Jacobs v. Schwartz

⁶⁰⁶ Sloan, J., delivered the opinión of the Court. By deed dated June 6th, 1927, Louis Jacobs, a widower, conveyed to E. Estelle Potts, two lots in fee, Nos. 1301 East Fayette Street and 604 West North Avenue in Baltimore City, and on the same day the grantee, who had no interest in the transaction and was acting for the grantor, conveyed the lots to Louis Jacobs for life with remainder to his five children, Hattie Jacobs Rosenthal, Sydney M. Jacobs, Paul W. Jacobs, Raymond L. Jacobs and Milton C. Jacobs. On September 17th, 1932, the five children reconveyed the two lots to their father, Louis Jacobs, as alleged “at his request,” and on the 26th day of September, 1932, Louis Jacobs conveyed to Sidney Melbourne, who, on the same day, conveyed to Louis Jacobs for life, with remainder to Rose Hilda Rosenthal, Millard Jacobs, Roland Jacobs, Robert Jacobs, Rita Jacobs and Milton C. Jacobs. Milton C. Jacobs appears to be a grantee in both deeds.

Louis Jacobs died February 19th, 1938. On September 5th, 1939, the grantee in the deed of September 26th, 1932, conveyed both lots to David Samuel Jacobs, a son of Louis, who was living in California when the deed of 1927 was made, and on February 10th, 1940, they executed a confirmatory deed to David Samuel Jacobs. 1 On October 21st, 1939, David Samuel Jacobs agreed in writing to sell the property 1301 East Fayette street to one, Milton Altman, and then it developed that on December 27th, 1930, while the title to a one-fifth interest in remainder was in Hattie Rosenthal, a decree in personan on a mortgage foreclosure of another property, had been obtained against Hattie Rosenthal and her husband, for $759.08 by the Builders & Mechanics Permanent Building Association, which about the same time was entered to the use of I. L. Schwartz in consideration of the sum of $128.75, and it was this discovery that led to this proceeding. On January 16th, 1940, Schwartz caused an execution to be issued and levied on the said two properties, re- ⁶⁰⁷ suiting in a bill by David Samuel Jacobs against Schwartz and Joseph C. Deegan, Sheriff of Baltimore City, to enjoin a sale, and quiet the title, which after answer and hearing was dismissed, and from the decree of dismissal, the plaintiff appeals. The contention of the plaintiff is that while the deed of 1927 is absolute in form, subject to the retention of a life estate by Louis Jacobs, it was really in trust because it was understood and agreed between the grantees and their father that, if and when requested by him, they