Freer v. Wells Fargo Bank & Union Trust Co.

PEEK, J.

By this action in quiet title, appellant, the widow of Harry B. Fuller, deceased, seeks to establish as her separate property two parcels of real estate which the respondent executors claim as part of the estate of said deceased. The minor children of appellant and the decedent, as well as the latter’s minor adopted son, were brought in as parties defendant appearing through their guardian

ad litem.

Briefly summarized, the facts are as follows:

Appellant and decedent intermarried in 1933, at which time Mr. Fuller had an adopted son four and one-half years of age. Two children were born of the marriage. The husband was then vice-president and cashier of the Sebastopol National Bank, and in 1939 became president of its successor, the Bank of Sonoma. County.

In 1939 decedent purchased an unimproved business lot in the city of Sebastopol, financed the erection of a building thereon, and leased the principal portion thereof to a grocery concern. The remaining portion was leased to a clinic. The deed to the property was taken in the name of decedent’s nephew, Paul O’Neil, who resided with the Fullers in their home. O’Neil gave back a note and trust deed to a Santa Rosa bank, which had financed the project with a loan of $12,000. According to appellant’s testimony, the reason for

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using this method of handling the transaction was that Mr. Fuller did not want the public to know he was involved in the matter, and, being an officer of the bank, he did not want his name to appear in any way in connection therewith. On November 18, 1940, Paul O’Neil, being about to enter the armed forces, deeded the property to appellant, at decedent’s request. Mr. Fuller took and retained possession of this deed, placing it in a safe deposit box to which he alone had access. At about the same time, the loan of the Santa Rosa bank was taken over by the Bank of Sonoma County, and the loan account was set up in the name of Harry B. Fuller. The commercial checking account through which all deposits and disbursements relating to the property were cleared originally was captioned “Paul O’Neil North Main Street Property account” and showed the signatures of O’Neil and decedent. After the transfer by O’Neil to appellant, the account was changed by deleting the name of O’Neil and retaining that of decedent. As additional collateral security, Mr. Fuller took out and pledged with the bank a ten thousand dollar insurance policy on his life, naming as beneficiary his estate and not appellant. On April 9, 1942, appellant, at her husband’s instance, executed and delivered to him a deed to the store property. This deed also was placed by Mr. Fuller in his safe deposit box. On April 14, 1942, the deed of November 18, 1940, from Paul O’Neil to appellant, was recorded at the request of the Bank of Sonoma County. On December 19, 1942, Mr. Fuller died. Appellant’s deed to Mm, found in his safe deposit box, was recorded at the request of the corporate executor. From the time of the purchase of the store property to the time of his death, Mr. Fuller assumed the entire management and control thereof, never consulting appellant with regard thereto. His bank statements reflected ownership of said property in himself, as did his income tax returns, according to the unchallenged statement of respondents’ counsel.