Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Attorney(S)
Judges
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Attorney(S)
Judges
Smart Summary

Factual and Procedural Background

The plaintiff, Lucy Hieble, transferred real property by survivorship deed to her son, the defendant Armin R. Hieble, and her daughter pursuant to an oral agreement. This agreement provided that the property would be reconveyed to her upon request if she recovered from an illness, specifically cancer. After five years, when the plaintiff considered herself recovered, she requested reconveyance from the defendant, who refused. The defendant initially assured the plaintiff he would never marry and would continue to live with her, but later he married and refused to reconvey the property. The plaintiff bore all expenses and costs of improvements on the property throughout this period. She then brought suit for reconveyance. The trial court ruled in favor of the plaintiff, finding that the defendant held the property in constructive trust for her. The defendant appealed this judgment to the Supreme Court of Connecticut, which found no error in the trial court’s decision.

Legal Issues Presented

  1. Whether the elements necessary to establish a confidential relationship existed between the plaintiff and the defendant to justify imposing a constructive trust.
  2. Whether the oral agreement and the conduct of the parties provided sufficient evidence to support the imposition of a constructive trust despite the Statute of Frauds.
  3. Whether the defendant’s claim that earlier reconveyances extinguished his obligation was valid.
  4. Whether the plaintiff’s alleged unclean hands barred equitable relief.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hanney v. Clark, 124 Conn. 140, 198 A. 577 Oral agreements concerning interests in land are unenforceable under the Statute of Frauds. Court acknowledged the Statute of Frauds but held it does not apply to constructive trusts arising by operation of law.
Reynolds v. Reynolds, 121 Conn. 153, 183 A. 394 Trusts arising by operation of law are not barred by the Statute of Frauds. Supported the imposition of a constructive trust despite lack of written memorandum.
Ward v. Ward, 59 Conn. 188, 22 A. 149 Same principle as Reynolds: constructive trusts not barred by Statute of Frauds. Reinforced equitable relief in absence of formal written agreement.
King v. Uhlmann, 103 Ariz. 136, 437 P.2d 928 Distinction between constructive trust as equitable remedy and express oral trust as legal relationship. Clarified terminology and nature of constructive trust in the case context.
Johnson v. Zoning Board of Appeals, 156 Conn. 622, 238 A.2d 413 Standard for reviewing trial court’s findings of fact and conclusions. Supported deference to trial court’s finding of confidential relationship.
Davis v. Margolis, 107 Conn. 417, 140 A. 823 Review of factual findings and application of law by trial court. Confirmed trial court’s conclusion on confidential relationship.
Suchy v. Hajicek, 364 Ill. 502, 4 N.E.2d 836 Parent-child relationship can generate a natural inclination to repose confidence and trust, establishing confidentiality. Supported recognition of confidential relationship between plaintiff and defendant.
Wood v. Rabe, 96 N.Y. 414 Similar principle on confidential relationships in family contexts. Further supported the court’s finding of confidentiality.
Worobey v. Sibieth, 136 Conn. 352, 71 A.2d 80 Confidential relationship and constructive trust considerations. Distinguished facts where no confidential relationship existed; court found different circumstances here.
Brown v. Brown, 66 Conn. 493, 34 A. 490 Parol evidence admissible despite Statute of Frauds for constructive trusts. Allowed oral agreement evidence to be considered.
Todd v. Munson, 53 Conn. 579, 4 A. 99 Same as Brown regarding parol evidence and trusts. Supported court’s evidentiary approach.
Dean v. Dean, 6 Conn. 284 Same principle on oral trusts and parol evidence. Reinforced trial court’s acceptance of oral agreement evidence.
Andrews v. New Britain National Bank, 113 Conn. 467, 155 A. 838 Recital of consideration in deed does not rebut allegation of trust. Defendant abandoned argument based on deed recital of consideration.
Brockett v. Jensen, 154 Conn. 328, 225 A.2d 190 Standard for challenging sufficiency of evidence supporting findings. Defendant could not challenge sufficiency since he did not attack the finding of oral agreement.
Wilson v. Warner, 84 Conn. 560, 80 A. 718 Trust title to land must be clearly and satisfactorily established. Court held evidence here was sufficient in light of confidential relationship and conduct.
Dowd v. Tucker, 41 Conn. 197 Fraudulent intent not necessary for imposition of constructive trust; unjust enrichment suffices. Supported imposition of constructive trust without proof of fraud.
Moses v. Moses, 140 N.J. Eq. 575, 53 A.2d 805 Renewal of oral agreement not required for constructive trust; unilateral attempts to extinguish trust ineffective. Rejected defendant’s contention that lack of renewal extinguished obligation.

