Kalwitz v. Estate of Kalwitz

822 N.E.2d 274, 2005 Ind. App. LEXIS 213, 2005 WL 351337
CourtIndiana Court of Appeals
DecidedFebruary 15, 2005
Docket46A05-0405-CV-263
StatusPublished
Cited by21 cases

This text of 822 N.E.2d 274 (Kalwitz v. Estate of Kalwitz) 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
Kalwitz v. Estate of Kalwitz, 822 N.E.2d 274, 2005 Ind. App. LEXIS 213, 2005 WL 351337 (Ind. Ct. App. 2005).

Opinion

OPINION

CRONE, Judge.

Case Summary

Obed Kalwitz, Jr. ("Obed, Jr."), Rolene Kalwitz 1 ("Rolene"), Obed Kalwitz, III ("Obed, III"), and Lorene Mohlke ("Mohlke") (collectively, "the Appellants") appeal a judgment imposing a constructive trust on real property in favor of the estate of Obed Kalwitz, Sr. ("Obed, Sr."), and the estate of Helen Kalwitz ("Helen") {collectively, "the Estates" or "the Appel-lees"). We affirm.

Issue

The Appellants challenge the sufficiency of the following two findings:

I. That Obed, Jr. had a confidential or fiduciary relationship with his parents or exercised dominance over them; and
II. That Obed, Jr. and Rolene acted in concert to induce and persuade Obed, Sr. and Helen to convey land to Obed, III and Mohlke.

Facts and Procedural History

The facts most favorable to the judgment 2 are as follows. In 1940, Obed, Sr. *277 married Helen, and four children were born to the marriage: Obed, Jr., Eugene, Sharon Grieger, 3 and Ted. Appellees' App. at 6 (pretrial order, stipulations of parties). Obed, Sr. and Helen raised their children at their home on a 88l-acre farm in La-Porte County. Id. at 67. By the late 1970s, Obed, Sr. and Helen had acquired approximately 271 additional acres of farm land in LaPorte County. Although Obed, Sr. and Helen owned the property, they farmed it as a partnership with their children, sharing in the expenses and profits. Id. Obed, Jr. became the head of the Kal-witz family farm operation and was responsible for the day-to-day operation of the farm. Id.

By 1979, Ted died, and Obed, Jr. and his son, Obed, III, 4 were the family members farming the entire farm. Id. Also that year, Obed, Sr. and Helen went to their family attorney, Thomas Sallwasser, and prepared an estate plan. Id. The plan provided that their 33l-acre farm was to be shared equally by Sharon and Eugene after a life estate in the surviving spouse. Their 27l-acre farm was to be shared equally by Obed, Jr. and Eugene after a life estate in the surviving spouse. This estate plan was embodied in mutual wills, which have been admitted to probate. Id.

Sharon resided with her parents until she married in approximately 1966. She was continuously employed outside the family farm for thirty-two years. Sharon often assisted Helen by providing transportation for errands, appointments, and shopping-particularly after Obed, Sr.'s 1989 death. Eugene lived with his parents until Helen's 1995 death. He too was employed full-time outside the family farm, but assisted in the farming efforts as time permitted.

In the early 1980s, several significant events occurred. Obed, Jr. assumed financial management of the farm, paying bills and assembling tax information. The farm checking account was changed from requiring endorsements by two of the following people, Obed, Sr., Helen, Obed, Jr., and Eugene, to requiring only Obed, Jr.'s signature. Obed, Jr. acquired interests in two parcels of farmland independent of the Kalwitz family; one was a 188 5 acre parcel and the other was a 142 acre parcel, referred to as the Tofte purchase. Tr. at 82. The Kalwitz family attained a farm loan from the Production Credit Association (“PC A”).

In the mid-1980s, Obed, Jr. engaged in discussions concerning his desire for a written contract regarding his role on the farm. Obed, Sr., Helen, Attorney Salwasser, Obed, Jr., and an attorney he retained met to discuss a written management contract. - Ultimately, no agreement was reached. In late October, 1985, PCA sued Obed, Sr., Helen, Eugene, Obed, Jr., and Rolene, alleging that the Kalwitzes were delinquent in the sum of $354,798.78 and seeking foreclosure on the mortgage liens on the 271 acre parcel held in the names of Obed, Sr. and Helen. Obed, Jr. and Rolene undertook the defense of the suit, hiring an attorney, who filed a counterclaim alleging lender fraud. The trial *278 court dismissed <the counterclaim. The Kalwitzes filed an interlocutory appeal, which was dismissed on September 8, 1986.

On November 21, 1986, other acreage owned by Obed, Jr. was recorded in the names of Obed, III and Mohlke, the children of Obed, Jr. and Rolene. On November 26, 1986, title to the 331 acres of land was transferred from Obed, Sr. and Helen to Obed, III and Mohlke. The transfer deeds, which were prepared by Rolene, included a total purchase price of $40.00 for the 331 acres. 6 When questioned by his sister, Sharon, about the transaction, Obed, Jr. explained that he caused title to the 331 acres to be transferred to the names of his children as a temporary measure to protect the property from the PCA litigation, and that he would transfer the property back to Obed, Sr. and Helen at the conclusion of the PCA litigation.

Following the 1986 title transfer, Obed, Jr. and Rolene built a home on the 331 acres where they continue to reside. Obed, Sr. and Helen continued to live on the property for the rest of their lives. Obed, Sr., along with Eugene, undertook maintenance and repairs to the family home until Obed, Sr.'s 1989 death. Thereafter, Eugene continued to reside in the family home and help out as time permitted. He and Sharon assisted Helen. Obed, Jr. continued farming the 381 acres and was the primary operator and manager of the farm.

In June 1994, as Sharon looked on, Obed, Jr. asked Helen to sign certain documents. Helen responded that she would not sign any papers for him "until he gave her property back to her." Tr. at 126. Obed, Jr. replied that he would return title to the property once the litigation brought by PCA had ended.

In April 1995, Helen died. On the day of Helen's funeral, Obed, Jr. placed a locked gate at the entrance to the 831 acres, barring Eugene from returning to his residence. Also on that day, Sharon learned that Obed, Jr. had no intention of returning title to the 381 acres to the Estates. In the fall of 1995, the litigation originally instituted by PCA in 1985 was resolved by mutual dismissal of all pending claims. The Kalwitzes did not have to pay PCA any money, and the recorded mortgage lien held by PCA on the 331 acres was removed.

Further facts and procedural history were outlined as follows in the first published appeal of this dispute:

On October 17, 1995, Helen's Estate filed a "Complaint for Return of 331 Acres" against the [Appellants], seeking an order declaring a constructive trust on the property and to quiet title to the property in Helen's Estate or Helen's beneficiaries. The one-count complaint, which did not expressly identify any theory for the imposition of a constructive trust, alleged that Obed, Sr. and Helen deeded 331 acres to Obed[,] III and [Mohlke] at the request and instruction of Obed, Jr. and his wife, Rolene; that Obed, Jr. and Rolene occupied a position of trust and confidence with Obed, Sr.

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Cite This Page — Counsel Stack

Bluebook (online)
822 N.E.2d 274, 2005 Ind. App. LEXIS 213, 2005 WL 351337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kalwitz-v-estate-of-kalwitz-indctapp-2005.