## Facts

- Julius H. Schmidt, an unmarried retiree, developed a close relationship with Teresa A. Braun after meeting in 1922 and spending frequent time with her after both moved to Los Angeles.
- Schmidt’s valuable personal property—stocks, bonds, promissory notes, a diamond ring, and bank deposit books—was kept in a Los Angeles bank safe-deposit box.
- In January 1937, Schmidt became seriously ill and was confined to his room; Braun visited him regularly.
- On January 21, 1937, in the presence of Bernard (Raymond) Assmann, Schmidt took the key to the safe-deposit box from his purse, handed it to Braun, and stated in substance that everything in the box belonged to her and that she would not have to work anymore.
- Schmidt died on February 11, 1937, about three weeks after delivering the key.
- After Schmidt’s death, Braun attempted to obtain the box’s contents from the bank, but the bank refused; she turned the key over to Ben H. Brown, the public administrator and estate administrator, who also refused to recognize her claim.
- Braun sued to establish that Schmidt made a valid gift causa mortis of the box’s contents and to obtain delivery of the property; the trial court entered judgment for Braun and ordered delivery.
- Brown appealed from the judgment.

## Issues

1. Whether Schmidt’s transfer of the safe-deposit box key to Braun during his last illness, accompanied by donative declarations, constituted a valid gift causa mortis of the contents of the box.
2. Whether delivery of the key was sufficient constructive or symbolic delivery to transfer dominion and control over mixed property in the box, including intangible interests (e.g., securities and bank deposit books) despite missing endorsements or bank transfer formalities.
3. Whether the evidence met the clear-and-convincing standard required to prove a gift causa mortis.

## Decision

- The California Supreme Court affirmed the judgment for Braun.
- The court held that Schmidt’s statements and conduct during his last illness showed donative intent to make a present transfer conditioned on death.
- Delivery of the safe-deposit box key constituted sufficient constructive delivery of the box’s contents because it provided the means of obtaining possession and control.
- The lack of endorsements, assignments, or compliance with bank regulations did not defeat the gift where intent, acceptance, and delivery were established by clear and convincing evidence.
- The court found substantial evidence supporting the trial court’s findings, including corroboration by the witness present at the key transfer.

## Legal Principles

- A gift causa mortis requires: (1) contemplation of death from a present illness or peril, (2) intent to make a present transfer effective upon death (revocable if the donor recovers), (3) delivery that relinquishes dominion and control, and (4) acceptance.
- Because gifts causa mortis operate similarly to testamentary transfers, they are strictly scrutinized and must be proved by clear and convincing evidence.
- Delivery may be constructive or symbolic when manual delivery of all items is impracticable; delivery of the means of access (such as a key to a receptacle containing the property) can satisfy the delivery requirement.
- Constructive delivery may support a gift causa mortis of both tangible items and intangible property interests represented by instruments or documents (including securities and bank deposit books), even if technical transfer steps are not completed, when the donor’s intent and relinquishment of control are convincingly shown.
- On appeal, factual determinations regarding intent, delivery, and credibility are reviewed for substantial evidence.

## Conclusion

The court upheld Braun’s claim because Schmidt, while in his last illness, clearly expressed donative intent and delivered the safe-deposit box key as a constructive delivery of the box’s contents; the evidence, corroborated by a witness, satisfied the clear-and-convincing standard for a valid gift causa mortis despite incomplete formal transfer steps.


Braun v. Brown, 94 P.2d 348 (Cal. 1939)