Martinelli v. California Pacific Title Insurance

DRAPER, J.

The trial court determined that plaintiff husband and his wife owned a 4-acre parcel of land as community property, despite the fact that their deed ran to them as joint tenants. Defendants, beneficiaries under a deed of trust executed by the wife’s grantee, appeal. Two other parcels, although not directly involved in this action, are material to its determination.

In 1955, plaintiff and his wife bought some 90 acres known as Adobe Creek Lodge, and operated it as a resort area. The funds used in the purchase were community property, and the deed ran to “Frank Martinelli, Sr. and Irene H. Martinelli, his wife.” Shortly thereafter, they bought from the same grantor some 6 acres across the street from the Lodge lands, intending ultimately to build a home thereon. They took this land as joint tenants. The 4-acre parcel here involved immediately adjoined the Lodge property, and was used by both the previous owner and the Martinellis under lease, as a picnic ground and children’s playground, both conducted as an integral part of the Lodge operation. Plaintiff and his wife determined that this area was required to relocate the entrance to the Lodge lands, and to “square off the piece,” i.e., the business property. They bought it in 1956. Negotiations for this parcel were conducted by the Martinellis’ son-in-law, who had just been admitted to practice law. He drew the deed, but did not consult either of the Martinellis as to its form. Rather, he took the deed to the homesite, which was the first one he came across, and, conforming to that

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document, drew the deed to the 4-acre parcel to “Frank Martinelli and Irene H. Martinelli, his wife, in joint tenancy.” He did not tell either grantee about this. By deed dated February 23,1958, and recorded February 24,1958, Mrs. Martinelli, without her husband’s knowledge or consent, conveyed to their son all of her interest in all three parcels. Plaintiff testified that his first knowledge of the form of deed to the 4-aere parcel came when he consulted counsel on learning of the wife’s deed to their son. He filed a quiet title action against the son immediately, and

Us pendens

was recorded February 26. The trust deed here in issue, executed by the son May 14 to secure payment of fees owed to appellant attorneys, covers only the 4-acre parcel. The evidence amply supports the finding that appellant attorneys knew of the action by father against son before they took the deed of trust. On June 9, the son conveyed to his mother the interest she had transferred to him, and the father dismissed his quiet title action against the son. Thereafter, the son failed to pay his note to defendant beneficiaries, and they sought to sell the wife’s interest in the 4-acre parcel under their deed of trust. Plaintiff brought this action to quiet title in himself and his wife, naming her as a defendant because she refused to join as a plaintiff. The court found the parcel to be in fact community property of Frank, Sr., and Irene. In view of the further finding of defendant beneficiaries’ knowledge of the claim of plaintiff at the time they took their deed of trust, decree quieting title in plaintiff and his wife was granted.