Patterson v. Bowes

139 P. 225, 78 Wash. 476, 1914 Wash. LEXIS 1047
CourtWashington Supreme Court
DecidedMarch 10, 1914
DocketNo. 11665
StatusPublished
Cited by4 cases

This text of 139 P. 225 (Patterson v. Bowes) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patterson v. Bowes, 139 P. 225, 78 Wash. 476, 1914 Wash. LEXIS 1047 (Wash. 1914).

Opinion

Gose, J.

On the 31st day of January, 1907, the respondent Edward Bowes and one Effinger executed to the Nye & [477]*477Ormsby County Bank, of the state of Nevada, their joint and several promissory note for the sum of $33,339.36, payable upon demand. At the same time, the makers each deposited with the bank, as collateral security, 9,000 shares of mining stock. The bank was given authority to sell the stock, with or without notice, either at public or private sale. The stock was sold and applied. This action was brought to recover the balance due upon the note. Ancillary to the suit, certain real estate situated in the city of Seattle, and standing of record in the name of the respondent Ada F, Bowes, was attached, upon the theory that it is the community property of the respondents Adia F. Bowes and her husband Edward Bowes. A personal judgment was entered for the balance due upon the note in favor of the receiver of the payee bank and against the respondent Edward Bowes “and the community composed of the said Edward Bowes and Ada F. Bowes, his wife,” and the attached property was adjudged to be the separate property of Mrs. Bowes. The receiver has appealed from that part of the judgment fixing the status of the property. It is admitted that the debt is a community obligation. The single question presented by the appeal is whether the attached real estate is community or separate property.

The theory of the case presented by the respondents at the trial is that, in November or December, 1904, the respondent husband made a gift of between thirty and forty thousand dollars to his wife, and that the attached property represents the gift and its proceeds. The presumption is that all property acquired during the existence of the marital relation is community property, and this presumption obtains when the legal title is in the name of the wife as well as when it is in the name of the husband. Rem. & Bal. Code, § 5917 (P. C. 95 § 27); Weymouth v. Sawtelle, 14 Wash. 32, 44 Pac. 109.

Under our statute, Rem. & Bal. Code, § 5292 (P. C. 95 §3), the gift was presumptively fraudulent as against creditors, and the burden was on the respondents to overcome this [478]*478presumption by clear and convincing evidence. Liebenthal v. Price, 8 Wash. 206, 35 Pac. 1078; Kemp v. Folsom, 14 Wash. 16, 43 Pac. 1100; Bates v. Drake, 28 Wash. 447, 68 Pac. 961; Conedy v. Skinner, 50 Wash. 501, 97 Pac. 497; Dill v. Carver, 70 Wash. 103, 126 Pac. 86.

The material question is, have the respondents overcome these legal presumptions? The respondents were married in 1892. The testimony shows that the wife was then a widow and possessed of a small estate. There is no evidence, however, that any part of this estate or its avails went into the Seattle property. The respondent husband' operated as a promoter of mines and mining stock and in dealing in mining stock in the state of Nevada, from March, 1902, until some time in 1907. He testified that, in November or December, 1904, he gave his wife thirty-two or thirty-three thousand dollars in drafts or checks, and that he had no interest in- the property in controversy. However, after the commencement of the action, he made an affidavit in support of the motion of Mrs. Bowes to dissolve the attachment, in which he referred to her estate at the time of her marriage, and in effect said that the property in controversy was purchased with the proceeds of this estate, making no reference at all to the alleged gift. It is obvious that, if he had made the gift in 1904, that fact would have occurred to him at the time he made the affidavit. The amount of the alleged gift is large, and it is incredible that it should have escaped his attention at that time.

On the 20th day of August, 1907, he conveyed the property in controversy to his wife by a deed of quitclaim. On his direct examination, he testified that, at the time of making that conveyance, he was free from debt; that the note was supposed' to have been paid. He also testified that he did not know who made the payments on the note. In opposition to this testimony, the appellant produced statements taken from his (Bowes) private box in the state of Nevada, which showed that the bank had sold the collateral security and rendered [479]*479him an itemized account of the sales. He testified that he had never seen this statement. His evidence given at- the trial is much weakened by the fact that it runs counter to his affidavit and to the statements found in his private box.

The wife testified that, in November or December, 1904, at a time when she was ill in the city of Seattle, her husband gave her checks or drafts for thirty-five or forty thousand dollars, they alone being present; that she did not know by whom the checks or drafts were drawn or upon what bank; that, at some time, the exact time not appearing, she deposited $2,000 of the checks in the First National Bank of Seattle; that she deposited the larger check — some thirty or thirty-two thousand dollars — in some bank in the city of San Francisco; that she does not know in what bank she made the deposit, and she does not know its location. She was asked whether she had $40,000 or $45,000, and answered, “I can’t remember.” She further testified that she had never seen or had' so large a check before; that she had no bank books at the time of the trial and no checks and no written evidence of any of the deposits, and that she did not know where her bank books were. She was asked, “Where did you have the $30,000 deposited?” and answered, “I don’t remember which one of the banks.” She was again asked, “Where are your bank books of your California bank deposits?” and answered, “I don’t know.” She was asked, “Where are your checks?” and answered, “I don’t know.” In' answer to a demand for her bank books and her accounts, she stated: “I haven’t any bank books.” She made a contract for the purchase of a tract of property in the city of Seattle for $46,000, upon which $14,000 fell due upon the 20th day of January, 1906. The written evidence shows that she drew upon her husband on or before January 23, 1906, two drafts, one for $10,000, and one for $5,000. The husband was unable to explain these drafts. She explained them by saying that she thought they were drawn for the purpose of arranging [480]*480for a trip to Europe. She did not go to Europe, however, for some fifteen months after making these drafts.

The respondents united in conveying the several tracts of property purchased from time to time in the city of Seattle, and they also united in the execution of mortgages and' mortgage notes. In March, 1908, the respondent husband wired to Mr. O’Connor, his wife’s brother, in Seattle: “You are fully authorized to execute mortgage and notes for $50,000, at eight per cent interest and four per cent commission on north forty feet lot 6, block 14, Boren’s addition. Ada cabled. Wire me if executed.” On the same date, the wife cabled her brother to the same effect. Their testimony is that the husband' had no interest in this property; that he united in the notes and mortgages from the necessities of the case, and that the quitclaim deed was made for the purpose of placing the record title where it belonged. They further testified that the husband from time to time protested against executing notes and mortgages, asserting that he had no interest in the property. It is significant, however, that, at the time of the alleged gift, the respondent husband was indebted to the bank of Montreal in a large sum of money, seemingly not less than $20,000. Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
139 P. 225, 78 Wash. 476, 1914 Wash. LEXIS 1047, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patterson-v-bowes-wash-1914.