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       #Post#: 25--------------------------------------------------
       Gruen v. Gruen
       By: SunsetSailor Date: January 27, 2011, 10:07 pm
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       FACTS:  The plaintiff alleges that he is the rightful owner of a
       painting, which his father, who is now deceased, gave to him.
       He asserts that his father gave the painting to him for his 21st
       birthday in 1963.  His father retained possession of the
       painting until he died in 1980, and the plaintiff’s stepmother
       (defendant) refused to give the painting to the plaintiff.  The
       defendant argues that the purported gift was a testamentary in
       nature and invalid insofar as the formalities of a will were not
       met.  On April , 1963, the plaintiff’s father wrote him a letter
       stating that he was giving him the Klint painting for his
       birthday but that he wished to retain the possession of it for
       his lifetime.  On May 22, 1963, the plaintiff received two more
       letters stating the father’s wish that the first letter from
       April 1, be destroyed because his attorney and accountant
       insisted on having copies of all letters.  The third letter
       stated that the plaintiff’s father wished to give the oil
       painting to the plaintiff as a present.  The plaintiff never
       took possession of the painting and following his father’s
       death, he requested possession of it.  When the defendant
       refused, he commenced this action.
       * Son’s Theory He is the legal owner b/c of the
       Intervivus gift from her father
       * StepMom’s TheoryNo gift b/c it doesn’t meet the
       requirements of a gift & that this particular painting cant be a
       gift b/c it doesn’t meet the formalities of the will so it is an
       invalid testamentary transfer.
       Time 1: Gruen Sr. makes his will and says that painting goes to
       wife
       Time 2: Gift of the painting to his son
       Time 3: Gruen Sr. dies
       SON GETS PAINTING B/C YOU CAN’T PASS A BETTER TITLE THEN YOU
       ACTUALLY HAVE
       * Will is a promise to make a series of gifts once Gruen
       died, but he didn’t own it at the time of his death (son owned
       it)Sr. had no property interest in the painting when he
       died b/c he already gave it to his son
       * Gruen Sr. “I promise to give you this painting when I
       die…” **If I own it when I die
       PROCEDURAL FACTS:
       * 7 day non-jury trial: The plaintiff failed to establish
       any of the elements of an inter vivos gift and that in any event
       an attempt by a donor to retain a present possessory life estate
       in a chattel invalidated a purported gift of it
       * Appellate Division: Reversed and remitted the matter for a
       determination of value.
       * Court of Appeals: Affirm, awarding the plaintiff
       $2,500,000 in damages representing the value of the painting.
       ISSUE:  Whether a valid inter vivos gift of chattel may be made
       where the donor reserved a life estate for the chattel and donee
       never has had physical possession of it.
       RULES:
       * To make a valid inter vivos gift there must exist:
       1. The intent on the part of the donor to make a
       present transfer
       2. Delivery of the gift, either actual or constructive
       to the donee
       3. Acceptance by the donee
       ANALYSIS:
       o Donative Intent3rd letter is not donative
       intent (b/c Sr. says “I wish to give you,” which is a promise to
       make a gift in the future.  2nd letter shows it (b/c Sr. says “I
       made a gift…”)…combination of letter 2 & letter 3, with
       reference to letter 1 are needed to prove donative intent
       o Delivery (In this case, symbolic delivery is
       allowed)…manual delivery is not practical given the nature of
       the property, and the father would give the painting to his son
       only to have the son give the painting back to the father b/c he
       wanted to keep it…constructive delivery has to afford access to
       the object of the gift, and in this case, the letter can’t be
       considered constructive.
       o Acceptance  Plaintiff has talked to his
       friends ad associates about the painting and even showed them
       the letters
       The evidence is conclusive that the plaintiff’s father
       intended to transfer ownership of the painting to the plaintiff
       in 1963, but retained a life estate in it.  The three letters
       sent to the plaintiff by his father establish this intent.  The
       donee received the title or right of ownership to the property
       immediately upon the making of the gift, but possession of it
       was postponed until some future time.  The delivery of the
       plaintiff’s father’s letters serve as instruments of gift.  It
       would have been irrational for the plaintiff’s father to
       manually deliver the painting to him and then have his son
       return the painting until his father died.  The plaintiff
       presented proof of his acceptance of a remainder interest in the
       Klint painting by evidence that he made several statements
       acknowledging the gift to his friends and associates, even
       showing them his father’s letters.  He also kept the letters for
       over 17 years until his father’s death to verify the gift.  The
       defendant relied only on affidavits filed by the plaintiff in a
       matrimonial action where the plaintiff failed to list her
       husband’s interest in the painting as an asset.  These
       affidavits were made over 10 years after acceptance was
       complete.  The interpretation of the affidavit was too
       speculative to support a finding of rejection and overcome the
       substantial showing of acceptance by the plaintiff.  There was
       NO testamentary transfer b/c the father would have had to say
       that he was planning on giving the son his painting in his will.
       -  Testamentary = related to a will
       
       -  Life Estate = means present possession plus title
       behind that possession… an
       estate whose duration is limited to the life of the
       person holding it
         A life estate, is a term used in common law to
       describe the ownership of land for the duration of a person's
       life. In legal terms it is an estate in real property that ends
       at death.
       CONSLUSION:  The judgment appealed from and the order of
       the Appellate Division should be affirmed, with costs.
       THIS CASE IS ABOUT A PRESENT TRANSFER OF A FURTURE
       INTEREST
       Title Transfer By Gift:
       Two Special Issues:
       1. Donor By agentNo gift if it is still in the
       hands of the agent of the donor….as soon as the object is in the
       hands of the agent of the donee, the gift has been made
       # GCMWhile the gift is in the
       hands of the donor’s agent, the donor dies…if the gift has not
       been transferred to the donee or the donee’s agent before he
       dies, the gift fails
       (2)  Conditional Gift
       # The Oral Condition
       1. Majority PositionValid
       Gift (manual delivery with oral condition), Invalid Condition,
       No Intent (favors and promotes effective gifts)
       2. Minority 1 No Valid gift,
       No Valid Condition
       3. Minority 2 Valid gift,
       Valid condition
       # Death as a Condition
       1. Donor: “I want the donee to have
       the object when I die”
       2. Old BeliefBasically a will
       3. New Belief This is a
       condition and in certain circumstances we accept conditions, so
       death should be considered a condition
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