Estate of Lynch

83 Cal. App. 3d 296, 147 Cal. Rptr. 861
CourtCalifornia Court of Appeal
DecidedJuly 27, 1978
Docket52497
StatusPublished
Cited by2 cases

This text of 83 Cal. App. 3d 296 (Estate of Lynch) 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
Estate of Lynch, 83 Cal. App. 3d 296, 147 Cal. Rptr. 861 (Cal. Ct. App. 1978).

Opinion

83 Cal.App.3d 296 (1978)
147 Cal. Rptr. 861

Estate of IRVIN H. LYNCH, Deceased.
BRUCE A. ALTMAN, as Public Administrator, etc., Petitioner and Appellant,
v.
GORDON L. COX et al., Objectors and Respondents.

Docket No. 52497.

Court of Appeals of California, Second District, Division Five.

July 27, 1978.

*298 COUNSEL

John H. Larson, County Counsel, and Gordon W. Treharne, Deputy County Counsel, for Petitioner and Appellant.

Keatinge, Pastor & Mintz, Marshall G. Mintz and Marilyn S. Heise for Objectors and Respondents.

OPINION

STEPHENS, J.

(1) (See fn. 1.) This appeal is by the Los Angeles County Public Administrator (Public Administrator) from a ruling approving assignments of portions of interests in the estate possessed by various heirs.[1]

*299 The facts are that the estate came into existence on September 27, 1973, upon the death of testator. The Public Administrator was duly appointed and qualified as administrator on November 23, 1973. During the period of November 28, 1973, to December 13, 1973, all of the apparent heirs made assignments of one-third of each of their respective shares; most of the assignments were to Gordon L. Cox, and his firm, W.C. Cox and Company. Cox is engaged in the business of locating heirs and, when an heir is located, he seeks to obtain an assignment of a portion of the estate as his remuneration for the "finding."[2]

In the instant case W.C. Cox and Company informed the heirs that it had retained an attorney to protect its assigned interest in the estate. According to Cox, the attorney was retained, in part, to "establish to the Court's satisfaction the identity and relationship of the heirs to the decedent; since our assignment is contingent upon the heirs receiving funds from the estate in question" Cox and Company further informed the heirs that the attorney would be willing "to represent and protect the heirs' interest in the estate and make no charge for such services rendered in the heirs' behalf, provided such heirs request him to act in their behalf." The heirs were not required to use Cox's attorney and no express power of attorney was included in the assignment. The 14 heirs making assignments to Gordon L. Cox all signed retainer agreements with an attorney, Ivan McWhinney.

None of the heirs took any steps on their own behalf to challenge the assignments.

The probate court, in accordance with Superior Court for the County of Los Angeles Probate Policy Memorandum, section 13.11, ordered the heirs to file copies of the assignments as well as affidavits concerning the circumstances surrounding the assignments. These were filed on March 5, 1976. All of the assignments to Gordon L. Cox were identical.

On April 7, 1976, the Public Administrator moved, pursuant to section 1020.1, for inquiry into the circumstances surrounding the assignments. At the hearing to inquire into the assignments, he took the position that the burden of producing evidence and the burden of proof were on the assignee because of the special nature of the proceedings under Probate Code, section 1020.1. The Public Administrator contended that his role *300 was to initiate the inquiry proceedings, and that it was the role of the court to make the inquiry. That court stated that it would not interrogate witnesses and would not become an advocate.

The evidence produced by the Public Administrator consisted of the assignments made to respondents, the contents of the letter retaining the attorney for the heirs and the testimony of one witness, Ivan McWhinney, attorney for the heirs and for W.C. Cox and Company (the latter client was not represented by Mr. McWhinney at the § 1020.1 hearing nor on this appeal). No evidence was produced by the Public Administrator of the actual conversations and transactions between the assignee and the assignors. Respondents presented no evidence of their own. At the close of the Public Administrator's case, respondents moved, under section 631.8, Code of Civil Procedure, for a judgment on the grounds that the Public Administrator had failed to prove a case.

The court in upholding the assignments to Gordon L. Cox ruled: "[t]hat the burden of proof and the burden of production of evidence in this hearing brought under Probate Code § 1021.1 are upon the party seeking to challenge the assignments, in this case, the Public Administrator of the County of Los Angeles." The court further ruled that the assignments to Gordon L. Cox, being in writing, are presumed to be supported by consideration. The court concluded that the Public Administrator had failed to sustain his burden of proof and burden of production of evidence for either of the issues of whether the consideration for the assignments was grossly unreasonable or whether the assignments "were procured by duress, fraud and/or undue influence."

(2a) The Public Administrator argues on appeal that the assignee of a partial assignment, in a section 1020.1 inquiry, has the burden of producing evidence of the consideration and the circumstances surrounding the execution of the assignment. He argues that the Public Administrator's responsibility ends when a motion to inquire is made. The Public Administrator raises a second issue of whether all the assignments are void as being contrary to public policy.

The language of Probate Code section 1020.1[3] gives broad discretion to the probate court. The section allows the probate judge to inquire into the *301 circumstances surrounding an assignment of interest, but it does not require such an inquiry. It does not require that a court hold a full inquiry into every assignment that comes before it, or even into any assignment that comes before it. The judge has discretion to decide how extensive an inquiry, if any, will be made into an assignment pursuant to section 1020.1.

The language of the statute is permissive in nature. In Estate of Kerr (1966) 63 Cal.2d 875 [48 Cal. Rptr. 707, 409 P.2d 931], the Supreme Court stated that at least where the heir did not, as such, move the court for such an inquiry and where other evidence tended to show reasonableness of the assignment, "... the inquiry contemplated by that section [1020.1] appears to be permissive rather than mandatory." (Id., at p. 880.) Under the reasoning of Kerr, the section does not appear to require the court to make a full inquiry every time a motion to inquire has been made.

Probate Code section 1020.1 allows any party interested in the estate, the Public Administrator, or the court itself, to make a motion to inquire into the consideration for an assignment and into the circumstances surrounding the execution of the assignment. Should such an inquiry be made, it is up to the court as to how it will be conducted. The court may require from the moving party some tangible evidence of irregularity or illegality before the court would be willing to proceed with a full inquiry. Alternately, the court may regard the assignment as questionable to begin with and may therefore place the initial burden of production on the heir hunter. The language of section 1020.1 does not bind a court to any specific rule as to who has the burden of production.

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Related

Estate of Wright
108 Cal. Rptr. 2d 572 (California Court of Appeal, 2001)
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Bluebook (online)
83 Cal. App. 3d 296, 147 Cal. Rptr. 861, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-lynch-calctapp-1978.