Bill Gibson v. Jimmy L. Gibson

CourtCourt of Appeals of Tennessee
DecidedNovember 2, 2004
DocketW2004-00005-COA-R3-CV
StatusPublished

This text of Bill Gibson v. Jimmy L. Gibson (Bill Gibson v. Jimmy L. Gibson) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bill Gibson v. Jimmy L. Gibson, (Tenn. Ct. App. 2004).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT JACKSON September 20, 2004 Session

BILL GIBSON, ET AL. v. JIMMY L. GIBSON

A Direct Appeal from the Chancery Court for Tipton County No. 19,034 The Honorable Dewey C. Whitenton, Judge

No. W2004-00005-COA-R3-CV - Filed November 2, 2004

Appellants sought the rescission of a quitclaim deed from a mother to her son upon the grounds of undue influence, fraud, and lack of independent advice. The trial court found that the quitclaim was not invalid on any of these grounds. We affirm.

Tenn. R. App. P. 3; Appeal as of Right; Judgment of the Chancery Court Affirmed

W. FRANK CRAWFORD , P.J., W.S., delivered the opinion of the court, in which ALAN E. HIGHERS, J. and DAVID R. FARMER , J., joined.

T. D. Forrester, Covington, For Appellants, Bill Gibson, Clyde Gibson, Vivian Gibson Summar, Pam Gibson Clark, and Robert J. Gibson, Jr.

J. Thomas Caldwell, Ripley, For Appellee, Jimmy L. Gibson

OPINION

Clyde Gibson, Sr. and his wife, Blanche F. Gibson were the owners of approximately 150 acres of farmland upon which they resided (the “Land”). Clyde and Blanche Gibson had four sons: Clyde Gibson, Robert Gibson, Bill Gibson and Jimmy Gibson. Clyde Gibson, Sr., with the help of his sons, farmed the land until shortly before his death in 1963. At that time, and with the assistance of Jimmy Gibson (“Defendant,” or “Appellee”), Clyde Gibson, Sr. leased the Land for farming.

Robert Gibson, Clyde Gibson, and Jimmy Gibson all received lots out of the farm and built houses on their lots and lived in close proximity to their mother after the death of their father. Bill Gibson has lived in Memphis since 1971. In July 1993, Robert Gibson predeceased his mother. Robert Gibson had three children: Vivian Gibson Summar, Pam Gibson Clark, and Robert Gibson, Jr. (together with Bill Gibson, and Clyde Gibson, “Plaintiffs,” or “Appellants”). At the time of Clyde Gibson. Sr.’s death, Blanche Gibson’s only source of income was the farm rental proceeds. After his father’s death, Jimmy Gibson handled all aspects of the farm leasing arrangements from the mid-60s until the mid-80s. During this period, Jimmy Gibson negotiated and made arrangements for the leasing of the Land, monitored the leases, and terminated leases when he deemed it necessary. During the period when the Land was being rented to outside tenants, the only mortgage indebtedness on the Land was a Deed of Trust, dated January 1972, from Blanche Gibson to Union Savings Bank, securing an indebtedness in the amount of $5,388.00.

In approximately1985, Jimmy Gibson began farming the Land himself. Jimmy Gibson made annual rental payment of one-third or one-fourth of the net crop to his mother. Jimmy Gibson farmed the Land from approximately 1985 through the crop year of 1993. At the time Jimmy Gibson began farming the Land, Blanche Gibson was approximately 73 years old. After the 1993 crop, Jimmy Gibson leased the Land to the Kelly family.

On April 23, 1984, Blanche Gibson incurred mortgage indebtedness of $10,761.00 to Union Savings Bank. On December 8, 1986, Blanche Gibson incurred mortgage indebtedness to Union Savings Bank in the amount of $20,000.00. Bill Rice, a former loan officer and employee of Union Savings Bank, testified that the December 8, 1986 mortgage indebtedness was a renewal of the April 23, 1984 indebtedness, with additional funds being advanced. Bill Rice stated that the December 30, 1988 $10,000.00 mortgage indebtedness would have been new funds because this was a second mortgage on the Land.

