Gilbert ex rel. Roberts v. Rainey

71 S.W.3d 66, 77 Ark. App. 44, 2002 Ark. App. LEXIS 175
CourtCourt of Appeals of Arkansas
DecidedMarch 20, 2002
DocketCA 01-990
StatusPublished

This text of 71 S.W.3d 66 (Gilbert ex rel. Roberts v. Rainey) 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
Gilbert ex rel. Roberts v. Rainey, 71 S.W.3d 66, 77 Ark. App. 44, 2002 Ark. App. LEXIS 175 (Ark. Ct. App. 2002).

Opinion

Wendell L. Griffen, Judge.

The case arises from the rescission of a support deed. Donna Gilbert appeals through her guardian, Tracey Roberts, Gilbert’s daughter. Gilbert appeals from a chancery order rescinding a deed for real property given to her by her mother, Inez Rainey (Rainey), appellee, in exchange for Gilbert’s promise to provide Rainey care and support for life. Because Gilbert is now incapacitated, the chancellor rescinded the deed based upon the failure of consideration. Gilbert argues that the evidence was insufficient to prove that the deed was a support deed and that the chancellor erred in admitting parol evidence to explain the consideration underlying the deed. We disagree and affirm.

On April 6, 1978, Rainey and Gilbert entered into an agreement whereby the parties agreed that when Rainey became unable to care for herself in the manner to which she had grown accustomed, Gilbert would provide that level of care and comfort. Gilbert also agreed to consult with her brothers, James and Charles Rainey, with respect to major decisions concerning Rainey’s care. The consideration recited was “past and future love and affection which has been and will continue from my mother to me for due consideration in mother’s will and for other good and valuable consideration.” Gilbert maintained daily contact with her mother beginning in 1988, when Rainey began experiencing confusion and began forgetting where she placed common household items such as keys or her purse. On January 6, 1994, Rainey’s attorney drafted a quitclaim, deed on Lot 2, Block 23, Park Hill Addition to North Little Rock, under which all of Rainey’s right, title, and interest in the real estate was given to Gilbert.

This deed recited that “for and in consideration of the sum of ten and no/100 Dollars ($10.00) and other good and valuable consideration to me in hand paid by Donna Gilbert, Grantee, the receipt of which is hereby acknowledged . . . Gilbert paid Rainey one dollar and the deed was executed. After this deed was executed, Gilbert managed Rainey’s bank account and investments; painted Rainey’s home; repaired a television and bought a new television; added a carport; and built a fence in the back yard. Gilbert moved in with Rainey for a short period in 1998 but moved out in October 1998, when she moved in with her boyfriend.

In January 1999, Gilbert suffered brain damage from anoxic encephalopathy. Later that same year, Gilbert subsequently broke her hip, and her daughter, Roberts, was appointed as the permanent guardian of Gilbert’s person and estate. Roberts thereafter made some effort to look after her grandmother by having Rainey’s air conditioner serviced. However, Rainey and Roberts do not get along, and in May 1999, a mutual restraining order was issued against both parties.

On July 6, 1999, Rainey filed a complaint in chancery court seeking to set aside, rescind, and cancel the 1994 quitclaim deed. Rainey first alleged that Gilbert obtained the deed by fraud, undue influence, duress, temporary lack of capacity, and failure of consideration. However, she later amended her complaint and proceeded solely on the theory of failure of consideration. Rainey then filed a motion for summary judgment, which the court denied without a hearing. The case was tried on July 25, 2000, and August 18, 2000.

At the July hearing, over Gilbert’s objection, the chancellor admitted parol evidence regarding the consideration for the 1994 quitclaim deed. At the conclusion of this hearing, Gilbert moved for a directed verdict. The chancellor denied the motion. At the conclusion of the evidence on August 18, 2000, Gilbert moved to amend her pleadings in conformity with the proof and sought alternative relief for compensation for $9,500.63 that she testified she spent in reliance on the 1994 deed.

