Thompson v. Thompson

LILLIE, J.

Plaintiff’s action sought to cancel a deed of trust to certain designated property in the City of Los Angeles, to quiet title thereto and for a decree that defendants hold as constructive trustees thereof. She appeals from a judgment denying any relief; she has also attempted to appeal from the nonappealable order denying a new trial.

Defendant Thompson, who was never served with process (and made no appearance) is plaintiff’s former husband. Title to the property in question, prior to the divorce proceedings commenced by plaintiff in July of 1958, was vested in the Thompsons as husband and wife as joint tenants. In the early part of 1959 and while a civilian employee with the United States Navy, defendant Thompson became involved in asserted criminal activities aboard ship. Attorney Walter L. Gordon, Jr., was consulted and retained, the fee agreed upon being $2,500. Defendant Cleveland, who is Mr. Thompson’s sister, paid Gordon $1,000; the balance of the fee, it was further agreed, was to be paid to Gordon from approximately $2,800 in a retirement fund to which Thompson was entitled. Meantime plaintiff, upon inquiries by Thompson and Gordon, refused to execute a note in Gordon’s favor to be secured by a trust deed upon the subject premises and to be in the nature of a security for the balance of Gordon’s fee. On April 28, 1958, and without plaintiff’s knowledge, Thompson executed a trust deed on the subject property, Gordon being named therein as beneficiary. It was recorded the following day.

The divorce proceeding, a contested matter, came on for hearing in November of 1958. Plaintiff was awarded an interlocutory judgment. This judgment, entered on January 2, 1959, decreed (among other things) that the property here

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in suit was the community property of the parties and that plaintiff be awarded the equity therein as her sole and separate property; however, it was further decreed that plaintiff hold defendant Thompson harmless from any of the obligations on such property. Defendant Cleveland contends on this appeal, and the record supports her in that respect, that the existence of the trust deed was made known to the court at the time of the divorce proceeding; thus, this additional (and proposed) provision in the interlocutory judgment was stricken by the trial court: “With the exception of any of defendant’s personal obligations that may have become a lien or cloud upon the title to the real property and defendant (Hanover Thompson) is ordered to hold plaintiff harmless from any of his personal obligations that may have become a lien or cloud upon title to said property.” The provisions (as above stated) relating to the parties’ property were finalized by the entry of the final decree on June 14, 1960.