Bill Froelich Motor Co. v. Estate of Kohler

pro tern.* — Sometime prior to 1938 Fred Kohler and his wife Marjorie acquired a house, garage and boathouse situated on Lot 54, June Lake Camp, or June Lake Tract, of the Mono National Forest, adjacent to June Lake in the County of Mono, State of California, and a “Special Use Permit” executed by the Forest Supervisor of the Mono National Forest in favor of Marjorie Kohler. The “Special Use Permit” is in effect a lease of the land upon which the house and improvements are located.

Fred Kohler died in 1938 and thereafter Marjorie Kohler apparently had financial difficulties in maintaining the property. She executed a deed of trust covering the property to William C. Froelich on April 18, 1950, to secure a loan of $2,500. These funds were used to pay off a promissory note executed by Marjorie Kohler in favor of a Dr. Zahry and secured by a chattel mortgage on the above mentioned personal property.

William C. Froelich was a friend of the Kohlers and for sometime prior to 1956 until his death he used the house and the premises at June Lake to entertain friends and business associates. He had an agreement with Marjorie Kohler whereby he paid the upkeep on the house and the rent on…