Hartford Accident & Indemnity Co. v. Crawford

SALSMAN, J. The plaintiff brought this action to set aside a final order of the probate court, and appeals from an adverse judgment.

On October 25, 1949, Arthur Canepa was appointed guardian of Juanita L. Brown. Plaintiff became surety on the guardian’s bond. The principal asset of the ward’s estate was a liquor license appraised at $6,500. In July, 1950 the ward was restored to capacity, but the guardianship proceedings were not terminated. In August 1950 the guardian filed an account and on September 8, 1950, the probate court made its order settling the account, fixing fees for the guardian and counsel, and directing payment. In this order the court imposed a lien on the ward’s liquor license to secure the payment of fees and expenses, and directed the guardian to execute an agreement pledging the liquor license for this purpose, and to deliver such agreement to the State Board of Equalization. The guardian did not follow the directions of the probate court, but evaded the order by transferring the ward’s liquor license to the guardian’s wife and sister without consideration. After restoration to capacity, the ward consented to this transfer. The guardian did not ask the probate court for permission to transfer the liquor license, nor for approval of the transfer after it had been made.

In 1953, defendants herein as creditors of the ward petitioned the probate court for an order requiring the guardian to satisfy debts of the ward. In March 1954 the probate court made its order charging the guardian with wrongfully dis[559]posing of an asset of the ward’s estate (the liquor license) and requiring the guardian to satisfy debts of the ward.

In February 1956 the guardian, after citation, filed an accounting. Defendants herein as creditors of the ward filed exceptions to the account. The exceptions were sustained and the default of the guardian was established by the court’s order dated March 28, 1956. In part, this order read: “3. That the said Arthur Canepa had failed to account for and is chargeable with a valuable asset of the estate of Juanita L. Brown, to-wit: an on-sale liquor license issued for the premises at 2009 Bridgeway, Sausalito, California, which said license has been appraised herein at the value of $6500, and the default of Arthur Canepa with respect to the fact that he has failed to faithfully execute and discharge the duties of his trust according to law, and that he has wrongfully misapplied the said asset, to-wit, the said liquor license, of a value of $6500, to the detriment of the estate of Juanita L. Brown in that amount, and to the creditors of said estate whose claims have been ordered to be paid, is hereby fixed and entered; and