American Trust Co. v. Fitzmaurice

280 P.2d 545, 131 Cal. App. 2d 382, 1955 Cal. App. LEXIS 2061
CourtCalifornia Court of Appeal
DecidedMarch 10, 1955
DocketCiv. 16131
StatusPublished
Cited by15 cases

This text of 280 P.2d 545 (American Trust Co. v. Fitzmaurice) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Trust Co. v. Fitzmaurice, 280 P.2d 545, 131 Cal. App. 2d 382, 1955 Cal. App. LEXIS 2061 (Cal. Ct. App. 1955).

Opinion

NOURSE, P. J.

Loraine Ward Temps instituted against her nephew Frank M. Fitzmaurice and his wife an action for a declaration that defendants held certain real and personal property which plaintiff had transferred to them in trust for plaintiff, and for an order that they reconvey said property to her. The property consisted of (1) certain shares of Transamerica Corporation and of Bank of America National Trust and Savings Association; (2) a note and deed of trust securing it, given by Thomas F. Fenton and wife for the balance of the purchase price of a parcel of improved real property sold to them by plaintiff, which note mentions defendant Frank M. Fitzmaurice as payee; (3) a parcel of improved real property on Funston Avenue in San Francisco, in which both plaintiff and defendants lived in separate apartments. Plaintiff alleged a confidential relationship with defendants, especially with her nephew, that the transfers were made at his instigation so that he would handle the property for her during her lifetime and pay her all the income, that he would re-convey to her on demand, and in case of her death retain what he had still under him, and that demand for a reconveyance was made and refused.

In their answer defendants admitted the confidential relationship and the agreement to pay to plaintiff during her lifetime all income and receipts from the property but denied the alleged trust and obligation to reconvey, taking the position that except for the retention of the right to income and receipts the transfer of the title (by way of gift) was absolute. In a cross-complaint defendant husband asked a declaration that he was a joint tenant with his aunt in some $55,000 of government bonds originally held by her but following her directions transferred into the names of herself or him and the certificates of which were kept in a safe deposit box taken *385 by both in their joint names, and that the court provide for sequestration of said bonds. During the trial it was also claimed by this cross-complainant that he had a joint tenancy interest in a bank account opened by Mrs. Temps in the joint names of herself and him. It was stipulated at the trial that this appellant never paid anything for the advantages he received.

As to the shares of stock and the note and deed of trust the court, sitting without a jury, held that no gift had been intended, that defendants held the title in trust and ordered him to reconvey to plaintiff. As to the real property on Funston Avenue, it was held that plaintiff had only retained a life estate in the flat she lived in and defendants were ordered to execute a deed conveying such life estate to her and providing that all real property taxes and repairs should be paid by defendants. A court commissioner was appointed to execute the transfer ordered if defendants failed to do so. It was further adjudged that cross-complainants had no interest in the bonds and bank account in the joint names of his aunt and himself. Defendants and cross-complainants appeal.

Pending the appeal Mrs. Temps died and the American Trust Company as the executor of her will was substituted for her.

Appellants’ only contention is that the evidence does not support the findings and decision insofar as adverse to them. Except as to one minor point the contention is without merit. The essential question was whether in the different transactions the intention was a transfer in trust terminable on demand during Mrs. Temps’ lifetime or a present gift with retention of a right to the income for life. In this respect the evidence was in sharp conflict. Respondent testified that at the time of the trial (May, 1953) she was 75 years old and that for 15 years she had been in bad health. At the end of 1948 or the beginning of 1949, after the Funston Avenue property had been deeded to appellants, she had a conversation with appellant Frank about her properties in connection with her care in her old age and the possibility of her death in not too long a time. Appellant wanted her to give him everything, her stocks and bonds. If he had not told her he would return the property she would of course not have transferred it to him. She would not have given him anything. She might still live, a sick woman, 10 more years. She gave him the key of the safe deposit box for awhile, but when she found out that he was getting in the box clandestinely, she asked for *386 the key and he gave it back. When she asked him to return her securities he said that he would not give them back, he had changed his mind. She considered the property still hers.

Fred A. Watkins, attorney of respondent, testified that he had had a conference with Frank about the return of the stock and the note and that at the end of said conference he said: “ ‘I admit I told her I -would give them back to her when she gave them to me, but I am not going to do it.’ ” This is sufficient in itself to sustain the judgment.

All the above evidence sufficiently supports the holding that all transfers were revocable and in trust during Mrs. Temps’ lifetime. All evidence to the contrary given by appellants could only cause a conflict resolved by the trial court against appellant. Appellants’ attack on the weight of Mrs. Temps’ testimony as confused and conflicting cannot be reviewed by this court as the credibility of witnesses is solely for the trial court where no impossibility or inherent improbability is involved. There is no doubt that self-serving testimony of the donor or trustor is admissible as to the question whether a transfer was intended as a gift or a trust. Even hearsay evidence as to such declarations of the trustor or donor is admissible to show his or her frame of mind in that respect as an exception to the hearsay rule. (Hansen v. Bear Film Co., 28 Cal.2d 154, 173 et seq. [168 P.2d 948]; Casey v. Casey, 97 Cal.App.2d 875, 879, et seq. [218 P.2d 842]; Kelly v. Bank of America, 112 Cal.App.2d 388, 394 [246 P.2d 92, 34 A.L.R.2d 578]; Emden v. Verdi, 124 Cal.App.2d 555, 561 [269 P.2d 47].)

Appellants also attack the testimony of the attorney Fred Watkins. An attorney is competent to testify like any other witness. (27 Cal.Jur. 31.) “The propriety of a lawyer occupying the dual capacity of attorney and witness is purely one of legal ethics largely to be determined by the attorney’s own conscience. While it is not a practice to be encouraged, it may often occur that conditions exist in which an attorney cannot justly or fairly withhold from his client either his legal services or his testimony as a witness.” (Hotaling v. Hotaling, 187 Cal. 695, 709 [203 P. 745].) On appeal we must consider his testimony in support of the decision below just as we would any other evidence.

Appellants contend that the agreement of the parties with the bank provides that all funds deposited in the joint account will be held by the parties as joint tenants; that

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Bluebook (online)
280 P.2d 545, 131 Cal. App. 2d 382, 1955 Cal. App. LEXIS 2061, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-trust-co-v-fitzmaurice-calctapp-1955.