Kropp v. Sterling Savings & Loan Ass'n

9 Cal. App. 3d 1033, 88 Cal. Rptr. 878, 1970 Cal. App. LEXIS 2016
CourtCalifornia Court of Appeal
DecidedJuly 27, 1970
DocketDocket Nos. 9732, 9743
StatusPublished
Cited by16 cases

This text of 9 Cal. App. 3d 1033 (Kropp v. Sterling Savings & Loan Ass'n) 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
Kropp v. Sterling Savings & Loan Ass'n, 9 Cal. App. 3d 1033, 88 Cal. Rptr. 878, 1970 Cal. App. LEXIS 2016 (Cal. Ct. App. 1970).

Opinion

Opinion

AULT, J.

Caroline Kropp appeals from an adverse judgment in two actions she instituted to recover the proceeds of two trust accounts in Sterling Savings and Loan Association, located in Orange County. The cases were consolidated by order of the Superior Court of Orange County, and identical findings of fact, conclusions of law and judgments were filed and entered in both actions. Separate appeals were filed which this court has ordered consolidated. ■

On February 17, 1964, Edward and Maude Levine, husband and wife, each deposited $10,000 in separate trust accounts in the Sterling Savings and Loan Association. Edward designated Maude as the beneficiary of the trust account he opened, and Maude made Edward the beneficiary of her account. Both Edward and Maude executed identical printed form instruments on the reverse side of the account signature cards entitled “Declaration of Trust,” which recited: “I hereby declare said investment certificate account numbered and designated on the reverse side hereof, is, and any and all payments made thereon by me at any time in the future shall be, held by me in trust for Beneficiary above named, reserving to myself, however, any interest not credited to said investment certificate account, and the right at any time to revoke said trust, in whole or in part, by withdrawing said account from the Association, or by executing and delivering to the Association a notice of intention to withdraw, the whole of said account, or the part thereof as to which I desire to revoke said trust.

“In the event of my death, the Association may pay the whole or any part of said investment certificate account to Beneficiary (if more than one, equally, and if any Beneficiary be deceased, then equally to the survivors or survivor of them). If no Beneficiary be designated hereon, or if no Beneficiary should be living at the time of my death, said Association may pay the whole or any part of said account to my personal representatives.”

*1039 Shortly after opening the trust accounts, the Levines moved to Arizona. Maude Levine died intestate in Pima County, Arizona, December 7, 1965. Edward Levine died intestate in Pima County, Arizona, August 19, 1967. Edward left no heirs. Maude’s sole surviving heir was her sister, appellant Caroline Kropp. The trusts were not changed, altered or modified by the Levines during their lifetimes. No withdrawals were made from either account, but interest checks were sent by the savings and loan to the Levines and cashed by them. Edward did not notify the savings and loan association of Maude’s death, and he cashed several interest checks made out to her after her death.

Proceedings in the Superior Court

On October 24, 1967, appellant filed an action against Sterling Savings and Loan Association (Sterling) entitled “Complaint to Enforce Self-Declared Trust,” claiming the $10,000 which had been deposited in trust for Maude by Edward. Sterling answered the complaint and filed a cross-complaint in interpleader, naming appellant and the First National Bank of Arizona (the Bank), as cross-defendants. Sterling’s cross-complaint alleged both appellant and the Bank claimed the funds in the account, the latter as the administrator of the estates of Edward and Maude Levine.

The Bank answered the cross-complaint in interpleader and, in turn, cross-complained against appellant for declaratory relief, alleging a dispute between it and appellant over the funds in the account, and asked the court to order the funds paid to the Bank.

On January 23, 1968, appellant moved to dismiss the Bank’s cross-complaint for declaratory relief, contending the Bank, as a foreign administrator, could not sue in the California court and the court was without jurisdiction to hear the cross-complaint. The motion to dismiss was denied “without prejudice to filing other similar broader proceedings.” Appellant then moved for summary judgment. The motion was supported by affidavits which indicated the Levines had expressed an intention the funds in the account should go to appellant after their deaths. Although appellant, in the notice of motion for summary judgment, and in the points and authorities filed in support of the motion, raised the issue of jurisdiction and the Bank’s capacity to sue, at the hearing itself appellant’s counsel waived the issue of capacity and requested the court to rule on the motion for summary judgment on the merits. The motion for summary judgment was denied. Thereafter, appellant answered the Bank’s cross-complaint and did not raise the defense of the Bank’s lack of capacity to sue. By agreement, Sterling deposited the funds from the account with the clerk of the court and was dismissed from the action. The matter, together with appellant’s second suit, was submitted to the court on an agreed statement *1040 of fact. The court determined appellant had no right or interest in the account, ruled the funds were an asset in the estate of Edward Levine, and ordered them paid to the Bank as administrator.

Meanwhile, on January 8, 1968, appellant had filed a second action against Sterling entitled, “Complaint re Tentative Trust,” claiming the $10,000 which Maude had deposited, naming Edward as beneficiary. It alleged an oral agreement between Maude and Edward to the effect that if Maude predeceased Edward, the funds in the account would pass to Maude’s heirs. It also alleged Edward had disclaimed any right to the account by failing to notify Sterling of Maude’s death and by endorsing Maude’s name on dividend checks which were mailed after her death. An amended complaint was filed which did not materially change the proceeding. Sterling answered the amended complaint and again cross-complained in interpleader, alleging the funds in this account were also claimed by the Bank as administrator of the estates of Edward and Maude Levine.

On May 2, 1968, after the court had denied her motion for summary judgment in the first action, appellant answered the Bank’s cross-complaint. She did not plead the Bank’s lack of capacity to sue as a defense. In the second action filed, appellant did not raise the issue of the Bank’s capacity to sue by demurrer, motion or pleading of any kind. Sterling was granted permission to deposit the funds from this account with the clerk of the court and was dismissed from the action.

On the Bank’s motion, the two cases were consolidated. The second case was also submitted to the court for decision on an agreed statement of fact (slightly different from the statement in the first action). The court found appellant had no right or interest in the account, ruled the account was an asset of the Estate of Edward Levine, and ordered the funds in the account paid to the Bank.

As a foreign administrator, the Bank’s lack of capacity to sue for declaratory relief in a California court was not jurisdictional, and the record supports the trial court’s finding the defect had been waived by appellant in both cases.

Appellant first contends the court had no jurisdiction to hear and determine the issues raised by the Bank’s cross-complaints, because the Bank, as a foreign administrator, had no right to sue in California. Primarily she contends the defect is jurisdictional and could not be waived; secondarily, she asserts there was no waiver in any event. Both contentions are without merit.

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Cite This Page — Counsel Stack

Bluebook (online)
9 Cal. App. 3d 1033, 88 Cal. Rptr. 878, 1970 Cal. App. LEXIS 2016, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kropp-v-sterling-savings-loan-assn-calctapp-1970.