Estate of Huffmon v. Dorris

638 N.E.2d 235, 265 Ill. App. 3d 225, 202 Ill. Dec. 589, 1994 Ill. App. LEXIS 999
CourtAppellate Court of Illinois
DecidedJune 29, 1994
DocketNo. 4-93-1028
StatusPublished
Cited by1 cases

This text of 638 N.E.2d 235 (Estate of Huffmon v. Dorris) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Huffmon v. Dorris, 638 N.E.2d 235, 265 Ill. App. 3d 225, 202 Ill. Dec. 589, 1994 Ill. App. LEXIS 999 (Ill. Ct. App. 1994).

Opinion

PRESIDING JUSTICE McCULLOUGH

delivered the opinion of the court:

On October 25, 1993, the circuit court granted respondent’s motion for a directed finding in her favor, dismissing the petition of the Illinois Department of Public Aid (Department) to rescind an inter vivas transfer of real property alleging it was fraudulent as to the Department. The Department appeals. We reverse and remand.

Mae Emma Huffmon applied for and received direct medical payments from the Department beginning in September 1989. When she applied for aid, Huffmon owned a home at 309 E. Church in Champaign, Illinois. In her application for assistance she valued this home at $10,000. At the time of her application, the Department was not concerned with the value of the home because it was exempt from consideration for eligibility issues as it was a homestead.

In February 1990, Huffmon began living in a nursing home; at this time she still owned the property. When Huffmon moved into the nursing home, respondent Clara Vaughan Dorris, Huffmon’s granddaughter, began paying the expenses and taxes on the home.

In a deed dated December 2, 1991, Huffmon conveyed the home to Dorris. The consideration stated in the deed was "one dollar ($1.00) and other good and valuable consideration in hand paid.” From December 1991 until Huffmon’s death in April 1992, Dorris continued to pay the expenses on the home. Dorris did not live in the home until after Huffmon’s death in July 1992.

The Department filed a petition to rescind the conveyance of the home to respondent Dorris, alleging the conveyance was fraudulent.

At the hearing on the petition, respondent objected to testimony concerning the assessed value of the home and the admission into evidence of computer printouts of payments made on behalf of Huffmon. At the close of petitioner’s evidence, respondent moved for a directed finding in her favor. Before the court ruled on respondent’s motion, petitioner was allowed to reopen its case and call Dorris to testify.

Dorris testified that she paid, in addition to the $1 consideration on the face of the deed, the expenses related to the home from February 1990 until Huffmon’s death, and she promised Huffmon to pay her funeral expenses.

After hearing the testimony of Dorris and considering the arguments of counsel, the trial court found that the Department failed to show a prima facie case of a fraudulent transfer. The court specifically found the value of the home was between $18,000 and $20,000, and the consideration actually paid for the home (the payment of expenses, improvements and funeral expenses) did approximate the fair, cash market value of the home. There was no testimony or other evidence concerning the actual amounts paid by respondent for these expenses.

On September 30, 1993, the Department filed a motion to reconsider, arguing that under section 3 — 11 of the Illinois Public Aid Code (Code) (305 ILCS 5/3 — 11(4) (West 1992)), all it had to show for a prima facie case of fraudulent transfer was "the consideration for the deed *** does not approximate the fair, cash market value.” The court found that the Department had the burden of proving the consideration was inadequate and failed to do so; the court denied the motion to reconsider.

el The petition to rescind the transfer of the real property was brought pursuant to section 3 — 11 of the Code, which states in part:

"A transfer of any legal or equitable interest in real property, whether vested, contingent, or inchoate, by a person who is or has been a recipient, *** shall, under any of the following conditions, be deemed prima facie fraudulent as to the Illinois Department.
(4.) When the consideration for the deed or assignment, even though recorded or registered, does not approximate the fair, cash market value.” (305 ILCS 5/3 — 11 (West 1992).)

The Department argues the proper standard is not whether the consideration is nominal or illusory, but whether it approximates the actual fair, cash market value of the home. We agree. The circuit court found, however, that the evidence did "not show that the consideration [did] not approximate the fair cash market value. It might well have been equal to or more than the $18,000 to $20,000, based on the record.” It is apparent that while the circuit court commented that the actual consideration paid was not illusory, the court’s ruling was based on its finding that the payments approximated the value of the property.

In construing a statute, the primary goal is to ascertain the legislative intent. To find this intent a court is to assume the words used in the statute have their ordinary and popularly understood meanings. In addition, consideration is also to be given to the objective of the statute. (Opyt’s Amoco, Inc. v. Village of South Holland (1992), 149 Ill. 2d 265, 277, 595 N.E.2d 1060, 1066.) The statute states a prima facie case is shown if the consideration on the deed does not approximate the value of the property.

The legislation allows the Department to bring suits such as this without requiring it to search for the consideration actually paid. All petitioner must show is the consideration, as shown on the face of the deed, does not approximate the fair, cash market value of the property. When determining the value of the stated consideration, vague statements which do not indicate the value of the consideration, such as "and other good and valuable consideration,” need not be addressed by the Department in its case in chief.

•2 When the Department proceeds under section 3 — 11 of the Code, a recitation of "good and valuable consideration” or other vague statement which gives no indication of the actual value of what is exchanged is not sufficient to defeat a prima facie showing of fraud. The property in this case' was valued at $18,000 to $20,000; the recitation of $1 consideration does not approximate the fair, cash market value of the property.

Section 2 — 1110 of the Code of Civil Procedure (735 ILCS 5/2— 1110 (West 1992)) governs the use of directed findings in cases tried before the court, stating:

"In all cases tried without a jury, defendant may, at the close of plaintiff’s case, move for a finding or judgment in his or her favor. In ruling on the motion the court shall weigh the evidence, considering the credibility of the witnesses and the weight and quality of the evidence.”

This section requires the court to engage in a two-part test when ruling on a motion for a directed finding. The circuit court must first determine as a matter of law whether the petitioner has made a prima facie case. If it has not, the court should dismiss the action. If, however, the court finds petitioner has presented a prima facie case, the circuit court, as the finder of fact, must weigh the evidence petitioner has presented. This weighing process may negate some the required elements of petitioner’s case.

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

Related

Dowell v. Bitner
652 N.E.2d 1372 (Appellate Court of Illinois, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
638 N.E.2d 235, 265 Ill. App. 3d 225, 202 Ill. Dec. 589, 1994 Ill. App. LEXIS 999, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-huffmon-v-dorris-illappct-1994.