Casella v. Casella

256 Cal. App. 2d 312, 64 Cal. Rptr. 259, 1967 Cal. App. LEXIS 1857
California Court of Appeal·Decided November 24, 1967·No. Civ. 23566·Published·Cited by 6 cases

Opinion

BRAY, J. *

This is an appeal by Paul Casella and Michael Casella, brothers of Domenico Casella, deceased, from certain portions of the judgment herein, and appeal by Mary Casella, widow of said deceased, from certain other portions of the judgment. As the parties are both petitioners and appellants, Paul and Michael will be referred to as the “Brothers” and the widow will be referred to as Mary.

Questions Presented

1. Did the probate court have jurisdiction to determine the ownership of joint tenancy properties %

2. Were the joint tenancies between Domenico and Mary destroyed ?

3. Was the effect of the will’s in terrorem clause before the court?

Record

Domenico Casella died April 11, 1964. The Brothers obtained admission of his will to probate and letters testamentary were issued to them. Mary filed in the estate “Petition for Decree Determining Interest in Estate.” The Brothers filed “Petition for Determination of Entitlement to Distribution of Estate.” Also Mary and the Brothers filed “Statements of Interest.”

After a hearing the court found that all of the property of Domenico was originally his separate property; that certain of the properties became joint tenancy properties and that a certain quitclaim deed obtained by Domenico from Mary was obtained in violation of the confidential relationship between them. The court proceeded to make disposition of the properties as hereinafter set forth. The appeals followed.

*316 The Testimony

In 1929 Domenico and the Brothers became partners in a grocery business which they operated until 1945 when it was sold. During the 15-year period of the business, the partners worked 12 to 15 hours per day with no vacations. The partners withdrew an equal share of the income of the business and equally divided the proceeds of the sale of the business.

On December 11, 1932, approximately three years after the start of the grocery business, Domenico and Mary were married and lived together until his death, over 31 years later. There were no children of the marriage. Apparently Domenico had the old country idea that he should manage all the business affairs of the spouses, pay the bills and keep his wife in complete ignorance thereof and of the property accumulated. He took care of everything. She signed any paper he presented to her for signature without knowing its contents.

After sale of the grocery business Domenico retired, continuing, however, to manage the properties he had acquired before and after marriage. In 1950 he reopened the grocery store for a brief period. The venture was not successful and the business went broke. The properties listed in the inventory in the estate will be hereinafter discussed. The will dated October 7, 1963, approximately six months before Domenico’s death, left all of his property to his brothers, with the exception of personal effects and a $10,000 cash trust, payable $50 per month to Mary. Domenico apparently had discovered a note written to Mary by her brother advising her to leave $10,000 to Domenico out of her separate estate. Mary told Domenico she would leave him $10,000, and he then said that he would leave her a like sum.

The inventory and appraisement filed in the estate showed the following items of property, valued at the following amounts:

Item, No. Description Amount
1. 1961 Ford Automobile (proceeds) $ 1,000.00
2. Promissory note and deed of trust dated January 1, 1963—Alvarez to Casella—original balance $27,500 from sale of Lot 4 24,259.40
3. Promissory note dated August 14,1958 —Phillips to Casella—original note $10,500.00—from sale of Lot 35 8,358.67
*317 4. Promissory note and deed of trust dated March 10, 1964, Alvarez to Casella—from sale of Lots 2, 3 and 7 80,000.00
5. Savings account — Pioneer Investors Willow Glen Branch 1,818.90
6. Beal property (family residence) located at 1588 Willow Oaks Street, San Jose, California 30,000.00

Item 1 is the only property which is not in issue on this appeal. (The court held that it was Mary’s separate property.) We will discuss separately the disputed items of property.

Item 2. The $27,500 note Alvarez to Domenico.

The source of this note was a sale of Lot 4, Wright’s Subdivision, Sunol Addition, San Jose on January 1, 1963 to Mr. and Mrs. Joe Alvarez. The lot was owned by Domenico at the time of his marriage. The note and deed of trust resulting from the sale of the lot was found by the court to be Domenico ’s separate property. Mary contends that this property was transmuted from Domenico’s separate property to community property by reason of the fact that Domenico and Mary in 1947 filed separate income tax returns in which these items were reported as community property. This contention is hereinafter discussed, and we hold that this one act of the parties did not transmute the status of the property into community property.

Item 3. $10,500 note Phillips to Domenico.

In 1926, prior to the marriage, Domenico acquired Lot 35, Columbia Avenue. It was the family residence from 1932 until 1956. In 1958 by deed executed by both spouses, the property was conveyed to Phillips, who executed a promissory note to Domenico and Mary as joint tenants. On April 4, 1963, Mary assigned to Domenico said note as his separate property. The trial court declared this assignment void and set it aside as being obtained by violating the husband and wife confidential relationship while Mary was under the undue influence of Domenico. 1 The court held that the note remained in joint tenancy and that Mary, as surviving tenant, is entitled to it. As hereinafter set forth, the court’s holding was proper.

*318 Item 4. Promissory Note and Deed of Trust, Alvarez to Domenico for $80,000.

The court found that these comprised the sale prices of three lots sold by Domenico to Joe K». and Mary Alvarez which were as follows:

Lot 2 sale price $30,050
3 sale price $30,050
7 sale price $19,900

The note and deed of trust given by the Alvarezs for the purchase price were executed to Domenico, “a married man, as his separate property. ’ ’

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Casella v. Casella, 256 Cal. App. 2d 312, 64 Cal. Rptr. 259, 1967 Cal. App. LEXIS 1857 (Cal. Ct. App. 1967).

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