Case Name: Wood v. Wood, et al.
Case No.: 2016-1-CV-292327

Plaintiff Angela Wood (“Angela”) is the daughter of Fred Wood (“Fred Wood”). (See complaint, ¶ 3.) After suffering from an aortic aneurism in 2007, Fred’s cognitive functions declined such that he was unable to care for himself, and required full time care, in addition to suffering from dementia and Alzheimer’s. (See complaint, ¶¶ 9-15.) During this period of time, Fred’s daughters, Alonda Wood (“Alonda”) and Andrea Habing (“Andrea”) controlled his financial affairs. (See complaint, ¶ 16.) Fred lacked capacity to control any affairs, and Alonda and Andrea used their positions in order to wrongfully obtain assets, cash and benefits from Fred. (See complaint, ¶¶ 17, 31-38.) On November 17, 2014, a notification of irrevocability of the Fred Wood Trust of 2012 was the first time that Angela discovered that Fred’s estate had been severely diminished at the time of his death. (See complaint, ¶ 18.) Starting in February 29, 2012 to May 2, 2012, eight transfers of 1/8 interest in an Aptos beach house from Fred to Alonda and Andrea for no consideration were recorded; Alonda and Andrea thereafter sold it for $650,000 within a few months after the final transfer. (See complaint, ¶¶ 18-30.)

On March 11, 2015, Angela filed a petition (Case No. 2015-1-PR-176208) to determine the validity of the Fred O. Wood Irrevocable Trust Established February 10, 2012 (“the Fred 2012 Trust”) based on lack of capacity, undue influence, and for breach of fiduciary duties. On August 13, 2015, the parties settled the matters related to the petition, stating that Angela “shall waive, with prejudice, any claims brought by her Petition or which may have been brought by said Petition relating to the 2012 Trust, including but not limited to claims for breach of trust, undue influence, invalidation of the 2012 Trust, and a formal accounting… [and] shall waive any and all claims as against the 2012 Trust estate, the Irrevocable Angela Wood Trust and all other trust related matters and any and all claims against [Alonda and Andrea], either individually or as successor co-trustees of the 2012 Trust or Irrevocable Angela Wood Trust.” (Settlement Agreement and Release, § B, ¶¶ 3, 7.) The parties also stipulated that “[t]he above captioned case be dismissed and all hearing dates vacated upon approval of the Settlement Agreement by the Court.” (Stipulation re Settlement Agreement, p.2:12-13.) On September 3, 2015, the Court [Hon. Kuhnle] approved the settlement agreement. However, it does not appear that Angela dismissed the petition.

On March 4, 2016, Angela filed a complaint asserting a single cause of action for financial elder abuse. Alonda and Andrea demur to the complaint on the grounds that Angela lacks standing to bring a cause of action for financial elder abuse in light of her waiver of any claims pursuant to the settlement agreement, and that it is barred by the doctrine of res judicata, or, in the alternative, that there is a case pending. Alonda and Andrea’s request for judicial notice is GRANTED. (Evid. Code § 452, subd. (d).)

In opposition, Angela concedes that she has waived claims as to the Angela Trust and the Fred 2012 Trust. (See Opposition, pp.1:28, 2:1-28, 3:1-7, 4:4-5.) However, she nevertheless contends that the settlement agreement did not concern the Trust for the Issue of Virginia Wood (“Virginia Trust”) for which Angela is a beneficiary. However, there is no indication in Angela’s complaint that the Aptos beach house is the subject of the Virginia Trust. On the contrary, the only trusts referenced in the instant complaint is the Fred 2012 Trust. Here, Angela must allege facts showing that the property that is the subject of the instant complaint is not property that is subject to the trusts to which she has “waived any and all claims” and has solely mentioned in the instant complaint. (See Owens v. Kings Supermarket (1988) 198 Cal.App.3d 379, 384; see also Britz, Inc. v. Dow Chemical Co. (1999) 73 Cal.App.4th 177, 180 (in ruling on demurrer, court can take judicial notice of prior order approving good faith settlement).)

Moreover, a review of the Court’s records indicate that Angela has not dismissed her petition to determine the validity of the Fred 2012 Trust—again, the only trust referenced by the instant complaint. As such, there is technically a case still pending, and the demurrer to the complaint is proper on this basis as well. (See Bistawros v. Greenberg (1987) 189 Cal.App.3d 189, 191 (stating that “[a]n objection to a complaint on the basis that a substantially similar lawsuit is pending is properly raised by demurrer [citation], provided the defect appears on the face of the pleading or from judicially noticed facts”).)

Accordingly, the demurrer to the complaint is SUSTAINED with 10 days leave to amend to correct these defects.

The Court will prepare the order.