Newport v. Hatton

231 P. 987, 195 Cal. 132, 1924 Cal. LEXIS 201
CourtCalifornia Supreme Court
DecidedDecember 22, 1924
DocketDocket No. Sac. 3431.
StatusPublished
Cited by123 cases

This text of 231 P. 987 (Newport v. Hatton) 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
Newport v. Hatton, 231 P. 987, 195 Cal. 132, 1924 Cal. LEXIS 201 (Cal. 1924).

Opinion

WASTE, J.

This is an action brought to establish the right of plaintiffs in certain land and to the proceeds of the sale thereof. Demurrers to the complaint were sustained, without leave to amend. Judgment for the defendants followed, and plaintiffs have appealed. While a number of objections were raised by the special demurrers, the real questions presented by the appeal are whether or not a cause of action was stated and whether or not the action was barred by the statute of limitations. Respondents seek, also, to invoke the doctrine of laches.

*139 The plaintiffs and appellants are the six children of Sarah E. Newport, one of the defendants, and claim to be the owners in remainder subject to the life estate of their mother in a quarter-section of land in Stanislaus County. They bring this action to establish that ownership, and to remove a cloud from their title as such remaindermen arising out of a purported tax sale and an alleged fraudulent judgment made while appellants were minors. They claim that the judgment which they attacx is void for two reasons: First, because it was procured through extrinsic fraud under the facts alleged in the complaint, and, second, because the decree, on its face, contains no adequate description of the property by which it can be identified or located. The quarter-section involved was originally acquired by Charles I. Garner. He died leaving a will by the terms of which the property was bequeathed to his daughter, Sarah E. Newport, for her life, and upon her death to her children who might survive her. Garner’s will was admitted to probate, administration had, and the property was distributed to Mrs. Newport for life, with the remainder to such lawful issue as might survive her, the decree providing that until the remaindermen received their portion the land should not be encumbered by mortgage or lien of other encumbrance.

Mrs. Newport, after being in possession for a number of years, attempted to raise money on the property by sale or mortgage, but found she could do neither because of the fact that the fee was in the children, all of whom were then minors and very young. She applied to William H. Hatton, an attorney then practicing in Modesto, of whom she inquired by what means she could raise money on the property. Hatton replied that he would examine the records and advise her whether anything could be done by which money could be obtained by mortgage or sale of the property. Shortly thereafter he advised Mrs. Newport that he had found a way by which to raise money on the land, and that he would undertake to execute the plan in consideration of one-third of the amount of money which was so raised being paid to him. Mrs. Newport acquiesced, and an arrangement was made by which the children, these appellants, without any sale through guardianship proceedings, were to be deprived of their interest in the property. The plan, it is alleged, was as follows: The attorney reported that the land, which *140 was worth $10,000, was within the limits of, and had been assessed for $7,700 by, the Modesto Irrigation District. A tax of $109.39 had been levied upon it, which was due but not delinquent. Notwithstanding that it was the duty of Mrs. Newport, as the life tenant, to pay the tax, the plan proposed by Hatton was that she permit the tax to become delinquent and allow the property to be sold at a delinquent tax sale. Hatton procured Gabriel D. Plato, a client of his, to purchase the property at the sale for the amount of the assessment with costs added, amounting to $117.30, which was a little more than one per cent of its actual value. In due time a deed was issued by the collector of the irrigation district to Plato, describing the property as in the assessment set forth. This deed, it is alleged, did not contain the recitals or statements required by law.

This plan was devised in order to give the purchaser at the tax sale an apparent title to the property so that suit might be brought in his name against Mrs. Newport and the minor children to have it declared that Plato was the owner of the land. It was agreed that Hatton should prepare a complaint with Plato as plaintiff, to quiet title against Mrs. Newport, the owner of the life estate, and her husband, and against the minor children, who were then aged from three to eleven years. Hatton was himself to appear for the minors through a guardian ad litem, to be appointed, and was to procure a judgment against them and in favor of Plato. Such complaint was drawn and filed on the fourth day of August, 1902. Summons was served upon the minor children by Hatton, who then procured the appointment of Charles Newport, father of the minors, as their guardian ad litem. Hatton filed answers on behalf of the adult defendants, and on behalf of the children by and through their guardian ad litem, and the matter came on for hearing. An amendment to the complaint filed on behalf of Plato was permitted to be made by inserting the word “fractional” in the description of the property, so that it was alleged to be a fractional, instead of a full, quarter-section, as first alleged. The various arrangements to procure judgment in the case upon the evidence of the tax deed were not disclosed to the court. It was kept in ignorance of the fact that Hatton had entered into an arrangement with the life tenant by which he was to appear for the minors, who *141 were Ms nominal clients but actually adversaries, and to procure a judgment in favor of Plato, who was his nominal adversary but actually his client. Upon the hearing the tax deed was introduced in evidence, and judgment followed for the plaintiff Plato, declaring that he was the owner of the land described in the complaint, as amended. Neither Hat-ton nor Plato ever paid any money to Mrs. Newport for the property, and neither she nor the children have received anything whatsoever for and on account of their interest in the lands. After obtaining the judgment Plato and Hatton sold the land and received large sums of money therefor. But of the money thus received by him through Plato, Hatton gave many thousands of dollars to his wife, the defendant Ora D. Hatton. Plato died on or about the seventh day of July, 1915, and it is alleged on information and belief that at and before his death he made large gifts and voluntary transfers of many thousands of dollars of the money received by Mm from the sales of the property to his nephew, S. P. Elias, and to Ms nieces, Leah Harris, Berta Elias, Clara Elias, Ernestine Bernheim, and Theresa Bernheim, all of whom are defendants in this action. Upon administration of Plato’s estate, the remainder of the money received by him from sales of the property, and which had not theretofore been voluntarily transferred by him to Hatton, or to Ms nieces and nephew, was distributed to the latter.

After the sale for taxes was made and the judgment quieting title procured, Hatton admonished Mrs. Newport that she must never reveal or tell anybody the reason or the purpose of the plan devised by him, or of the steps taken in the matter, for the reason, he stated, that if she did, the accomplishment of the end sought might fail, and the scheme could not be carried out. Mrs. Newport was forbidden by him to ever permit herself to speak of the property as her own, as she might thereby disclose the scheme and so frustrate the plan. Mrs.

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Cite This Page — Counsel Stack

Bluebook (online)
231 P. 987, 195 Cal. 132, 1924 Cal. LEXIS 201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newport-v-hatton-cal-1924.