Davis v. Young

2008 UT App 246, 190 P.3d 23, 2008 Utah App. LEXIS 232, 2008 WL 2522353
CourtCourt of Appeals of Utah
DecidedJune 26, 2008
Docket20061057-CA
StatusPublished
Cited by6 cases

This text of 2008 UT App 246 (Davis v. Young) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Young, 2008 UT App 246, 190 P.3d 23, 2008 Utah App. LEXIS 232, 2008 WL 2522353 (Utah Ct. App. 2008).

Opinion

OPINION

ORME, Judge:

1 Russell E. Young appeals from the trial court's judgment setting aside a quitclaim deed purporting to transfer Eugene and Zelma B. Davis's farm to him from their trust, and quieting title to the farm in his uncle, Steven R. Davis, the successor trustee. We affirm.

{2 In 1993, Eugene and Zelma Davis (the Davises) created the Eugene Davis and Zelma B. Davis Family Living Trust (the Trust), named themselves as trustees, and deeded their farm to themselves as trustees. With respect to the Davises' power to revoke the Trust, the Trust documents provide:

2.01 Powers Reserved by Gramtors. (a) Revocation. While either grantor is living, the trust created by this instrument may be revoked, in whole or in part, by an instrument signed by Grantors, or the survivor of them, and delivered to the Trustees. Upon revocation, the Trustees shall promptly distribute to Grantors, or the survivor of them, all of the designated portion of the property comprising the trust estate.

At nearly the same time they executed the Trust documents, the Davises executed reciprocal durable powers of attorney naming each other as attorneys-in-fact and granting to the other "full power to do and perform all and every act that [each] may lawfully do ..., with full power of substitution and revocation."

T3 The Trust documents provided that upon the death of both Davises, Steven would become the successor trustee, each of the Davises' grandchildren would receive $1000, and the remaining Trust assets would then be distributed to the Davises' children-one-third to Steven, one-third to Patricia Ann Zufelt, and one-sixth each to Rex E. and Fay Davis. The parties agree that the farm was the main asset held by the Trust.

T4 On January 1, 2001, Eugene executed a quitclaim deed conveying the Davises' farm to his grandson, Appellant Russell E. Young, who had long lived on and worked the farm. 1 Zelma did not execute the deed at that time, nor did Eugene sign it on her behalf as her attorney-in-fact. The deed was apparently delivered to Young, but he did not then record it.

T5 On March 12, 2003, Eugene died, leaving Zelma as the sole trustee under the terms of the Trust. Nine days later, she added her signature-or rather, an illegible *25 mark-to the quitelaim deed. Young recorded the deed three days later. It is unclear whether anyone besides the Davises and Young knew about the quitclaim deed. Zelma died on October 16, 2005.

16 Not surprisingly, contention arose among members of the family regarding the proper disposition of the Davises' farm, with Young claiming it as his own by virtue of the quitclaim deed he had recorded. Ultimately, Steven filed suit to invalidate the purported transfer of the farm to Young and to quiet title to the farm in himself as successor trustee under the terms of the Trust. Young, of course, opposed the action.

T7 After a three-day bench trial, the trial court entered its judgment, from which Young timely appealed, setting aside the quitclaim deed as void ab initio and quieting title to the Davises' farm in Steven as trustee. In connection with its order, the trial court made a number of oral findings, which are particularly relevant to our consideration of this appeal. See generally Utah R. Civ. P. 52(a) (allowing a trial court to enter oral findings).

T8 First, the trial court recognized that under the common law of Utah, a settlor has power to modify or revoke a trust only to the extent the trust documents allow, and only in the particular manner or cireumstances allowed by the documents' terms. See Flake v. Flake, 2003 UT 17, ¶ 13, 71 P.3d 589; Restatement (Second) of Trusts § 381 emt. d (1959) ("If [a] settlor reserves a power to modify [a] trust only in a particular manner or under particular cireumstances, he can modify the trust only in that manner or under those cireumstances."). The trial court specifically found that execution of .the quitclaim deed by the Davises was not consistent with the terms of the Trust and therefore did not effect a partial revocation of the Trust or a valid transfer of the Davises' farm out of the Trust. The court also held that, given the purposes for which the Trust was established, Eugene had no authority, either as trustee or as Zelma's attorney-in-fact, to transfer Trust property without consideration.

T9 Second, the trial court held that the Utah Uniform Trust Code did not apply to this case because it was not enacted until 2004, see Utah Code Ann. $ 75-7-605 (Supp.2006) (as enacted by 2004 Utah Laws, ch. 89, § 70). These first two issues present legal questions, which we review for correctness. See State v. Pena, 869 P.2d 932, 986 (Utah 1994).

"I 10 Third, the trial court specifically found that- Eugene, in signing the quitclaim deed, did not act as Zelma's attorney-in-fact. Fourth, the trial court found that the Davises did not intend to give Young their farm without consideration. These two issues raise questions of fact that we review for clear error. See id. at 985-36.

T 11 Fifth, the trial court specifically found that the Davises and Young enjoyed a confidential relationship, and that because of that relationship there existed a presumption of undue influence on the part of Young. See Webster v. Lehmer, 742 P.2d 1203, 1206 (Utah 1987) ("If a confidential relationship is found, 'any transaction that benefits the party in whom trust is reposed is presumed to have been unfair and to have resulted from undue influence and fraud. ") (citation omitted). The trial court further found that with respect to Eugene, the presumption was overcome, but with respect to Zelma, it was not. The trial court found that Zelma had suffered from mental deterioration for many years and "was not in a condition or state of mind to dispose of property .... [or] to sign thie quitclaim] deed." These findings present mixed questions of fact and law, which we review for clear error and correctness, respectively, while granting the trial court some discretion in its application of the law to the facts. See Wayment v. Howard, 2006 UT 56, ¶ 9, 144 P.3d 1147.

12 The crux of Young's argument on appeal is this: Either the quitclaim deed, as an instrument signed by both Eugene and Zelma, served both to partially revoke the Trust and to convey the Davises' farm to him in accordance with their long-held wishes, or Eugene, acting alone, effected the same result by executing the deed himself. Both prongs of Young's argument stand or fall with the validity of the quitclaim deed and the answer to whether its execution consti *26 tutes an effective revocation or transfer under the terms of the Trust.

113 We begin our analysis with the facts. Under our rules, a party challenging a factual finding "must first marshal all record evidence that supports the challenged finding." Utah R.App. P. 24(a)(9). "When an appellant fails to meet the heavy burden of marshaling the evidence, ... we assumel[ ] that the record supports the findings of the trial court." Moon v. Moon, 1999 UT App 12, ¶ 24, 973 P.2d 431 (alteration in original) (citations and internal quotation marks omitted), cert. denied, 982 P.2d 89 (Utah 1999).

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

Related

In re Phillips Living Trust
2022 UT App 12 (Court of Appeals of Utah, 2022)
Bel Courtyard Investments, Inc. v. Wolfe
2013 UT App 217 (Court of Appeals of Utah, 2013)
Hillcrest Investment Co. v. Utah Department of Transportation
2012 UT App 256 (Court of Appeals of Utah, 2012)
In the Matter of the Estate of Joseph R. Wilcock (Wilcock v. Wilcock)
2012 UT App 223 (Court of Appeals of Utah, 2012)
Bowen v. Bowen
2011 UT App 352 (Court of Appeals of Utah, 2011)
Pitt v. Taron
2009 UT App 113 (Court of Appeals of Utah, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
2008 UT App 246, 190 P.3d 23, 2008 Utah App. LEXIS 232, 2008 WL 2522353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-young-utahctapp-2008.