On February 2, 1993, when she was 81 years old, Blanche Gibson was injured in a car accident. From that point on, her health began to gradually deteriorate until she was placed in a nursing facility in 1999. She remained there until her death on June 28, 2000.

During early 1994, Jimmy Gibson contacted Union Savings Bank and requested a loan to purchase the Land. Jimmy Gibson did not notify Blanche Gibson’s other heirs of his desire to purchase the Land. Donna Gibson, the widow of Robert Gibson, Sr., received information that Jimmy Gibson was attempting to obtain the Land and she notified Bill Gibson. Bill Gibson met with his mother in an attempt to find out the status of the matter. As a result of this conversation with his mother, Bill Gibson arranged a meeting in the Spring of 1994 with Union Savings Bank President, Barnett Hall, Clyde Gibson, Jimmy Gibson, and Blanche Gibson. Bill Gibson and Barnett Hall testified that, at this meeting, Blanche Gibson appeared to understand the situation and her options concerning the Land. At that time, it was decided that Blanche Gibson would retain the Land and that the yearly rental check from the Kelly family would be sent directly to the bank, with a portion thereof going to service Blanche Gibson’s indebtedness to the bank and the remainder being deposited into Blanche Gibson’s personal account.

In October of 1994, Jimmy Gibson contacted the law office of Michael Acree, in Covington, Tennessee, to prepare a Quitclaim Deed (the “1994 Quitclaim”) from Blanche Gibson to Jimmy Gibson, with Blanche Gibson reserving a life estate. Stacy Northcott, Mr. Acree’s assistant/paralegal, testified that she usually met with Mr. Acree’s clients on routine matters and

-2- would prepare and handle the preparation of simple deeds, such as the 1994 Quitclaim. On October 17, 1994, Jimmy Gibson and his son, “Little Jimmy” Gibson, brought Blanche Gibson to Mr. Acree’s office. Blanche Gibson executed the 1994 Quitclaim in the presence of Stacy Northcott, Jimmy Gibson, and “Little Jimmy” Gibson. Stacy Northcott testified that she informed Blanche Gibson what the document purported to do and that Blanche Gibson understood what she was signing. The 1994 Quitclaim was recorded in the Register’s Office of Tipton County on October 18, 1994.

Blanche Gibson continued to make loans on the Land through 1998. In late 1998, Blanche Gibson’s health had deteriorated to the point that she was placed in a nursing home.

On July 30, 1999, Blanche Gibson signed a second Quitclaim Deed (the “1999 Quitclaim”), by which she released her life estate in the Land. The 1999 Quitclaim was recorded on August 2, 1999.1

Blanche Gibson died in 2000. Billy Gibson testified that he knew nothing of the quitclaim deeds until he and Jimmy Gibson went to the bank to make arrangements for their mother’s funeral. He testified that he was shocked to learn that the Land had been deeded to Jimmy Gibson several years earlier.

On November 13, 2000, the Appellants filed a Complaint against Jimmy Gibson. The Complaint specifically averred that the 1994 Quitclaim was executed without the benefit of independent advice as a result of the fraud and undue influence of Jimmy Gibson, and was executed without consideration and at a time when Blanche Gibson was advanced in age and suffered from physical and mental weaknesses. The Appellants further alleged that the 1994 Quitclaim was contrary to Blanche Gibson’s expressed intentions and resulted in an unnatural disposition, which occurred while there was a confidential relationship between Jimmy Gibson and his mother. Appellants were allowed to amend their Complaint on April 10, 2003 to specifically aver that the 1994 Quitclaim was the result of the fraud of Jimmy Gibson as to the value of the Land and the misrepresentation that the Land was in jeopardy of being foreclosed by Union Savings Bank. On November 28, 2000, Jimmy Gibson answered the Complaint, asserting that his mother was competent to convey her interest in the Land, that he was not guilty of fraud or misrepresentation, that there was no confidential relationship between he and his mother, and that the transfers were not the product of undue influence.

A non-jury trial was held on August 18 and 19, 2003.

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Bill Gibson v. Jimmy L. Gibson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bill-gibson-v-jimmy-l-gibson-tennctapp-2004.