Bill Froelich Motor Co. v. Estate of Kohler

California Court of Appeal Mar 18, 1966 No. Civ. No. 11034Published

Before: Warns

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Holding. The court held that a bill of sale failing to expressly declare a joint tenancy as required by Civil Code section 683 created a life estate in common with a contingent remainder in fee, rather than a joint tenancy. Consequently, because the grantee predeceased the grantor, the grantor succeeded to the entire fee interest.

Issues

Whether a bill of sale conveying property to the grantor and another 'with the sole right of survivorship' created a joint tenancy despite failing to expressly declare it as such.
Whether the interest conveyed by the bill of sale was a life estate with a contingent remainder in fee.

Disposition. reversed

Quotations verified verbatim against the opinion

“the bill of sale executed by Marjorie Kohler did not create a joint tenancy under the express language of sections 683 and 686 of the Civil Code.”

“As we construe the bill of sale it conveyed a life estate to William C. Froelich in common with Marjorie Kohler, coupled with a remainder in fee contingent on him surviving her.”

“Froelich having predeceased Marjorie, she became the owner in fee.”

WARNS, J. pro tem.* pro tern.* — Sometime prior to 1938 Fred Kohler and his wife Marjorie acquired a house, garage and boathouse situated on Lot 54, June Lake Camp, or June Lake Tract, of the Mono National Forest, adjacent to June Lake in the County of Mono, State of California, and a “Special Use Permit” executed by the Forest Supervisor of the Mono National Forest in favor of Marjorie Kohler. The “Special Use Permit” is in effect a lease of the land upon which the house and improvements are located.

Fred Kohler died in 1938 and thereafter Marjorie Kohler apparently had financial difficulties in maintaining the property. She executed a deed of trust covering the property to William C. Froelich on April 18, 1950, to secure a loan of $2,500. These funds were used to pay off a promissory note executed by Marjorie Kohler in favor of a Dr. Zahry and secured by a chattel mortgage on the above mentioned personal property.

William C. Froelich was a friend of the Kohlers and for sometime prior to 1956 until his death he used the house and the premises at June Lake to entertain friends and business associates. He had an agreement with Marjorie Kohler whereby he paid the upkeep on the house and the rent on the lot and employed Marjorie as a fishing guide. He also paid the taxes on the property from 1950 until 1959 and part of the cost of certain improvements.

On May 21. 1956, Marjorie Kohler for the sum of $2,500 executed a bill of sale whereby she conveyed to herself and William C. Froelich “with the sole right of survivorship” all [899]of the hereinabove described property and said “Special Use Permit.” The personal property being specifically described in the bill of sale as “That certain two story dwelling house, garage and boathouse” and “included herewith is all furniture” in the house.

On the same day, i.e., May 21, 1956, Marjorie Kohler and William C. Froelich signed a statement relinquishing their respective rights in the “Special Use Permit” upon death. Froelich’s statement read: “This is to certify that I agree to relinquish all my rights vested in the Special Use Permit executed by the Forest Supervisor of Mono National Forest. Said relinquishment to take effect in the event of my death, pursuant to the bill of sale dated May 21, 1956, and to the satisfaction of chattel mortgage under same date, filed in Mono County, in favor of Marjorie Kohler.”

Marjorie Kohler executed a like relinquishment in favor of Froelich to take effect in the event of her death prior to his.

Bill Froelich Motor Co. v. Estate of Kohler

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