Davis v. Smith

922 So. 2d 814, 2005 WL 1950660
CourtCourt of Appeals of Mississippi
DecidedAugust 16, 2005
Docket2003-CA-02779-COA
StatusPublished
Cited by4 cases

This text of 922 So. 2d 814 (Davis v. Smith) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Smith, 922 So. 2d 814, 2005 WL 1950660 (Mich. Ct. App. 2005).

Opinion

922 So.2d 814 (2005)

W.E. DAVIS, Administrator of the Estate of Anthony Walker Smith, Deceased and Bank of Holly Springs, Appellants
v.
Raymond SMITH and Dorothy D. Smith, Intervenor, Appellees.

No. 2003-CA-02779-COA.

Court of Appeals of Mississippi.

August 16, 2005.
Rehearing Denied November 29, 2005.
Certiorari Denied March 2, 2006.

John Thomas Lamar, Senatobia, William F. Schneller, Holly Springs, attorneys for appellants.

John Barnett Turner, William Austin Baskin, William K. Duke, attorneys for appellees.

Before KING, C.J., MYERS and ISHEE, JJ.

*815 KING, C.J., for the Court.

¶ 1. Raymond Smith filed suit in the Chancery Court of Tate County against the Estate of Anthony Smith, his son, seeking reformation of a deed which conveyed an interest in a 657.4 acre farm in Tate County from himself to his son. Raymond Smith's wife, Dorothy Smith, also filed a motion to intervene wherein she claimed a homestead interest in the farm. The chancellor ruled in favor of both Raymond and Dorothy Smith. Aggrieved by the chancellor's ruling, the Estate of Anthony Smith raises the following issues which we quote verbatim:

1. Did the trial court err in finding that Raymond Smith proved beyond a reasonable doubt that a "mutual mistake" had occurred in that Raymond and Anthony had failed to advise the scrivener of the deed that a life estate was to have been reserved in Raymond's deed to Anthony?
2. Did the trial court err in placing almost conclusive weight upon a document which preceded execution of the deed and which, under Mississippi law should have been considered to have been merged into deed?
3. Did the trial court err in applying an erroneous "clear and convincing" standard of proof to the evidence?
4. Did the trial court err in finding that Dorothy (Mrs. Raymond) Smith should be awarded a "homestead" veto interest in 160 acres of the Tate county farm, sufficient to defeat the conveyance of the property in the deed from Raymond to her son, in spite of fact that she simultaneously claimed (under penalties of perjury) her residence in De[S]oto County as her homestead and signed the "farm agreement[,]" agreeing to convey the farm to Anthony?
5. Did the trial court err in failing to apply the doctrines of equitable estoppel and "clean hands" as to both the claims of Mr. Smith and the claim of Mrs. Smith?
6. Did the trial court err in denying Appellants' Motion to Compel Discovery, wherein they sought the income tax returns of Raymond Smith for the time periods in question in this suit, and which would have revealed substantial evidence of the true nature of the "business" activity at the Tate County property, the reasons for the "land swap" and omission of a "life estate" in the property as well as the fraudulent nature of the numerous "homestead" claims of the Raymond Smiths?

¶ 2. Finding no error, we affirm.

FACTS

¶ 3. In 2000, Raymond Smith and his son, Anthony Smith, now deceased, owned a farm in Tate County, which consisted of 657.4 acres. The farm was acquired over a period of years, with portions being owned by both Raymond and Anthony, and other portions being owned exclusively by Raymond.

¶ 4. Anthony Smith owned commercial property in Shelby County, Tennessee. In 1999, Anthony executed a contract to sell the Shelby County property for $450,000 to Albert Tallon. The contract required the buyer to pay the seller $75,000 at closing and give a note for $375,000 payable over ten years and bearing ten percent interest.

¶ 5. According to Raymond Smith, Anthony was interested in a "land swap," whereby Raymond would swap the Tate County farm property for the Shelby County property. Raymond indicated that *816 in January 2000, a family meeting[1] was held at Anthony's office to discuss the transaction. Raymond stated that Martha Hughes, Anthony's bookkeeper, prepared an agreement which contained the terms of the agreement.

