Recent California Case Law Developments Selected Cases of Interest to Trust and Estate Attorneys Filed Between September 1, 2010 and July 31, 2011 By Robert E. Temmerman, Jr., Esq. San Jose, CA TABLE OF CONTENTS Allocation of Receipts From Entities To Principal or Income Under the UPIA MANSON v. SHEPHERD (2010) 188 Cal. App. 4th 1244, 116 Cal. Rptr. 3d 1 [Filed September 3, 2010] ..................................................1 Neighbor Who Merely Prepared Meals for Decedent and Drove Him to Doctor Appointment Held Not to Be a Prohibited Transferee Under Probate Code § 21350 ESTATE OF AUSTIN (2010) 188 Cal. App. 4th 512, 115 Cal. Rptr. 3d 481 [Filed September 15, 2010].................................................3 Beneficiary May Exercise “Five-Or-Five” Power After the End of the Year to Which It Applies ESTATE OF CAIRNS (2010) 188 Cal. App. 4th 937, 115 Cal. Rptr. 3d 735 [Filed September 15, 2010].................................................6 Grand Theft Committed by Attorney in Fact After Principal’s Death PEOPLE v. FENDERSON (2010) 188 Cal. App. 4th 625, 116 Cal. Rptr. 3d 17 [Filed September 17, 2010] .................................................8 Beneficiaries Awarded More Than $65 Million in Damages Not Required to Trace to Obtain Disgorgement of Profits Made by Trustee Through Breach of Trust UZYEL v. KADISHA (2010) 188 Cal. App. 4th 866, 116 Cal. Rptr. 3d 244 [Filed September 22, 2010]................................................1 0 Merger Doctrine Does Not Apply Where Trust Expressly Provides for a Contingent Beneficiary in the Event of Trustee/Sole Beneficiary’s Death WEINBERGER v. MORRIS (2010) 188 Cal. App. 4th 1016, 115 Cal. Rptr. 3d 860 [Filed September 24, 2010]................................................1 3 Disposition of Totten Trust Savings Account on Settlor’s Death Is Controlled by Disposition Provided in Subsequently Executed Living Trust, Not by Totten Trust Account Beneficiary Designation ARAIZA v. YOUNKIN (2010) 188 Cal. App. 4th 1120, 116 Cal. Rptr. 3d 315 [Filed September 29, 2010]................................................1 4 i Settlement Agreement Is Enforced Under CCP § 664.6 Where Attorney Who Allegedly Unduly Influenced Client to Sign Agreement Is Not a Party to the Agreement CHAN v. LUND (2010) 188 Cal. App. 4th 1159, 116 Cal. Rptr. 3d 122 [Filed September 29, 2010] ................................................1 8 Distributions to Law Firm Partner Are Community Property MARRIAGE OF SIVYER-FOLEY & FOLEY (2010) 189 Cal. App. 4th 521, 117 Cal. Rptr. 3d 162 [Filed October 21, 2010].......................................1 9 Trial Court Erred in Dismissing Marital Dissolution Proceeding Maintained by Conservatee Through Her Conservator MARRIAGE OF STRACZYNSKI (2010) 189 Cal. App. 4th 531, 116 Cal. Rptr. 3d 938 [Filed October 22, 2010]..................................................2 1 Requirements for Standing to Bring an Elder Abuse Action on Behalf of a Decedent LICKTER v. LICKTER (2010) 189 Cal. App. 4th 712, 118 Cal. Rptr. 3d 123 [Filed October 27, 2010]..................................................2 3 Surviving Spouse Is Liable for Debts of Deceased Spouse to the Extent of the Value of Joint Tenancy Property Owned by the Spouses at the Time of Deceased Spouse’s Death KIRCHER v. KIRCHER (2010) 189 Cal. App. 4th 1105, 117 Cal. Rptr. 3d 254 [Filed November 4, 2010].................................................2 5 No Extrinsic Evidence Admissible Where Term “Issue” Clearly Defined in Instrument CITIZENS BANK v. CARRANO (2010) 189 Cal. App. 4th 1200, 117 Cal. Rptr. 3d 119 [Filed November 5, 2010].................................................2 8 Tax Attorney’s Contingency Fee Contracts for Transactional Matters Voidable Because Contracts Did Not State that Contingency Fees Are Not Set by Law and Are Negotiable ARNALL v. SUPERIOR COURT (2010) 190 Cal. App. 4th 360, 118 Cal. Rptr. 3d 379 [Filed November 22, 2010]................................................3 0 ii Fired Attorney Cannot Recover From Previous Co-Counsel on Contingency Fee Quantum Meruit Claim OLSEN v. HARBISON (2010) 191 Cal. App. 4th 325, 119 Cal. Rptr. 3d 460 [Filed December 1, 2010]. ................................................3 2 Court-Appointed Counsel for Conservatee Owes No Duty to Potential Beneficiary of Substituted Judgment Estate Plan HALL v. KALFAYAN (2010) 190 Cal. App. 4th 927, 118 Cal. Rptr. 3d 629 [Filed December 8, 2010]. ................................................3 3 Safe Harbor Petition Filed Under Former No Contest Clause Statute FAZZI v. KLEIN (2010) 190 Cal. App. 4th 1280, 119 Cal. Rptr. 3d 224 [Filed December 14, 2010] ................................................3 5 Alter Ego Doctrine Does Not Apply to Trusts But Does Apply to Trustees GREENSPAN