Estate of Richard Polson v. Pilkauskas
Published: Aug. 16, 2001 | Result Date: Apr. 24, 2001 | Filing Date: Jan. 1, 1900 |Case number: 241908 Bench Decision – $0
Judge
Court
Kern Superior
Attorneys
Plaintiff
Defendant
Facts
The plaintiffs are the administrators of the Estate of Richard V. Polson, M.D. Dr. Polson died on July 6, 1999.
Defendants John Pilkauskas and Shirley Pilkauskas are husband and wife. Ethyl Oliver is the sister of Shirley
Pilkauskas. Dr. Polson had been friends with Shirley Pilkauskas and her family over the years. In fall 1998,
defendants desired to purchase residential real property.
On Oct. 18, 1998, the defendants entered into an agreement to purchase the real property for $250,000. On
Oct. 27, 1998, escrow was opened. At no time in any of the purchase and sale documents or in the initial
escrow instructions was a gift of $100,000 ever referenced. As the defendants did not have $100,000 available
to place as a down payment (with the balance to be provided by loan) Dr. Polson agreed to assist the
defendants with the down payment by personally loaning them $100,000.
On Nov. 19, 1998, Ethyl Oliver executed a quitclaim deed to other residential real property and gave it to Dr.
Polson. On Nov. 23, 1998, Dr. Polson met with his attorney, Errol Shaw, and told him that he was planning on
lending money to a friend for the purpose of buying a home in which older persons would be boarded. Dr.
Polson communicated that the loan was a good investment. Attorney Shaw explained that the quitclaim deed
Dr. Polson had received was not the correct instrument for the secured loan transaction. He recommended that
a deed of trust and promissory note be drafted and, pursuant to Dr. PolsonÆs instructions, drafted a note and
deed of trust.
Under the note, defendant Oliver was obligated to repay Dr. Polson in the principal sum of $100,000 upon the
earlier of the sale of her Bucknell property or two years, together with interest of 6 percent.
On Dec. 11, 1998, Dr. Polson instructed his bank to deliver a cashierÆs check to the title company in the
amount of $50,000. The defendantsÆ lender required a signature from Dr. Polson indicating that he was
"gifting" the defendants $100,000. Dr. Polson allegedly signed this statement on Jan. 7, 1998. Only $50,000
was ever deposited into escrow on behalf of the defendants.
Defendant Oliver obtained a loan secured by a first trust deed on the other real property in order to consummate
the purchase of the Cresmont property. After escrow closed, Dr. Polson continued lending money to the
defendants, so as to comply with his promise to loan $100,000. Between January 1999 and the time of Dr.
PolsonÆs death on July 6, 1999, Dr. Polson had loaned the defendants an additional $12,000. The total amount
of money loaned to defendants by Dr. Polson as of July 6, 1999 was $62,000.
The note for $100,000 and First Trust Deed on the Bucknell property securing the Note were never executed.
The defendants refused to repay the loans made by Dr. Polson claiming that Dr. Polson had actually made a
gift. This action followed the defendantsÆ refusal to repay the loan. The plaintiffs, on behalf of the Estate, filed
this lawsuit to recover the $62,000 given to the defendants by Dr. Polson.
The plaintiff brought this action based on quiet title, declaratory relief, impress and
foreclose an equitable lien and constructive trust.
Result
The court found that the Nov. 19, 1998 quitclaim deed was valid and enforceable and quieted title to the property in plaintiff Estate.
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