Security-First National Bank v. Leatart

WILSON, J. This is a controversy among seven brothers, one being in opposition to the other six, concerning the division of the sum of $5,000.02. Since it is conceded by all parties that the fund should be divided equally among the seven individual litigants, the final judgment in the action will merely determine whether (1) each party shall receive his share directly from the fund now on deposit in court or (2) the entire amount shall be paid to the administrator of the estate of the mother of the parties who, after first'deducting [213]his fees as administrator and the fees of his attorney and the other costs of administration, shall distribute the remainder in seven equal shares.

The litigants are the sons of Martha E. Leatart, who, on March 19, 1930, signed and acknowledged a grant deed to her seven sons conveying to them a parcel of real property in Los Angeles County. The deed contained no reservations, restrictions or conditions. She held the deed in her possession until July, 1944, when she delivered it to two of the grantees and at her request they had it recorded in the county recorder’s office. She was taken to a hospital on August 18, 1944, where she remained until her death on October 16, 1944.

Some of her sons being unable to contribute their proportionate shares of the cost of her hospitalization and medical care, A. L. Leatart wrote a letter to his brothers, dated September 24, 1944, stating that he would “buy the property and pay $6,000 cash immediately and to pave the way for that deal and save time, ’ ’ he had had the property appraised. He suggested that the money be deposited in a bank in their mother’s name “but with all seven boys as co-tenants on the deposit and for only two of the boys as co-signers on all checks” drawn against the fund for the payment of bills incurred for their mother’s benefit and “with the stipulation that in the event there is any moneys left that it shall be equally divided seven ways and subject to withdrawal by each beneficiary.” The arrangement suggested in the letter was accepted by all of the brothers. They executed a grant deed to A. L. Leatart conveying the property to him. The bank refused to accept the deposit upon the terms suggested in the letter and it was arranged that the fund should be placed in the names of two of the brothers who were authorized to sign checks in payment of their mother’s expenses. Upon her death the amount now in litigation remained in the bank.

After Mrs. Leatart’s death plaintiff bank was notified that some difficulties might arise among her sons as to the distribution of the fund, whereupon a complaint in interpleader was filed naming the administrator and all the brothers individually as defendants. Pursuant to an order plaintiff paid the money into court and was discharged from further liability. A. L. Leatart, as administrator of his mother’s estate, filed a cross-complaint against the other defendants alleging that the fund should be distributed to him as ad