Court Opinion

ID: 9947083
Source: CourtListenerOpinion
Date Created: 2024-03-02 00:01:59.249326+00
Date Added: 2024-06-11T14:25:46.475989
License: Public Domain

Filed 3/1/24 Bye v. Tran CA6

                      NOT TO BE PUBLISHED IN OFFICIAL REPORTS
California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for
publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication
or ordered published for purposes of rule 8.1115.

                  IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

                                      SIXTH APPELLATE DISTRICT

 PATRICIA BYE, as Trustee, etc. et al.,                              H050125
                                                                    (Santa Clara County
             Plaintiffs and Respondents,                             Super. Ct. No. 16PR180018)

             v.

 NHAN TRAN et al.,

             Objectors and Appellants.

         This appeal arises from a probate proceeding involving the division of the estate of
Linden Crawforth. At issue is the disposition of a residence in San Jose, co-owned by
him and Christina Griffith, as tenants in common at the time of his death in 2015.1 After
Crawforth’s former wife, Nhan Tran, was appointed as administrator of his estate in
2017, Griffith filed a petition to enforce the tenancy in common agreement and requested
that she be: (1) transferred Crawforth’s interest in the residence from the estate; and (2)
granted reimbursement from Crawforth’s estate for real property expenses, fees, and
costs associated with maintenance of the residence. In 2020, after the conclusion of the
evidentiary portion of a three-day hearing on Griffith’s petition, the court discovered that
Tran was not Crawforth’s surviving spouse, as the parties’ marriage had been legally

         1
          For consistency with the parties’ briefings and brevity, we refer to the parties by
their last names.
dissolved before Crawforth’s death. Further, under her dissolution agreement with
Crawford, Tran had an unsatisfied obligation to Crawford’s estate. As a result, the trial
court found that Tran had a conflict of interest and suspended her powers as
administrator. The court subsequently appointed Patricia Bye, a professional fiduciary,
as administrator of Crawforth’s estate. Shortly thereafter in 2020, Bye entered into a
settlement agreement with Griffith for the disposition of the residence, which the court
approved over the objections of Tran and her adult daughters, Brittany and Jennifer
(collectively appellants).
       Appellants now appeal the trial court’s approval of the settlement agreement,
arguing that the court abused its discretion by not holding an evidentiary hearing prior to
issuing its approval. For the reasons set forth below, we find no abuse of discretion and
affirm the trial court’s order.
                       I.         FACTUAL AND PROCEDURAL BACKGROUND
       A. Factual Background
       On July 18, 2014, Crawforth and Griffith entered in a tenancy in common
agreement, under which they agreed to each hold a 50 percent interest in their joint
residence as tenants in common, subject to all liens and encumbrances. The agreement
indicated that in the event of the death of one of the parties, the surviving party would
have the right to cause a sale or purchase the interest of the deceased party, with the
residence being valued as of the date of death.
       On November 18, 2014, Crawforth and Tran reached a final agreement in their
dissolution of marriage action in court (Santa Clara County Super. Ct. No. 2009-1-FL-
151146). As part of this agreement, Crawforth and Tran agreed that their marital status
would be terminated as of December 31, 2014.2

       2
         Although the terms of their agreement was recited on the record in court, Tran
later indicated that a written judgment memorializing these terms was never finalized.

                                              2
       On January 1, 2015, Crawforth passed away intestate.
       B. Procedural History
                1. Relevant Pleadings
       On December 8, 2016, Griffith filed a petition requesting to be appointed as
administrator of Crawforth’s estate. In her petition, Griffith stated that because the
residence was Crawforth’s only surviving asset and she had both co-ownership and
exclusive possession of the residence, she should be appointed administrative powers to
sell the residence and divide the proceeds with Crawforth’s daughters.
       On April 7, 2017, appellants jointly filed objections to Griffith’s petition, arguing
that as Crawforth’s surviving spouse and daughters, they had priority to administer the
estate under Probate Code section 8461.3 In their objections, they stated that Tran and
Crawforth’s dissolution action had not been finalized by the time of his death. Tran also
filed a competing petition to be appointed as administrator and listed herself as
Crawforth’s surviving spouse in her petition.
       On May 22, 2017, the court appointed Tran as administrator of Crawforth’s estate.
       On October 12, 2017, Griffith filed a petition to enforce the tenancy in common
agreement pursuant to section 850, subdivision (2)(B), and requested that Tran be ordered
to enter into a purchase and sales agreement for the residence. Griffith also requested an
order that she receive 50 percent of the net proceeds after the close of escrow. Griffith
later filed an amended petition to enforce the tenancy in common agreement on April 8,
2019, which sought the same relief as her original petition.
       Tran filed objections to both of Griffith’s petitions, claiming, among other
arguments, that Griffith had no standing to bring her petition because: (1) the tenancy in
common agreement, which Tran had no knowledge of, only related to Griffith’s and
Crawforth’s living arrangements; (2) Griffith violated the terms of the agreement by