Court's Reasoning and Analysis

The court began by acknowledging the Statute of Frauds bars enforcement of oral agreements concerning land interests but emphasized that constructive trusts, as equitable remedies arising by operation of law, are not barred by this statute. The defendant did not dispute the trial court’s uncontested finding that an oral agreement existed whereby the defendant agreed to reconvey the property to the plaintiff upon recovery from illness. The court analyzed the nature of the relationship between plaintiff and defendant, concluding that although a parent-child relationship is not inherently fiduciary, the totality of circumstances—including the plaintiff’s illness, the defendant’s assurances, and their conduct—created a confidential relationship sufficient to justify imposing a constructive trust.

The court rejected the defendant’s argument that the 1960 reconveyance by the daughter extinguished his obligation, explaining that it effected no essential legal or equitable change in the defendant’s undertaking. The defendant’s delay tactics and assurances were weighed against the plaintiff’s continuous payment of expenses and improvements, reinforcing the equitable basis for relief. The court further held that fraudulent intent was not required to impose a constructive trust; unjust enrichment through unconscionable retention of the property was sufficient. The defendant’s claim that the plaintiff had unclean hands was dismissed due to lack of evidence indicating fraud or improper conduct by the plaintiff.

Finally, the court applied the Restatement (Second) of Trusts § 44(b), which provides that when a transferee in a confidential relationship refuses to perform an oral trust agreement regarding land, a constructive trust arises in favor of the transferor. The court concluded the facts fit squarely within this principle, affirming the trial court’s judgment.

Holding and Implications

The Supreme Court of Connecticut affirmed the trial court’s judgment in favor of the plaintiff, holding that a constructive trust was properly imposed on the defendant’s interest in the property.

The direct effect of this decision is to require the defendant to reconvey the property to the plaintiff in accordance with their oral agreement and the equitable principles governing constructive trusts. The decision does not establish new precedent beyond reaffirming established Connecticut law regarding constructive trusts, confidential relationships, and the application of the Statute of Frauds to oral agreements concerning land.

LUCY HIEBLE v. ARMIN R. HIEBLE

The plaintiff sought the reconveyance of real property which she had transferred by survivorship deed to her son, the defendant, and to her daughter pursuant to an oral agreement whereby they were to reconvey the property to her, on request, if she recovered from an illness. Five years later the plaintiff requested that the defendant reconvey his legal title to her. He refused. Later he assured her that he would never marry and would continue to live with her. Subsequently, however, he did marry and on his then refusal to reconvey the property, the plaintiff instituted suit for its reconveyance. From the trial court's conclusion that the defendant was holding the property on a constructive trust for the plaintiff, who had borne all expenses and costs of improvement to it since the transfer, the defendant appealed. He claimed that the elements necessary to establish a confidential relationship, the basis for a constructive trust, were lacking. The natural inclination between parent and child to repose in one another great confidence and trust, coupled with the conduct here of the plaintiff and of the defendant and the totality of the circumstances surrounding the transfer of title indicated that the trial court correctly concluded that a confidential relationship did exist between them. Thus, in light of the unattacked finding that there was an oral agreement between the plaintiff and the defendant, the defendant's claim that there was insufficient evidence to justify the imposition of a constructive trust was without merit. Moreover, it was unnecessary to the imposition of that trust for the trial court to have found fraudulent intent. The defendant's assertion that an earlier reconveyance of the daughter's interest to the plaintiff extinguished his obligation was without merit. That transfer effected no essential legal or equitable change in the defendant's initial undertaking.

