Gear v. McLellan

132 P.2d 550, 56 Cal. App. 2d 382, 1942 Cal. App. LEXIS 216
CourtCalifornia Court of Appeal
DecidedDecember 28, 1942
DocketCiv. No. 12157
StatusPublished

This text of 132 P.2d 550 (Gear v. McLellan) 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
Gear v. McLellan, 132 P.2d 550, 56 Cal. App. 2d 382, 1942 Cal. App. LEXIS 216 (Cal. Ct. App. 1942).

Opinion

KNIGHT, J.

The plaintiff, Mary Grace De Gear, brought this suit -in equity to recover from- the defendants, Asa D. McLellan and Frank L. McLellan, the sum of $486.65. The complaint was filed January 24, 1938; but the defendants, evidently awaiting the outcome of other litigation involving a question of liability similar to that here sued upon, did not file their answer until December 20, 1940, and several months thereafter they moved for judgment on the pleadings. The motion was granted, and plaintiff appeals.

The controversy has its origin in the settlement of the es[383]*383tate of Mary Belle McLellan, deceased, which took place in the Superior Court of San Mateo County. The decree of final distribution was entered therein on January 23, 1928, and the present suit was instituted in said court ten years later. It was based on allegations to the effect that by said decree the sum of money sought to be recovered was distributed to defendants, whereas it should have been distributed to plaintiff as interest on a testamentary trust fund of which she was beneficiary. It is apparent that under the decisions rendered on three former appeals, namely, Estate of McLellan, 14 Cal.App.2d 271 [57 P.2d 1338]; Estate of McLellan, 8 Cal.2d 49 [63 P.2d 1120], and McLellan v. McLellan, 17 Cal.2d 552 [110 P.2d 1034], all of which involved the question of the liability here sued upon, it was mandatory on the trial court herein to grant defendants’ motion.

The factual situation may be stated as follows: The decedent, Mary Belle McLellan, died testate on January 15, 1927. By her will, after providing for the payment of several specific legacies, she created three separate trusts and directed that the income therefrom and such portions of the principal as the trustees deemed necessary and advisable be paid to the beneficiaries for their maintenance and support, with the remainder upon the death of the beneficiary to others. Plaintiff was named as beneficiary of the first trust, Leonard E. Mc-Lellan of the second, and Mary Bates McLellan was named as beneficiary of the third trust, with the remainder upon her death to Asher Bates McLellan. The defendants and Edgar W. McLellan (who died in August, 1935) were named in the will as trustees, and they were also made executors and residuary legatees. The decree of final distribution was entered, as stated, on January 23, 1928, whereunder, after directing the payment of the specific legacies, certain sums of money were distributed to the trustees to be used in the manner directed in the will, and the residue was distributed to said trustees as residuary legatees. No appeal was taken from said decree, and thereafter the trust funds were administered as directed by the terms of the will and the decree. Seven years after the decree became final, and on June 7, 1935, the trustees as such filed an account, and at the settlement thereof plaintiff and Asher Bates McLellan (the remainderman of the third trust, the beneficiary having died), asserted for the first time that the trustees were chargeable with interest on the trust [384]*384funds from the date of the decedent’s death to the entry of the decree of final distribution. The superior court so held, and ordered the trustees to account to the beneficiaries therefor. Two appeals were taken by the trustees; one from that portion of the order in favor of Asher Bates McLellan, and the other from that portion in favor of plaintiff. The former appeal was decided by the District Court of Appeal on May 26, 1936, and is reported in 14 Cal.App.2d 271 [57 P.2d 1338]; the latter appeal was decided by the Supreme Court on December 23, 1936, and is reported in 8 Cal.2d 49 [63 P.2d 1120], On each appeal the order was reversed upon the ground that the decree of final distribution made no allowance for interest, and that since the decree had long since become final, it was not subject to collateral attack in a subsequent proceeding settling the account of the trustees. In so holding the District Court of Appeal said: “The decree of distribution became a final and conclusive judgment more than seven years before this collateral attack was made upon it. By the terms of that decree the trustees had distributed to them something over $3900, and that is all of the corpus of the trust for which they can now be called upon to account. The fact that the executors and the trustees were the same individuals has no possible bearing on this proceeding to settle the account of the trustees.” The Supreme Court in disposing of the same point used this language: Concerning the first contention, the record shows that the trustees, as executors under the will of Mary Belle McLellan, petitioned for distribution of her estate but made no request for interest, upon the legacy. The decree of distribution allowed no interest, and the trustees paid no interest to the beneficiary of the trust for the period prior to the date of the decree. More than seven years after that decree became final, respondent for the first time claimed interest for this period. This she cannot do. Having become final the decree of distribution was not subject to collateral attack in this proceeding for the settlement of the account of the trustees. (See In re Estate of Mary Belle McLellan, 14 Cal.App.2d 271 [57 P.2d 1338], an appeal from an order disallowing an account of the appellants here as trustees of another testamentary trust under the same will.) ” However, the District Court of Appeal in its decision went on to say: “If, because of such relation or if because of any other fact or circumstance not alleged or proved here[385]*385in, the appellants were guilty of fraud or breach of trust in connection with the decree of distribution that is a matter for a court of equity to determine.” Thereupon Asher Bates McLellan and plaintiff each brought such a suit. They were based on allegations to the effect that since the trusts were created for the maintenance and support of the beneficiaries they were entitled to interest on the trust funds from the date of the testatrix’ death to the entry of the decree of final distribution; that at the time of distribution said trustees “failed and neglected to petition the said court for distribution” of said interest; that by reason of such failure and neglect the amount of money to which they would have been entitled to receive as such interest went into the residue of the estate and was distributed to said trustees as residuary legatees; that therefore said trustees were liable to them for the payment of said interest.

The suit brought by Asher Bates McLellan was tried first, on the merits, and was decided in his favor. The trustees appealed, and the Supreme Court again reversed the trial court, and directed the entry of judgment in favor of the trustees.

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Related

McLellan v. McLellan
57 P.2d 1338 (California Court of Appeal, 1936)
Estate of McLellan
63 P.2d 1120 (California Supreme Court, 1936)
McLellan v. McLellan
110 P.2d 1034 (California Supreme Court, 1941)

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Bluebook (online)
132 P.2d 550, 56 Cal. App. 2d 382, 1942 Cal. App. LEXIS 216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gear-v-mclellan-calctapp-1942.