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Keywords

trustcircumstantial evidenceconstructive trust
attorneytrustappellantconstructive trust

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Costell v. First Nat. Bank of Mobile, 274 Ala. 606, 150 So.2d 683

Facts

Margaret Cox, known to have hidden a large amount of currency, died in 1934. Following her death, Irene Hurley, a stenographer, was alleged to have stolen money from Cox's home during a search for hidden assets. Hurley subsequently used this money to purchase two parcels of land in Mobile, Alabama, with her uncle W. C. Lantron claiming to be the purchaser. Evidence suggested that Hurley and Lantron's financial situation improved significantly after Cox's death, raising suspicions about the source of their funds.

The theory of the bill is that Margaret Cox, a miserly old lady who distrusted banks, had hidden in her home at the time of her death a large amount of currency, some or all of which was stolen by Irene Hurley, a stenographer for the attorney representing the special administrator, while the attorney, the special administrator and the heirs of the decedent were searching Mrs. Cox's home in the hope of finding any such currency.

Issue

Did the evidence support the establishment of a constructive trust on the two parcels of land purchased with money stolen from the decedent?

1 Appellants assign as error that the court erred in overruling the demurrer to the bill of complaint.

Rule

A constructive trust arises when one person wrongfully uses another's funds to purchase property in their own name, regardless of the relationship between the parties.

2 3 No resulting trust arises when the title to land is taken in another without the consent of the one who furnishes the purchase money and who is claiming the benefit of a trust.

Analysis

The court applied the rule of constructive trust by examining the circumstantial evidence that indicated Irene Hurley had stolen money from Margaret Cox and used it to purchase the land. The court found that the true owners of the money did not consent to its use for purchasing the property, thus justifying the imposition of a constructive trust in favor of Cox's heirs.

7 8 We hold that the allegations and the proof show that the two parcels of property were purchased with money stolen by Irene Hurley and the court correctly held that a constructive trust arose in the property in favor of the heirs of Margaret Cox, and that they were entitled to the property purchased with the stolen money.

Conclusion

The court held that a constructive trust arose in favor of the heirs of Margaret Cox, entitling them to the property purchased with the stolen money. The decision of the lower court was affirmed.

Affirmed.

Who won?

The administrators of Margaret Cox's estate prevailed in the case because the court found sufficient evidence to establish a constructive trust in favor of the heirs.

The court found that the evidence supported finding that the two parcels had been purchased with money stolen from decedent by the purchaser, who was known to be poor before money disappeared from decedent's premises, but who seemed to be much more prosperous shortly after decedent's death.

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