Duke v. Shinpaugh

276 S.W.3d 713, 101 Ark. App. 331, 2008 Ark. App. LEXIS 147
CourtCourt of Appeals of Arkansas
DecidedFebruary 20, 2008
DocketCA 07-229
StatusPublished
Cited by2 cases

This text of 276 S.W.3d 713 (Duke v. Shinpaugh) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duke v. Shinpaugh, 276 S.W.3d 713, 101 Ark. App. 331, 2008 Ark. App. LEXIS 147 (Ark. Ct. App. 2008).

Opinions

Wendell L. Griffen, Judge.

Emilia Duke appeals from an order setting aside a deed granting her one acre of property belonging to her late stepfather, Calvin Leeroy Shinpaugh (Mr. Shinpaugh). We hold that the trial court did not err in applying the presumption of undue influence because appellant and Mr. Shinpaugh were in a confidential relationship. Nonetheless, we hold that the trial court erred in 1) excluding a neighbor’s testimony that Mr. Shinpaugh intended to give one acre of land to appellant before he died, 2) finding the power of attorney by which appellant conveyed the land to herself by a quitclaim deed was the product of undue influence, and 3) finding that, in making the quitclaim conveyance to herself, appellant overreached the powers granted to her as Mr. Shinpaugh’s power of attorney. Accordingly, we affirm in part, but we reverse the trial court’s order setting aside the deed, reverse the order ejecting appellant from the entire parcel ofland, and remand for a new trial.

I. Facts

Mr. Shinpaugh and appellant’s mother, Frances Shinpaugh, owned 2.9 acres of property in Fayetteville, Arkansas, as tenants by the entirety; their home is located on the northernmost acre. Pursuant to a written agreement and a power-of-attorney form executed by Mr. Shinpaugh in her favor, appellant conveyed the middle acre of this property to herself shortly before Mr. Shin-paugh died. Appellees are Joseph Shinpaugh and Rebekah Ogle, Mr. Shinpaugh’s children. Acting as administrators of his estate, appellees filed suit to have the deed set aside and to have appellant removed from the property.

Appellant began living with the Shinpaughs in 1997 due to her mother’s poor health. It is undisputed that appellant took care of Mrs. Shinpaugh from that point, and also took care of Mr. Shinpaugh after his health declined. Additionally, she performed household chores and property maintenance.

Mrs. Shinpaugh died intestate on May 15, 2005. Appellant testified that before her mother died, Mr. Shinpaugh agreed that appellant would be given one acre of their property. Ogle admitted that she spoke with Mr. Shinpaugh about giving property to appellant both before and just after Mrs. Shinpaugh’s funeral, but she maintained that her father could not decide which acre to give to appellant.

Appellant continued to live with and care for Mr. Shinpaugh after her mother’s death. A few hours after Mrs. Shinpaugh’s funeral, after Mr. Shinpaugh met privately with appellees, appellant approached him to discuss “legitimizing” her situation. Within the next few days, she and Mr. Shinpaugh drafted a document entitled “Agreement,” which purported to give her one acre of Mr. Shinpaugh’s property in recognition of her long-time assistance to the Shinpaughs. This document was typed by appellant’s nephew, Calvin Duke, on a computer belonging to John Holmberg, Mr. Shinpaugh’s long-time neighbor.

Mr. Shinpaugh was hospitalized on May 23, 2005, due to congestive heart failure. He signed the agreement the next day, on May 24, 2005, while he was still hospitalized. Ogle did not dispute that her father signed the agreement; appellant did not sign the document.

The following day, May 25, 2005, while Mr. Shinpaugh remained hospitalized, he signed a durable power of attorney in favor of appellant, that was prepared by his attorney. Appellees conceded at the hearing that Mr. Shinpaugh signed this form and further conceded that the power of attorney was valid.

After Mr. Shinpaugh’s release, appellant continued to live with and care for him. On December 14, 2005, Mr. Shinpaugh suffered a stroke; he was again hospitalized until January 27, 2006. He was thereafter taken to a rehabilitation center, where he died on March 5, 2006.1 Ogle admitted that her father retained his faculty to understand what was being said to him and to respond appropriately to the end of his life.

On February 8, 2006, approximately one month before Mr. Shinpaugh died, appellant deeded one acre of Mr. Shinpaugh’s property to herself, pursuant to the power of attorney. After Mr. Shinpaugh died, appellant continued to live in the Shinpaugh home but never notified appellees that she deeded the property to herself. Appellees found the deed while searching property records to discover the name of the mortgage company holding a reverse mortgage on their father’s property. They filed suit in the instant case, alleging, inter alia, that Mr. Shinpaugh was incapacitated from December 14, 2005, onward, due to his health conditions, and that appellant breached her fiduciary duty in conveying part of his property to herself. They also filed a detainer action and were granted immediate possession of the entire 2.9 acres of property.

In its written order, the trial court found that a confidential relationship existed between appellant and Mr. Shinpaugh and that the agreement was testamentary in nature, though it did not qualify as a will. However, the court made no finding that appellant procured the agreement. Further, even though appellees never challenged the validity of the power of attorney executed by Mr. Shinpaugh and conceded that the form was valid, the trial court determined that appellant failed to overcome the presumption that the agreement and power of attorney were the product of her undue influence. Finally, the court found that appellant breached her fiduciary duty and that, if the power of attorney was valid, appellant exceeded her power granted under it. Accordingly, the trial court ordered that the deed be set aside and entered a final judgment of possession in appellees’ favor of the entire 2.9 acres of property.

II. Presumption of Undue Influence

We first affirm the trial court’s determination that the presumption of undue influence arose, which appellant was required to rebut. Appellant argues that the trial court erred in finding that the agreement was not a will but yet determined that the presumption of undue influence arose.

The standard of review of a circuit court’s findings of fact after a bench trial is whether those findings are clearly erroneous. See First Nat’l Bank v. Garner, 86 Ark. App. 213, 167 S.W.3d 664 (2004). A finding is clearly erroneous when, although there is evidence to support it, the reviewing court on the entire evidence is left with a definite and firm conviction that a mistake has been made. See id. In reviewing a trial court’s findings of fact, we give due deference to the trial judge’s superior position to determine the credibility of witnesses and the weight to be accorded to their testimony. See Holaday v. Fraker, 323 Ark. 522, 920 S.W.2d 4 (1996).

To be valid as a will, an instrument must be executed with testamentary intent, which is the intention to dispose of one’s property upon one’s death. See Edmundson v. Estate of Fountain, 358 Ark. 302, 189 S.W.3d 427 (2004). We affirm on this point because the agreement contained contradictory terms indicating both that it was a will and that it was not; thus, the trial court could have determined that the agreement was not a will.

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Related

Duke v. Shinpaugh
290 S.W.3d 591 (Supreme Court of Arkansas, 2009)
Duke v. Shinpaugh
276 S.W.3d 713 (Court of Appeals of Arkansas, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
276 S.W.3d 713, 101 Ark. App. 331, 2008 Ark. App. LEXIS 147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duke-v-shinpaugh-arkctapp-2008.