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Walgren v. Dolan
California Court of Appeal
226 Cal. App. 3d 572 (1990)
Dolan, Sr. (defendant) entered into an agreement to sell property for $15,000 to Walgren (plaintiff). Under the agreement, Dolan was required to furnish a marketable title or perfect the title at Dolan’s expense. Walgren deposited $1,000 in escrow. However, it was discovered that the property’s legal title was actually held in trust, and the escrow company refused to accept the remaining $14,000 of the purchase price. The trust initially named Dolan and his wife as the beneficiaries. However, because Dolan’s wife died, the terms of the trust passed her share down to her appointees. The terms of the trust also granted Dolan a life estate and also allowed Dolan to invade the trust assets, at his discretion, for his benefit. Two weeks after the escrow company refused payment, Dolan died. Walgren filed suit, seeking specific performance.
Rule of Law
Holding and Reasoning (Froehlich, J.)
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