       3
           Undesignated statutory references are to the Probate Code.

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ousting Crawforth’s “heirs” (Tran and her daughters) from access and possession of the
property; and (3) Griffith concealed the agreement and did not seek to enforce it until
more than two years after Crawforth passed away.
             2. Evidentiary Hearing and Suspension of Tran as Administrator
       The trial court conducted a three-day evidentiary hearing on Griffith’s petition on
November 20, 2019, January 24, 2020, and February 28, 2020. At the end of the third
day of trial, the court indicated the parties were now “at the point of argument” and
instructed them to submit their closing arguments in writing.
       However, towards the conclusion of the third day of trial, Griffith’s counsel
provided the trial court with a certified transcript from Tran and Crawforth’s dissolution
proceedings, which indicated that the parties’ marital status terminated on December 31,
2014. The transcript also indicated that as part of their dissolution agreement, Tran was
to pay Crawforth $300,000.4 After receiving this evidence, the court determined there
was a conflict of interest as Tran “[wa]s on both sides of the issue” and suspended her as
administrator of the estate. The court noted it was “completely caught off guard” that the
marital status had been terminated in 2014, that Tran had not acknowledged this
previously during the hearing, and that the court discovered this information through
someone other than Tran.
       As a result of suspending her role as administrator, the court indicated it was not
sure if Tran was the correct person to prepare a closing argument. However, the court
also noted that it was not inclined to “unroll everything and start over,” and that there
may have been enough evidence presented for the court to rule on Griffith’s petition
without needing further argument.

       4
           Tran further testified that she had not paid this money to Crawforth or his estate.

                                                4
             3. Appointment of Bye and Settlement Agreement
          On June 16, 2020, Crawforth’s daughter Brittany filed a petition to be appointed
as administrator of Crawforth’s estate.
          On August 3, 2020, Bye, who was nominated by Griffith, filed a separate petition
to be appointed administrator. Bye also objected to Brittany’s petition on the basis that
Brittany could not be an impartial administrator of the estate. Specifically, Bye argued
that Brittany would not be able to fairly and impartially handle the following matters: (1)
enforcing the agreement that Tran (her mother) pay $300,000 to Crawforth’s estate; and
(2) addressing the tenancy in common agreement, as it would require her to deal with
Griffith.
          On August 17, 2020, the court appointed Bye as administrator of Crawforth’s
estate.
          On November 19, 2020, Bye filed a petition requesting the court’s approval of a
settlement agreement that she had reached with Griffith regarding the disposition of the
residence. Pursuant to this agreement, Bye agreed to transfer the estate’s 50 percent
interest in the residence to Griffith, in exchange for Griffith waiving and foregoing any
claims she had against Crawforth’s estate. Bye and Griffith also agreed to a mutual
general release of all known and unknown claims. In her petition, Bye indicated she
believed this agreement was in the best interest of Crawforth’s estate because the estate
had no liquid funds available to prosecute or defend against multiple claims, and with the
disposition of the residence, she would be able to waive any claims the estate may have
against Tran (which had been requested by the heirs). Bye further noted that the
agreement would allow her to finally close the estate six years after Crawforth’s passing.
          On May 17, 2021, Brittany and Jennifer filed objections to Bye’s petition for
approval, arguing that the proposed agreement did not benefit the estate and was contrary
to their express wishes as the only beneficiaries. They claimed the estate would be
“walking away” from substantial funds it could potentially receive in consideration from

