Crooks v. Holcomb

789 S.W.2d 44, 1990 Mo. App. LEXIS 315
CourtMissouri Court of Appeals
DecidedFebruary 27, 1990
DocketNo. WD 41527
StatusPublished
Cited by3 cases

This text of 789 S.W.2d 44 (Crooks v. Holcomb) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crooks v. Holcomb, 789 S.W.2d 44, 1990 Mo. App. LEXIS 315 (Mo. Ct. App. 1990).

Opinion

WASSERSTROM, Senior Judge.

This case has accumulated a considerable history. It began in October, 1980, with the filing of the will of George Mapes, deceased, in Grundy County and the appointment as Executor, James T. Holcomb, the attorney who drew the will and who was named therein as Executor. In August, 1982, some of the heirs learned that certain certificates of deposit, bank accounts and shares of stock totaling approximately $125,000 had been left in the joint names of the deceased and James T. Holcomb and his brother John L. Holcomb, some of those items being in joint names of deceased with James, some in joint names of the deceased and John, and some in the name of the deceased together with both of the two Holcomb brothers.

On September 29, 1982, the plaintiff heirs filed a petition in the Circuit Court of Grundy County, Probate Division, seeking the removal of James T. Holcomb as Executor. On October 18, 1982, they further filed a three count petition in the Grundy County Circuit Court, the first count of which sought to bring into the estate the assets in joint names just mentioned. The Grundy County Circuit Court, Probate Division, heard and denied the petition for removal of James Holcomb as Executor. That ruling was appealed to this court which reversed and ordered removal in an opinion reported in 681 S.W.2d 476 (Mapes I).

With respect to the three count petition, the Grundy County Circuit Court transferred Count I for trial to Davies County, and the latter court in turn transferred that count for trial to Livingston County. The Grundy County court retained jurisdiction over Counts II and III which still remain pending in the Grundy County Circuit Court.

Count I proceeded to trial in the Livingston County Circuit Court before a jury, and at the close of the evidence the court directed a verdict in favor of both defendants. Plaintiffs appealed that judgment, and the Missouri Supreme Court reversed and remanded the case for a new trial in an opinion reported in 738 S.W.2d 853 (Mapes II).

Pursuant to that remand, the case was retried in Livingston County in October, 1988. At the close of all the evidence, the trial court dismissed the case against John Holcomb. The case was then submitted to the jury as against James Holcomb, and the jury returned a verdict for the defendant. Plaintiffs now appeal from those rulings (Mapes III).

Plaintiffs urge six points on this appeal, each of which will be discussed in order.

I.

The Dismissal of John Holcomb

Plaintiffs have built their ease upon the rule that, where a gift of property is made by a client to his attorney during the course of the attorney-client relationship, a rebuttable presumption of fraud and undue influence is established. The Supreme Court stated in Mapes II:

The record reveals some evidence of a continuing attorney-client relationship between George Mapes and James Holcomb during 1980, the year of Mapes’ death, but does not clearly disclose when the joint accounts were established.

The Supreme Court found it unnecessary to decide whether the plaintiffs presented sufficient evidence to establish a presumption of fraud and undue influence, which would take them to the jury, because the trial court erroneously denied plaintiffs leave to reopen their case for the presentation of additional evidence.

On retrial, plaintiffs continued to rely upon the presumption of fraud and undue influence. At the close of the evidence, on John Holcomb’s motion to dismiss, the [47]*47court pointed out that of the two defendant brothers, only James Holcomb was an attorney. He ruled that the presumption could not apply to the non-attorney defendant John Holcomb, and that there was no evidence of any specific acts of fraud or undue influence by John Holcomb.

In answer to that, counsel for plaintiffs directed the court’s attention to the following statement by the Supreme Court in Mapes II:

In this case, decedent Mapes established several joint accounts for the benefits of the brothers Holcomb. These transfers, if made during the course of an attorney-client relationship between Mapes and James Holcomb, were presumptively fraudulent.

With respect to that statement by the Supreme Court, the trial court opined that the inclusion of John Holcomb in the quoted statement “must have been inadvertent.”

The quoted portion of the Supreme Court opinion in Mapes II may indeed have been inadvertent; but if so, it is only the Supreme Court which can now so declare. The opinion in Mapes II has become the law of the case and is absolutely binding upon the trial court upon remand. Enyeart v. Shelter Mutual Ins. Co., 784 S.W.2d 205 (Mo.App.1989); Davis v. J.C. Nichols Company, 761 S.W.2d 735, 737 (Mo.App.1988); State ex rel. Curtis v. Broaddus, 238 Mo. 189, 142 S.W. 340, 342 (Mo.1911).

However, the error of the trial court in disregarding a portion of Mapes II is harmless, because the transfers to John Holcomb were valid unless the jury found that those transfers were the result of fraud or undue influence practiced by James Holcomb. The jury has found to the contrary.

Realizing this vulnerability in their argument, plaintiffs contend that the “unexplained disappearance of one of the defendants, claimed joint donees, could not have failed to confuse the jury and to denigrate, in the minds and consideration of the jury, the merit of the plaintiffs’ claim against the remaining joint claimant.” That contention is unpersuasive. If anything, the dismissal of John Holcomb but not James Holcomb, served to emphasize the very special duty owed by a lawyer-do-nee as compared to a layman-donee.

Plaintiffs’ Point I is denied.

II.

Propriety of Instructions 7, 9 and 10

Instruction No. 7 given to the jury was as follows:

Your verdict must be for defendant if you believe George Mapes made the bank accounts, stock and certificates of deposit joint with the intent to make a gift to defendant not as a result of fraud or undue influence, and
The creation of the joint ownership by George Mapes with defendant was fair and equitable in every respect.

Plaintiffs contend that this instruction erroneously failed to negative the client-attorney relationship or the presumption of fraud in client-attorney gifts to attorneys. This argument overlooks the fact that the presumption disappears when evidence is introduced, after which the evidence supporting the presumption and evidence to the contrary are to be submitted to the jury for determination. Simpson v. Blackburn, 414 S.W.2d 795 (Mo.App.1967). Moreover, although it was probably unnecessary to do so, instruction No. 4 did tell the jury: “When a gift of money or property is made by a client to his attorney during the course of the attorney-client relationship it is considered presumptively fraudulent, and the burden of proof is upon the attorney to cause you to believe by clear and convincing evidence that the transaction was fair and equitable in every respect.”

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Related

Layton v. Pendleton
864 S.W.2d 937 (Missouri Court of Appeals, 1993)
Burns v. Labor & Industrial Relations Commission
845 S.W.2d 553 (Supreme Court of Missouri, 1993)
Crooks v. Holcomb
817 S.W.2d 545 (Missouri Court of Appeals, 1991)

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Bluebook (online)
789 S.W.2d 44, 1990 Mo. App. LEXIS 315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crooks-v-holcomb-moctapp-1990.