In Re Dissolution of Demoville Partnership

26 So. 3d 366, 2009 WL 1449033
CourtCourt of Appeals of Mississippi
DecidedMay 26, 2009
Docket2007-CA-00141-COA, 2007-CA-00189-COA
StatusPublished

This text of 26 So. 3d 366 (In Re Dissolution of Demoville Partnership) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Dissolution of Demoville Partnership, 26 So. 3d 366, 2009 WL 1449033 (Mich. Ct. App. 2009).

Opinion

ISHEE, J,

for the Court.

¶ 1. The Chancery Court of Chickasaw County consolidated the two cases that arose following the death of Margie Allen DeMoville (Margie Allen): one, case number 2007-CA-00189-COA, concerned the validity of the will of Margie Allen; the other, case number 2007-CA-00141-COA concerned the alleged misappropriation of the assets of Margie Allen and of the DeMoville partnership. 1 The partnership included Margie Allen and her two daughters — Margaret DeMoville (Margaret) and Dixie DeMoville Johnson (Dixie). Following a trial in the chancery court, an impaneled jury found that Margie Allen’s will was invalid and that Margaret was liable to the estate and to the partnership. Thereafter, the chancellor entered a judgment finding Margie Allen’s will to be *369 invalid and ordering Margaret to pay the estate $58,000. The chancellor also found that Margaret was liable to the partnership for $84,448. In a final judgment entered on January 16, 2007, the chancellor denied Margaret’s motion to alter or amend the judgment and ordered her to pay $25,000 in punitive damages and $204,872.72 in attorney’s fees and costs.

¶2. Margaret presently appeals from that judgment and asserts three points of error:

I. The chancellor erred in awarding punitive damages.
II. The chancellor erred in refusing to reimburse her for necessary expenses in caring for her non compos mentis mother.
III. The evidence was insufficient to support the jury’s finding that Margie Allen’s will was invalid because of her lack of testamentary capacity.

Margaret does not appeal the chancellor’s distribution of the partnership assets or the ruling that she received improper gifts from Margie Allen. Finding no error, we affirm.

FACTS AND PROCEDURAL HISTORY

¶ 3. Following the death of Dixie and Margaret’s father, John Q. DeMoville, in 1984, his estate passed to his wife, Margie Allen, and his two children. Margie Allen received fifty percent of his estate, and Dixie and Margaret each received twenty-five percent. A significant portion of the estate consisted of 4,000 acres of farmland, which Margie Allen and her daughters began renting to farmers. Desiring to keep the estate intact, the parties formed a partnership and permitted Margie Allen to operate it. Dixie and Margaret executed a power of attorney granting Margie Allen the authority to manage the estate in their names. Margie Allen died on January 30, 2005, and she was survived by Margaret and Dixie. In her will, Margie Allen left everything in her considerable estate to Margaret.

¶ 4. Believing that Margaret had exerted undue influence over Margie Allen in the execution of the will, Dixie filed suit to have it declared invalid. Dixie also filed a separate suit alleging misappropriation of partnership assets by Margaret. Dixie claimed that Margaret’s influence over their mother led to disproportionate distributions between the sisters.

¶ 5. Under Margie Allen’s administration of the partnership, Dixie and Margaret received distributions of partnership income. Such distributions were made at Margie Allen’s discretion. Dixie admitted that Margie Allen’s distributions to the sisters were initially equal. However, she took issue with discrepancies in gifts that Margie Allen later gave them, feeling that Margie Allen gave a disproportionate amount to Margaret.

¶ 6. Dixie testified that she began to notice problems with her mother’s mental health sometime around 1992 or early 1993. Dixie noticed that Margie Allen would repeatedly ask questions that had already been answered and would become snappy and unreasonable. In contrast to what Dixie described as her mother’s usual steel-trap mind, Margie Allen forgot to pay her life insurance premiums in 1995, which resulted in the insurance company cancel-ling her coverage until Margaret convinced them to reinstate it.

¶ 7. As Margie Allen’s mental health deteriorated, it became increasingly unpleasant for Dixie to travel with her mother. According to Dixie, Margie Allen would become agitated and unreasonable on trips that Margie Allen would take with her daughters. Dixie described three trips in *370 particular — Italy, Hawaii, and a cruise. On the cruise, Margie Allen did not realize where she was, and she even asked a stranger whether he knew where Shannon or Verona, Mississippi were located. Following the cruise in 1998, Margie Allen was hospitalized.

¶ 8. Earlier in April 1998, Margie Allen’s physician had referred her to a specialist in geriatric medicine. Dr. Ken Davis examined Margie Allen and noted that she suffered from short-term memory loss and that she was not aware of the date or month. Based on his examination and testing, Dr. Davis diagnosed Margie Allen with mild dementia of the Alzheimer’s type. He characterized dementia as a loss of memory or a loss of cognitive function. It was November 1998 when Margie Allen was admitted to the hospital where she became, as Dr. Davis described, very disoriented or confused. She was then admitted to the Behavioral Health Center, a psychiatric hospital in Tupelo, Mississippi. In addition to Margie Allen’s dementia, Dr. Davis said that she was experiencing delirium, which he described as confusion and paranoid ideations-a release from reality in which things that are not real seem real. Last, Dr. Davis testified that he did not think Margie Allen was cognitively able to drive safely or to live alone.

¶ 9. Upon her admission to the Behavioral Health Center, Margie Allen was examined by Dr. Morris Alexander. According to the tests administered to Margie Allen upon her admission to the Behavioral Health Center, she was cognitively impaired, with one test indicating that she was severely deficient. Dr. Alexander concluded that she had a significant decline in her ability to think.

¶ 10. Susan Shue, a psychiatric counsel- or at the Behavioral Health Center, testified that she met with Margie Allen, Margaret, and Dixie when Margie Allen was admitted. Shue said that the daughters had told her about Margie Allen’s problems paying her bills, letting her insurance lapse, and getting lost. Shue described Margie Allen as disoriented, defensive, in denial about having difficulties, and confused about where she was. When Margie Allen was discharged, Shue said that Margie Allen should no longer drive and that she needed to be kept under twenty-four-hour supervision.

¶ 11. Dr. Jan Goff, who was admitted to testify as an expert in psychiatry, treated Margie Allen during her stajr at the Behavioral Health Center. He continued to treat her from the time she was admitted in 1998 until August 2004, on an average of every three to six months. His testimony reinforced the prior testimony given by Dr. Alexander. According to Dr. Goff, at the time of Margie Allen’s admission, a patient in her condition would have begun to lose the ability to initiate and engage in matters of judgment and self-care. Dr. Goffs notes from Margie Allen’s visit in August 1999 indicate that he thought she was capable of managing usual household tasks and making judgments concerning simple everyday affairs. However, Dr.

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Bluebook (online)
26 So. 3d 366, 2009 WL 1449033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-dissolution-of-demoville-partnership-missctapp-2009.