Majority
Headnote
[1] Appeal—Findings—Conflicting Evidence—Inferences.—The findings of the trial court upon conflicting evidence are conclusive on appeal, and all reasonable inferences are to be indulged in support of the findings; and the burden is upon the appellant who claims error to show its existence, and where two or more inferences may reasonably be deduced from a certain state of facts or circumstances, a reviewing court is not permitted to substitute its deductions for those of the trial court.Mrs. Hazel Wilbur, wife of codefendant Glen A. Wilbur, who was made a party to the suit, appeared and filed her answer in which she disclaimed all right, title, estate, and interest in and to the lands, premises, and personal property or thing involved in the action.
Plaintiff and appellant, Elmira J. Wilbur, is the mother of Glen A. Wilbur, defendant and respondent herein. The real property, the transfer of which it is claimed by the appellant was fraudulently made, as will later appear, and which is the basis of the action, was a part of a larger estate originally acquired by A. H. Wilbur, husband of appellant and father of respondent, deceased since 1898. Besides respondent Glen A. Wilbur there are three other children, issue of said A. H. Wilbur, since deceased, and his said wife, Elmira J. Wilbur, plaintiff and appellant, to wit, Edith Mary Wilbur, Lloyd H. Wilbur, and Elaine May Wilbur. Glen A. Wilbur is the youngest member of the family. The estate or lands in question are situate in Sutter County, some four or five miles northerly from Tuba City. In 1858, that being also the year that A. H. Wilbur and appellant were married, the husband purchased the lands involved in this action, and he and his wife went upon them to reside. Other acreages were thereafter added to the original purchase and the value of the entire estate of A.
The grounds upon which appellant relies as sufficient to sustain her right to have said conveyance set aside and to obtain the other relief sought will appear from the following 'epitomization of appellant’s complaint. It is in four counts. The first count alleges an equal partnership in the premises acquired by the deed of 1913 and that respondent was appellant’s agent in selling her portion of the crops raised on said lands during the existence of their copartnership and that plaintiff had the exclusive control and management of said premises and the marketing of said crops; that on October 22, 1916, the day said deed was executed, appellant was of the age of sixty-eight years and then was, and for some time prior thereto had been, in poor health and was highly nervous and greatly weakened in body and mind; that respondent took her to the office of his attorney, Mr. Blaine M'cGowan, and by insistence and coercive and persuasive words, conduct, and methods, overcame her better judgment and induced her to execute the deed of October 22, 1916; that she had no independent counsel or advice whatsoever in the matter nor any opportunity to confer with any person other than respondent and his said attorney; that the reasonable value of said land was then not less than $65,000; that she received the sum of $5,000 and the promissory note of respondent for $20,000 in payment for her property, which note has not been paid. A tender of all moneys received by her on account of the transaction and a refusal by respondent to accept the same is pleaded as of date October, 1917. The allegations of the second
The fraudulent acts and conduct alleged to have been resorted to by respondent as a means of inducing or procuring the execution of the deed dated October 22, 1916, or the employment of any false or fraudulent representations made by him as to any matter or thing relating to the transactions as unduly affecting or influencing the action or conduct of appellant as alleged in the several counts of the complaint, whether said misrepresentations or wrongful acts or conduct be charged as suppressions or concealments of existing facts about which appellant was entitled to be informed, or whether said wrongful acts or conduct are alleged to consist in the employment of persuasion, solicitation or deceit with a purpose of overreaching appellant, who, it is claimed, was infirm in mind and body, are specifically and separately denied. It is affirmatively alleged in the
In addition to the aforementioned specific denials the offer to rescind is challenged as to the promptness with which it was made and as to the sufficiency of the amount of money offered in restoration of the moneys paid out by respondent (pursuant to the agreement of the parties) in liquidation of claims aggregating a very large indebtedness against the partnership business, including taxes amounting to about $800 and a mortgage encumbrance amounting to approximately $12,229.58. It is not pretended by appellant that a tender was made purporting to cover the payments of said outstanding indebtedness, taxes, and encumberances, as a court of equity, it is claimed, in the circumstances of the instant case, will excuse a tender. The bar of the statute, section 338, subdivision 4 of the Code of Civil Procedure, is pleaded against each count or cause of action. It is further urged as a bar to this action that a judgment of dismissal was made and entered in the Superior Court in and for the County of Sutter on November 24, ’1919, in an action commenced in that court on November 20, 1917, and it is alleged that the grounds which constituted the cause of action in that case are the same grounds relied upon to constitute a cause of action in the instant case, demanding the same relief and between the same parties. It is admitted by the answer that respondent and appellant were owners as tenants in common of the land conveyed to them by deed dated January 29, 1913, and were copartners in the business of raising grapes and fruits until October 22, 1916, on which day the copartnership was terminated. It is alleged by way of answer that the ownership by them of said lands as tenants in common was voluntarily terminated November 27, 1914, by an instrument executed by respondent and appellant whereby their respective tenures were converted into a joint tenancy with the right of survivorship.
