Davis v. State Department of Public Health & Welfare

483 S.W.2d 775, 1972 Mo. App. LEXIS 755
CourtMissouri Court of Appeals
DecidedJuly 25, 1972
DocketNo. 25867
StatusPublished
Cited by5 cases

This text of 483 S.W.2d 775 (Davis v. State Department of Public Health & Welfare) 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
Davis v. State Department of Public Health & Welfare, 483 S.W.2d 775, 1972 Mo. App. LEXIS 755 (Mo. Ct. App. 1972).

Opinion

SHANGLER, Chief Judge.

The Director of the State Department of Public Health and Welfare ordered that claimant’s grant of old age assistance be closed on the ground that she had made a transfer of property without receiving fair and valuable consideration, in violation of section 208.010, subsection 2(1) (a), V.A. M.S.1 The appeal is taken from the judgment of the circuit court affirming the order of the Director.

At the time of the hearing, claimant, a 68 year old spinster, was confined in a nursing home. She had been adjudicated an incompetent by the Probate Court of Vernon County, and Cecil Smith, Public Administrator of that county, was appointed her legal guardian. Claimant owned a life estate in a two-story property on the town square which, until two years before, had been leased for retail purposes but had since fallen into disrepair and disuse. The deterioration, squalor and unproductiveness of the premises are not disputed. These conditions were established by the guardian’s testimony and confirmed by the Appraiser’s Report given in evidence by the Division of Welfare. The. Division’s evidence also established that $1500 in taxes were owed on the property for the past four years and that another year’s delinquency would have subjected the property to public sale to satisfy payment.

The guardian petitioned the Probate Court to authorize the sale of the life estate so that the cost of caring for the claimant in the nursing home could be met. For about six months, he attempted to find a buyer. He consulted with real estate dealers and with the owners of the contiguous properties, but because of claimant’s advanced age and the cost of putting the property in rentable condition, estimated at several thousand dollars, they concluded “(he) didn’t have anything to sell”. The only offer he received was from Marvin Davison, the owner of the remainder. This offer, however, was not for the payment to claimant of a lump sum, but for [777]*777the payment of $50 for each month of her life with a minimum total payment of $1,000. Sale of the life estate was made on these terms, and the sale was approved by the Probate Court.

The evidence of the Division of Welfare consisted of the Appraiser’s Report and the testimony of a caseworker. The real estate was appraised for the Division at $5000 and claimant’s life estate, computed according to the Carlisle Table as provided in section 442.530, V.A.M.S., was determined to have the present gross value of $2040.90. The caseworker acknowledged that neither she, nor any one else for the Division, had made any inquiry as to whether the real estate could have been sold for $5000 or if there was any market for the life estate.

The Director determined that the transfer of the life estate was not for a “fair and valuable consideration” as defined in section 208.010, subsec. 2(1) (a), V.A.M.S., and ordered that claimant be stricken from the old age assistance rolls for the period prescribed by law. In support of his decision, the Director entered these Findings of Fact: “Claimant inherited a life estate in certain real estate located in Nevada, Missouri. This property was appraised at $5000.00 and claimant’s life estate interest was calculated to be $2,040.90. This property was sold for the following consideration: $50 per month for the lifetime of claimant with a minimum of $1,000 guaranteed.”

Claimant contends the decision of the Director was arbitrary and unreasonable because it assumes that the evidence of the appraised value of the real estate and of the actuarial value of the life estate is evidence of their open market value, inferences not supported by the record.

Our review of this appeal is upon the record of the hearings before the Director. We are authorized by section 208.100, subsec. 5, to determine whether the Director’s decision was arbitrary and unreasonable. If the Director’s decision was not based on substantial evidence, his findings of fact and order will be deemed arbitrary and unreasonable and will be remanded for redetermination. Wallin v. State Dept. of Public Health and Welfare, Mo., 422 S.W.2d 345, 347 [1]; Lee v. State Dept. of Public Health and Welfare, Mo.App., 480 S.W.2d 305, 308 [1], Substantial evidence is evidence which, if accepted as true, has probative force upon the issues — “it is evidence from which the trier or triers of the fact reasonably could find the issues in harmony therewith”. Collins v. Division of Welfare, 364 Mo. 1032, 270 S.W.2d 817, 820 [5, 6], But where the Director’s decision rests on inferences which may not be logically drawn from the evidence, but requires the assumption of facts beyond the scope of the record, such decision is not supported by substantial evidence. Koplar v. State Tax Commission, Mo., 321 S.W.2d 686, 695 [8]; Brawley v. Esterly, Mo., 267 S.W.2d 655, 659 [5].

The statutory provision which governs the issues, section 208.010, subsec. 2(1) (a) defines “fair and valuable consideration” to mean: “Money or real or personal property received at the time of the transaction approximately equal to the value of the property . . . transferred”. It is evident that the finding of the Director that “(t)he transaction made on behalf of claimant does not comply with this part of the statute” assumes (1) there was evidence the life estate had “value” within the meaning of the statute (2) the Division’s calculation that the actuarial worth of the life estate was $2040.90 established such “value”, and (3) the remainderman’s agreement to pay claimant $50 for each month of her life with a minimum total payment of $1000 was not the money or property equivalent of $2040.90.

The Director has obviously misconstrued the statute upon which he relies to deny claimant benefits as well as the effect to be given the evidence. It has been determined that the meaning of the term “value” as used in our public assistance [778]*778statutes means “market value”. Akers v. Division of Welfare, Mo.App., 224 S.W.2d 850, 853 [1] 2. An estate for life in land is real estate. Orchard v. Wright-Dalton-Bell-Anchor Store Co., 225 Mo. 414, 125 S.W. 486, 494. The market value of real estate is the price which one desiring but not compelled to purchase will pay to one desiring hut not compelled to sell. Union Electric Company v. Saale, Mo., 377 S.W. 2d 427, 429 [1-6]. The evidence before the Director, however, was all to the effect that there was no market for the sale of the life estate. The guardian’s persistent efforts were chilled by two stark economic realities, the cost of restoration of the property to productive use and the claimant’s advanced age. He was told by those knowledgeable of such value that “(he) didn’t have anything to sell”. Since a market is essential to the determination of market value, there can be no market value in the absence of a market. Nor does the Division’s evidence of the appraised value of the fee tend to prove the market value of the life estate calculated thereon in the absence of a showing that a willing buyer would pay that price to a willing seller.

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Bluebook (online)
483 S.W.2d 775, 1972 Mo. App. LEXIS 755, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-state-department-of-public-health-welfare-moctapp-1972.