Russell v. Williams

58 Cal.2d 487, 24 Cal.Rptr. 859 (1962)

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Nature of the Case

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Facts

P and appellant herein, and John Mouser, now deceased, whose estate is being administered by Willams (D), while husband and wife, owned the subject property as joint tenants. In October 1957, P separated from John and went to Nevada where she obtained a divorce on November 13th of that year. The divorce decree made no provision respecting any property rights of the parties and they did not enter into any property settlement agreement. The title to the subject property continued in joint tenancy and John continued to live thereon until his death on June 3, 1958. On November 29, 1957, John obtained a policy of fire insurance covering the improvements on that property, which was issued to him as the sole insured, the premiums being paid from his separate funds; no agreement existed between P and John respecting the placing of any fire insurance upon the premises nor concerning the disposition of the proceeds of any such policy, and the subject policy was issued without P's knowledge. Six weeks prior to John's death, the improvements in question were destroyed by fire, and the proceeds of the policy, representing the full value of the destroyed premises, were paid to D, the administrator of his estate. P became the sole owner of the property and brought this action to recover the proceeds in question, alleging that John's estate became 'indebted to P for money had and received for the use and benefit of P.' P's claim is based on the contention that the money paid by the insurance company under the subject policy constituted proceeds of the property that was destroyed and retains the character of that property. The trial court ruled for D and it was affirmed by the appeals court. P appealed.