The trial court found against appellant and in favor of respondent upon every material issue made by the pleadings
[1] The findings of the trial court upon conflicting evidence are conclusive, and all reasonable inferences are to be indulged in support of the findings (Treadwell v. Nickel, 194 Cal. 243 , 261 [ 228 Pac. 25 ]). The burden is upon appellant who claims error to show its existence (Hayne on New Trial and Appeal, Rev. ed., sec. 285, p. 1574, and cases cited). Where two or more inferences may reasonably be deduced from a certain state of facts or circumstances, a reviewing court is not permitted to substitute its deductions for those of the trial court.
The present action was commenced March 20, 1920, three years and a few months after the execution of the deed which is here attempted to be set aside on the ground that it was fraudulently obtained. We will refer briefly to that portion of the evidence in the case which supports the findings of the trial court.
Appellant had been familiar with and resided upon the premises in question since 1858; she had assisted in planting them to vines and trees, and had farmed and cultivated them generally. She also had a personal knowledge of the quality of the soil and the uses to which it was best adapted and was at all times informed as to the value of said land and of land values in that vicinity generally. The evidence indicates that Mrs. Wilbur was at all times an active and rather keen-sighted woman with progressive and speculative tendencies. Many years of her life were spent at the Wilbur home in Sutter County. In about 1910 she took up her residence in
“Mother dear, my heart would just break if you even thought that or felt that way for a single moment. My thoughts are always for your happiness, and I always have an aching heart when I come and see the way you work all the while. ...” The letter is an isolated circumstance in the transaction and cannot be taken as sufficient to overturn many other circumstances and other evidence which tends to support the court’s findings. Considering all the circumstances of the case and the relation of the parties to each other, the letter cannot be said to be open to but the
One-half of the entire mortgage encumbrance which rested upon the whole property would reduce the value of Mrs. Wilbur’s interest slightly below $25,000. The finding as to adequacy of price cannot, in view of the evidence and the finding of the court, be disturbed. The value of said property was not a subject suddenly thrust upon the mind of Mrs. Wilbur, the consideration of which she had had no previous opportunity or occasion to devote her thought upon. She had known it as a family property for a period of more than fifty years, was thoroughly familiar with its improvements and the productiveness and quality of soil, and had been one of its owners in connection with her son for a period of almost four years immediately prior to the day the deed was executed. Besides, she doubtless considered its market value at the time she was contemplating encumbering it to raise money to enable her to acquire the Bush Street property. That she was not taken by surprise in the transaction is an inference fairly deducible from all the facts and transactions in the case. A number of disinterested witnesses, several of whom had resided in the immediate vicinity for many years, and who, beyond the possibility of doubt, knew the value of the land in controversy, placed Mrs. Wilbur’s interest therein, including all personal property, at $31,000. Some of said witnesses had cultivated the soil and had assisted in setting it to vines and trees. If this testimony is to be believed, and the trial court certainly accepted it as true, $25,000 in the clear was a fair market value of the interest of Mrs. Wilbur.
If Mrs. Wilbur was acting freely and voluntarily and under no legal restraint or disability she had the right to make such disposition of her property and at such a figure as she thought the exigencies of her situation required. If the price was reasonably adequate to the value of the prop
The price paid by Mrs. Wilbur for the property was $20,-000 and she sold it for $25,000. The report of Accountant Cline, who made a detailed statement of accounts covering the entire period of copartnership, would indicate that Mrs. Wilbur had advanced to the partnership $4,812.90 and had withdrawn therefrom $4,488.20, leaving a balance to her credit on October 16, 1922, of $324.70. Under the management of Glen A. Wilbur, the mortgage of $18,000 was reduced to $12,000. Of this fact Mrs. Wilbur was well aware. A number of the items of the account as prepared by Accountant Cline were attacked as not being proper charges against the partnership, but as being individual charges against the son. A charge of $9,000 made by Glen as salary for services for a period of forty-five months at $200 per month was opposed on the theory that “a partner is not entitled to any compensation for services rendered by him to the partnership,” as provided by section 2413 of the Civil Code. There is some evidence to the effect that it was agreed between the parties that the son, who gave his entire time and attention to the cultivation, harvesting, curing, and marketing of crops, while the mother was residing in San Francisco and had no representative to perform her part of said services, was to receive extra or additional compensation. An agreement for additional compensation would not have been unreasonable or unlikely under the circumstances of the case.
