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

KAUFMAN, P. J.

The appellant, in its capacity as the duly appointed conservator of the estate of Mrs. Leola Slaven, filed its complaint in this action for declaratory relief to determine the rights and duties of the parties with respect to a promissory note executed by the respondent, Lola St. John, and subsequently irrevocably delivered by the payee, Mrs. Slaven, to the respondent, C. C. Cottrell. The complaint alleged that the bank, as conservator, had a duty to possess and hold the note and to enforce the same according to the terms thereof for the benefit of Mrs. Slaven; that at the time of the delivery of the note to Cottrell, Mrs. Slaven was mentally incompetent and that such delivery was obtained through the undue influence of the maker, Lola St. John.

The basic facts are not in dispute. After trial, without a jury, the court found that on or about June 25, 1956, Mrs. Slaven loaned $10,000 to Lola St. John, and received a promissory note dated June 25, 1956, secured by a recorded deed of trust to certain real property owned by Miss St. John; that about July 23,1957, Mrs. Slaven delivered to Cottrell the note, a request for reconveyance of the deed of trust, and an

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irrevocable letter of instructions directing cancellation of the note on her death and delivery of the request for reconveyance of the deed of trust to the trustee on her death; that at the time of the delivery of the note and execution of the letter of instruction, Mrs. Slaven was upward of 80 years of age but was mentally competent and capable of handling her business affairs; that these acts were the free and voluntary acts of Mrs. Slaven not procured by or through the undue influence of Lola St. John. These matters are admitted and not in issue on this appeal.

The controversy centers on the court’s further findings that the bank did not have a duty to possess and hold the note or enforce it for the estate of the conservatee; that no sums were due, owing and payable to the conservatee on the note; that the bank was not entitled to relief on its complaint; and the judgment duly entered in favor of the respondents, Lola St. John and C. C. Cottrell.

1

The appellant bank contends that the above mentioned findings 8, 9 and 10 are not supported by the evidence; and that the court erred as a matter of law in concluding that no sums are due, owing and payable on the note during the lifetime of Mrs. Slaven. There is no merit in either of these contentions.