                                               5
the transfer of the residence and in reimbursement claims. They also contended the estate
could not be closed upon disposition of the residence as the estate still had outstanding
claims to the IRS that had not yet been adjudicated.
       On March 17, 2022, appellants submitted additional objections to the petition for
approval, where they again asserted that the settlement agreement was not beneficial to
the estate. Appellants also claimed that the prior evidentiary hearing never concluded as
it ended during cross-examination of Tran, and Tran was entitled to re-direct examination
and closing arguments. Appellants therefore argued that the court should either deny the
petition and allow Tran to conclude her presentation of evidence so that a final judgment
could be reached on Griffith’s petition, or in the alternative, hold a new evidentiary
hearing regarding approval of the settlement.
       On March 18, 2022, the trial court held a hearing on the matter, which was not
reported. At the conclusion, the court indicated Bye was to file a response by April 1,
2022, at which time the case would be taken under submission.
       On April 26, 2022, the trial court issued an order approving the settlement
agreement.
       Appellants timely appealed.
                                        II.     DISCUSSION
       Appellants argue that the trial court abused its discretion by failing to hold an
evidentiary hearing prior to approving the settlement agreement. Specifically, appellants
claim that Bye failed to demonstrate in her petition that the agreement was advantageous
to the estate, and the trial court was therefore required to hold a hearing after appellants
lodged their objections. In response, Bye and Griffith (respondents) claim that there was
in fact a three-day evidentiary hearing and the settlement agreement was entered into and
properly approved by the court at the conclusion of this hearing.

                                              6
        A. Applicable Law and Standard of Review
        Under section 9832, authorization by order of the probate court is required for any
settlement affecting title to real property, an interest in real property or a lien or
encumbrance on real property, or an option to purchase real property or an interest in real
property. (§ 9832, subd. (a)(1)-(3).) “Public policy strongly favors settlements in will
contests in the interest of the preservation of family ties, the adjustment of equities, and
avoiding nonproductive waste of the assets of the estate. [Citations.]” (Estate of
Schuster (1984) 163 Cal.App.3d 337, 342.)
        We review a probate court’s order approving a settlement for abuse of discretion. 5
(Breslin v. Breslin (2021) 62 Cal.App.5th 801, 806, quoting Estate of Green (1956) 145
Cal.App.2d 25, 28.) Under this standard, the trial court’s exercise of discretion will not
be disturbed unless we find that “under all the evidence, viewed most favorably in
support of the trial court's action, no judge could have reasonably reached the challenged
result. [Citation.]” (Conservatorship of Scharles (1991) 233 Cal.App.3d 1334, 1340.)
“A judgment or order of the lower court is presumed correct. All intendments and
presumptions are indulged to support it on matters as to which the record is silent, and
error must be affirmatively shown.” (Denham v. Superior Court (1970) 2 Cal.3d 557,
564.)

        5
         Appellants and Bye agree that abuse of discretion is the appropriate standard of
review. However, Griffith believes the appropriate standard of review should be
substantial evidence on the basis that appellants are challenging the court’s factual
finding that the settlement agreement was advantageous to Crawforth’s estate. We
disagree. While appellants argue that the agreement was not advantageous to the estate,
they do not appear to be claiming the court erred in making such a finding; instead, they
argue that the court erred in not holding an evidentiary hearing where they could present
evidence to this effect. Accordingly, we find that abuse of discretion is the appropriate
standard of review.