The chancellor found that the deed was a support deed given in exchange for Gilbert supplying for life the comforts and necessities to which Rainey had become accustomed. Because of Gilbert’s subsequent disability, the chancellor found there had been a failure of consideration. The chancellor determined that because the subject deed was a support deed, the true consideration of the deed may be proven by parol evidence. She noted that Roberts attempted to satisfy the obligations of support and caregiving to Rainey, but matters deteriorated to the point where a mutual restraining order was issued between them. The chancellor determined that the deed should be rescinded for failure of consideration, but asked the parties to find the evidence in the transcript of costs paid by Gilbert and to provide the information within ten days.

In a subsequent telephone conference with the parties’ attorneys, the chancellor awarded Gilbert $127 for a ceiling fan that she paid for and installed. She found that Gilbert did not prove that the other improvements came from her personal funds as opposed to the funds of Rainey to which she had access, or that the improvements made enhanced the value of the residence. Therefore, the chancellor rescinded the deed. Gilbert appeals from this order. We affirm.

I. Failure of Consideration

Gilbert first argues that the chancellor erred in determining that the deed was a support deed subject to rescission for failure of consideration. We review chancery decisions de novo on the record and will not reverse unless the chancellor’s findings are clearly erroneous or clearly against the preponderance of the evidence. See Ark. R. Civ. P. 52(a); Jennings v. Buford, 60 Ark. App. 27, 958 S.W.2d 12 (1997). A finding is clearly erroneous if, although there is evidence to support the trial court’s findings, on the entire evidence, we are left with the definite and firm conviction that a mistake has been committed. See Balletti v. Muldoon, 67 Ark. App. 25, 991 S.W.2d 33 (1999); Guess v. Going, 62 Ark. App. 19, 966 S.W.2d 930 (1998). Moreover, we give due regard to the trial court’s judgment regarding the credibility of witnesses. See Ark. R. Civ. P. 52(a); First State Bank v. Phillips, 13 Ark. App. 157, 681 S.W.2d 408 (1984).

Support deeds, by which property is granted in exchange for a promise by the grantee to care for the grantor for life, are valid in Arkansas. See Rose v. Dunn, 284 Ark. 42, 679 S.W.2d 180 (1984). When a deed is executed in consideration of future support and maintenance and the grantee fails to fulfill the provisions of the deed, the grantor may sue at law for damages, or may sue in equity to cancel the deed for failure of consideration. See Wood v. Swift, 244 Ark. 929, 428 S.W.2d 77 (1968); Welch v. Brewer, 267 Ark. 763, 590 S.W.2d 325 (Ark. App. 1979). Evidence of failure of consideration to justify setting aside of a deed must be clear, cogent, and convincing. See Bryant v. Bryant, 239 Ark. 61, 387 S.W.2d 322 (1965).

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Related

First State Bank of Crossett v. Phillips
681 S.W.2d 408 (Court of Appeals of Arkansas, 1984)
Balletti v. Muldoon
991 S.W.2d 633 (Court of Appeals of Arkansas, 1999)
Jennings v. Burford
958 S.W.2d 12 (Court of Appeals of Arkansas, 1997)
Guess v. Going
966 S.W.2d 930 (Court of Appeals of Arkansas, 1998)
Cate v. Irvin
866 S.W.2d 423 (Court of Appeals of Arkansas, 1993)
Rose v. Dunn
679 S.W.2d 180 (Supreme Court of Arkansas, 1984)
Millwee v. Wilburn
640 S.W.2d 813 (Court of Appeals of Arkansas, 1982)
Euin v. Faubus
229 S.W.2d 244 (Supreme Court of Arkansas, 1950)
Bryant v. Bryant
387 S.W.2d 322 (Supreme Court of Arkansas, 1965)
Wood v. Swift
428 S.W.2d 77 (Supreme Court of Arkansas, 1968)
Welch v. Brewer
590 S.W.2d 325 (Court of Appeals of Arkansas, 1979)

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Bluebook (online)
71 S.W.3d 66, 77 Ark. App. 44, 2002 Ark. App. LEXIS 175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilbert-ex-rel-roberts-v-rainey-arkctapp-2002.