Allen v. Mayo

279 N.W.2d 617, 203 Neb. 602, 1979 Neb. LEXIS 907
CourtNebraska Supreme Court
DecidedJune 5, 1979
Docket42008
StatusPublished
Cited by5 cases

This text of 279 N.W.2d 617 (Allen v. Mayo) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allen v. Mayo, 279 N.W.2d 617, 203 Neb. 602, 1979 Neb. LEXIS 907 (Neb. 1979).

Opinion

Clinton, J.

This is an action in equity by the heirs at law of Florence E. Mayo (two sisters and a brother) to impress a trust upon an undivided one-half interest in certain real and personal property, legal title to the whole of which stands in the name of the defendant, Crystal W. Mayo, second wife and surviving widow of Ralph D. Mayo. Crystal acquired the property in question through various conveyances and transfers from Ralph during their marriage.

The basis of the claim of trust is a written contract made on April 3, 1965, between Ralph and Florence, his then wife since deceased, which provided, among other things, that the survivor would devise and bequeath one-half of their property to the heirs at law of the other. The petition alleged that unless the transfers to Crystal by Ralph after their marriage were for valuable consideration, the transfers were ineffective to defeat the rights of the plaintiffs as beneficiaries of the contract. The petition also prayed for an accounting between the parties. The answer of the defendant was a general denial.

Florence and Ralph were married for more than 30 years and were childless. Florence died September 5, 1966. About 2 years after Florence’s death, Ralph married Crystal. Ralph died October 11, 1975. At various times during the marriage, property owned by Ralph at the time of his marriage to Crystal was transferred to joint tenancy with her.

After trial the court entered a judgment in which it found the contract between Florence and Ralph, of which plaintiffs were the beneficiaries, was valid and enforceable; the transfers to Crystal by Ralph were not supported by any valuable consideration; Crystal had no knowledge of the agreement between Florence and Ralph; and Crystal took her interest in *604 the property subject to the rights of the plaintiff. The court ordered the plaintiffs to take a one-half interest in certain property: (1) Shares of stock of the Omaha National Corporation, plus one-half of the income therefrom received after Ralph’s death; (2) a residential property subject to Crystal’s life estate therein; (3) the proceeds from a certain land contract; and (4) a certain rental residential property, subject to the balance of an existing mortgage. The court granted a lien to Crystal in the approximate amount of $6,100, representing the amount which Crystal had contributed from her own funds to the improvement of the residential property after the marriage and also credited Crystal with certain specified payments which she had made upon the mortgage after Ralph’s death. It rendered judgment against Crystal for the sum of $3,661.81, which represented one-half of the net income from the property since Ralph’s death, less a 20 percent management fee.

Crystal makes and argues the following assignments of error: (1) The trial court erred in not finding that the transfers from Ralph to Crystal were supported by valuable consideration and therefore Crystal stood in the position of an innocent purchaser and took the property free of the claims of the plaintiffs under the contract. (2) The contract should not in any event be enforced because it is inequitable and oppressive for the reason that, except for Crystal’s contribution to the support of Ralph, the property would not have been preserved. (3) Enforcement of the contract would be inequitable because Crystal sacrificed some pension rights by reason of early retirement in order to care for Ralph during his illness.

Ralph and Florence Mayo were married in 1932. No children were bom to that union and, although each had been married previously, there were no surviving children of those marriages. In 1965 the *605 couple consulted an Omaha lawyer concerning a plan which they had agreed upon for disposition of their properties upon the death of each. They disclosed their plan to the lawyer and asked his advice as to whether it could be made binding on both. They were assured it could, and on April 3, 1965, they entered into a written contract.

At that time Ralph and Florence had a substantial amount of real and personal property, all of which was held in their joint names except their residence which was held in the name of Florence alone. The plan provided that upon the death of Florence, whether or not she survived Ralph, certain legacies and charitable bequests and debts to relatives of Florence would be paid. It also provided that, upon the death of the survivor, $5,000 would be paid to a sister-in-law of Ralph, if she then survived. The same day the contract was made, each executed wills to implement the plan. The plan also provided that the residence owned by Florence would be conveyed to the parties as joint tenants. This conveyance was made, executed, and delivered the same day. There is no dispute about any of the above facts and it is clear the contracts, wills, and deeds were entered into voluntarily and understanding^ by the parties.

On the death of Florence in 1966, Ralph satisfied the bequests as required by the plan. The debt which the plan required to be paid was one owed to Florence’s father. The latter, however, did not wish to be paid but wanted to continue to collect interest and so the old obligation was discharged by a new note.

On Decoration Day, 1968, Crystal and Ralph met when Crystal, at the request of one of Ralph’s fellow members in the Eastern Star, made a social visit to Ralph who was then a patient in an Omaha hospital. As a result of this visit, Ralph later called Crystal and invited her to go out to dinner and she accepted. Thereafter Ralph took Crystal to dinner and to vari *606 ous social functions. In November of 1968, he proposed marriage in the following fashion, quoting Crystal’s testimony: “He came over in November, early in November, and when he came in he said, ‘Would you get a piece of paper and a pencil.’ And we sat down at the kitchen table and he said, ‘Now, I am going to give you my assets and their worth, and I wish you would write them down.’ So I did. I got the pencil and paper and he recited them one by one. ‘And now,’ he said, ‘add them up.’ So I added them up. And he sat back in his chair and he said, T am asking you to marry me. This is what I have to offer. If it is not enough, I will understand.’ And I said, ‘Jack, I think that would be very fine, and I appreciate your offer.’ Then he said do you have any feeling about moving into the home where he and Florence had their home. And I said, ‘No, I have nothing against it. I didn’t know her and I have no feelings against it.’ ” Crystal, in her testimony, then described the property which she had written down on a piece of paper on that occasion, which property included that which is the subject of this action, as well as other property no longer in existence or as to which the plaintiffs have chosen to exert no claim. Ralph and Crystal were married on December 20, 1968.

On March 19, 1969, Ralph conveyed the residence to himself and Crystal as joint tenants with right of survivorship. In the spring of 1970, Ralph consulted the attorney who had drafted the contract between him and Florence and the other instruments which implemented that contract.

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Cite This Page — Counsel Stack

Bluebook (online)
279 N.W.2d 617, 203 Neb. 602, 1979 Neb. LEXIS 907, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-v-mayo-neb-1979.