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California Community Property Keyed to Carrillo, 11th Ed.
Bank of California v. Connolly
Citation:
36 Cal. App. 3d 350 (1973)Facts
Charles R. Latimer operated a real estate brokerage in Ontario, California, where Joseph L. Connolly and Forde C. Seward worked as associates sharing commissions equally while Latimer paid all overhead expenses. In 1964, Latimer and his business associate Mike Kelber acquired two properties: a ten-acre parcel at 7th and Mountain in Upland and a sixty-seven-acre parcel near Ontario Airport, with record title held in Kelber’s name. Connolly and Seward provided some services in connection with acquiring these properties but contributed no money toward purchase. On October 6, 1964, Latimer, Connolly, and Seward executed a profit-sharing agreement whereby the three would share equally in one-half of profits from sale of the two properties, with Latimer to be reimbursed first for carrying costs. Latimer was married to Mildred Latimer at the time. After the agreement, Connolly and Seward borrowed substantial sums guaranteed by Latimer, allegedly in reliance on anticipated profits. Latimer died January 5, 1969, and disputes arose regarding enforceability of the profit-sharing agreement against his estate and whether it affected his wife’s community property interest in the properties.
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