Gunning v. Caudill

90 Cal. App. 4th 228, 108 Cal. Rptr. 2d 572, 2001 Cal. Daily Op. Serv. 5399, 2001 Daily Journal DAR 6603, 2001 Cal. App. LEXIS 487
CourtCalifornia Court of Appeal
DecidedJune 26, 2001
DocketNo. B145083
StatusPublished
Cited by1 cases

This text of 90 Cal. App. 4th 228 (Gunning v. Caudill) 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
Gunning v. Caudill, 90 Cal. App. 4th 228, 108 Cal. Rptr. 2d 572, 2001 Cal. Daily Op. Serv. 5399, 2001 Daily Journal DAR 6603, 2001 Cal. App. LEXIS 487 (Cal. Ct. App. 2001).

Opinion

[231]*231Opinion

GILBERT, P. J.

An heir hunter locates a missing or lost heir. As consideration for information concerning the inheritance, the heir executes an assignment giving the heir hunter a percentage of the inheritance. She also signs, but later revokes, a general power of attorney in favor of the attorney who represents the heir hunter. She also refuses to sign a letter authorizing the attorney to represent her even though the heir hunter agreed to pay the attorney’s fees.

We hold that under these circumstances, the heir hunter’s assignment is valid. We also conclude that the general power of attorney in favor of the attorney contravenes public policy and is void.

Dorothy Ann Gunning appeals an order denying a petition to invalidate an assignment of her interest in the estate of Edward Henry Wright to an heir hunter, or alternatively, to limit the heir hunter’s compensation. (Prob. Code, §§ 1303, subds. (g), (h), 11604; Estate of McPherson (1949) 90 Cal.App.2d 17, 20 [202 P.2d 565].)1 We affirm.

Facts

On July 5, 1999, Edward Henry Wright died intestate. Wright, a widower, had no children but three siblings survived him. Wright’s brother resided in Florida, and a sister resided in North Carolina.

On August 9, 1999, Attorney David Turpin filed a petition for letters of administration as the nominee of Wright’s brother and sister. Turpin requested that the probate court fix a $300,000 bond, the estimated value of the estate.

In the petition for letters of administration, Turpin stated that the address of the decedent’s second sister, Dorothy Ann Gunning, was “unknown” to her siblings. Turpin requested that the probate court authorize him to employ an heir hunter, Francis See, at an hourly rate to locate Gunning. Turpin stated that Gunning lived at times in Petaluma, California, Las Vegas, or Reno, Nevada, and Manchester, New Hampshire. The probate court approved the petition and the employment of See at a $75 hourly rate, not to exceed $5,000.

The petition for letters of administration, the estimated value of the estate, and the statement that Gunning’s whereabouts were unknown, did not escape [232]*232the interest of heir hunters. David Franklin, a licensed private investigator specializing in heir hunting, soon learned of the petition for letters and the missing heir. Franklin’s employees searched telephone listings and public records in California, Nevada, and New Hampshire for information regarding Gunning, without success.

On August 27, 1999, Franklin referred the search to Joseph S. Caudill, a licensed private investigator and heir hunter in Colorado. Caudill searched computer databases for telephone listings, voter records, real property records, driving records, and Social Security death records. From this search, he found addresses for Gunning in Reno, Nevada. By telephone, Caudill spoke with landlords and neighbors at these addresses and obtained Gunning’s Social Security number.

Caudill located Gunning’s employer in Reno by using her Social Security number. He then arranged for Jonathan Lowden, an employee of a California licensed private investigator, to travel to Reno to find Gunning. Lowden visited Gunning’s employer in Reno and learned that she had worked there recently. As Lowden spoke with persons outside a casino that Gunning frequented, she walked across the street.

According to Gunning, Lowden identified himself and informed her that she had inherited money but had to “sign the papers” to learn of the inheritance. Otherwise, he warned that she “might never find out where [her] inheritance came from and . . . might lose a great sum of money . . . .”

Lowden declared that he informed Gunning that he could not disclose “the provenance of the [estate] funds” unless she signed an assignment in favor of heir hunter Caudill. Lowden declared that he also advised Gunning that it “was quite possible” that she could learn of the inheritance “some other way.” According to Lowden, Gunning responded, in essence: “What the hell. Let’s do it.”

On September 10, 1999, Gunning executed an agreement and assignment giving Caudill 35 percent of her inheritance “in consideration of the information . . . given [her] and for research done . . .” regarding the inheritance. Gunning also executed a limited power of attorney in favor of Caudill “to order and receive any and all documentation relating to [her] identity or the identity of [her] parents.”

In addition, Lowden presented Gunning with a general power of attorney in favor of a San Francisco attorney, John E. Boessenecker. The power of attorney authorized Boessenecker “to exercise or perform any act, power, [233]*233duty, right or obligation whatsoever that [Gunning] now [has] or may hereafter acquire . . . .” It specifically included the right to order and receive documents concerning Gunning’s identity or that of her parents, and the power to perform financial transactions and to accept and endorse bank drafts.

Lowden later gave Gunning an agreement authorizing Boessenecker to represent her. In part, the agreement provided: “I [Gunning] am informed that, insofar as there is no conflict of interest, and none arises, you [Boess-enecker] are willing to represent me for the purpose of establishing and protecting my right to inherit from the . . . estate and in obtaining distribution. . . . ró] In the event a dispute arises over my relationship to the decedent, my right to inherit, ownership or title to property in the decedent’s estate, or over any other matter involving he estate, I authorize you to act and/or appear on my behalf in settling said dispute or adverse claims, providing that such action shall be without cost or any fees or expenses to me.” The agreement provided that Caudill would pay all attorney’s fees and that Gunning was “not to be obligated for any [attorney’s] fees.”

Although Gunning executed the general power of attorney in favor of Boessenecker, she refused to execute the agreement authorizing him to represent her in the probate, thereby revoking the power of attorney. Indeed, Gunning thereafter employed a Reno law firm to represent her. Boess-enecker wrote Gunning and confirmed that he would “not be representing [her] any further and will not be taking any further action on [her] behalf.”

Wright’s heirs soon learned that his estate was worth approximately $1.39 million. Gunning then sought an order from the probate court invalidating her assignment to Caudill, or alternatively, limiting his compensation. (§ 11604, subd. (c)(1), (2).) Among other things, she asserted that she was “66 years old, was down on her luck, had only five dollars to her name, was unemployed and was staying temporarily at a friend’s apartment” when Lowden asked her to execute the agreement and assignment and powers of attorney. She insisted that she had contacted family members over the years and was not a missing or lost heir. Gunning argued that the assignment was induced by fraud and moreover, neither Caudill nor Lowden possessed a California private investigator’s license. (Bus. & Prof. Code, § 143, subd. (a).)

The probate court concluded that the assignment was not induced by fraud, undue influence, or duress.

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Related

Estate of Wright
108 Cal. Rptr. 2d 572 (California Court of Appeal, 2001)

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Bluebook (online)
90 Cal. App. 4th 228, 108 Cal. Rptr. 2d 572, 2001 Cal. Daily Op. Serv. 5399, 2001 Daily Journal DAR 6603, 2001 Cal. App. LEXIS 487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gunning-v-caudill-calctapp-2001.