Scott v. Scott

MUSSELL, Acting P. J. This is an action for specific performance of a contract and in the alternative, for damages for breach thereof. Trial was had by the court sitting without a jury and plaintiffs appeal from the judgment for defendant denying plaintiffs’ prayer both for specific performance and damages.

There is no dispute as to the following material facts. Walter W. Scott died on May 18, 1948. He was survived by a son, Walter W. Scott, Jr.; ¿ daughter, Patricia Jean Scott (then a minor; now Patricia Scott Farrington); and Lulu Mae Scott, mother of Walter W. Scott, Jr., and Patricia Jean Scott. Also surviving was Faye M. Scott, the second wife of decedent.

Walter W. Scott, Jr., was appointed executor of his father’s will on June 11, 1948. The property claimed by the executor as being in the estate consisted primarily of two hotels, the San Carlos Hotel in Monterey and the Riviera Apartments in San Diego. Faye M. Scott contended that these hotels had been held in joint tenancy and hence were not in the estate but were her sole property. Actions to resolve this dispute were initiated by the executor and by Faye M. Scott. This controversy was resolved by a “Compromise Agreement,” dated July 17, 1950. It was signed by Walter W. Scott, Jr., individually and as executor; by Lulu Mae Scott, as the mother and natural guardian of Patricia Jean Scott, a minor; and by Faye M. Scott. The compromise agreement provided for the transfer of the real properties in question to Faye M. Scott in return for two notes in the total sum of $80,000 and payable over a long period of time to Walter W. Scott, Jr., individually, and Lulu Mae Scott as guardian of the estate of Patricia Jean Scott, a minor. All actions involving title to [590]the properties have been determined; title thereto has been transferred to Faye M. Scott; and the said notes have been transferred to Walter W. Scott, Jr., and Patricia Scott Farrington, all as agreed. The two promissory notes were secured by a second trust deed on the Riviera Apartments and by chattel mortgage on the furniture and furnishings on the Riviera Apartments. Faye M. Scott further agreed to pay all federal estate taxes which may become due by reason of the death of Walter W. Scott; all California inheritance taxes which may become due and payable by reason of the real and personal properties comprising the San Carlos Hotel in Monterey and the Riviera Apartments in San Diego, and all federal and state income taxes which may become due or payable by reason of the operation of the Riviera Apartments in San Diego and the San Carlos Hotel in Monterey, and agreed to hold Walter W. Scott, Jr., as executor of the estate of Walter W. Scott, individually, and Patricia Jean Scott harmless from the payment of any of such taxes.