In Lounsbury v. Purdy, the plaintiff paid part of the purchase-money, and the defendant and another gave their note for the balance. The third party took the title in his own name. The agreement was that he should hold it in trust for the plaintiff, who afterwards paid the note. The Court discusses the facts, and treats the money and note as together the consideration which raised the trust in the whole land at the time of the purchase. Thus the note of the defendant and another is held to have been loaned to the plaintiff, and hence to have been held in trust before delivery for the plaintiff. Hence the resulting trust was sustained against creditors of the person who had taken the legal title.
And in this case the Court laid down the same reasonable rule as follows: “In this case there can be no doubt that whilst the grant was made to one person, the consideration therefor was paid by another. The defendant objects that but a part of the purchase-money was paid when the deed was executed, and that if there could have been a resulting trust in favor of the plaintiff it would have been only pro tanto. But a note was given for the residue at the same time, in her behalf, by her then friends, and it is apparent that it was the understanding at the time when the conveyance was made. It is not necessary that the consideration should be paid in specie, but anything representing it, coming from or in behalf of the cestui que trust, will be equally available to protect the beneficial interest. The cases which declare the unavailability of subsequent payments have reference to such as are made pursuant to arrangements concocted after the conveyance had been made and consummated.
In Barrows v. Bohan, a woman made a parol contract for the purchase of land, and at different times paid parts of the purchase-money. Her brother then agreed to go halves with her in payments and ownership. Accordingly he made certain payments and gave his note for a balance of the purchase-money. The land was conveyed to him. Afterwards he and his sister paid his note. They also built upon the land, each furnishing money. It was held that a trust resulted in her favor for half. The Court took as the test facts the payments by the sister, and her actual liability for a part of what was paid by her brother. One of these facts consisted in the intention of the parties as distinguished from their
- 16 Barb. 376 (1853), and for the facts, 11 Barb. 490 (1851).
- 41 Conn. 278 (1874).