v. LADT LLC (2010) 191 Cal. App. 4th 486, 121 Cal. Rptr. 3d 118 [Filed December 30, 2010]. ...............................................3 7 Seven-Day Waiting Period Between Date Party Is Presented With Prenup and Date Party Signs Prenup Does Not Apply to a Party Who Has Been Represented by Counsel From the Outset MARRIAGE OF CADWELL-FASO & FASO (2011) 191 Cal. App. 4th 945, 119 Cal. Rptr. 3d 813 [Filed January 11, 2011] . ......................................3 8 Attorney-Client Communications Covered by the Mediation Confidentiality Statutes Are Not Admissible in a Legal Malpractice Action CASSEL v. SUPERIOR COURT (2011) 51 Cal. 4th 113, 119 Cal. Rptr. 3d 437 [Filed January 13, 2011]. .................................................4 0 Appraiser’s Files Not Fully Protected by Attorney-Client Privilege or the Work-Product Doctrine UNITED STATES v. RICHEY (2011) 632 F.3d 559 (9th Cir.) [Filed January 21, 2011] ..................................................4 3 iii Probate Court Erroneously Denies Heggstad Petition to Confirm That General Assignment Transferred Shares of Stock to Trust KUCKER v. KUCKER (2011) 192 Cal. App. 4th 90, 120 Cal. Rptr. 3d 688 [Filed January 26, 2011]. .................................................4 4 House Titled Solely in Husband’s Name Is Held to be Community Property When Husband Fails to Rebut the Presumption of Undue Influence That Arose When Wife Quitclaimed House to Husband MARRIAGE OF FOSSUM (2011) 192 Cal. App. 4th 336, 121 Cal. Rptr. 3d 195 [Filed January 28, 2011] ..................................................4 6 CPA’s Failure to Identify Time Period for Which Extension of Time to Pay Is Requested Results in Penalties Assessed Against Estate BACCEI v. UNITED STATES (2011) 632 F.3d 1140 (9th Cir.) [Filed February 16, 2011] .................................................4 8 Will That Lacked Two Witnesses Held Valid Because Proponent of Will Established by Clear and Convincing Evidence That Testator Intended the Document to Constitute His Will ESTATE OF STOKER (2011) 193 Cal. App. 4th 236, 122 Cal. Rptr. 3d 529 [Filed March 3, 2011]. ...................................................5 0 Dismissal of Wrongful Death Action on Procedural Grounds Does Not Impact Claim That Alleged Murderer is Prohibited From Collecting Decedent’s Life Insurance Policy Proceeds STATE FARM LIFE INS. CO. v. CAI, 2011 U.S. Dist. LEXIS 24750 (N.D. Cal.) [Filed March 11, 2011]. ..................................................5 3 Interim Attorney Fees Awarded to Executor/Beneficiary for Defending Against Alleged Pretermitted Heir in Will Contest ESTATE OF BARTSCH (2011) 193 Cal. App. 4th 885, 124 Cal. Rptr. 3d 13 [Filed March 22, 2011] ...................................................5 4 Res Judicata Applies to All Issues in a Court-Approved Settlement Agreement ESTATE OF REDFIELD (2011) 193 Cal. App. 4th 1526, 124 Cal. Rptr. 3d 402 [Filed April 5, 2011]. ....................................................5 6 iv Marvin Claim Brought After Decedent’s Death Is Subject to One-Year Statute of Limitations, Unless the Doctrine of Equitable Estoppel Applies MCMACKIN v. EHRHEART (2011) 194 Cal. App. 4th 128, 122 Cal. Rptr. 3d 902 [Filed April 8, 2011]. ....................................................5 8 Putative Spouse Status Under CCP § 377.60 Is Not Determined by an Objective Standard, but Rather a Subjective Standard Based on the Good Faith Belief That the Marriage Was Valid CEJA v. RUDOLPH & SLETTEN, INC. (2011) 194 Cal. App. 4th 584, 125 Cal. Rptr. 3d 98 [Filed April 19, 2011]..................................................6 0 Attorney Husband is Obligated to Pay Ex-Wife Her Community Interest in an Account Receivable Due From His Client (and Girlfriend) Despite the Fact that He Forgive Girlfriend’s Debt MARRIAGE OF GREENBERG (2011) 194 Cal. App. 4th 1095, 125 Cal. Rptr. 3d 238 [Filed April 28, 2011]. ...................................................6 2 Probate Court Must Refer Guardianship Case to CPS Where Unfit Parent Allegations Would Warrant Dependency Proceedings GUARDIANSHIP OF CHRISTIAN G. (2011) 195 Cal. App. 4th 581, 124 Cal. Rptr. 3d 642 [Filed May 12, 2011] . ...............................................6 3 Life Insurance Policy Purchased by Husband With Community Property Funds Is Wife’s Separate Property Because Husband Put the Policy in Wife’s Name MARRIAGE OF VALLI (2011) 195 Cal. App. 4th 776, 124 Cal. Rptr. 3d 726 [Filed May 18, 2011].....................................................6 5 Attorney's Conflict of Interest Results in Denial of Quantum Meruit Recovery FAIR v. BAKHTIARI (2011) 195 Cal. App. 4th 1135, 125 Cal. Rptr. 3d 765 [Filed May 24, 2011] . ...................................................6 6 Family Code § 1612(c), Pertaining to Enforceable Spousal