Security-First National Bank v. Leatart

170 P.2d 687, 75 Cal. App. 2d 211, 1946 Cal. App. LEXIS 1228
California Court of Appeal·Decided July 1, 1946·No. Civ. No. 15286·Published·Cited by 9 cases

Opinion

WILSON, J.

This is a controversy among seven brothers, one being in opposition to the other six, concerning the division of the sum of $5,000.02. Since it is conceded by all parties that the fund should be divided equally among the seven individual litigants, the final judgment in the action will merely determine whether (1) each party shall receive his share directly from the fund now on deposit in court or (2) the entire amount shall be paid to the administrator of the estate of the mother of the parties who, after first'deducting [213] his fees as administrator and the fees of his attorney and the other costs of administration, shall distribute the remainder in seven equal shares.

The litigants are the sons of Martha E. Leatart, who, on March 19, 1930, signed and acknowledged a grant deed to her seven sons conveying to them a parcel of real property in Los Angeles County. The deed contained no reservations, restrictions or conditions. She held the deed in her possession until July, 1944, when she delivered it to two of the grantees and at her request they had it recorded in the county recorder’s office. She was taken to a hospital on August 18, 1944, where she remained until her death on October 16, 1944.

Some of her sons being unable to contribute their proportionate shares of the cost of her hospitalization and medical care, A. L. Leatart wrote a letter to his brothers, dated September 24, 1944, stating that he would “buy the property and pay $6,000 cash immediately and to pave the way for that deal and save time, ’ ’ he had had the property appraised. He suggested that the money be deposited in a bank in their mother’s name “but with all seven boys as co-tenants on the deposit and for only two of the boys as co-signers on all checks” drawn against the fund for the payment of bills incurred for their mother’s benefit and “with the stipulation that in the event there is any moneys left that it shall be equally divided seven ways and subject to withdrawal by each beneficiary.” The arrangement suggested in the letter was accepted by all of the brothers. They executed a grant deed to A. L. Leatart conveying the property to him. The bank refused to accept the deposit upon the terms suggested in the letter and it was arranged that the fund should be placed in the names of two of the brothers who were authorized to sign checks in payment of their mother’s expenses. Upon her death the amount now in litigation remained in the bank.

After Mrs. Leatart’s death plaintiff bank was notified that some difficulties might arise among her sons as to the distribution of the fund, whereupon a complaint in interpleader was filed naming the administrator and all the brothers individually as defendants. Pursuant to an order plaintiff paid the money into court and was discharged from further liability. A. L. Leatart, as administrator of his mother’s estate, filed a cross-complaint against the other defendants alleging that the fund should be distributed to him as ad[214] ministrator and praying that his brothers be declared to have no interest therein except as to their respective distributive shares as heirs at law of their mother. Three of the brothers filed answers and cross-complaints, each asserting title to an undivided one-seventh interest in said fund, and the other three suffered their defaults to be entered upon the cross-complaint of the administrator.

The cause was tried and the court made findings of fact: (1) That the cross-defendants at all times treated and considered the money deposited with the bank as belonging to the decedent, Martha E. Leatart, and not otherwise; (2) that the cross-defendants had no right, title or interest in the fund except as to their distributive shares as heirs at law of the decedent; (3) that neither decedent nor her grantees intended that the deed should pass any beneficial interest during the lifetime of decedent; (4) that the grantees never claimed any right, title or interest whatsoever in or to the property or the proceeds of the sale thereof during the lifetime of decedent; (5) that prior to the commencement of the action cross-defendants were not the owners of an undivided one-seventh interest each in and to the fund on deposit and were not entitled to be paid from said fund. As conclusions of law the court found that the proceeds of the sale, which had been deposited by the bank with the clerk of the court, should be delivered to A. L. Leatart as such administrator. Judgment was entered accordingly.

A timely motion for a new trial was made by cross-defendants and was granted on the ground that the decision was against law. From said order the administrator has appealed. The evidence as a whole is insufficient as a matter of law to support the findings and judgment and the order must therefore be affirmed.

1. The effect of the unconditional grant deed from mother to sons. Since the deed from Mrs. Leatart to her sons contained no condition or reservation and since a grant cannot be delivered to the grantee conditionally, it was absolute and conveyed the fee simple title to the grantees and took effect upon delivery, discharged of any condition upon which it was made and which was not expressed in the deed. (Civ. Code, § 1056; Blackledge v. McIntosh, 85 Cal.App. 475, 483 [259 P. 770]; Lewis v. Brown, 22 Cal.App. 38, 43 [133 P. 331]; Burkett v. Doty, 32 Cal.App. 337, 344 [162 P. 1042], If in parting with possession of a conveyance the grantor intends thereby to divest himself of title, there is an [215] effective delivery of the deed, and the solution of the question is grounded on the intention of the grantor, which is a question of fact to be determined by the trial court on all the evidence bearing thereon. (Williams v. Kidd, 170 Cal. 631, 638 [151 P. 1, Ann.Cas. 1916E 703].) Oral testimony cannot be considered as against the deed for the purpose of limiting or qualifying the estate thereby granted. (Lewis v. Brown, supra; Code Civ. Proc., § 1971.) The legal effect of a deed delivered to a grantee is to vest title in him free from any condition, and its operation cannot be defeated by parol evidence of an intention on the part of a grantor that it would have an effect different from that apparent on its face. (Mowry v. Heney, 86 Cal. 471, 475 [25 P. 17].)

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Security-First National Bank v. Leatart, 170 P.2d 687, 75 Cal. App. 2d 211, 1946 Cal. App. LEXIS 1228 (Cal. Ct. App. 1946).

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