickian did not question the arrangement,—“I had absolute confidence in him.” The record discloses various items of evidence tending to prove that the parties all recognized plaintiff’s undivided interest in the property purchased, and that the documents executed did not represent the true situation. On one occasion Mrs. Halstead mentioned that “we ought to straighten out the partnership before we go too long,” to which plaintiff responded: “Any time you are ready, we will.” And in 1949, Halstead and Melickian discussed the fact that “the partnership assignment” of the property should be made. On still another occasion Melickian said to Halstead: “don’t worry about me, because the property (a one-half interest) after you are gone is all I want. ’ ’ There were also statements by Halstead to other persons to the effect that Melickian owned an interest in the property.