What relevancy the controversy as to the salary claim made by the son on account of his services, or the loss suffered by reason of the Eoseberg contract, or whether $1,000 of the $5,000 that was paid by the son on the purchase price came from sales of partnership produce or from his private funds, or what relevancy any other disputed item may have to the major question, to wit, whether or not the deed was subject to be canceled for the reasons alleged by appellant, is not apparent. The market value of the land and the fairness of the transaction were the major issues. The market value of the land and the abundances of crops which it yielded were not and could not have been
The court having found that Mrs. Wilbur was not deceived as to the market value of said premises, but that she acted freely, voluntarily, and knowingly in the matter, renders all other issues made by the pleadings immaterial. Nevertheless the court found against appellant on the contested items of the account. [2] It is the law of partnerships that when one partner purchases the interest of the other the transaction presumptively includes a final settlement of all partnership indebtedness existing between the partners. (Bates on Partnership, secs. 629, 630, pp. 664, 665; Hattenhauer v. Adamick, 70 Ill. App. 602 ; Edens v. Williams, 36 Ill. 252 .)
It is insistently urged as one of the claims of appellant that there existed an actual relationship of trust and confidence between Mrs. Wilbur and her son and that he acted as her agent in all business matters connected with the partnership. It is further urged that she acted in the matter alone and without having had the benefit of independent advice. A number of cases are cited to sustain her position as to these several points.
[3] It is the well-settled rule of decision of this state that: “The mere relation of parent and child is not sufficient to invalidate a deed from the former to the latter. It is a circumstance, of course, inviting careful consideration to the transaction, but before it can justify the inference of undue influence there must be added, imposition, fraud, importunity, or something of that kind.” (Broaddus v. James, 13 Cal. App. 464 , 472 [ 110 Pac. 158 , 161].)
“The mere fact that the conveyance is from parent to child does not change the rule nor render the deed presumptively invalid. (Pomeroy’s Equity Jurisprudence, sec. 962; Bowdoin College v. Merritt, 75 Fed. 488 .) However, under certain circumstances, the burden is upon the grantee to show that a deed from his parent was obtained without fraud or undue influence. The doctrine is announced in Soberanes v. Soberanes, 97 Cal. 145 [ 31 Pac. 910 ], through Mr. Justice Paterson, as follows: ‘Some of the cases hold that undue influence is not to be inferred from the relation of parent and child where the gift is from the parent to the child (Millican v. Millican, 24 Tex. 446 ); but when
“In the case at bar it cannot be said that the grantor was of great age—although she was sixty-four. [Here, she was sixty-eight.] She was, though, somewhat enfeebled by disease, and she conveyed all her property to an only child, to the exclusion, however, of a grandchild. But the evidence seems clear that her mental faculties were unclouded, and there is no question that she understood the effect of a transfer of her property. If we assume that under the peculiar circumstances of the transaction the burden was cast upon the grantee to show that the conveyance was made freely and voluntarily and with the intention to vest the title immediately and irrevocably in him, still we would not be justified in disturbing the judgment of the lower court, because there is sufficient evidence in behalf of respondent’s contention to sustain that burden and support the corresponding finding.” (Becker v. Schwerdtle, 6 Cal. App. 462 , 464 [ 92 Pac. 398 ].)
Likewise in the instant case the court found upon substantial evidence that appellant acted with full knowledge and understanding, and freely and voluntarily in the execution of said deed and was in good physical and mental health, and whatever burden the law may have cast upon the son by reason of a confidential relationship was fully met.
Appellant relies upon Nobles v. Hutton, 7 Cal. App. 14 [ 93 Pac. 289 ], and other cases following the rule applied to certain cases in which cancellations of deeds were directed to be made. All of the cases in which attempted transfers failed contain some ingredient showing undue influence, or menace or mental weakness, or want of full understanding of all the facts and the effect of the transfer, or inadequacy of consideration, or that some species of imposition was practiced. [4] The evidence in this case shows and the court found that the deed was made freely, voluntarily, and with a full understanding of all the facts and the effect of
In view of what we have already said it becomes unnecessary to discuss the effect of the alleged tender other than to say that there ivas considerable delay shown in making’ it and its sufficiency as a tender is questionable.
Having disposed of the case upon its merits it also becomes unnecessary to discuss the bar of the statute and the effect of the judgment of dismissal, both of which were specially pleaded by defendant as heretofore stated.
There is no merit in the objection to the promissory note made upon the ground that it was unsecured. It met with Mrs. Wilbur’s approval and no intimation has been made that it was not of the value written upon its face or that its maker was not solvent. In fact, the evidence shows that the note was pledged by her in some undisclosed transaction.
The finding that the McKenzie transaction was a separate affair of the defendant is supported by the evidence.
The record contains much conflicting evidence, and following the rule of decision we have only referred to the portions thereof which have a tendency to support the findings. We are not at liberty to pass judgment upon the credibility of witnesses.
The judgment is affirmed.
Lawlor, Acting C. J., Richards, J., Waste, J., Houser, J., pro tem., and Knight, J., pro tem., concurred.
Rehearing denied.
Cases cited
- Treadwell v. Nickel 194 Cal. 243 at 261 p. 7
- Broaddus v. James 13 Cal. App. 464 at 472 p. 14
- Becker v. Schwerdtle 6 Cal. App. 462 at 464 p. 15
- Nobles v. Hutton 7 Cal. App. 14 p. 15
- Soberanes v. Soberanes 97 Cal. 140 p. 16