Dorman v. Arnold

932 S.W.2d 225, 1996 Tex. App. LEXIS 4194, 1996 WL 523298
CourtCourt of Appeals of Texas
DecidedSeptember 17, 1996
Docket06-96-00014-CV
StatusPublished
Cited by39 cases

This text of 932 S.W.2d 225 (Dorman v. Arnold) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dorman v. Arnold, 932 S.W.2d 225, 1996 Tex. App. LEXIS 4194, 1996 WL 523298 (Tex. Ct. App. 1996).

Opinions

OPINION

STARR, Justice.

This is an inter vivos gift case tried nonju-ry. Appellants, three daughters of Harmon Ridgeway, appeal from a declaratory judgment confirming ownership in appellee of certain personal property claimed to have been given to appellee, Betty Arnold.

Harmon Ridgeway died on May 23, 1990, intestate. His three daughters, Debora, Pamela, and Susan are his sole survivors, and are appellants in this ease. Betty Arnold, appellee, is his sister. Ridgeway had a decT ades-long history of mental illness and was institutionalized for a period of time for that reason. He began receiving Social Security benefit checks in the mid-1960’s. His father acted as representative payee for the bene[227]*227fits. After the father’s death, Betty Arnold succeeded as Social Security representative and managed Ridgeway’s benefits from 1984 until his death.

Ridgeway was placed in a nursing home in January 1990 and remained there until his death. In January, his savings account was changed and placed in a new account in Betty Arnold’s name. She used funds from that account to pay for Ridgeway’s care, medical expenses, and eventually his funeral expenses.

The daughters sought to recover the remainder of the savings account and learned that the funds were in Arnold’s name. The daughters then filed a proceeding to determine heirship, and during its pendency Arnold filed a suit for declaratory judgment (on January 18, 1992) asserting that Ridgeway had made a gift of the accounts to her while he was hospitalized in January 1990, and of a mobile home at an earlier date. In the answer to her action, the daughters neither pleaded affirmative defenses nor did they plead any cross-claims against Arnold. No action to administer the estate was ever commenced.

The daughters filed a cross-action on March 8,1994, alleging conversion by Arnold and seeking an accounting.

The trial court rendered judgment declaring that the funds belonged to Arnold and rendered a take-nothing judgment against the daughters on their cross-action. Findings of fact and conclusions of law were filed.

The daughters contend that the evidence is both legally and factually insufficient to support the trial court’s findings and judgment determining that inter vivos gifts occurred. In attacking the verdict, appellants necessarily attack the findings of fact and conclusions of law of the trial court. Findings of fact have the same force and dignity as a jury verdict and are reviewed for factual and legal sufficiency using the same standards applied to jury verdicts. Zieben v. Platt, 786 S.W.2d 797, 799 (Tex.App.—Houston [14th Dist.] 1990, no writ).

In our review of the legal and factual sufficiency of the evidence, we determine the legal sufficiency of the evidence under the review standards of Larson v. Cook Consultants, Inc., 690 S.W.2d 567 (Tex.1985), and the factual sufficiency under the review standards of In re King’s Estate, 150 Tex. 662, 244 S.W.2d 660, 661-62 (1951). Thus, we will first examine the record for any probative evidence to support the finding, ignoring all contrary evidence. If there is any evidence of probative value which supports the finding, then the point of error fails. Holley v. Watts, 629 S.W.2d 694 (Tex.1982). If we find some probative evidence, we will test the factual sufficiency of that evidence by examining the entire record to determine whether the finding is clearly wrong and unjust.

Three elements are necessary to establish the existence of a gift: (1) intent to make a gift; (2) delivery of the property; and (3) acceptance of the property. In re Estate of Hamill, 866 S.W.2d 339, 344 (Tex.App.—Amarillo 1993, no writ); Grimsley v. Grimsley, 632 S.W.2d 174, 177 (Tex.App.—Corpus Christi 1982, no writ). The intent of the donor, however, is the principal issue in determining whether a gift has been made. Thompson v. Lawson, 793 S.W.2d 94, 96 (Tex.App.—Eastland 1990, writ denied). The person claiming that a gift was made must prove the gift by clear and convincing evidence. Oadra v. Stegall, 871 S.W.2d 882, 892 (Tex.App.—Houston [14th Dist.] 1994, no writ).

We will first consider the question of whether the evidence is legally sufficient to establish a valid inter vivos gift. Viewing the. evidence most favorably to the trial court’s express and implied findings, we are directed to the testimony of three witnesses: Elsie Alldredge, Betty Arnold, and Kelly T. Arnold, Jr.

Elsie Alldredge was an employee of Bank One, now retired. She knew Betty Arnold and her brother, Harmon Ridgeway, as customers of the bank. She was familiar with Mr. Ridgeway’s CD. It was originally styled Harmon Ridgeway by personal representative payee Betty J. Arnold. She testified about the day that Betty Arnold came in and told her that her brother was sick and was going to have to go to the nursing home. Betty told Alldredge that Harmon wanted [228]*228Ms name removed from the CD and a savings account. Alldredge changed the Social Security numbers and names on the CD and savings account to that of Betty Arnold. From that time forward, statements on the accounts were mailed to Betty. Interest was reported to the IRS on Betty’s Social Security number. The bank’s records show that withdrawals were made thereafter.

The only testimony in the record favorable to appellee on the question of present dona-tive intent is from the testimony of Betty Arnold and her husband, Kelly T. Arnold, Jr. Betty’s testimony is as follows:

Q On January 29, 1990, did you have an occasion to visit with Harmon about Ms bank accounts at Bank One?
A Yes, sir.
[[Image here]]
Q ... What did he tell you about Ms bank accounts?
A Well, he said Ms health was getting worse and that I had been real good to him and I had taken real good care of him and he wanted me to have Ms money if something happened, to him.
Q And did he tell you to change the ownersMp of the accounts?
A Yes, sir.
Q And that was both the CD and the savings account?
A Yes, sir.
[[Image here]]
Q ... Under your agreement with Harmon Ridgeway, were you to pay Ms expenses out of these bank accounts at Bank One?
A Yes, sir.
Q So tMs wasn’t just an outright here’s some money?
A No, sir.
Q And if there was any left when he passed away it was to go to you?
A Right.

(Emphasis added). The testimony of Mr.

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Bluebook (online)
932 S.W.2d 225, 1996 Tex. App. LEXIS 4194, 1996 WL 523298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dorman-v-arnold-texapp-1996.