MARGARET CURRIVAN vs CURRIVAN CHAPEL OF THE SUNSET, JAMES CURRIVAN, AND GREGORY CURRIVAN

Case No. 819223

CROSS COMPLAINT: Currivan Chapel of the Sunset et vs Margaret Currivan

TOPIC: RESCISSION ET

RESULT: PLAINTIFF RECEIVED: RESCISSION OF THE DISPUTED GIFTS; POSSESSION OF DISPUTED PERSONAL PROPERTY; $183,000 FROM CURRIVAN CHAPEL OF THE SUNSET FOR BREACH OF THE EMPLOYMENT AGREEMENT; $34,513.23 FROM CURRIVAN CHAPEL OF THE SUNSET FOR STOCK; $40,000 PUNITIVE DAMAGES AGAINST JAMES AND GREGORY CURRIVAN; THE TRANSFER OF CONTROL IN 1977 WAS NOT VOIDED. NO RECOVERY ON THE CROSS COMPLAINT.

INJURY: Dr. Saenz testified that when the 1982 gifts were signed, the plaintiff was using a codeine medication for pain from a broken hip.

STATE: California

COURT: San Francisco County Superior Court

JUDGE: Hon. Ollie Marie Victoire

PLAINTIFF COUNSEL: Lerner and Veit, San Francisco, by Harvey Sohnen and as Cross Defendant

DEFENDANT COUNSEL: Riordan, Kelly and Chinn, San Francisco, by Patrick Kelly and as Cross Complainant

SUMMARY: Plaintiff, 74 year old funeral director, contended that Currivan's Chapel of the Sunset is a closely held corporation running a funeral home founded by the plaintiff and her husband in 1945; and that in 1977 she sold some of her shares to defendant James Currivan with the result that defendants James and Gregory Currivan, two of her children, then had a controlling interest and she was a minority stockholder, whereas she had previously been a majority stockholder; and that concurrent with her giving up control at age 67, there was an implied agreement to retain her as an employee for life.

Plaintiff further contended that in 1982 the defendants obtained her signature on documents purporting to give them approximately $500,000 in stock in another family corporation which owned the land where the company operated; that she signed the documents under undue influence of the defendants; that she intended to bequeath her stock in the other corporation equally to all her children, not just the defendants; that she thereafter requested rescission of the transfer, which the defendants refused to agree to; and that ultimately, after she sought outside counsel, the defendants discharged her.

Plaintiff further contended that she was entitled to rescission of the 1982 stock transfer and gifts of partial interest in her home to the defendants; that she was entitled to damages for breach of a lifetime employment agreement; that certain paintings and decorative furniture at the business were her personal property which was converted by the defendants when she was fired; and that she was entitled to hold her stock in Currivan Chapel of the Sunset until she was paid the full price under a payout agreement of $34,541.48, rather than the $21,000 offered by the defendants.

Defendants cross-complained for lifetime wage losses, claiming that the plaintiff had promised them control of the several corporations which owned the land, and that they would be out of business if the cross-defendant did not perform on her gifts. (The Cross Complaint contained 18 causes of action.)

Plaintiff attorney did not submit a specific figure to the jury.

P-EXPERTS: Leonel J. Saenz M.D. (Orthopedist) San Francisco; Alfred Roessler (M.A.I.) Fremont

D-EXPERTS: C. Warren Fox (Real Estate Appraiser) Redwood City; Mervyn Green (Real Estate Appraiser) San Francisco; Robert C. Ninker (Funeral Homes) Springfield, Illinois

POST TRIAL MOTION: Motion for new trial made by Defendants -- DENIED. Motion for new trial made by Defendants -- DENIED. Notice of Appeal filed.

SETTLEMENT TALKS: Demand of rescission of disputed gifts and reinstatement of her back pay. Offer to reinstate plaintiff and restore the disputed gifts if the land sold for approximately $1,000,000. (Over $1,000,000 below the fair market value.)

ISSUE: VOLUME 29, NUMBER 28, July 12, 1985

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