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excluded from sharing in the estate of their grandmother, Bertha
Segerstrom (Bertha). C.J. Segerstrom (C.J.), the husband of
Bertha, was a farmer. He and his wife, Bertha, had eleven
children, one of whom was the mother of the plaintiffs. Some
years before his death in 1928, C.J. had formed a partnership
with four of his sons. The sons continued the partnership after
C.J.'s death. By 1944, the partnership was farming about 2,000
acres, all of which were located in Orange County, California.
The partnership filed tax returns after C.J.'s death in which
Bertha was listed as owning a one-fifth partnership interest.
However, Bertha's status as a partner was not recognized by her
sons, except possibly for tax purposes. Bertha died intestate in
1944, survived by eight of her children and by the plaintiffs,
children of a deceased daughter.
Although the grandmother had died in 1944, the plaintiffs
did not discover their possible lost inheritance and file suit
until 1964. The 2,000 acres owned by the partnership had
dramatically appreciated and were worth about $60 million by
1964. Litigation developed to quiet title to the partnership
property. The plaintiffs filed a cross-complaint and sued for a
share of the land represented by Bertha's one-fifth partnership
interest, $5 million of lost income since 1944, and $10 million
of punitive damages.
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