Bank of California v. Connolly

Mr. Latimer and his associate, Mr. Kelber, purchased a 10-acre parcel of land, referred to as the “7th and Mountain property,” with a loan in 1964. When Mr. Latimer purchased the 7th and Mountain property, Mr. Latimer was married to Mrs. Latimer. Mr. Latimer also entered into an agreement with Mr. Connolly and Mr. Seward to split the profits from dividing and selling off parcels of land within the 7th and Mountain property. During the Latimer marriage, Mr. Latimer also acquired a piece of property known as the airport property, which he purchased using two loans. One loan was secured by Mr. Latimer’s other piece of property, the Alta Loma property, as collateral. The Alta Loma property was Mr. Latimer’s separate property. The second loan was secured by Mr. Latimer and Mr. Kelber’s personal credit. The bank’s loan officer testified at trial that the bank relied solely on Mr. Latimer and Mr. Kelber’s personal credit in issuing the loan for the 7th and Mountain property. The loan officer further testified that, although the Alta Loma property was used as collateral for the airport property, the primary consideration in issuing the loans was Mr. Latimer and Mr. Kelber’s personal credit. The trial court held that Mr. Latimer’s titles to the properties were community property. Thus, Mrs. Latimer was entitled to a community-property share of Mr. Latimer’s interest in the properties. Connolly and Seward appealed the trial court’s ruling that Mr. Latimer’s interest in the properties was community property.