Montgomery v. Rauer

Citations

• 125 Cal. 227
• 57 P. 894
• 1899 Cal. LEXIS 834

Syllabus

<p>Guardian and Ward—Deposit of Wards’ Funds—Trust—Set-off —Debt of Guardian.—One who has received on deposit moneys belonging to minors from their guardian, with whom he has relations of personal trust and confidence, and with knowledge of their origin and character as the trust funds of the minors, is the trustee of the minors in relation thereto, and cannot offset or charge against them any individual indebtedness of the guardian to him.</p> <p>Id.—Receipt and Release by Guardian—Estoppel—Pleading— Right op Wards to Attack Settlement.—Where the guardian gave to the depositary a receipt in full of the moneys of the wards, and a release of all demands, the depositary cannot rely upon them as an estoppel against the wards, in an action by them to recover the moneys on deposit, without pleading the . estoppel, and where it appears that the settlement was not fair, and the signature of the guardian was obtained through mistake, misrepresentation and fraud, and that fifteen nundred dollars of the moneys of the minors still remained in the hands of the depositary, it is the right of the wards to go behind the settlement and show the facts.</p> <p>Id.—Election oe Wards—Statute Requiring Consent oe Court.— Such release and receipt having been improperly obtained by the depositary from the guardian, the wards have an election either to pursue the guardian and his sureties, or the person with whom the settlement was made; and this is their right, independent of any statute requiring a guardian to obtain the consent of the court to such a settlement.</p> <p>Id.—Burden oe Proop.—Where the wards took upon themselves the burden of proving the unfairness and fraudulent character of the settlement induced by the depositary, and successfully carried it, it is immaterial whether the burden of proof is properly upon them to impeach the settlement, or whether the duty of showing the fairness of the settlement is upon the depositary.</p> <p>Id .—Pleading—Avoidance op Release eob Fraud