SHAPIRO, J.

In this action the plaintiff sought a reconveyance of real property in the town of Killingworth which she had transferred to the defendant, claiming that he had agreed to reconvey the same to her, upon request, if she recovered from an illness. The trial court rendered judgment for the plaintiff and the defendant has appealed.

The trial court's finding of facts, which is not attacked, discloses that on May 9, 1959, the plaintiff, without consideration, transferred the title of her real estate by survivorship deed to her son, the defendant, and to her daughter. The plaintiff, who had that year undergone surgery for malignant cancer, feared a recurrence but believed that she would be out of danger if the cancer did not reappear within five years. She and the grantees orally agreed that the transfer would be a temporary arrangement; that she would remain in control of the property and pay all expenses and taxes; that once the danger of recrudescence had passed, the defendant and his sister would reconvey the property to the plaintiff on request. After the transfer, the plaintiff continued to reside on the property with her aged mother, whom she supported, her daughter and the defendant. In 1960, after the plaintiff expressed displeasure over the daughter's marriage, the daughter agreed to relinquish her interest in the property. A deed was prepared and the daughter and son, through a strawman, transferred title to the land to the plaintiff and her son in survivorship. In 1964, five years after the original conveyance, the plaintiff requested that the defendant reconvey his legal title to her, since she considered herself out of risk of a recurrence of cancer.

The plaintiff at that time needed money to make improvements on the land, particularly to install running water and indoor plumbing facilities as a convenience for her aged mother. The defendant procrastinated, feigning concern about the boundaries of an adjacent forty-acre parcel which the plaintiff had given him in 1956. Although the defendant refused to convey his interest in the jointly owned premises, some friends of the plaintiff ultimately prevailed on him to sign a mortgage for an improvement loan in 1965. Thereafter, the defendant assured the plaintiff that he would never marry but would continue to live with her. These were his reasons for refusing reconveyance until his marriage plans were disclosed. Although the plaintiff proposed that her son could keep the property if he remained single, he did marry in 1967 and moved out of the house. After her attempts to obtain his voluntary reconveyance failed, the plaintiff brought suit in 1969. Throughout the entire period of time material to this litigation, the plaintiff has borne all expenses and costs of improvement to the property.

From these facts the trial court concluded that a constructive trust should be decreed on the basis of the oral agreement, the confidential relationship of the parties and their conduct with respect to the property. The defendant's appeal raises primarily the claim that the elements necessary to establish a confidential relationship, as the basis for a constructive trust, are lacking.

Although the trial court and the parties refer to a "parol trust" and to a "parol (constructive) trust," our courts have never used this term. The proper nomenclature is "constructive trust"; "parol" relates, of course, to the underlying oral agreement unenforceable because of the Statute of Frauds. It is helpful to recall, as did the court in King v. Uhlmann, 103 Ariz. 136, 144, 437 P.2d 928, that a constructive trust is not a legal relationship but an equitable remedy, whereas an express oral trust does constitute a legal relationship.

It hardly needs reciting that under our Statute of Frauds, General Statutes 52-550, oral agreements concerning interests in land are unenforceable. See Hanney v. Clark, 124 Conn. 140, 144-45, 198 A. 577. In this jurisdiction, however, the law is established that the Statute of Frauds does not apply to trusts arising by operation of law. Reynolds v. Reynolds, 121 Conn. 153, 158, 183 A. 394; Ward v. Ward, 59 Conn. 188, 196, 22 A. 149.

