Horan v. Varian

268 P. 637, 204 Cal. 391, 1928 Cal. LEXIS 692
CourtCalifornia Supreme Court
DecidedJune 22, 1928
DocketDocket No. L.A. 8700.
StatusPublished
Cited by2 cases

This text of 268 P. 637 (Horan v. Varian) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Horan v. Varian, 268 P. 637, 204 Cal. 391, 1928 Cal. LEXIS 692 (Cal. 1928).

Opinion

PRESTON, J:

This is an appeal by one defendant from a portion of an interlocutory decree in partition. The contest is really a claim of priority between appellant and respondent Driscoll in and to a portion of the fund arising from a sale of the property for partition. The story opens with the death, intestate and without issue, of Sabina A. Lanon, leaving a considerable estate in Los Angeles County. A contest arose as to the persons who were entitled to inherit said estate under the laws of California. An impostor, Kyle, who claimed to be decedent’s son, asserted the right to inherit the whole thereof; other claimants were Mary A. Varían, a sister, and Mark Edwards James Horan, John P. Horan, and Thomas J. Horan, nephews.

In October, 1921, one W. C. Cox of Chicago, known as a “lost heir hunter,” secured from said sister and from two of said nephews an assignment of a one-third interest in and to their respective portions of said estate, upon the consideration that he should employ and pay attorneys and bear the other expenses necessary to establish their heirship thereto. Said persons executing this conveyance claimed a 45/54ths interest in said estate. On November 25, 1921, said Cox assigned his right in said conveyances *393 to one B. A. Platt, also an “heir-hunter,” who was to ,carry out the covenants made with the said claimants with respect to the establishment of their heirship to said estate, said Cox upon distribution to receive one-third of the third transferred to him by said claimants, or 5/54ths of said estate. Platt thereupon employed attorneys George K. Ford and Lloyd Wright to wage the legal battle necessary to establish the rights of said claimants. The fee of said attorneys was to be a contingent percentage of said estate so recovered by them. They did successfully rout as an impostor the said Kyle and established the claim of these assignors as heirs to said estate, but their fees were not paid and their claim for them is the basis of the litigation out of which has grown the present appeal, said attorneys having assigned their respective interests for collection to respondent H. M. Driscoll.

During the pendency of said litigation in said estate Platt removed to Paris and remained there at all times herein, leaving not only the above-mentioned attorneys’ fees unpaid but other creditors as well, among whom was appellant McColgan. Looking to payment of their claims against Platt and acting together, McColgan and Ford induced Platt to execute a general power of attorney, prepared by said Ford, to said McColgan, the idea evidently being to dispose of the California property of Platt, including that to be derived from said estate, and to pay the said attorneys’ fees, the claim of McColgan against Platt and perhaps other creditors. Acting in apparent harmony, McColgan, as attorney-in-fact, conveyed the interest of Platt in the above-mentioned estate to one Russell, who paid nothing for the transfer, claimed no interest in the property and who, of course, was merely acting as intermediary or trustee for the better handling of the property to which Platt had title.

Distribution of said estate was applied for and the Cox-Platt interest therein, to wit: 15/54ths thereof, was distributed to said Russell. The date of the transfer to Russell was June 29, 1922; the date of the decree of distribution was September 7, 1922. Following the distribution of said interest to Russell, Cox received from him on October 20, 1922, in settlement of his claim, a conveyance of. 5/54ths interest in said real property. About April 20, *394 1923, Bussell, at the instance of Ford and McColgan, instituted a'partition proceeding touching the real property distributed in said estate. Prior thereto, however, and on November 14, 1922, H. M. Driscoll, assignee of Ford and Wright above mentioned, commenced an action in the superior, court of the state of California against said heirs who made assignments to Cox and also against Platt, for the sum of $8,000, together with interest, as attorneys ’ fees in said estate matter, and caused to be issued on said day a writ of attachment which was duly levied upon the property of said Platt remaining in the name of Bussell, to wit: 5/27ths interest in said real property the subject of the decree of distribution in said estate. Ford testified that this suit and attachment was with the consent and at the suggestion of appellant McColgan in order to prevent other creditors from levying attachments thereon. It is certain that all the parties were friendly and co-operating at this time and for several months thereafter.

Following this event, however, on the eleventh day of June, 1923, Thomas J. Horan, the nephew who did not join in the transfer to Cox and one of the established heirs of said estate, began the present proceeding in partition, making said Bussell, said Cox, said Driscoll, said Mc-Colgan, and others, defendants herein. The record shows that friendliness and co-operation still obtained between Ford, McColgan and Platt during the settlement of the issues in this present partition proceeding. However, in the fall of 1923, something came over the spirit of the dreams of McColgan, for on January 9, 1924, we find him substituting a new attorney, laying claim to all the property left standing in the name of Bussell. In confirmation of such claim he produced a deed from Bussell to him therefor bearing the date of September 28, 1922, but not filed for record until August 20, 1923. Belying upon said deed, McColgan asserts that this property derived from the estate of Lanon, to wit: a 5/27ths interest therein, belongs to him free of any claim under said attachment levied in the said Driscoll action. He refused to treat further with the hired servants who made the realization of the fund possible. The law of California gives the attorneys no right to assert a lien upon the fund realized for the value of their services in connection therewith; hence Ford and *395 Wright rely upon the efficacy of the attachment to hold their priority over the MeColgan deed.

The court in this connection found that Russell took said deed from Platt without consideration and as the trustee of said Platt, who, at the time of the levy of said attachment, was the owner of the equitable title in and to said real property so conveyed, and further found that the deed to MeColgan, although executed prior to the levy of said attachment was not delivered until subsequent thereto. The interlocutory decree followed this finding, but the findings and judgment went further than this, in that the court found that MeColgan also took said deed as trustee of the legal title for Platt. The finding in this latter behalf is as follows:

“7. That the defendant Lyman Russell was at the time of the commencement of said action the holder of the legal title as tenant in common of an undivided ten fifty-fourths (10/54ths) interest in said property; that prior to the time of the commencement of the above-mentioned action said Lyman Russell signed and acknowledged and, after the commencement of said action, delivered a certain deed wherein and whereby said Lyman Russell conveyed the legal title to said undivided ten fifty-fourths (10/54ths) interest in and to said property to defendant R. MeColgan, who acquired and holds said undivided ten fifty-fourths (10/54ths) interest in and to said property as the trustee of a constructive trust in favor of said Eugene A. Platt, and not otherwise; and that said Eugene A.

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Cite This Page — Counsel Stack

Bluebook (online)
268 P. 637, 204 Cal. 391, 1928 Cal. LEXIS 692, Counsel Stack Legal Research, https://law.counselstack.com/opinion/horan-v-varian-cal-1928.