                                                7
       B. Analysis
       In making their argument, appellants rely primarily on Estate of Bennett (2008)
163 Cal.App.4th 1303 (Bennett), where the Fourth District Court of Appeal found that the
trial court had erred in not holding an evidentiary hearing on a motion to rescind a
settlement agreement from a prior civil action. In so holding, the appellate court ruled
that the probate court only relied on affidavits and declarations in making its final ruling,
which was not allowed in contested probate hearings when the parties did not agree to
proceed on affidavits alone. (Id. at p. 1309-1310.)
       Appellants are correct that the court must generally hold an evidentiary hearing on
a contested petition when requested by one of the parties. (See Bennett, supra, 163
Cal.App.4th at pp. 1309-1310; see also Estate of Lensch (2009) 177 Cal.App.4th 667,
676-677.) However, in such cases, the underlying factual disputes were solely identified
in declarations and affidavits and had never been litigated in a hearing. In contrast, the
primary issue addressed in the instant settlement agreement – namely, the disposition of
Crawforth’s estate’s interest in the residence – was the same issue litigated in the three-
day evidentiary hearing on Griffith’s petition. In fact, appellants appear to acknowledge
this themselves in their 2022 objections by asking to complete the hearing on Griffith’s
petition, which they believed to have been suspended, and presenting their request for a
new evidentiary hearing only as an alternative remedy. Moreover, as noted by
respondents, much of the evidence cited in appellants’ objections was testimony
presented at the hearing, including excerpts from the hearing transcripts, and the record
does not demonstrate appellants sought to introduce additional or new evidence.
Similarly, the facts provided by respondents in their declarations in support of the
settlement agreement were based on testimony and documentary evidence presented at
the hearing. Appellants cite no authority, nor are we aware of any, indicating that a
second evidentiary hearing must be held on a previously-litigated issue simply because a
new petition has been filed. Indeed, such a requirement would seem to run counter to the

                                              8
principles of judicial economy and proper use of court resources, particularly in the
instant case, which had been pending for over five years before the settlement agreement
was approved.
       Further, an evidentiary hearing is not required when the party requesting the
hearing does not object to the court’s consideration of affidavits or declarations. (See
Conservatorship of Farrant (2021) 67 Cal.App.5th 370, 377-378 (Farrant).) In
reviewing the record, we find no indication that appellants objected to the procedure
being followed by the court for evaluating the petition for approval once the court
informed the parties of its intended approach. Specifically, at the March 18, 2022,
hearing, the court indicated it would be taking the matter under submission after
receiving Bye’s responsive pleadings, and the record provides no indication that
appellants objected to this procedure at that time or in subsequent pleadings. In addition,
as noted above, the record does not demonstrate that appellants requested an opportunity
to provide more evidence apart from that already provided in their declarations.
Accordingly, absent any indication that appellants opposed the chosen procedure or
objected to the use of declarations or affidavits, we find that the trial court was not
required to hold an evidentiary hearing.
       Lastly, “ ‘[a]n abuse of discretion results in reversible error only if it is
prejudicial.’ ” (Farrant, supra, 67 Cal.App.5th at p. 378, quoting York v. City of Los
Angeles (2019) 33 Cal.App.5th 1178, 1190; see also Cal. Const., art. VI, § 13; Code Civ.
Proc., § 475.) “The burden is on the appellant to show prejudice.” (Farrant, supra, 67
Cal.App.5th at p. 378.) In the instant matter, appellants’ only argument regarding
prejudice is as follows: “The denial of an evidentiary hearing thus caused unfair prejudice
to Appellants because it deprived Appellants from presenting all relevant evidence to
show that the Settlement Agreement was prejudicial to the Estate of James Crawforth.”
However, appellants failed to make an offer of proof to the probate court as to what
additional relevant evidence they intended to present. When no offer of proof is made to

                                               9
the probate court, “an assessment of prejudice cannot be made.” (See Farrant, supra, 67
Cal.App.5th at p. 378; see also People v. Anderson (2001) 25 Cal.4th 543, 580 [rule
requiring offer of proof in the trial court (Evid. Code, § 354, subd. (a)) “is necessary
because, among other things, the reviewing court must know the substance of the
excluded evidence in order to assess prejudice”].) Accordingly, appellants fail to
demonstrate that any alleged abuse of discretion prejudiced them.
       In conclusion, based on the foregoing reasons, we find no abuse of discretion in
the trial court’s decision not to hold an evidentiary hearing prior to approving the
settlement agreement.
                                       III.    DISPOSITION
       The trial court’s order approving the settlement agreement is affirmed.

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                                 ___________________________________
                                            Wilson, J.

WE CONCUR:

__________________________________________
           Bamattre-Manoukian, Acting P.J.

__________________________________________
           Bromberg, J.

Bye et al. v. Tran et al.
H050125