Conservatorship of Janice Geerdes by Laura Jenkins, Conservator v. Albert Gomez Cruz

CourtCourt of Appeals of Iowa
DecidedDecember 6, 2023
Docket22-1905
StatusPublished

This text of Conservatorship of Janice Geerdes by Laura Jenkins, Conservator v. Albert Gomez Cruz (Conservatorship of Janice Geerdes by Laura Jenkins, Conservator v. Albert Gomez Cruz) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Conservatorship of Janice Geerdes by Laura Jenkins, Conservator v. Albert Gomez Cruz, (iowactapp 2023).

Opinion

IN THE COURT OF APPEALS OF IOWA

No. 22-1905 Filed December 6, 2023

CONSERVATORSHIP OF JANICE GEERDES by LAURA JENKINS, Conservator, Plaintiff-Appellee,

vs.

ALBERT GOMEZ CRUZ, Defendant-Appellant. ________________________________________________________________

Appeal from the Iowa District Court for Kossuth County, Don E. Courtney,

Judge.

Albert Cruz appeals the invalidation of a quitclaim deed because of undue

influence and lack of mental capacity to execute the deed. AFFIRMED.

Shaun Thompson of Newman Thompson & Gray PC, Forest City, for

appellant.

Kevin R. Sander of Fitzgibbons Law Firm, L.L.C., Estherville, for appellee.

Heard by Bower, C.J., and Buller and Langholz, JJ. 2

LANGHOLZ, Judge.

Janice Geerdes, a seventy-nine-year-old widow, deeded her long-time

friend and business partner, Albert Cruz, her half-interest in property where they

operated their joint hog operation and Cruz also lived. Six months later, one of

Geerdes’s daughters became her conservator and eventually sued Cruz to

invalidate the quitclaim deed conveying the property. After a bench trial, the district

court invalidated the deed—finding that Geerdes lacked the mental capacity to

execute the deed and was subject to undue influence by Cruz. Cruz appeals,

arguing that both findings were in error.

While this is a close case, when giving the district court’s fact findings the

weight they are entitled, we agree on our de novo review that the conservator has

proven by clear, satisfactory, and convincing evidence that Geerdes lacked the

mental capacity to execute the deed. Therefore, we affirm on that basis and

decline to reach the district court’s alternative basis for invalidating the deed.

I.

Geerdes and her husband lived in Swea City, where they eventually owned

nearly 300 acres of farmland. Cruz met Geerdes and her husband in the early

1990s when he moved to the area and rented a home from the couple. He was

about twenty years younger than Geerdes. And he quickly became friends with

them. After her husband’s death in 1999, Cruz continued his friendship with

Geerdes, seeing her most days and helping her with tasks such as cleaning and

driving her to the store or the doctor.

Geerdes used her farmland to generate income by renting it or by enrolling

it in conservation programs. But she also began some business ventures with 3

Cruz. They drove a semi-trailer truck together for a while beginning in about 2004.

Around the same time, they also started a hog operation on a small portion of

Geerdes’s property.

They constructed and operated the facility to raise hogs on a 9.64-acre

parcel of farmland through a partnership called Blue Acres Pork. Cruz provided

the labor—he is largely unable to read or write—and Geerdes ran the business

side. Cruz cleaned the land to prepare it for construction and cared for the hogs

for the first six months of the operation, after which the partnership used a third-

party to care for the hogs.

As a part of this arrangement, in September 2004, Geerdes executed a

warranty deed conveying a half-interest in the 9.64-acre parcel, which they then

owned as tenants in common. The deed notes the conveyance was an absolute

gift with no consideration. This first deed is not challenged here.

Geerdes received the entire income from their hog-operation partnership.

But she then bought Cruz items such as groceries and gasoline or gave Cruz

checks to pay him his share of the partnership income. Tax returns show Blue

Acres Pork earned $73,406 in 2018 and $88,310 in 2019.

Geerdes involved Cruz in other significant decisions as well. Around 2016,

Geerdes sold eighty acres of her farmland to a third party. Cruz advised Geerdes

and accompanied her to meet with the lawyer for the sale. Geerdes ended up

accepting a reduced per-acre price for the land to receive the full sales price

immediately. The sale incurred a significant tax bill that Geerdes failed to timely

pay. 4

In April 2017, Geerdes saw an occupational therapist for a cognitive

assessment. The therapist performed the Saint Louis University Mental Status

Examination (SLUMS) and the Revised Allen Cognitive Performance Test (CPT).

On the SLUMS, she scored nineteen out of thirty points, and the therapist’s notes

indicate a score below twenty-one “denotes dementia for a person with a high

school education.” On the CPT, she scored thirty-three out of thirty-nine points,

which denotes “mild cognitive-function disability.” The notes explained that this

disability may cause—among other impairments—problems with “judgment,

reasoning, and planning ahead,” and may cause Geerdes to “be impulsive or have

problems anticipating consequences before acting.” The therapist concluded she

had “underlying dementia” and “needs frequent check-in support and assistance

with instrumental activities of daily living.”

Later that year, Geerdes was injured in a vehicle accident, requiring her to

stay in the hospital for about one month. And in January 2018, Geerdes returned

to occupational therapy for another assessment. She received similar scores on

the SLUMS and CPT, though the notes indicate “previous testing experience may

have favorably influenced testing scores.” The therapist notes also said that

Geerdes self-reported “recent mental status changes including decreased

memory.” And the therapist again concluded that Geerdes had dementia and

“should receive assistance with bill paying” and “managing finances.”

By this time, Geerdes’s family also observed that Geerdes “seemed

confused about a lot of things and pretty forgetful,” so one of her daughters, Laura

Jenkins, was indeed helping with her finances and bills. For example, Geerdes

struggled to understand that bills had to be paid monthly. And she would try to 5

write checks or withdraw money from the ATM when she lacked sufficient funds in

her account. Jenkins and another of Geerdes’s daughters both observed that

Geerdes’s mental functioning continued to worsen after the accident. So did the

farmer who rented land from Geerdes and often visited with her about financial

and business matters. He testified that after the accident, mentally, Geerdes “was

never the same again.”

About a year later, in January 2019, Geerdes set about transferring to Cruz

her remaining half-interest in the 9.64-acre property where they operated the hog

business. By this time, Cruz also lived on the property with his daughter. Geerdes

and Cruz met with Gayle Lemmon—an accountant who had worked with Cruz,

Geerdes, and their partnership—to discuss executing a quitclaim deed for Geerdes

to transfer her half-interest to Cruz. According to Lemmon, Geerdes did most of

the talking during their meeting, drew a description of the land, and appeared to

be the main decision-maker. She also testified Cruz “was kind of like a son to”

Geerdes and Geerdes wanted to be sure Cruz received his share of the property.

Lemmon referred the pair to an attorney—who had never worked for

Geerdes—to draft the quitclaim deed that same day. And they later returned to

Lemmon to sign the deed in her presence, as she notarized it. The quitclaim deed

notes Cruz paid Geerdes $1 in consideration for her property interest. In

Lemmon’s opinion, Geerdes appeared to have similar decision-making capabilities

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