Facts

This case involves title and the right to possession of a private home in Newport Beach, which was the personal residence of Bruce Howard Lindsay. Lindsay purchased the home in 1983. In 2003, Lindsay conveyed the property to himself as trustee of the Bruce Howard Lindsay Revocable Trust. The current value of the property is in excess of $1,000,000.

In 2007, when Lindsay was age 76 and in poor health, he met defendant David Michael Realyvasquez at church. Realyvasquez, who was in his early thirties, told Lindsay he had no place to live, and Lindsay invited Realyvasquez into his home, where he looked after Lindsay. On Oct. 31, 2007, Lindsay conveyed title to the property to Realyvasquez for no consideration, reserving for himself a life estate. Realyvasquez helped Lindsay prepare certain documents necessary for the transfer and drove Lindsay to a notary and the recorder of deeds to have the transfer notarized and recorded.

Thereafter, Lindsay as trustee filed suit, seeking to void the conveyance, alleging it was procured through Realyvasquez' undue influence. Realyvasquez moved from the residence in October 2008. Lindsay died on Feb. 22, 2009. Murray Dempster was substituted as plaintiff in his capacity as successor trustee of the Lindsay Trust.

PLAINTIFF CONTENTIONS:
Plaintiff claimed that at the time of the conveyance, Lindsay was in a fragile state of mind and health. His mental capacity had deteriorated significantly and he was in ill health, which included uncontrolled diabetes, congestive heart failure and inoperable prostate cancer. Realyvasquez and Lindsay had a confidential relationship. Realyvasquez took advantage of that relationship and Lindsay's weakened state of mind and health, exercising undue influence on Lindsay and convincing Lindsay to transfer title to the property to him.

DEFENDANT'S CONTENTIONS:
The defense denied that Realyvasquez exercised undue influence and claimed there was no evidence that Lindsay did not make the gift to defendant out of his own free will and intent. No witness said there was any act of undue influence and every witness said that the plaintiff gave the home to defendant because plaintiff "wanted to help him." The entirety of the evidence on the issue consisted of Lindsay swearing under penalty of perjury that he gave the property of his own free will, signing the grant deed as his authorized act, writing to an attorney that he gave the property, "of his own free will and not under coercion or duress." Lindsay informed numerous parties, including several of plaintiff's witnesses, that he gave defendant the property on his own free will because he wanted defendant to have a home.

Settlement Discussions

Defendant initially offered to waive his right to sue plaintiff and his attorneys for malicious prosecution in exchange for plaintiff dismissing the suit with prejudice. During trial, defendant offered to waive any and all interest in the property in exchange for plaintiff paying him $650,000. Plaintiff made no settlement demands.

Result

The court ruled in favor of plaintiff on causes of action to quiet title, for cancellation of instrument and for declaratory relief. The court found that defendant procured title to real property by exerting undue influence on plaintiff and that defendant has no interest in said property. The court canceled the deed evidencing the conveyance from plaintiff to defendant.

Other Information

EXPERT TESTIMONY: Bonnie Olsen, PH.D; PSYD, an expert in elder abuse, opined that Lindsay was a dependent adult and Realyvasquez was Lindsay's caregiver. She testified that at the time of the transfer, Lindsay was particularly vulnerable in that his mental capacity was diminished by age and other serious infirmities. According to defense counsel, Olsen testified that there was "no overt acts", but that Lindsay was vulnerable. According to defense counsel, the case will be appealed.