First Security Bank of Utah v. Burgi

• Decision Date: 06 December 1952
• Docket Number: No. 7622,7622
• Citation: 122 Utah 445,251 P.2d 297
• Parties: FIRST SECURITY BANK OF UTAH, v. BURGI et ux.
• Court: Utah Supreme Court

Page 297

251 P.2d 297

122 Utah 445

FIRST SECURITY BANK OF UTAH, v. BURGI et ux.

No. 7622.

Supreme Court of Utah.

Dec. 6, 1952.

P. LeRoy Nelson and Arthur Woolley, Ogden, for appellant.

Thatcher & Young, Ogden, for respondents.

McDONOUGH, Justice.

This is an appeal from a judgment in an action tried by the lower court without a jury. Defendant appeals from the trial court's ruling that a certain deed and bill of sale failed for lack of delivery. Plaintiff cross appeals as to the court's ruling on an alleged joint bank account.

On February 21, 1935, Fred Burgi, by warranty deed, conveyed to Clyde Burgi, his son, a piece of property upon which stood a store building in which Fred Burgi conducted a small grocery business. This deed was recorded on March 4, 1935. On March 3, 1936, Clyde conveyed the property back to Fred by a warranty deed which was recorded on March 5, 1936. Fred then executed a warranty deed dated November 18, 1936 which purported to convey the property to Clyde. This latter conveyance was not recorded until February 7, 1950--five days after the death of the grantor. On January 29, 1937, Fred executed a Bill of Sale which assigned all the stock of groceries, fixtures and furnishings of the grocery business to Clyde. The lower court found that there was no delivery of the deed or bill of sale; that they were executed for and with the intent that they would not be operative until after the death of the decedent, and concluded that the documents were testamentary in character and intent. Hence, the property and business were to revert to the estate to be administered by the plaintiff. The defendant appeals from this finding and conclusion.

The record also reveals that Fred opened a checking account with the Commercial Security Bank on October 16, 1934 under the name of 'Burgi Grocery and Meat, Fred Burgi.' On June 12, 1940, Fred Burgi and Clyde Burgi signed a card authorizing the bank to treat them as joint depositors but which did not change or mention the name of the account to be so treated. The court concluded that the original account thereby was made a joint account and that Clyde had full rights of survivorship in respect to the money deposited in such account. Plaintiff cross appeals from this ruling. We will discuss these items in the order stated.

Plaintiff admits that the deed and bill of sale were executed but contends that they were never delivered to the defendant. The testimony upon which the plaintiff relies may be briefly summarized as follows:

On February 21, 1935, when Fred Burgi conveyed the property in dispute to the defendant he also conveyed other pieces of property to various other children. In each deed he reserved to himself a life estate and each deed was promptly recorded. When the property in dispute was, after being reconveyed to Fred, again deeded to the defendant in 1936, the deed contained no reservation of a life estate and was not recorded until 14 years had passed and Fred had died. Notwithstanding the signing of the deed and the bill of sale, the deceased continued to operate the business and to live on the premises to the same extent as he had done previous to the signing of these documents. In a 1947 statement to Dun & Bradstreet, deceased gave the name of Fred A. Burgi as the owner of the business. In 1948, after deceased's marriage to his widow, he rendered another statement to Dun & Bradstreet in which he reported 'business building, title in name of Burgi and wife; home, title in name of Burgi and wife.' All sales tax returns and applications for business licenses reported the owner to be 'Fred Burgi, Burgi Grocery,' although the 1949 business licenses stated C. A. Burgi to be the proprietor. Deceased during his life was assessed, and paid, the real and personal property taxes levied against the property and business. Fred Burgi also managed the apartment behind the store; collected the rent therefrom; gave receipts for rent paid; purchased the merchandise for the store; cashed checks and made loans from money that was kept in a vault in the store basement. He gave no indication of retiring from the business or ceasing to operate and treat it as his own. Further, there is testimony that immediately upon decedent's death the defendant took possession of deceased's keys; stated that there was a deed in the vault which he intended to get and record as soon as possible; and refused to allow any witnesses to be present when he opened the basement vault. It is plaintiff's contention that the defendant obtained these documents in this manner and at this time.

In contrast, the defendant and his immediate relatives testified that the deed and bill were in the possession of the defendant; that he kept them along with other valuable papers in a red chocolate box over his kitchen sink; and that deceased had made many statements to the effect that in case he should die 'everything was taken care of' and that 'the business belonged to the boy [defendant].'

