Welsh v. Griffin

179 Cal. App. 207
CourtCalifornia Court of Appeal
DecidedMarch 25, 1960
DocketCiv. No. 9636
StatusPublished

This text of 179 Cal. App. 207 (Welsh v. Griffin) 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
Welsh v. Griffin, 179 Cal. App. 207 (Cal. Ct. App. 1960).

Opinion

SCHOTTKY, J.

Loretta Putman Dodge Welsh, as the administratrix of the estate of George Raymond McConnell, appeals from a judgment in favor of Glenn Griffin, individually, and as the administrator of the estate of Catherine Griffin, deceased. By the action Loretta Welsh sought an accounting of the rents and profits from and the reconveyance of certain real property allegedly belonging to George McConnell. Glenn Griffin cross-complained to quiet title to the property and judgment was given in his favor on the cross-complaint.

By the terms of her will Bridget Graham, who died in 1923, devised to her son, George McConnell (hereinafter referred to as George) a 6/25th interest in a ranch and to her daughter, Catherine McConnell Griffin (hereinafter referred [210]*210to as Kate) a 7/25th interest. The remainder was devised to other persons, including her daughter, Mary Ann Putman.

In 1931 it became necessary to refinance the mortgage on the property. George transferred his interest in the property to Kate in order to facilitate this, and the other heirs transferred their interest to Mary Ann Putman for the same purpose. At the time George deeded his interest to Kate, he and Kate executed a second instrument by which George retained a reversionary interest in the property and an interest in the net income from the property.1 Kate thereafter was the owner [211]*211of record of George’s interest. In 1932 the mortgage was foreclosed. Kate and Mary Ann Putman purchased the property at the foreclosure sale. In 1936 the property was partitioned and Kate received 13/25ths as her share. She farmed or leased the property, improved it, paid the taxes and made payments on the mortgage. She never made the annual accountings and settlements for net profits required by the agreement, nor does the record disclose that George ever demanded an accounting prior to 1951. Kate gave money to George whenever he wanted. He apparently was a man of simple tastes who demanded little of life. Prom the record it is clear that George wanted no part of the struggle to keep the ranch. He was extremely fond of his sister, Kate, and left the financial affairs of the ranch to her. He often said, “Anything that comes off that ranch I want my sister to have it.”

About July 9, 1951, George was hospitalized in the Woodland Clinic at Woodland. His illness was diagnosed as lymphosarcoma. Before he entered the hospital he discussed his illness and his need of money with Kate’s son, Glenn, who advanced him several thousand dollars. At this time there was some discussion of George selling his interest in the ranch and there was testimony that Glenn offered to pay $60,000 therefor.

According to Virgil O’Sullivan, one of appellant’s counsel and the son of Eulalia O ’Sullivan, a niece and heir of George, George came to see him at his office on July 9, 1951. As a result of the discussion O’Sullivan obtained the agreement from the office of the attorney who drafted it. Mr. O ’Sullivan testified that on August 2,1951, he, acting on behalf of George, [212]*212made a démand for an accounting on Neil J. Cooney, an attorney who had represented Kate and her son in other matters. He testified that Glenn Griffin was present at the time. This was denied by Glenn. Cooney was never called as a witness.

In 1938 at a time when Kate was very ill she transferred the property to her son by a quitclaim deed, and in 1951, after George’s death, she transferred the property to her son by grant deed.

On April 8, 1952, this action was commenced. The second amended complaint set forth three causes of action. The first cause of action alleged that there was a breach of duty to account and that the defendants Catherine McConnell Griffin and Glenn Griffin had no intention of performing their obligations under the trust. The second cause alleged that George transferred the property to Kate upon the condition that she would perform her obligations under the trust and that she had not performed them; that there was a breach of duty to account. The third cause alleged that Kate had induced George to enter into the agreement with the fraudulent intent and purpose of obtaining title to the property and with the intent not to comply with the agreement, and that she never paid George the rents and profits or rendered him an accounting. A fourth cause of action was added by an amendment which alleged that Kate breached the trust when she executed the deed to her son in 1938 and that he became an involuntary trustee. The relief sought was an accounting of the rents and profits; a decree that Glenn Griffin held part of the property in trust; a decree requiring Glenn Griffin to convey to plaintiff her intestate’s interest in the property; and a cancellation of the trust indenture.

The answer alleged in part that George had never sought an accounting; that his interest had been terminated by the deed to Kate; that his interest had been terminated by the foreclosure action; that no trust existed; that George’s interest had been terminated by the partition action; and that plaintiff was estopped to bring the action. A cross-complaint asked that the court quiet title in Glenn Griffin.

The trial court found in part that no accounting was ever made to George; that no accounting was ever demanded; that Geoi’ge and Kate agreed during George’s lifetime that no accounting need be rendered; that no demand was ever made upon Glenn during George’s lifetime; that Cooney upon whom the demand was made did not have authority to act in the mat[213]*213ter and that the demand upon Cooney was not a demand upon Kate; that when the agreement was made between Kate and George he had the independent legal advice of the attorney who prepared the instrument; that neither Kate nor her son violated the trust and confidence reposed in her by George; that there was no fraud or fraudulent inducement in the transaction ; that it was not true that Kate did not intend to carry out the agreement at the time she entered into it; that the quitclaim deed was not in breach of the agreement; and that during his lifetime George received all the income to which he was entitled.

Appellant first contends that the trial court decided the case on theories not raised by the pleadings. Appellant argues that the only legal theory upon which the judgment in favor of respondents could have been predicated was that the instrument did not create a trust and that Kate therefore never became obligated to act as a trustee. There was no dispute as to the execution of the so-called trust agreement. The fact that the respondents denied that a trust existed did not preclude evidence of performance of the obligations under the agreement except insofar as they may have been waived. If there was a trust and George waived his rights to an accounting, then by the terms of the agreement, since George predeceased Kate, his interest in the land would have terminated prior to the commencement of the action, and it would have been proper for the trial court to quiet title in Glenn.

It is clear from the facts herein and applicable law that when Kate accepted George’s transfer and executed the concurrent contract she assumed the obligations of a trustee in respect to her handling of the property, her duty to account, and the protection by her of George’s interest.

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Bluebook (online)
179 Cal. App. 207, Counsel Stack Legal Research, https://law.counselstack.com/opinion/welsh-v-griffin-calctapp-1960.