Eunice McKibben v. Jeff Hughes, b/n/f Joyce Hughes

23 N.E.3d 819, 2014 Ind. App. LEXIS 627, 2014 WL 7212858
CourtIndiana Court of Appeals
DecidedDecember 19, 2014
Docket34A02-1311-PL-988
StatusPublished
Cited by14 cases

This text of 23 N.E.3d 819 (Eunice McKibben v. Jeff Hughes, b/n/f Joyce Hughes) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eunice McKibben v. Jeff Hughes, b/n/f Joyce Hughes, 23 N.E.3d 819, 2014 Ind. App. LEXIS 627, 2014 WL 7212858 (Ind. Ct. App. 2014).

Opinion

OPINION

PYLE, Judge.

STATEMENT OF THE CASE

Appellant/Defendant, Eunice McKibben (“McKibben”), appeals the trial court’s judgment requiring McKibben to reimburse Appellee/Plaintiff, Jeff Hughes (“Hughes”) $14,879.55 for funds she spent repairing a property he had conveyed to her (“the Property”) and for checks she wrote from their joint checking account. She argues that there was no evidence that she paid for the repairs with Hughes’ funds or that she withdrew the checks for her benefit. She claims that she wrote the checks to satisfy bills for the Property that he was required to pay as her tenant.

Hughes cross-appeals, challenging the trial court’s denial of his request to rescind the deed for the Property he conveyed to McKibben. He argues that McKibben committed constructive fraud because they had a confidential or fiduciary relationship, and he relied on her misstatements when he transferred the property to her. Alternatively, he argues that McKibben was unjustly enriched by his conveyance and that he was incompetent to convey the deed.

With respect to McKibben’s appeal, we conclude that she is liable for the checks she wrote on their joint banking account because the funds in the account belonged to Hughes. Also, the checks she wrote were for rent and bill payments for the Property, which she owned, and she and Hughes did not have a landlord-tenant relationship. We also determine that the trial court did not err in finding that McKibben paid for the repairs to the Property with Hughes’ funds. However, we find that the trial court miscalculated the judgment against McKibben, so we reverse and remand to the trial court with instructions for the court to re-enter judgment against McKibben in the amount of $15,679.55. With respect to Hughes’ cross-appeal, we conclude that the trial court’s denial of Hughes’ request to rescind the deed was not erroneous. '

We affirm in part, reverse in part, and remand.

ISSUES

APPEAL

1. Whether the trial court erred in entering judgment against McKibben in the amount of $14,879.55.

CROSS-APPEAL

2. Whether the trial court erred in denying Hughes’ request to rescind the deed he conveyed to McKibben.

*823 FACTS

McKibben and Hughes met in 1991. Over the following years, they were at times romantically involved and, at other times, were only friends and fishing buddies. In 2008, Hughes lived with McKib-ben for two weeks. Otherwise, Hughes lived primarily with his father in his father’s house — which was on the Property — from 2003 or 2004 until his father’s death in 2009. When his father died, Hughes inherited the Property.

In the meantime, on September 25, 2009, officers from the Kokomo Police Department committed Hughes involuntarily to a mental health facility. Hughes stayed at the mental health facility for around three weeks, during which time he underwent treatment for bipolar disorder and depression. He hired a lawyer, David Rosselot (“Rosselot”), who had been McKibben’s friend for around twenty years, to challenge his involuntary commitment. With Rosselot’s assistance, the facility released Hughes on October 16, 2009. After his release, Hughes continued treatment. He also continued to take Abilify, a medicine that the facility had prescribed him, for approximately two and a half years. He testified that this medicine “did all kinds of things to [him]” to the point that he could not walk, was confused, had poor judgment, was suicidal, and was in “bad pain.” (Tr. 64).

After Hughes was committed, the City of Kokomo barred anyone from entering the Property due to its condition. Upon Hughes’ release from the facility, he moved in with McKibben and lived there until their relationship ended in December 2011. During that time, he hired Rosselot again to help him regain possession of the Property, which he achieved by court order on January 13, 2010. When he regained possession of the residence, Hughes and McKibben went to the Property, and Hughes retrieved $17,800 that he had hidden in the house. He gave the cash to McKibben for safekeeping.

In March or April of 2010, McKibben helped Hughes qualify for. Social Security benefits. She opened a bank account for him at Solidarity Community Federal Credit Union so that his Social Security benefit payments could be directly deposited there. With Hughes’ consent, the bank account was a joint account that also had McKibbens’ name on it. Throughout the time the account was open, McKibben never deposited any of her own money into it, although both she and Hughes made withdrawals. 1 Eventually, she removed her name from the account on December 27, 2011.

On April 19, 2010, McKibben drove Hughes to see Rosselot. With Rosselot’s assistance, Hughes deeded the Property to McKibben through a quitclaim deed and executed a will leaving all of his property to her. In exchange for the Property, McKibben gave Hughes one dollar. Hughes later estimated that the house was worth forty or forty-five thousand dollars.

After Hughes conveyed the Property to McKibben, she made repairs to the house on the Property (“the Residence”), although neither Hughes nor McKibben lived there. In September of 2010, she replaced the windows of the Residence, *824 and in September of 2012 she replaced its roof. In total, she spent $8,200.

Between April 19, 2010, when Hughes conveyed the Property to McKibben, and December 27, 2011, when McKibben withdrew her name from their joint Solidarity bank account, both McKibben and Hughes wrote checks from the account to pay for the Property’s bills. Fourteen checks were addressed to McKibben that purported to pay McKibben “rent” for the Property. Each “rent” check was made out for $400, and all of the rent checks combined totaled $5,600. 2 Hughes signed eleven of the rent checks, and McKibben signed three.

In addition, McKibben signed a variety of checks withdrawing money from the account to pay for the residence’s bills. These checks included $525.27 to Duke Energy; $289.31 to City of Kokomo Wastewater Utility; $505.29 to Kokomo Gas and NIPSCO, both natural gas providers; $21.92 to Indiana American Water; and $627.76 to Indiana Farm Bureau. These amounts, combined with the checks for rent, totaled $7,569.55. 3 In addition, either Hughes or McKibben drew several electronic checks on Hughes’ account, including $379.33 in transfers to American Water and a $400 transfer to McKibben’s account. 4 Starting in 2010, McKibben also paid approximately $800 per year in property taxes for the Property from her own money.

On May 13, 2013, Hughes and his mother, who had been appointed his power of attorney, filed an amended complaint against McKibben, alleging that she had procured the deed to the Property by fraud. In his complaint, Hughes requested, among other relief, reimbursement for all of the money McKibben had withdrawn from his Social Security funds and rescission of the deed to the Property. 5

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23 N.E.3d 819, 2014 Ind. App. LEXIS 627, 2014 WL 7212858, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eunice-mckibben-v-jeff-hughes-bnf-joyce-hughes-indctapp-2014.