¶ 6. Martha Hughes stated that the original "Farm Agreement" could not be located, but that she found a copy of the agreement at some time (approximately four months prior to trial) after Anthony's death and faxed the agreement to Dorothy Smith's attorney, William Duke. The agreement stated:

FARM AGREEMENT
1/28/2000
THIS AGREEMENT IS FOR RAYMOND AND TONY TO DO LAND SWAP ON FARM AND SHELBY DRIVE PROPERTY.
TONY'S PART IN AGREEMENT AS FOLLOWS:
TONY WILL DEED THE PROPERTY AT 3090 SHELBY DRIVE TO RAYMOND SMITH, VALUED AT APPROXIMATELY $450,000.00. TONY WILL ALSO GIVE UP ALL RIGHTS TO ANY AND ALL INHERITANCE DUE TO HIM AT THE TIME OF RAYMOND AND DOROTHY'S DEATH.
RAYMOND'S PART IN AGREEMENT AS FOLLOWS:
RAYMOND WILL DEED THE ENTIRE FARM OVER TO TONY WITH THE UNDERSTANDING THAT ALL THE DAY TO DAY OPERATIONS REMAIN IN RAYMONDS CONTROL AND THAT HE CONTINUE TO LIVE ON THE FARM UNTIL HIS DEATH. ANY NEW CONSTRUCTION IS TO BE PRORATED FOR 12 YEARS FROM DAY OF LAND SWAP. IF RAYMOND DIES WITHIN THE 12 YEARS, THE REMAINING YEARS ARE TO BE PRORATED AND GIVEN TO DOROTHY.
TONY AND RAYMOND BOTH AGREE TO SEE TERESA HURST TAX ATTORNEY ON THE LEGAL APPROACH TO TAXES.
JAN MASSEY AND SALLY PAYTON AGREE TO THE LAND SWAP AND UNDERSTAND THAT THEY WILL HAVE NO CLAIM ON THE FARM IN TATE COUNTY AND TONY WILL RECEIVE NOTHING FROM ANY OTHER PROPERTIES OR ASSETS AT THE TIME OF RAYMOND AND DOROTHY'S DEATH
TONY HAS A BUYER FOR SHELBY DRIVE PROPERTY AND RAYMOND AGREES TO SELL THE PROPERTY AND OWNER FINANCE THE LOAN. TONY AND RAYMOND WILL DO A BACK TO BACK CLOSING SO TONY WILL HAVE FUNDS TO PAYOFF LEIN [SIC] FROM DOWN PAYMENT FROM BUYER.

The agreement was signed by Raymond Smith (father), Tony Smith (Anthony-son), Dorothy Smith (mother), Jan Massey (daughter), and Sally Peyton (daughter).

¶ 7. Attorney Hugh Armistead was contacted by Anthony Smith to prepare the necessary documents for the transaction. Armistead stated that Raymond and Anthony wanted some tax advice regarding the transaction and Armistead advised both parties to consult a tax attorney regarding IRS regulations and the consequences of the transaction. The parties *817 agreed to consult Teresa Hurst, tax attorney.

¶ 8. After consulting a tax attorney, in 1999, Anthony advised Armistead to prepare an exchange warranty deed for the land swap transaction. Armistead also stated that the reservation of a life estate for Raymond was never discussed with him by either Raymond or Anthony. According to Armistead, Anthony stated:

He told me he wanted to make sure that he got all the property on there. He had gone through all his stuff and this was it. I said, Tony, don't you think I need to go down there and look at it? He said, no, I know this is it. I said, okay. He said, I want to make sure we get everything deed [sic] in my name. I don't want to have to take the chance to buy my sisters out later if something happens to my daddy, and that's what he told me.
Q. He was concerned about his sisters maybe making some kind —
A. It wasn't anything that he wanted to cheat his sisters or anything they weren't entitled to, but he said, I don't want to have to buy the place twice is what he was telling me.
Q. Okay. Did he mention anything about a life estate?

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Related

Davis Ex Rel. Estate of Smith v. United States
481 F. App'x 145 (Fifth Circuit, 2012)
Estate of Smith v. Smith
69 So. 3d 1 (Mississippi Supreme Court, 2011)
W. E. Davis v. Raymond Smith
Mississippi Supreme Court, 2009
In Re Estate of Summerlin
989 So. 2d 466 (Court of Appeals of Mississippi, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
922 So. 2d 814, 2005 WL 1950660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-smith-missctapp-2005.