Markgraf v. Welker

Summary

The North Dakota Supreme Court affirmed a judgment quieting title to mineral interests in favor of Kathleen Markgraf and Marilyn Shanahan. The court held that clear and convincing evidence supported the existence of a resulting trust arising from the conveyance of property to Arnold Hannah as trustee and his subsequent conduct. The court also held that the trust was not repudiated and that the statute of limitations did not bar the action.

Holdings

1. A resulting trust existed because clear and convincing evidence showed that the parties intended, at the time of the 1965 conveyance, that Arnold Hannah would hold the property for the benefit of W.J. and Mary Hannah's family. The word “Trustee” in the deed alone was insufficient, but it could be considered with the surrounding circumstances and subsequent conduct.
2. The trust was not repudiated, and the statute of limitations did not bar the plaintiffs' action. Repudiation requires an act or statement by the trustee in open contravention of the trust, amounting to a denial of its existence, and the party asserting repudiation bears the burden of proving it.

Questions Presented

1. Whether the evidence established a resulting trust in the mineral interests conveyed to Arnold Hannah as trustee.
2. Whether Arnold Hannah repudiated the resulting trust so that the statute of limitations began to run and barred the quiet-title action.
3. Whether the district court's findings after the bench trial were clearly erroneous.

Disposition

affirmed