Facts

Plaintiff Marta Donovan sued her mother, Lue Youse for quiet title to a home that Lue Youse had purchased in a 1031 exchange in 2002. Youse took title as trustee of the Lue Youse Trust until 2009, when she quit claimed the property into the House of Youse LLP. Donovan lived in the home from 2002 and filed suit in 2012, claiming the house was a gift, after her mother attempted to evict her.

The house is located in Temecula, and was valued at trial in the amount of $575,000.

PLAINTIFF'S CONTENTIONS:
Donovan alleged in three different verified complaints that Youse had agreed to give her the house once Donovan's divorce and some IRS liens were resolved. Donovan alleged that the house was a gift, and that Youse urged her to spend funds on expensive upgrades to improve the property value. Donovan's divorce was finalized and the IRS liens resolved in August 2002. Donovan became a licensed real estate agent in 2005. Donovan asked her mother in 2002 and again in 2003 to place title to the home in her name. Donovan claimed that Youse told her that it was safer to keep the house in her trust.

Donovan alleged that she spent most of an inheritance she received from her father, over $500,000, on upgrades and maintenance on the house. Donovan claimed that she did so based on her mother's assurances that she would eventually deed her title to the home. Donovan alleged that she only became aware of her mother's fraud when her mother threatened to evict her from the home in 2012.

Donovan brought causes of action based on quiet title, fraud, unjust enrichment, and restitution.

DEFENDANT'S CONTENTIONS:
Youse claimed there was never any intent or promise to deed the property to her daughter during Youse's lifetime. Youse claimed it would have been imprudent, tax wise, or under any estate plan, for her to go through two different 1031 exchanges to purchase the property, only to deed it to her daughter during her lifetime. Youse claimed that the title to the property has always been in either Youse as Trustee of the Lue Youse Trust, or in the House of Youse as part of an overall estate plan involving all of Youse's considerable real estate holdings. Youse claimed that Donovan was never on title, and there was never any intent or promise made by Youse to put title to the property in Donovan's name.

Youse claimed she paid for the installation of a pool, hardscaping, landscaping, and some of the interior upgrades. Youse claimed she also paid the property taxes, homeowners' association fees and property insurance each year, which totaled approximately $1,000 per month. Donovan paid for upgrades to the house and landscaping. Youse claimed that when Donovan secretly married in 2012, and moved her new husband into the house, Youse simply asked Donovan to pay rent in the amount of $1,000 per month to cover the expenses. Donovan said no, and Youse claimed that was when she sued her mother, claiming that she owned the house.

Youse purchased the property so that Donovan would have somewhere to live while Donovan got her life together and allowed her daughter to live in the house rent free for 12 years. Youse claimed Donovan is irresponsible with money and therefore she would never put any property into Donovan's name. Youse claimed she has always had a comprehensive estate plan, where all property is held in the Lue Youse Trust, to be distributed when she eventually passes. Donovan, as Lue's only child, was a beneficiary of the Lue Youse Trust, and eventually would have inherited the house, along with other property. Youse accused Donovan of attempting to "jump the gun" and wanting title before her mother died. Youse claimed there was no basis factually or legally for Donovan to make any claim to title to the property. After plaintiff rested, defendant made a motion for judgment pursuant to CCP Section 631.8(a).

Settlement Discussions

The parties participated in four separate settlement/mediations conferences. Plaintiff's last offer was to sell the property and split the proceeds. Defendant's offer was to allow plaintiff, a real estate agent, to list and sell the property and keep the broker commission of approximately $40,000.

Damages

Plaintiff claimed that she owned the property in fee title, and had spent over $500,000 on the property at her mother's urging. Plaintiff alleged that her mother defrauded her into spending so much money on the home, and wanted these amounts reimbursed.

Result

The court granted judgment in favor of defendants on all causes of action, and judgment for cross-complainant House of Youse on her declaratory relief action that plaintiff had no right, title or interest in the property.

Other Information

After trial, Youse served a 60-day notice to quit the property on plaintiff, and intends on evicting her daughter from the property. FILING DATE: Feb. 4, 2013.