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Keywords

plaintiffattorneytrialpleatrustwillunjust enrichmentconstructive trust

plaintiffdefendantequitypleatrustwillrespondentconstructive trust

Related Cases

White v. Mulvania, 575 S.W.2d 184

Facts

Mary Bennett, the testatrix, died leaving a will that devised her estate to her only child, Lucy Ann Smith, who had died prior to her. Lucy's heirs were two adopted children. Stephen A. Lovejoy, an attorney and executor of Lucy's will, allegedly promised Mary Bennett that he would adopt the children, which would prevent them from inheriting from her. However, he failed to fulfill this promise, leading Mary Bennett to believe that the children would not inherit, and she did not change her will accordingly. The heirs at law of Mary Bennett filed a petition for a constructive trust on the property.

Plaintiffs plead that Mary Bennett, the testatrix, a resident of Missouri, died January 31, 1975 leaving a will executed January 6, 1972, which devised the residue of her estate to her only child, Lucy Ann Smith, who had died domiciled in Oregon on December 5, 1973, leaving as her heirs two adopted children, the defendants-respondents herein.

Issue

Whether the plaintiffs have sufficiently pleaded fraud and whether a constructive trust may be imposed on innocent parties who receive property under a will as a result of actual or constructive fraud upon the testatrix.

The case presents two issues. The first is whether plaintiffs have sufficiently pleaded fraud by alleging that the supposed wrongdoer misrepresented his state of mind to a testatrix, with whom he had an unspecified confidential relationship by making a promise to her, on which she relied, which he had no intention of fulfilling and in fact did not fulfill.

Rule

A constructive trust can be imposed when a party has been denied their right to property due to the wrongful actions of another, even if the recipient of the property is innocent of wrongdoing.

A constructive trust is available to one who has been denied his right to property because of the wrongful actions of another.

Analysis

The court found that the plaintiffs had alleged sufficient facts to support claims of both actual and constructive fraud by Lovejoy. The court noted that the testatrix had a right to rely on Lovejoy's promise, given their confidential relationship, and that the failure to fulfill this promise led to her not changing her will. The court emphasized that the grandchildren, although innocent, could not retain property obtained through fraud.

We think that, by inference, plaintiffs have averred generally that Lovejoy did not intend to keep his promise when he made it and thus misrepresented his state of mind at the time he made the promise relied on by Mary Bennett.

Conclusion

The Supreme Court reversed the trial court's dismissal of the petition and remanded the case with directions to reinstate the second amended petition, allowing the plaintiffs to pursue their claim for a constructive trust.

We hold that where, as is alleged here, the testatrix was induced not to change her will due to fraudulent misrepresentations, equity does not permit those who benefit solely because of the fraud to take.

Who won?

The plaintiffs prevailed in the case because the court found that they had sufficiently alleged fraud and that a constructive trust could be imposed to prevent unjust enrichment of the grandchildren.

The court noted that if plaintiffs prevail the children will lose nothing they would have had but for the fraud.

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