Holman v. Stockton Savings & Loan Bk

In Holman v. Stockton Savings & Loan Bk. (1942) 49 Cal. App. 2d 500, the trial court found that a woman with senile dementia nonetheless entered valid business transactions which entirely depleted her substantial estate. The woman's heirs sought, unsuccessfully, to void the transactions due to her mental incapacity. The appellant court affirmed, noting that even the woman's children testified their mother understood business transactions "when thoroughly explained to her." ( Holman v. Stockton Sav. & Loan Bk., supra, 49 Cal. App. 2d at p. 507.) "Q. You mentioned bank stock at the time you handed her that attached assignment? A. Yes. Q. And explained to her that she was assigning her stock? A. That is correct, yes. But I had to tell her a good many times to explain it. Q. Yes. Did she appear to understand it after you explained it several times? A. Oh, about four or five times I had to tell her, then she finally understood it. Q. She finally understood it was for a loan? A. That is correct." (Ibid.) Accordingly, the appellate court found that substantial evidence supported the verdict, despite the woman's dementia.