Wyatt v. Fulrath

211 N.E.2d 637 (1965)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

The Duke and Duchess of Arion were nationals and domiciliaries of Spain. Neither of them had ever been in New York. The political climate in Spain from 1919 until the end of the Spanish Civil War was extremely hostile. The Duke and the Duchess sent cash and securities to New York for safekeeping and investment. This property, under Spanish Law, was community property. They placed some of the property in joint accounts and in establishing the accounts they agreed in writing that New York survivorship law would apply. The Duke died in 1957 and the Duchess in 1959. After the Duke died the Duchess took control of the property in New York and undertook to dispose of it by a will executed according to New York law and affecting property in New York. P as an ancillary administrator of the Duke’s estate sued the executor of the Duchess’ estate, Fulrath (D) claiming one half of the property under Spanish community property law. The value of the property is $2,275,000 (which included $370,000 transferred by the Duchess from London after the Duke’s death). P seeks an accounting and damages for conversion. The main issue is whether the law of Spain should be applied to the property. The agreements giving full title to the survivor in the joint accounts were executed either in Spain, or if not there at least not in New York, and were, in any event, executed by persons who were domiciliaries and citizens of Spain. The law of Spain would have prevented either spouse from agreeing that community property go entirely to the survivor on the death of either; but half would go to the survivor and at least two-thirds of the remaining half would pass to the heirs of the deceased spouse. Dispositions of property in violation of this prohibition are shown to be void according to Spanish law. The courts ruled in favor of D and P appealed.