Fritz v. Fritz

377 N.W.2d 20, 1985 Minn. App. LEXIS 4690
CourtCourt of Appeals of Minnesota
DecidedNovember 19, 1985
DocketC1-85-561, C0-85-1281
StatusPublished

This text of 377 N.W.2d 20 (Fritz v. Fritz) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fritz v. Fritz, 377 N.W.2d 20, 1985 Minn. App. LEXIS 4690 (Mich. Ct. App. 1985).

Opinion

OPINION

POPOVICH, Chief Judge.

Appellant Marie P. Fritz appeals in # Cl-85-561 from a judgment upholding a transfer of property to respondent Gloria A. Fritz and which determined respondent was liable under a family support agreement for past and future support of Marie Fritz. Appellant contends the trial court erred when it determined that the property transfer was valid. Appellant also appeals in # CO-85-1281 from an order denying her motion to compel payments under the family support agreement.

FACTS

This litigation is the result of an estate planning transaction. Appellant Marie P. Fritz and her late husband, Raymond C. Fritz, were married in 1932 and had three daughters: Donna Rae Schultz, Catherine M. Johnson, and respondent Gloria A. Fritz. In 1957, Mr. and Mrs. Fritz purchased the Deepwood Ski Area in Dunn County, Wisconsin. On November 26, 1983 they transferred Deepwood, a house on Wentworth Avenue in St. Paul, and the contents of their bank account to their daughter Gloria Fritz. Gloria in turn executed a “family support agreement” and agreed

to make said assets available and utilize them for the care, support and maintenance of R.C. Fritz and Marie Fritz, and to supplement the income from said assets as may from time to time be necessary, to provide adequate funds for their support.

Mr. Fritz died on January 26, 1984. Because of the prior transfer of property to Gloria, Mrs. Fritz and the other daughters received nothing at his death.

On February 27, 1984, Marie Fritz sued alleging in her amended complaint of August 24, 1984 the transfer to Gloria was accomplished “by use of undue influence, and/or, false representation, and/or, fraud.” Marie also contended the consideration for the transfer failed because Gloria had not performed under the support agreement.

At trial, attorney John Speakman, Dr. Mildred Hanson, and Gloria Fritz testified they were present at Deepwood when Mr. and Mrs. Fritz executed the documents transferring the property to Gloria. Speakman drew up those documents at the request of Mr. Fritz. Speakman testified he explained the purpose and effect of the documents to Mr. and Mrs. Fritz separately *22 on two occasions and that they “were in complete agreement.”

The documents were executed in the presence of Speakman, Hanson, Gloria Fritz, and nurse Barbara Secraw. Mr. Fritz’s will was witnessed by Hanson and Secraw. No witness testified that any undue influence or pressure was applied to either Mr. or Mrs. Fritz to induce them to sign. Mrs. Fritz appeared alert and competent at the time. In questioning by the court, Mrs. Fritz denied that she had been pressured into signing the documents.

The trial court found Mr. and Mrs. Fritz were in complete agreement when they executed the documents transferring their property to Gloria Fritz. The family support agreement executed by Gloria constituted consideration for the transfer. The court also found that Gloria was

liable on the Family Support Agreement, and that her liability includes any monthly payment to the nursing home in which Marie Fritz currently resides and which is in arrears.
sjs * s£ * ⅜
That Gloria A. Fritz is liable for the continued payment of room, board and support of Marie P. Fritz pursuant to the Family Support Agreement executed by her on November 26, 1983.

The court concluded Gloria Fritz was entitled to judgment and dismissed the complaint.

On March 18, 1985, Marie Fritz moved for an order directing Gloria to

pay all outstanding bills of * * * Marie P. Fritz, for her care, support, and maintenance, as stated in the Family Support Agreement dated November 26, 1983.

In support, Marie submitted numerous affidavits, bills, past due notices, and collection letters. By order of May 13, 1985 the motion was denied. The trial court relied on Carstedt v. Grindeland, 365 N.W.2d 347 (Minn.Ct.App.1985) for the proposition that Marie Fritz must bring another action for breach of contract to enforce the family support agreement.

By our order of August 14, 1985, the appeal from the judgment (# Cl-85-561) and the denial of the motion (# CO-85-1281) were consolidated.

ISSUES

1. Does the evidence support the judgment’s findings of fact and conclusions of law?

2. Did the trial court properly deny appellant’s motion to compel payments under the family support agreement?

ANALYSIS

1. Appellant contends, as she did at trial, that the conveyance of her property to respondent was invalid because mutual consent was lacking and the family support agreement was inadequate consideration for the transfer. Appellant did not make a motion for a new trial. Where no motion for a new trial is made, the only issues on appeal “are whether the evidence sustains the findings of fact and whether such findings sustain the conclusions of law and the judgment.” Gruenhagen v. Larson, 310 Minn. 454, 458, 246 N.W.2d 565, 569 (1976). The trial court concluded (a) all property received by respondent was the result of a valid transfer by appellant, (b) the family support agreement was valid and enforceable, and (c) Gloria was liable for “all sums not paid thereunder to date.” The complaint was dismissed and judgment ordered for Gloria Fritz.

2. The validity of a family support agreement has not been the subject of a reported case in this state for 30 years. See Dietz v. Dietz, 244 Minn. 330, 70 N.W.2d 281 (1955). The cases have uniformly held that

where property is conveyed by voluntary conveyance, with the understanding that the grantee will, by way of consideration therefor, furnish support and maintenance for the grantor during the latter’s life, and subsequently the grantee fails substantially to perform such agreement, it should be held that the grantor has received nothing for his land, and that, *23 by cancellation, the parties be restored to their original situation.

Haataja v. Saarenpaa, 118 Minn. 255, 261-62, 136 N.W. 871, 873-74 (1912). This rule was reaffirmed in Klick v. Fearing:

We have frequently held that where owners of property convey it to others, usually children, in consideration of the promise of the grantees to furnish care and support and the incidents thereof, such as a Home for the grantors for life, such agreements are regarded differently than ordinary commercial agreements. The reason usually assigned for this rule is that such contracts, by their very nature, are incapable of specific performance and therefore the most appropriate remedy, when a child breaches such an agreement, is an annulment of the conveyance.

238 Minn. 76, 79, 55 N.W.2d 594, 595-96 (1952) (citations omitted).

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Related

Klick v. Fearing
55 N.W.2d 594 (Supreme Court of Minnesota, 1952)
Gruenhagen v. Larson
246 N.W.2d 565 (Supreme Court of Minnesota, 1976)
Dietz v. Dietz
70 N.W.2d 281 (Supreme Court of Minnesota, 1955)
Carstedt v. Grindeland
365 N.W.2d 347 (Court of Appeals of Minnesota, 1985)
Haataja v. Saarenpaa
136 N.W. 871 (Supreme Court of Minnesota, 1912)

Cite This Page — Counsel Stack

Bluebook (online)
377 N.W.2d 20, 1985 Minn. App. LEXIS 4690, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fritz-v-fritz-minnctapp-1985.