The case before us presents one of the most vexatious problems facing a court of equity in the area of constructive trusts, namely, whether equity should impose a constructive trust where a donee who by deed has received realty under an oral promise to hold and reconvey to the grantor has refused to perform his promise. See 3 Bogert, Trusts and Trustees (2d Ed.) 495; Costigan, "Trusts Based on Oral Promises," 12 Mich. L. Rev. 423, 515. Our task here, however, is considerably alleviated, since the defendant has not attacked the court's finding that the alleged agreement was in fact made, nor does he contest the receipt of parol evidence as having violated the Statute of Frauds. See, for example, Brown v. Brown, 66 Conn. 493, 34 A. 490; Todd v. Munson, 53 Conn. 579, 589, 4 A. 99; Dean v. Dean, 6 Conn. 284, 287-89. Although the deed recited that consideration was given for the 1959 transfer, the defendant does not attack the finding that there was no consideration for the conveyance. Indeed, in his brief the defendant abandons the claim that a recital of consideration suffices to rebut an allegation of a trust. See Andrews v. New Britain National Bank, 113 Conn. 467, 470, 155 A. 838. In addition, the complications typically involved in constructive trusts — for example, the claims of third parties or the testimony of deceased persons — are not present here. See the discussion in Hanney v. Clark, supra, 144-46. In this case the plaintiff was both settlor and beneficiary of the trust.

Since the finding of facts is not challenged, the conclusion of the court that the parties stood in a confidential relationship must stand unless it is unreasonably drawn or unless It involves an erroneous application of law. Johnson v. Zoning Board of Appeals, 156 Conn. 622, 624, 238 A.2d 413; Davis v. Margolis, 107 Conn. 417, 422, 140 A. 823. The defendant's attack on this conclusion is without merit. He argues that because the plaintiff initiated the transfer and was a woman of mature years, and because he was an inexperienced young man, a court of equity should not recognize a relationship of confidentiality between them. We grant that the bond between parent and child is not per se a fiduciary one; it does generate, however, a natural inclination to repose great confidence and trust. See Suchy v. Hajicek, 364 Ill. 502, 509, 510, 4 N.E.2d 836; Wood v. Rabe, 96 N.Y. 414, 426. Coupled with the plaintiff, s condition of weakness, her recent surgery, her anticipation of terminal illness, and the defendant's implicit reassurances of his faithfulness, this relationship becomes a classic example of the confidentiality to which equity will fasten consequences. See Restatement (Second), 1 Trusts 44, pp. 115-16; 3 Bogert, supra, 482. This principle finds implicit recognition in Worobey v. Sibieth, 136 Conn. 352, 359, 71 A.2d 80, Hanney v. Clark, 124 Conn. 140, 148, 198 A. 577, and is illustrated in Millard v. Green, 94 Conn. 597, 600, 110 A. 177, and Fisk's Appeal, 81 Conn. 433, 438, 71 A. 559 (applying Illinois law).

In Worobey v. Sibieth, supra, this court found no error in the trial court's refusal to impose a constructive trust on the basis of a confidential relationship. The defendant in that case had paid valuable consideration for the property, was not a relative of the plaintiff, and testified that the conveyance was intended only as an absolute deed. Although Stewart v. Hooks, 372 Pa. 542, 94 A.2d 756, cited in the defendant's brief, rejects the rule in the Restatement (Second), 1 Trusts 44, pp. 115-16, and is not in accord with the view taken by this court as to the criteria required for a confidential relationship, it is not to the point. There the Pennsylvania court refused to find a confidential relationship imposing a constructive trust on property devised by the plaintiff's deceased wife to a third person. Obviously, different considerations arise where the settlor of the claimed trust is deceased, or where the claimed beneficiary seeks to defeat the title of one who is a stranger to the oral agreement. See Hanney v. Clark, supra, 145.

