Paley v. BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASS'N

324 P.2d 35, 159 Cal. App. 2d 500, 1958 Cal. App. LEXIS 2028
CourtCalifornia Court of Appeal
DecidedApril 18, 1958
DocketCiv. 22563
StatusPublished
Cited by8 cases

This text of 324 P.2d 35 (Paley v. BANK OF AMERICA NATIONAL TRUST AND SAVINGS 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
Paley v. BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASS'N, 324 P.2d 35, 159 Cal. App. 2d 500, 1958 Cal. App. LEXIS 2028 (Cal. Ct. App. 1958).

Opinion

LILLIE, J.

This is an appeal on the judgment roll in an action for declaratory relief brought by Jacob (Jay) Paley against the Bank of America National Trust and Savings Association, executor of the will of his wife, Lillian, who died in Los Angeles on January 2, 1954. The action was brought to determine rights to her estate.

Plaintiff and Lillian were married in Illinois in 1906. They lived there until 1920 at which time they ' moved to Pennsylvania. Plaintiff became an American citizen in 1925. On January 1, 1936, the Paleys came to California where they took up residence in Los Angeles and remained until her death. While living in the common law states of Illinois and Pennsylvania, plaintiff acquired substantial personal property. We are of the view that all of. that property, under the' law of the states of his then domicile, was his separate property and that Lillian had neither a present .nor expectant interest therein. When the Paleys moved to California in 1936, plaintiff brought the property with him. Had that property been acquired by Paley- while he was domiciled in California, it would have been community property, but having been his separate property in the state in which it was acquired, its character did not change when it was brought to California. It was plaintiff’s separate property where it was acquired and it retained its separate character in this state.

Lillian died testate on January 2, 1954, survived by the plaintiff. On her death she owned real and personal property valued in excess of $1,750,000. At the time of Lillian’s death, plaintiff was the owner of property having a value of about $8,000,000, none of which was community property, all having been acquired as aforesaid, as his sole and separate property. At the trial, defendant contended that under section 201.5 of the Probate Code, Lillian had a right to and did, by will, devise and bequeath to her beneficiaries (who did not' include plaintiff) not only her own property but one-half of plaintiff’s sole and separate property.

In rendering judgment for plaintiff, the trial court con- *503 eluded (1) that section 201.5 of the Probate Code does not apply to, or affect the disposition of, or' plaintiff’s right, title and interest in any of his property; and (2) that if section 201.5 is applicable to the property of the surviving spouse (plaintiff) under the circumstances here involved, the section is unconstitutional.

Appellant seeks reversal of the judgment on the ground that factually the case falls within the provisions of Probate Code, section 201.5, and that this section as applied to respondent herein is a valid enactment and should control. Its contention raises two main points:

(1) Does section 201.5 of the Probate Code give a predeceased spouse testamentary power over the separate and sole property of the surviving spouse?
(2) If it does, as applied to respondent, is the statute constitutional ?

Section'201.5 of the Probate Code prior to 1957 read as follows:

“Upon the death of either husband or wife one-half of all property, wherever situated, heretofore or hereafter acquired after marriage by either husband or wife, or both, while domiciled elsewhere, which would not have been the separate property of either if acquired while domiciled in this state, shall belong to the surviving spouse; the other half is subject to the testamentary disposition of the decedent, and in the absence thereof goes to the surviving spouse, subject to the debts of the decedent and to administration and disposal under the provisions of Division 3 of this code.”

We are satisfied that section 201.5, as applied to the facts in the instant case, will operate to take from a living person his sole and separately owned property, by the testamentary action of the predeceased spouse having no interest of any kind therein.

Respondent urges that such a purported testamentary disposition could not be a reasonable interpretation of the statute; first, because such an effect was not intended by our Legislature and second, because it would be unconstitutional in its operation.

The legislative history of section 201.5 and the obvious purpose for which it was enacted favor the interpretation placed on it by the trial court in its application to the facts in the instant case. Prior to the Supreme Court’s decision in Estate of Thornton (1934), 1 Cal.2d 1 [33 P.2d 1, 92 A.L.R. *504 1343], our Legislature made several unsuccessful attempts to change the interests of the spouses in property acquired during marriage outside of the State of California. The Thornton case arose out of the 1917 and 1923 amendments to section 164 of the Civil Code. The husband died in 1929. Had the amendments been operative as against him, they would have had the effect of passing one-half of his property, separate when acquired in Montana, to his surviving spouse who under Montana law had no interest in it other than dower. The Supreme Court held that, as applied, they were unconstitutional for the reason that the limitation of the vested rights of one spouse in his separate property, found in the 1917 and 1923 amendments, was a denial of due process and an abridgement of the privileges and immunities of a citizen. Mr. Justice Langdon in his dissenting opinion agreed with the proposition that “absolutely owned and personal property brought into this state by the husband cannot be taken from him, nor can his ownership or control over it be diminished or impaired by our statute,” (1 Cal.2d 5-6) but in discussing the problem of succession to the property of a deceased spouse, he expressed the view that upon the death of a decedent, certain property owned by him and brought- into this state may be subject to the same rules of testamentary disposition and succession as community property acquired here. It is clear that he had in mind a statute which would operate only to control the succession to the property of a decedent—a statute of succession. It is obvious that he had no thought of a statute which would permit a decedent to dispose of the other spouse’s separate property.

In 1935 after the decision in the Thornton case and intending to follow the suggestion of Mr. Justice Langdon our Legislature enacted Probate Code, section 201.5. That it was intended to be strictly a statute of succession as suggested by the dissenting opinion and did not purport to rearrange property rights as between living spouses is borne out in a number of cases. In re Miller, 31 Cal.2d 191, at page 196 [187 P.2d 722], the Supreme Court said:

“Unlike the earlier legislation which had been declared unconstitutional, this statute (section 201.5) does not purport to rearrange property rights between living husbands and wives in marital property brought into this state upon their change of domicile to California. On the contrary, it is a succession statute apparently enacted in pursuance of the theory of the dissenting opinion in the Thornton case . .

*505

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Vaquero Energy v. County of Kern
California Court of Appeal, 2019
In re the Estate of Barker
2 Guam 52 (Superior Court of Guam, 1980)
Lanam v. Civil Service Commission
80 Cal. App. 3d 315 (California Court of Appeal, 1978)
In re the Estate of Crichton
49 Misc. 2d 405 (New York Surrogate's Court, 1966)
Utah State Building Board v. Walsh Plumbing Company
399 P.2d 141 (Utah Supreme Court, 1965)
Sbicca v. Commissioner
35 T.C. 96 (U.S. Tax Court, 1960)

Cite This Page — Counsel Stack

Bluebook (online)
324 P.2d 35, 159 Cal. App. 2d 500, 1958 Cal. App. LEXIS 2028, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paley-v-bank-of-america-national-trust-and-savings-assn-calctapp-1958.