Barth v. Gregory

398 N.E.2d 849, 79 Ill. App. 3d 510, 34 Ill. Dec. 858, 1979 Ill. App. LEXIS 3736
CourtAppellate Court of Illinois
DecidedNovember 9, 1979
Docket78-50
StatusPublished
Cited by3 cases

This text of 398 N.E.2d 849 (Barth v. Gregory) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barth v. Gregory, 398 N.E.2d 849, 79 Ill. App. 3d 510, 34 Ill. Dec. 858, 1979 Ill. App. LEXIS 3736 (Ill. Ct. App. 1979).

Opinion

Mr. JUSTICE BARRY

delivered the opinion of the court:

The plaintiff, Charles S. Werr, conservator of the estate of Bernard Barth, an incompetent, succeeded to an action originally brought by Barth in the Circuit Court of Will County to rescind a land sale agreement and to reconvey real estate deeded to a land trust on the ground that at the time of these transactions Barth was incompetent and unable to comprehend the nature and effect of his actions. The plaintiff also sought compensatory and punitive damages from the defendants on the grounds that they had entered into a conspiracy to defraud Barth of his property. In a bench trial, the court found for the defendants on all counts and entered a judgment for *11,065 on defendant Naperville National Bank & Trust Company’s counterclaim for attorney’s fees. It is from these judgments that plaintiff appeals.

On December 29, 1975, Barth, a 72-year-old widower, represented by attorney Albin Dommermuth, executed a deed conveying his 7752-acre farm to a land trust which was created by an instrument executed contemporaneously. The Naperville National Bank & Trust Company was the trustee under this trust, designated as Trust No. 7-433. This transaction was orchestrated by the real estate brokerage firm of E. C. Gregory & Go. of Naperville, Illinois. Under the terms of this trust the power of direction was in the settlor, Barth, and upon his death the interest was to pass to designated beneficiaries of another trust, the “Bernard Barth Trust,” which, contrary to the provision of the trust agreement, was not yet in existence. Present when these documents were executed in the office of Gordon Gregory of E. C. Gregory & Co. were Gordon Gregory, Everett Gregory, Dommermuth and Barth.

On January 9, 1976, Barth executed a letter of direction, drafted by Dommermuth, to the land trustee directing the trustee to sell the res of the trust (Barth’s 7712-acre farm) to the buyers that E. C. Gregory & Co. had procured, i.e., the Macom Corporation and the Oliver-Hoffman Corporation (who were beneficiaries of another land trust, Trust No. 7-437, in which the Naperville National Bank was also designated as trustee). The land-sale contract was executed on January 13, 1976. Under this agreement, Barth was to receive a total of *400,000 for his farm, with a *50,000 down payment, and the remainder payable in monthly installments of *2,819.60 over 20 years. The terms of the contract provided that Barth was to receive *10,000 upon the execution of the contract, and another *40,000 within 10 days after a tender of commitment for title insurance. Pursuant to a listing agreement between Barth and E. C. Gregory dated December 22, 1975, a *24,000 broker’s commission was to be paid out of this *50,000 down payment.

On February 27, 1976, Barth executed a will and simultaneously an intervivos pour-over trust, the “Bernard Barth Trust” to which we have heretofore referred. Under the trust provisions, said Gordon Gregory and a Gus Pakosta were the beneficiaries of the land trust upon Barth’s death. The wives of Gregory and Pakosta were made secondary beneficiaries.

The first issue that we will deal with concerns the plaintiff’s allegation that on December 29, 1975 (the day Barth executed the deed and Land Trust No. 7-433 agreement), and January 9,1976 (the day Barth executed the letter of direction to the land trustee), Barth did not have the requisite mental capacity to execute the pertinent documents. If our review of the evidence presented before the trial court reveals it to be insufficient to justify the court’s decision, and as a consequence we find that Barth indeed was mentally incompetent and therefore unable to comprehend the nature and effect of his actions at the times the documents were executed, we must rescind the land sale contract of January 13,1976, and order the reconveyance of Barth’s property by the land trust. A detailed recitation of much, though not all, of the testimony is necessary to our consideration of Barth’s requisite mental capacity and whether the trial court’s finding in this regard was against the manifest weight of the evidence.

Two medical doctors testified on behalf of the plaintiff, and a third doctor’s medical findings were stipulated into the evidence. The first doctor to testify was Donald Carducci, who had been Barth’s regular physician since 1963. On December 1, 1975, Barth was brought to Dr. Carducci’s office by one of the co-defendants in this case, Gus Pakosta, a Naperville barber and recent acquaintance of Barth. During the course of his relationship with Barth, Pakosta had observed the rapid deterioration of Barth’s mental and physical condition (which will be discussed subsequently), and saw in this deterioration an opportunity to be made the primary beneficiary of Barth’s will. On November 24, 1975, Pakosta took Barth to the office of Ralph Gust, a Naperville attorney, for the purpose of having Barth’s will drawn by which he would leave the entirety of his estate (including his farm) to Pakosta and his wife. Gust, however, came to the conclusion after initially drawing the will that Barth lacked testamentary capacity, and he told Pakosta that unless he (Pakosta) obtained a statement from a doctor that Barth had the requisite mental capacity to execute a will, he would not allow the proposed testator to sign. Pakosta then brought Barth to Carducci’s office in the hope that he would receive a favorable report from him regarding Barth’s mental makeup.

In his examination of Barth, Carducci found that he suffered from diabetes mellitus, generalized arteriosclerosis, and cerebral arteriosclerosis which was causing a mental senility manifested by a lack of orientation as to time and place. When Carducci examined Barth, Barth did not know the month, date, or year. He was unable to tell Carducci the name of the president of the United States, and in fact stated that there had been no president since the assassination of John F. Kennedy. On the basis of this examination, Carducci concluded that Barth was, at least at times, incapable of managing his own affairs, and incorporated his findings in a letter dated December 1.

On cross-examination, Carducci admitted that Barth could have lucid intervals during which time he could be quite rational. However, Dr. Carducci further stated that the probability of lucid intervals was greater in familiar surroundings than in unfamiliar surroundings, where an individual in Barth’s condition might get “all confused.” He stated that in his opinion, a lawyer’s office, the office of a bank trust officer, or the office of a real estate broker that Barth had not been in prior to December 1, 1975, could not be considered to be familiar surroundings, although Barth could have gained familiarity with them in lucid moments. Dr. Carducci further testified that in his opinion the lucid intervals could last for “periods of time,” but he had his doubts that such periods could last for days. In response to the question of whether Barth could be lucid and “clear as a bell” from eight o’clock in the morning until noon on any one day and be able to transact business during that period, Carducci replied that he could but also said “I don’t know about if he could have a lucid moment lasting that long ” 9 In his opinion, Barth’s overall mental condition would not improve.

The second doctor to testify at trial on behalf of the plaintiff was Dr. Richard Gallagher, a psychiatrist.

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Cite This Page — Counsel Stack

Bluebook (online)
398 N.E.2d 849, 79 Ill. App. 3d 510, 34 Ill. Dec. 858, 1979 Ill. App. LEXIS 3736, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barth-v-gregory-illappct-1979.