The defendant's next contention questions the sufficiency of the evidence to justify the imposition of a constructive trust. Since he does not attack the finding that there was an underlying oral agreement, he cannot question the sufficiency of evidence to support that finding. Brockett v. Jensen, 154 Conn. 328, 331, 225 A.2d 190; Davis v. Margolis, 107 Conn. 417, 422, 140 A. 823. Presumably, the defendant objects to the sufficiency of this 1959 oral agreement, standing by itself, to create a constructive trust. Here, three points are in order. First, the trial court reached its conclusion not only on the basis of that agreement but also on the conduct of the parties and the circumstances surrounding the conveyance, seen as a whole. As we have already noted, the defendant has failed to sustain his attack on the court's conclusion that a confidential relationship existed. Second, where a confidential relationship has been established, there is substantial authority that the burden of proof rests on the party denying the existence of a trust — and then, by clear and convincing evidence to negate such a trust. See Suchy v. Hajicek, supra, 510; 89 C.J.S., Trusts, 155. Our decision in Wilson v. Warner, 84 Conn. 560, 80 A. 718, is not contrary. There, in regard to an alleged resulting trust in a decedent's estate, the court said (pp. 564, 565): "But in all cases where the claimed trust title to land is disputed, the facts from which such trust may be implied should be clearly and satisfactorily established." Third, as this court held in Dowd v. Tucker, 41 Conn. 197, 205, cited in Fisk's Appeal, supra, 440, It is unnecessary to find fraudulent intent for the imposition of a constructive trust. Whether there be fraud at the inception or a repudiation afterward, the whole significance of such cases lies in the unjust enrichment of the grantee through his unconscionable retention of the trust res. See Dodson v. Culp, 217 Ga. 299, 122 S.E.2d 109; Kent v. Klein, 352 Mich. 652, 91 N.W.2d 11; Costigan, "Trusts Based on Oral Promises," 12 Mich. L. Rev. 515, 536.

The same allocation of the burden of proof and a similar standard of proof have been imposed where a claimed gift of realty is contested between persons in confidential relationships. See McCutcheon v. Brownfield, 2 Wash. App. 348, 356, 467 P.2d 868; 38 Am.Jur.2d, Gifts, 106.

The defendant's argument that the reconveyances in 1960 extinguished his obligation has no support in the finding. Rather, the court's finding of facts concerning his conduct subsequent to the 1960 transfers undermines his position. The court found that the defendant countered the plaintiff's request with delay, pretending concern about the boundaries of his adjacent forty-acre parcel; that he gave, as a reason for refusing to reconvey, assurances that he would never marry and that he would continue to reside with his mother of more weight to a court of equity, however, is the fact that the 1960 transfers effected no essential legal or equitable change in the defendant's initial undertaking. The finding reveals that his interest remained that of a joint tenant with right of survivorship upon the sister's surrender of her title to the plaintiff. Not only has the defendant failed to substantiate his contention, but his claim that the plaintiff's case must fail for lack of a concomitant renewal of the oral agreement in 1960 misconceives the nature of a constructive trust. See the discussion in Moses v. Moses, 140 N.J. Eq. 575, 580-81, 53 A.2d 805. Indeed, the defendant's assertion could amount to no more than a unilateral attempt to extinguish the original oral agreement. In short, the absence of an express renewal of the defendant's promise does not impair the soundness of the court's conclusion.

See, in this connection, Farano v. Stephanelli, 7 App. Div. 2d 420, 183 N.Y.S.2d 707 (promise implied from grantee's silence), and Kent v. Klein, 352 Mich. 652, 91 N.W.2d 11, commented on in 57 Mich. L. Rev. 923.

Finally, the defendant makes the claim that the plaintiff has unclean hands. There is nothing in the record to suggest that the 1959 transfer was an attempt to defraud creditors or to secrete assets from government agencies. Granted that the plaintiff offered to let her son keep the property in order to dissuade him from taking a wife, it cannot be said, as a matter of law, that her hands are tainted with an attempt to tamper with marriage, especially in view of the defendant's earlier assurances that he would never get married.

In light of the unattacked finding of the court that the defendant in fact had agreed to reconvey the property to the plaintiff upon request and the conclusion of the court, amply supported by the finding of fact, that a confidential relationship existed between the plaintiff and the defendant, the case comes squarely within the provisions of 44 of the Restatement (Second) of Trusts: "Where the owner of an interest in land transfers it inter vivos to another in trust for the transferor, but no memorandum properly evidencing the intention to create a trust is signed, as required by the Statute of Frauds, and the transferee refuses to perform the trust, the transferee holds the interest upon a constructive trust for the transferor, if . . . (b) the transferee at the time of the transfer was in a confidential relation to the transferor."

Use AI to get other relevant cases.

Comments

HIEBLE v. HIEBLE
(Nov 8, 1972)