Dean Prainito v. Michael Smith

CourtCourt of Appeals of Georgia
DecidedMay 4, 2012
DocketA12A0211
StatusPublished

This text of Dean Prainito v. Michael Smith (Dean Prainito v. Michael Smith) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dean Prainito v. Michael Smith, (Ga. Ct. App. 2012).

Opinion

SECOND DIVISION BARNES, P. J., ADAMS and MCFADDEN, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed. (Court of Appeals Rule 4 (b) and Rule 37 (b), February 21, 2008) http://www.gaappeals.us/rules/

May 4, 2012

In the Court of Appeals of Georgia A12A0211. PRAINITO v. SMITH.

MCFADDEN, Judge.

After the death of Zina Cachia, a dispute arose among her heirs regarding

whether assets in a securities account and a certificate of deposit (“the accounts”)

were part of her estate. Cachia’s grandson, Dean Prainito, had obtained sole

possession of the assets in the accounts as a joint tenant with survivorship rights in

the securities account and as the payable on death beneficiary of the certificate of

deposit. On behalf of the estate, its Administrator CTA, Michael F. Smith, brought

an action in superior court against Prainito, and a jury found that Prainito had exerted

undue influence over Cachia and had engaged in actual fraud in connection with the

accounts. The jury awarded the estate damages in the form of the amount of money

that Cachia had put into the accounts and “all legal fees.” (Emphasis omitted.) The trial court entered a judgment on the verdict that included an attorney fee award of

$40,000.

Prainito appeals from the trial court’s entry of judgment on the jury verdict and

its denial of his motion for new trial. He argues that he was entitled to a directed

verdict on the undue influence and actual fraud claims, that the evidence did not

support a jury charge on either claim or on punitive damages, and that the attorney

fee award was improper. As detailed below, we find that there was evidence to

support the jury’s verdict on undue influence and actual fraud, that it thus was proper

for the court to charge the jury on those claims, and that Prainito’s claim of error

regarding the punitive damages charge lacks merit. We find, however, that the

evidence did not support the attorney fees award. Accordingly, we affirm the

judgment except as to the award of attorney fees, which we reverse.

1. Prainito contends that the trial court erred in denying his motion for directed

verdict on the claims of undue influence and fraud, arguing that the trial evidence on

these claims was insufficient, but he fails to cite any supporting authority for this

enumeration of error in his brief. See Ct. App. R. 25 (a) (3). Moreover, the record

contains evidence supporting the jury’s verdict. See Parris Props. v. Nichols, 305 Ga.

App. 734, 735 (1) (700 SE2d 848) (2010) (standard of review on appeal from denial

2 of a motion for directed verdict is whether there is any evidence to support the jury’s

verdict).

Construed in the light most favorable to the estate, see id., the evidence showed

that in May 1996, Cachia executed a will in which she left “all the money in [her]

banks and [her] investments . . . to [her] five grandchildren” and directed Prainito and

another grandchild to “see to it that all money will be divided equally” to five named

grandchildren. (Misspellings omitted.) Cachia had a sixth grandchild from whom she

was estranged, and who was not mentioned in the will. In a separate proceeding from

this appeal, the probate court determined that the will was valid.

Also in 1996, Cachia moved from Florida to the Atlanta area, close to Prainito

and another of her grandchildren. She stopped driving and depended upon Prainito

to take her to the store, the bank, and on other errands. After her move, and especially

following her 90th birthday, Cachia began to show signs of loneliness and depression,

and frequently she talked with her grandchildren about wanting to die. She also

repeatedly expressed to them the wish that her money be divided among them

equally.

In 2004, Cachia opened and deposited funds into a securities account on which

Prainito was listed with Cachia as a joint tenant with rights of survivorship. Prainito

3 drove Cachia to the bank to open this account and signed documents in connection

therewith. The bank later became Wachovia, and on March 21, 2005, Cachia wrote

a statement “to Wachovia Bank” that “the money on all [her] accounts will go to [her]

5 grandchildren,” naming the same grandchildren listed in her will.

On July 1, 2005, Cachia purchased a certificate of deposit at SunTrust Bank,

on which Prainito was listed as the beneficiary upon her death. One month later, on

August 1, Cachia passed away at the age of 92. After her death, Prainito bragged to

other family members that he had helped Cachia research certificates of deposit and

make investments. When family members discussed Cachia’s will, however, Prainito

did not reveal his interests in the accounts and when questioned about them he acted

irritated, became evasive, and later denied that the accounts existed.

(a) The trial court properly denied Prainito’s motion for directed verdict on the

undue influence claim. Generally, questions of undue influence are for the factfinder,

Mathis v. Hammond, 268 Ga. 158, 160 (3) (486 SE2d 356) (1997), and undue

influence may be shown by a broad range of circumstantial evidence. Schaffer v. Fox,

303 Ga. App. 584, 585 (1) (693 SE2d 852) (2010); Horton v. Hendrix, 291 Ga. App.

416, 420 (2) (a) (662 SE2d 227) (2008). “Where evidence is presented of a

confidential relationship, the grantor being of weaker mentality and the grantee

4 occupying the dominant position, an issue of fact is raised as to undue influence.”

(Citations omitted.) Fletcher v. Fletcher, 242 Ga. 158, 160 (2) (249 SE2d 530)

(1978). Here, evidence of the elderly Cachia’s depression, loneliness, and increasing

dependency upon Prainito on matters including investing and certificates of deposit

allowed for a finding that the two had a confidential relationship, which is defined by

OCGA § 23-2-58 to include a relationship “where one party is so situated as to

exercise a controlling influence over the will, conduct, and interest of another.” See

White v. Regions Bank, 275 Ga. 38, 39-40 (1) (561 SE2d 806) (2002); Mathis, 268

Ga. at 160 (3). We find no error in the trial court’s denial of the motion for directed

verdict on the undue influence claim. Mathis, supra.

(b) Likewise, the trial court properly denied Prainito’s motion for directed

verdict on the actual fraud claim. “Actual fraud consists of any kind of artifice by

which another is deceived.” OCGA § 23-2-51 (b). The estate argued to the jury that

Prainito committed actual fraud by misrepresenting to Cachia his intent to divide the

money in the accounts between the five grandchildren upon her death. See OCGA §

23-2-52 (misrepresentation of a material fact, made willfully to deceive and acted on

by opposite party, constitutes fraud). Prainito contends that there is no evidence he

made any such representation. But while “[f]raud may not be presumed . . . , being in

5 itself subtle, slight circumstances may be sufficient to carry conviction of its

existence.” OCGA § 23-2-57; see Durrence v. Durrence, 224 Ga. 620, 623 (2) (163

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