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Conflict of Laws Keyed to Brilmayer
Bernkrant v. Fowler
Citation:
55 Cal. 2d 588, 360 P.2d 906, 12 Cal. Rptr. 266 (1961)Facts
Some time before 1954, Plaintiffs, Louis, Florence, and Alfred Bernkrant (the Bernkrants), purchased the Granrud Garden Apartments in Las Vegas, Nevada from John Granrud. In July 1954, the Bernkrants still owed $24,000.00 on a promissory note payable to Granrud. In a meeting that took place in Nevada, Granrud asked the Bernkrants to pay a substantial portion of the remaining debt. He stated that if the Bernkrants paid the portion of the debt, any remaining debt on the purchase price of the apartment buildings would be canceled and forgiven at the time of his death. The Bernkrants arranged for a new loan of $25,000.00, and executed a new promissory note of $9,227.00 payable to Granrud in installments of $175.00 per month. From this promissory note, the Bernkrants deposited money into Granrud’s bank account in Covina, California, which Granrud then used to buy a trailer park.
John Granrud died as a resident of Los Angeles County, his will was admitted to probate, and Defendant, Dorothy Fowler, was appointed executrix of his estate. Granrud’s will did not mention the cancelation of the remaining balance of due on the promissory note. Under protest, the Bernkrants continued to make regular payments of principal and interest to Fowler.
The Bernkrants brought suit in California state court, requesting that the promissory note be canceled, the property be reconveyed to them, and the amount they paid towards the promissory note after Granrud’s death be recovered. The trial court found that the action was barred by both Nevada and California’s statute of frauds, and the Bernkrants appealed. The appellate court upheld the trial court’s decision, and the Bernkrants appealed to the California Supreme Court.
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