Coughran v. First National Bank

DESMOND, J., pro tem. In this case the receiver of the First National Bank of Baldwin Park appeals from a judgment entered in an action which plaintiffs brought to quiet title to certain real estate in Long Beach. The grounds of appeal are that the judgment is not supported by the evidence, and further, that it is based upon vitally conflicting findings, and therefore cannot stand. Said receiver also appeals from the order denying motion for new trial.

The receiver’s predecessor in office, one F. W. Heathcote had secured two judgments against one Charles W. Coughran, had recorded abstracts thereof in the recorder’s office of Los Angeles County, and had levied an attachment, in behalf of the insolvent bank which he represented, against all right, title and interest of Charles W. Coughran in the real property in question. This attachment was not released, nor was a levy of execution made. In order to clear the property of the cloud created by this action on the part of the bank receiver, the suit to quiet title was brought by two brothers and a sister 'of Charles W. Coughran, who had received on April 22, 1933, a grant deed to the real estate in question. This deed was signed by Martha I. Coughran and Charles E. Coughran, husband and wife, and passed title to their three children, J. Burt Coughran, Lulu B. Clewett and D. Douglas Coughran, as joint tenants. Simultaneously with the execution of the deed, a declaration of trust was signed by the children as trustees, acknowledging that the real estate was held by them in trust for the purposes mentioned in the instrument. The parents joined in the declaration of trust, agreeing that it fully set out the terms and trusts under and upon which the property therein described should be held, managed and disposed of.

By the terms of the trust, the income derived from the res was to be paid to Martha I. Coughran during her lifetime, reasonable provision being made after her death for her husband, if he should survive her. The remainder of the net income during the lifetime of the surviving husband and, after his death, all the net income from the property, was to be paid regularly each month as follows: one-fifth to J. Burt [154]Coughran during his lifetime or until the termination of the trust, if terminated prior to his death; one-fifth each to Lulu B. Clewett and D. Douglas Coughran under similar conditions ; one-fifth to the guardian of Mary Lena Coughran, and the remaining “one-fifth (1/5) of said net income to J. Burt Coughran and to D. Douglas Coughran, as joint tenants, and to the survivor of them. In the event of the death of both the said J. Burt Coughran and D. Douglas Coughran, before the termination of this trust, said one-fifth (1/5) of said net income shall be paid to Charles W. Coughran as long as he may live or until the termination of this trust, if terminated prior to his death. In the case of the death of all said three persons, to-wit: J. Burt Coughran, D. Douglas Cough-ran and Charles W. Coughran before the termination of this trust, said one-fifth (1/5) of said net income shall be paid to the heirs-at-law of the said Charles W. Coughran in the proportions to which they are entitled to inherit his separate estate”.