Jenkins v. Teegarden

In 2007, Robert (Bob) Perry quitclaimed a house to defendant Charlotte (Jeanne) Teegarden, who was his friend and one of his caregivers. Teegarden prepared the quitclaim deed. In her deposition, Teegarden admitted that the only consideration that she gave for the quitclaim consisted of one dollar and her friendship. At trial, however, she testified that, pursuant to an oral agreement with Perry, she also gave $100,000 (for improvements to the house), her $45,000 equity in a different house, and her services. Plaintiff Merilou Jenkins is Perry’s stepdaughter and, since Perry’s death, the trustee and beneficiary of his trust. Jenkins contended that the quitclaim was invalid under Probate Code former section 21350, which, at the time, provided that a "donative transfer" was invalid under specified circumstances, including when the recipient drafted the instrument that effected the transfer. Jenkins also contended that the quitclaim deed was ineffective because it was executed by Perry in his individual capacity instead of as trustee and because it had an erroneous legal description. The trial court found that the quitclaim was not a donative transfer because Teegarden gave good consideration for it. It then reformed the quitclaim deed so as to fix the mistakes in it regarding the grantor’s capacity and the legal description. Jenkins appealed. The Court of APpeal held that, though Probate Code former section 21350 et seq. has been repealed and replaced by Probate Code section 21380 et seq., the former section 21350 et seq. still governed an instrument executed before January 1, 2011. The issue concerning a "donative transfer" for purposes of Probate Code former section 21350 was a question of first impression. The Court held that a transfer is a donative transfer if it is for inadequate consideration; the mere fact that the recipient gave good consideration, sufficient to support a contract, does not prevent the transfer from being donative. Finally, the Court concluded that the evidence demonstrated that the quitclaim was a donative transfer under this definition as a matter of law. Hence, the quitclaim was invalid.View "Jenkins v. Teegarden" on Justia Law