Mitchell v. Rasey

NOURSE, P. J. The plaintiffs sued to impress a trust upon certain property held by tbe defendant Rasey, as purchaser in a probate sale, and the defendant bank, as administrator.

[352].The defendant Rasey is the widow of C. W. Rasey, deceased. The plaintiffs are daughters of the deceased by a former marriage. Under the terms of his will certain real properties situated in the county of Ventura were left to the widow and the two daughters in equal shares. At all times referred to in the litigation the plaintiffs resided in the .state of Massachusetts and the defendant Rasey was a resident of Ventura County and was thoroughly familiar with the business and properties of the estate. One of the holdings of the estate consisted of a one-fourth interest in a large tract of land in the city of Ojai, the remaining portions of which were held by the former associates of the deceased. Sales were pending for subdivisions of this tract and these parties desired to have the one-fourth interest transferred from the estate to enable them to make quick sales and to avoid proceedings in the probate court. For this purpose an appraisement of the one-fourth interest in the sum of $3,500 was secured, a sale to the widow was effected at that price and confirmed by the probate court. On the trial of this action -the trial court found that this appraisement was not the true or fair market value of the property and was not carefully made; that the reasonable market value of the property was not less than $9,500; that the true and reasonable value of the property was known to the defendant Rasey and was unknown to the plaintiffs; that the plaintiffs relied upon the representations made by defendant Rasey that said appraisement was carefully made, that said property had been fairly and accurately appraised, that said sale price was the fair market value of said property, and that the sale was for the best interest of the estate and the beneficiaries thereof; that the plaintiffs had no information regarding said sale except such as they received from the defendants and their attorneys; and that, solely by reason of and in reliance upon said representations, the said plaintiffs neglected to seek further information concerning the true value thereof.

As conclusions of law from these findings the trial court ordered that the plaintiffs have judgment against the defendant Rasey, declaring her to be a trustee of that portion of the property involved and directing her to account for the proceeds of any portions of the property sold after the interest was acquired by her, and also decreeing that she