Davis v. Davis

494 So. 2d 393
CourtSupreme Court of Alabama
DecidedAugust 8, 1986
Docket84-856
StatusPublished
Cited by4 cases

This text of 494 So. 2d 393 (Davis v. Davis) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Davis, 494 So. 2d 393 (Ala. 1986).

Opinion

494 So.2d 393 (1986)

Jack F. DAVIS, Sarah C. Allen, Alice D. Williford, and Ruby J. Chancey
v.
Sallie C. DAVIS, individually, as Trustee and as Executrix of the Last Will and Testament of E.L. Davis, Deceased; E.L. Davis, Jr.; Hubert C. Davis; Roy R. Davis; Kathy D. Davis; Winnie M. Davis; Willo Jean Davis; and Davis Stock Farms, Inc., a corporation.

84-856.

Supreme Court of Alabama.

June 6, 1986.
As Corrected on Denial of Rehearing August 8, 1986.

John B. Crawley of Crawley & Jarrell, Troy, and Irvin J. Langford of Howell, Johnston & Langford, Mobile, for appellants.

Frank M. Wilson and Sharon G. Yates of Beasley & Wilson, Montgomery, for appellees.

*394 BEATTY, Justice.

This is an appeal by plaintiffs, Jack F. Davis, Sarah C. Allen, Alice D. Williford, and Ruby J. Chancey, all children of E.L. Davis, Sr., deceased, from an order granting defendants' motion to dismiss plaintiffs' fraud count and from an order finding that, in this case, no trust exists.

Plaintiffs filed their complaint on June 3, 1983, alleging counts in assumpsit, conversion, and fraud, and naming as defendants their mother, Sallie C. Davis; their three brothers, E.L. Davis, Jr., Hubert C. Davis, and Roy R. Davis; their brothers' wives; and Davis Stock Farms, Inc.

In an earlier petition to this Court, plaintiffs sought a writ of mandamus to the trial judge directing him to grant plaintiffs a jury trial as to their counts for assumpsit and conversion. This Court issued the writ and ordered the trial court to determine, as a matter of law, whether the trust, upon which the assumpsit and conversion counts were predicated, existed. After conducting a hearing on the question, the trial court found that there was no trust. We affirm.

The facts relevant to this appeal follow:

E.L. Davis, Sr., died April 24, 1973. In his will, Mr. Davis left the residue of his property (which, in fact, represented all of his property) to his wife, Sallie C. Davis, as trustee for herself and their children.

On June 6, 1973, before the probate of the will of E. L. Davis, Sr., all of the Davis children executed a warranty deed conveying all of their interest in their father's real property to their mother, Sallie Davis. On the same date, they each also executed disclaimers of any interests in their father's estate. At the time these documents were executed, all of the children had reached the age of majority, and all had had an opportunity to read their father's will. On June 7, 1973, the day after the deed and disclaimers were executed, the will of E.L. Davis, Sr., was admitted to probate by the Probate Court of Pike County.

Some four years later, on May 3, 1977, the widow, Mrs. Sallie Davis, sold approximately 5,700 acres of the realty to two of her sons, E.L. Davis, Jr., and Hubert C. Davis, for $679,108.00, or approximately $102.00 per acre. This was the approximate value originally placed on the property by the Internal Revenue Service for estate tax purposes. On May 17, 1977, Mrs. Davis conveyed the balance of the estate lands (398½ acres) to her son Roy R. Davis. (However, it is the conveyance by Mrs. Davis to E.L. Davis, Jr., and Hubert C. Davis which is the primary focus of plaintiffs' attack.) On that same day, May 17, Mrs. Davis gave each of her seven children a check for $25,000 and purchased each of her eighteen grandchildren a $10,000 certificate of deposit. Approximately six years later, on June 3, 1983, plaintiffs filed this action.

By their complaint, plaintiffs allege that, at a meeting called by Mrs. Davis and her attorney, all of the Davis children were asked to deed their interest in their father's estate lands to their mother, and to further disclaim any interest in their father's estate. Plaintiffs claim that Mrs. Davis told the children that the purpose of the conveyance was to reduce federal estate taxes and that she would reconvey the property to the children after she had paid the estate taxes. Plaintiffs also allege that a confidential relationship existed between Mrs. Davis and the children and that Mrs. Davis was the dominant party. Plaintiffs further aver that the conveyance by the children to their mother created a trust which was in substance the same as the written trust provided for under the terms of the will of E.L. Davis, Sr., and that Mrs. Davis transferred the property to her co-defendants, who continue to hold the land.

In their fraud counts, plaintiffs allege that E.L., Hubert, and Mrs. Davis entered into a conspiracy whereby Mrs. Davis would convey the property to E.L. and Hubert, for substantially less than the fair market price, after their father's estate had been settled. Plaintiffs also allege that representations made by Mrs. Davis, on behalf of herself and her co-defendants concerning her alleged intention to reconvey *395 the property, were false and made with the intention of inducing plaintiffs to transfer their interests in their father's estate and that such false representations did, in fact, induce plaintiffs to transfer the property to their mother. In addition, plaintiffs aver that when discovery was had in December 1983 plaintiffs learned that E.L. and Hubert had begun to depreciate the property in May 1973, prior to the June 6, 1973, deed from the children to their mother.

On September 24, 1984, before plaintiffs sought the writ of mandamus from this Court on the jury demand issue, the trial court granted defendants' motion to dismiss plaintiffs' fraud claim as barred by the statute of limitations. Thereafter, in accord with this Court's order in Ex parte Davis, 465 So.2d 392 (Ala.1985), the trial court held a hearing to determine whether a trust, upon which the assumpsit and conversion counts were predicated, existed. Based on the evidence presented at the hearing, the trial court made the following findings:

"1. That the will of E.L. Davis, Sr., in so far as it attempts to set up a trust, is vague and ambiguous.
"2. That an express trust was nevertheless created by the will of E.L. Davis, Sr.
"3. That after the death of E.L. Davis, Sr., beneficiaries of the trust effectively terminated the trust by their actions which commenced in May of 1973 after the death of E.L. Davis, Sr., and which culminated on June 6, 1973, at which time the beneficiaries executed a deed and bill of sale conveying the assets of the estate of E.L. Davis, Sr., deceased, to Sallie C. Davis, and also executed a separate instrument disclaiming any interest in the assets of the estate.
"4. That no Defendant, nor anyone acting on their behalf, made any false representation to Plaintiffs.
"5. No Defendant, nor anyone acting on their behalf was guilty of any fraud, conversion, or undue influence at any time.
"6. That the termination of the trust created by the will of E.L. Davis, Sr., was done by the children of E.L. Davis, Sr., including the Plaintiffs, voluntarily and of their own free will and accord.
"7. That the termination of the trust by the Plaintiffs was approved by Defendant Sallie C. Davis.
"8. That the transaction between Defendant Sallie C. Davis and her children was conducted in good faith and was equitable to all parties under the total circumstances of this case.
"9. That the transaction between Defendant Sallie C. Davis and her children was for good consideration.
"10. That at all times Defendant Sallie C.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hanner v. METRO BANK AND PROTECT. LIFE INS.
952 So. 2d 1056 (Supreme Court of Alabama, 2006)
Norman Properties v. Bozeman
557 So. 2d 1265 (Supreme Court of Alabama, 1990)
Clements v. Moncrief
549 So. 2d 479 (Supreme Court of Alabama, 1989)
McLaughlin v. Pannell Kerr Forster
504 So. 2d 264 (Supreme Court of Alabama, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
494 So. 2d 393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-davis-ala-1986.