Delivery is essentially a matter of intent. Such intent is to be arrived at from all the facts and surrounding circumstances, both before and after the date of the deed, including declarations of the alleged grantor where it appears the declarations are made fairly and in the ordinary course of life. Stanley v. Stanley, 97 Utah 520, 94 P.2d 465; Mower v. Mower, 64 Utah 260, 228 P. 911, 914. The testimony reveals that the deceased clearly intended that the deed and bill of sale pass the property to the defendant. The facts and circumstances, however, support the trial court's finding that the deceased had no intention to pass title immediately, but that such deed and bill of sale were to become operative upon the death of the decedent. Under such circumstances the deed and bill of sale were clearly testamentary in character and intent and were inoperative since they did not conform to statutory requirements for testamentary disposition. In re Alexander's Estate, 104 Utah 286, 139 P.2d 432.

While upon an appeal of a case in equity, this court may review the findings of fact as well as the conclusions of law; nevertheless, the findings of the trial court will not be set aside unless it manifestly appears that the court has misapplied proven facts or made findings clearly against the weight of the evidence. Gibbons v. Brimm, Utah, 230 P.2d 983; Stanley v. Stanley, supra, and cases cited therein. The record substantially supports the lower court's findings with respect to non-delivery of the deed and bill of sale.

Defendants assign as error a ruling of the trial court which prevented defendants' attorney from testifying in the case. The trial court ruled that his testimony was privileged and inadmissible under the provisions of Sec. 104-49-3(2), U.C.A.1943, which provides: '(2) An attorney cannot, without the consent of his client, be examined as to any communication made by the client to him, or his advice given therein, in the course of professional employment; * * *.' Defendants' attorney noted an exception to the ruling but made no offer of proof as to what his testimony would be. All that appears in the record brought up is that the attorney, after being sworn, stated his name, his residence, and the fact that he was an attorney. He then stated that he was the attorney who prepared the warranty deed in question. He was then asked by counsel for the plaintiff whether he was employed at that time by Mr. Burgi to prepare the deed. Upon his answering in the affirmative, the recited objection to his testimony was interposed and was sustained by the trial court. In this state of the record, the ruling of the trial court was clearly erroneous. Anderson v. Thomas, 108 Utah 252, 159 P.2d 142. It remains to consider whether the rejection of such testimony was prejudicial.

Contrary views, it seems, are entertained on this question. A number of decisions are to the effect that where the record shows that evidence has been improperly excluded, it will be presumed that the error was prejudicial to appellant unless the contrary appears. Other decisions hold that one who complains on appeal of exclusion of evidence must show affirmatively that he was injured thereby. See 5 C.J.S., Appeal and Error, § 1677. The latter view has been taken by this court. In re McCoy's Estate, 91 Utah 212, 63 P.2d 620, the decision on the point is reflected in the eleventh syllabus as follows:

'In will contest, alleged error in exclusion of evidence concerning conversation, on ground that conversation was not proper rebuttal, would not be considered, since failure of record to disclose substance of such conversation rendered it impossible to determine whether such exclusion was prejudicial, if erroneous.'

Arizona has consistently followed such rule. See Musgrave v. Karis, 63 Ariz. 417, 163 P.2d 278, and cases there cited. The rule, the reason therefor, and a recognized exception thereto, are well stated by Circuit Judge McDermott in the case of New York Life Ins. Co. v. Doerksen, 10 Cir., 75 F.2d 96, 101, in the following language:

'Where an objection to evidence is sustained in an action at law the general rule is the record must disclose the substance of the proffered evidence before there can be a reversal because of its rejection. An offer to prove is the accepted method of bringing the substance of the evidence into the bill of exceptions. The reason for the rule is that judgments are not reversed unless error is made to appear, and without something in the record to disclose the substance of the rejected evidence, error does not appear. There are many authorities on the point.'

Numerous Federal cases are then cited in support of the rule. The writer then notes an exception to the rule and states such exception in the words of Mr. Justice Harlan in the case of Buckstaff v. Russell & Co., 151 U.S. 626, 637, 14 S.Ct. 448, 452, 38 L.Ed. 292: 'If the question is in proper form, and clearly admits of an answer relevant to...