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

JENNINGS, J. This appeal from an order of the Superior Court sitting in probate confirming the sale of certain real property of the estate of Thaddeus White is presented through the medium of a bill of exceptions. From the transcript on appeal it appears that Thaddeus White mad<^ his will on July 22, 1922, in which it was recited that the testator owned 87 acres of land in Imperial County which he directed should be sold after his death and that from the proceeds derived from such sale the executor named in the will should pay two designated grandchildren of the testator legacies amounting to $1,000 each. On January 27, 1927, Thaddeus White entered into a contract with Pioneer Transfer Company, a corporation, whereby he agreed to sell the land mentioned in the will to the corporation for a certain j sum of money. The contract provided that the sale price, whose amount does not appear, should be paid in installments.

From payments made under the terms of the pontract White received approximately $3,600. In the year 1930, the purchaser was in-default in the payments due under the contract. The contract was thereupon cancelled by mutual consent and on February 1/ 1930, a new contract was executed by the same parties whereby the corporation agreed to pay the amount specified therein in monthly instalments over a period of time ending in July, 1938. The corporation again defaulted in payment of the amounts due under the second contract. On June 17, 1931, Thaddeus White died. Respondent Fletcher White, who is a son of the deceased, was appointed executor of the will. At the time of White’s death the purchaser of the property had failed to make the monthly payments for an unspecified period of time and was in I default in an amount which is not stated. The purchaser had also failed to pay various taxes and assessments levied against the property. The executor filed an action against the purchaser whereby he sought to recover the amount of the payments which were in default. The corporation had by this time sold and disposed of all other property which it oifned in California and had moved its business into the Republic of Mexico where it continued its operations at some place in or near the city of Mexico. The suit thus prosecuted | by the executor was productive of no tangible result. In the meantime the Imperial Irrigation District levied on the land for [59]unpaid assessments and it was sold to the district for the amount of such assessments. The assessor of said district executed and delivered his deed conveying title to said land to the district on October 18, 1932, which deed was duly recorded. Taxes due the state of California had also become delinquent and the land was sold to the state for such delinquent taxes which amounted to approximately $689.91 exclusive of taxes due for the year 1934-1935. On September 21, 1934, the state inheritance tax appraiser for Imperial County appraised the land as having a total gross value of $6,150, taking no account of unpaid assessments and taxes or of the status of the title to the property. On October 10, 1934, the date on which the respondent executor filed his petition for confirmation of sale of the property the unpaid assessments due the Imperial Irrigation District amounted to $3,300. The estate was without funds sufficient to redeem the property from the liens of the delinquent taxes and assessments. The property was accordingly sold by the executor to his brother Roy White, also a son and heir of the deceased, for the sum of $100. The Bank of America National Trust & Savings Association was appointed guardian of the minor grandchildren of the deceased, legatees under his will, on December 8, 1931. Said bank was duly notified of the filing of the executor’s petition for confirmation of the sale of the property and filed written objections to confirmation of the sale alleging that the price for which the executor proposed to sell the property is grossly inadequate and that the total value of the estate of which the above mentioned property is the greater portion is at least $16,000. On the date appointed for the hearing of the petition for confirmation of the sale evidence consisting of the testimony of the executor was presented to the trial court. The court overruled the objections of the aforementioned guardian and made its order confirming the sale of the property.