Black v. Duffie

2016 Ark. App. 584, 508 S.W.3d 40, 2016 Ark. App. LEXIS 624
CourtCourt of Appeals of Arkansas
DecidedDecember 7, 2016
DocketCV-16-206
StatusPublished
Cited by4 cases

This text of 2016 Ark. App. 584 (Black v. Duffie) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Black v. Duffie, 2016 Ark. App. 584, 508 S.W.3d 40, 2016 Ark. App. LEXIS 624 (Ark. Ct. App. 2016).

Opinion

ROBERT J. GLADWIN, Chief Judge

| Joanne B. and Charles Black, their children, Clay and Travis Black, and Yan-cey Reynolds appeal the Hempstead County Circuit Court’s November 18 and 30, 2015 orders that found null and void a deed transferring an interest in 180 acres and the transfer of a share in the Hemp-stead County Hunting Club (Grassy Lake) and ordered judgment against appellants Joanne and Charles in the amount of $52,605.56. Appellants also appeal the circuit court’s January 6, 2016 order awarding attorney’s fees in the amount of $31,069.36 to appellee Jack Duffie, Jr., as guardian of the estate of Ellen Annabelle Duffie (Annabelle). Appellants argue four points on appeal: (1) the circuit court erred in declaring null and void the transfer of the Grassy Lake share; (2) the claims regarding the Grassy Lake share were barred by the statute of limitations; (3) the circuit court erred in declaring null and void the | ¡.deed for 180 acres to Joanne and Charles Black; and (4) the circuit court erred in awarding attorney’s fees to appellee. 1 We affirm.

I. Fads

Annabelle, born May 16, 1938, and her adult brother, Jerome Duffie, resided together during Annabelle’s entire adult life until Jerome’s death. Annabelle never married. Jerome took care of Annabelle’s finances until he died on April 4, 2006, leaving Annabelle his property, which included a three-quarter interest in 180 acres located near Hope, Arkansas, and a share of stock, along with a cabin, in Grassy Lake. Appellee, Annabelle’s nephew, was appointed guardian of the person and estate of Annabelle on June 17, 2013.

Appellee filed a complaint alleging that on June 21, 2006, less than three months after Jerome’s death, Annabelle transferred her share in Grassy Lake to appellants without consideration and that appellants had intentionally misrepresented to her that she would retain ownership in Grassy Lake and would be giving them only hunting and fishing privileges. It alleged that Annabelle had not been told that, by giving up her share of stock, she would forfeit her right to continue using the hunting club and living in the cabin. It was alleged that, after the stock had been transferred, appellants moved Annabelle from Grassy Lake to a “run down, substandard housing unit.”

The complaint described that Annabelle executed a warranty deed with vendor’s lien on August 20, 2009, granting her interest in the 180-acre tract to appellants Joanne and | ¡¡Charles. It was alleged that Joanne and Charles intentionally misrepresented the value of the tract, that the tract was transferred for a payoff to Annabelle of $150,000, and that the land was worth $400,000 or more. Also, Annabelle financed the sale of the property, only receiving monthly payments of $1000, while the Blacks maintained possession and use of the land, having sold the timber in June 2012.

Appellee alleged in the complaint that any statutes of limitation were tolled because Annabelle had been mentally incompetent, citing Arkansas Code Annotated section 16-56-116 (Repl. 2005). He alleged that the transfers of the 180-acre tract and the share in Grassy Lake should be declared void for failure of a contract because Annabelle, having been incompetent her entire life, had been incapable of entering into a valid and binding contract, no consideration had been paid for the hunting club stock, and there had been no mutual agreement due to undue influence, duress, and fraud. Appellee also alleged the conversion of timber cut from the 180-acre tract and sought rescission of the contracts, an accounting, damages, punitive damages, and attorney’s fees. Appellants answered, generally denying the complaint, and pled all applicable statutory limitations, waiver, estoppel, laches, and unclean hands. 2

At the bench trial held November 9 and 10, 2015, Betty J. Feir, a licensed psychologist, testified that she had conducted a psychological evaluation of Annabelle and had made a report in January 2013. She said that Annabelle was “functioning retarded” at |4that time and that her IQ score was 59, which Feir considered to be mild mental retardation. She said that a person of Annabelle’s intelligence would be incapable of determining the value of her assets or making financial decisions without assistance. Feir explained that an IQ of 100 is average and that 70 is considered borderline retarded. Feir said that Annabelle’s mental retardation did not begin in January 2013, but had occurred over a period of years, and that a person functioning with a 59 IQ would not be able to make decisions that were logical and relevant. Feir’s impression was that Annabelle was not able to say “no” when it was needed for her well-being because she appeared to want to please people. It was Feir’s opinion that Annabelle would be vulnerable in a business transaction. Feir said that Annabelle did not have the necessary intellectual or cognitive functioning at “this point in her life,” or even earlier, because the decline had been gradual, and Annabelle had the beginning of dementia.

James Burton Clem testified that he is a real-estate broker and is licensed in Texas and Arkansas. He gave his opinion that the total value of the 180-acre tract was $425,000, and in addition, the timber on the land was worth $177,000. In making his analysis, Clem testified that he had reviewed an expert report prepared by Jeff Neill, who had valued the land at $300,000, which included the timber value. He believed that Neill had not included what Clem considered to be the commercial value of the “front 40 acres.”

Appellee testified that he thought Annabelle was too trusting of people. He said that Annabelle had never married and had never worked. He said that Jerome had bought her a building that had school supplies in it, known as the School Box, and she had spent time there. Neither Jerome nor Annabelle had depended on income from it for their livelihood. |fiHe said that Annabelle was living at the Grassy Lake cabin at the time of Jerome’s death, but within a month or two, Annabelle moved. In 2009, Annabelle deeded the 180-acre tract to Joanne and Charles and signed a warranty deed with vendor’s lien retained transferring her ownership to them. At the time of the transfer, Annabelle owned a three-quarter interest in the property, and her sister Patricia Holloman owned one-fourth. He testified that it was his understanding that Reynolds had helped to negotiate a price of $150,000 for Annabelle’s interest, with $1000 monthly payments to Annabelle. He said that Annabelle was supposed to receive 5 percent interest under the transaction, but she had not been receiving anything but a flat $1000 pay-raent with no interest. He also said that the Blacks had not given Annabelle a down payment. He testified that some timber had been cut off the property and sold for $58,886.73 and $11,254.01. He asked that the contract for the sale of the 180 acres be nullified, for all amounts paid to Annabelle be declared rents for use and possession of the property, and for a judgment doubling the amount for which the timber had sold. He also asked that the share in Grassy Lake be returned to Annabelle because she had not been paid any money for it. He asked that any improvements made to the cabin by Reynolds be retained by Annabelle in exchange for the Blacks’ use and possession of it.

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Bluebook (online)
2016 Ark. App. 584, 508 S.W.3d 40, 2016 Ark. App. LEXIS 624, Counsel Stack Legal Research, https://law.counselstack.com/opinion/black-v-duffie-arkctapp-2016.