Bank of America National Trust & Savings Ass'n v. Crawford

SHINN, J.

On August 31, 1943, Charles L. Martin conveyed to defendant Crawford two residential properties located in Los Angeles, of the value of $3,000 each. Within two months thereafter Mr. Martin died and his executor brought this action for recovery of the property, alleging that the grantor was mentally incompetent to make the deed and that it had been procured by the undue influence of Crawford. Upon the trial the court found all the allegations of the complaint to be true and rendered judgment setting aside the deed and awarding plaintiff the amount of the rents collected by defendant after the death of Mr. Martin. Defendant appeals.

There were additional findings to the effect that the grantor did not intend to convey any title, except one to take effect upon his death, that there had been no delivery of the deed, and a finding which would indicate that the court did not intend to find that Mr. Martin was incompetent, but it is not necessary to consider the correctness of these findings. The case does not turn upon these points.

It was alleged in the complaint, and found to be true, that a confidential relationship existed between decedent and defendant, that decedent was aged and infirm, unable to withstand the importunities of defendant, and that the latter made use of the confidential relationship to persuade decedent to execute the deed. The decisive question is whether there was evidence to sustain this finding. There was no direct evidence of undue influence exercised by defendant, or anyone in his behalf. There was, however, a presumption of undue influence if defendant stood in the relationship of a trustee. One who voluntarily assumes a relation of personal confidence is a trustee (Civ. Code, § 2219), and every transac

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tion with his beneficiary during the existence of the trust, by which he obtains any advantage over the beneficiary, is presumed to have been entered into without sufficient consideration and under undue influence (Civ. Code, § 2235). It is conceded by defendant that he gave no consideration for the deed. Mr. Martin was 90 years of age; he was taken ill on August 25, 1943, six days before the execution of the deed. The physician who attended him on the evening of the 25th described his condition as follows: “While I found that he had-he was just worn out, his heart was just worn out, he had a myocardial condition there and he was just an old man ... he said he was awful weak.” He grew weaker steadily until he died. There was also testimony that his memory and other mental powers had failed perceptibly prior to his last illness. He was saving to the extent of being penurious, lived on poor and inexpensive food, wore old clothes which he mended and patched himself, and habitually remained standing while eating, for the reason, as he stated, that that was the way the animals ate. One of his neighbors urged him to eat more nourishing food and he said, “I haven’t been in the habit of eating much—I chew my food as long as I can chew it, because when I swallow my food it is gone and that is all the good it does you.” Neighbors frequently took food to him during the last several years of his life and were very attentive to him, and one of them, Mrs. Parker, was especially attentive during the last nine months or a year, going to his house several times a day even though he was not actually sick. She cared for him in his last illness and Mr. Martin paid her $200 for her services, but he did not make any gifts to his friends, other than defendant. He owned eight houses, three upon one lot, other than the one in which he lived, and they were worth in the neighborhood of $40,000. His houses were rented and he attended to the collection of his rentals. He had four adult children residing in Texas and grandchildren by a deceased child. His wife had been dead since 1941 and he lived alone. Defendant Crawford was in the real estate and insurance business and had been acquainted with decedent for some eight years; he handled the insurance on the several properties. He saw Mr. Martin with great frequency, often drove him to and from Martin’s properties, and he testified that he was occasionally consulted by Martin in business matters. He