Krueger v. Ary

220 P.3d 923, 2007 WL 4336226
CourtColorado Court of Appeals
DecidedMay 27, 2008
Docket06CA2142
StatusPublished
Cited by2 cases

This text of 220 P.3d 923 (Krueger v. Ary) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krueger v. Ary, 220 P.3d 923, 2007 WL 4336226 (Colo. Ct. App. 2008).

Opinion

Opinion by

Judge LOEB.

In this action for the rescission of gifts, plaintiff, Mary K. Krueger, acting as personal representative of the estate of decedent, Iver M. Villa, appeals the judgment entered upon a jury verdict in favor of defendant, Marlyn L. Ary. We affirm.

I. Background

Ary began working for decedent in 1989 as a parttime housekeeper. As decedent's health declined, Ary became more involved with decedent's personal and business affairs. In 2003, Ary became heavily involved in his personal affairs when she became his primary caregiver.

From 2003 until he passed away in 2005, decedent's vision declined, and he needed assistance to identify people, to drive, and to read. Ary provided much of the required assistance as she handled decedent's mail, paid his bills with authority to draw on his checking account, and drove him to meetings with his doctors and lawyers.

In April 2003, decedent conveyed a house and ten acres to himself and Ary in joint tenancy, and in November 2004, decedent gave Ary a check for $5,000 (the subject transfers). The subject transfers are the contested transactions at issue in this case.

Krueger, who is also decedent's daughter and sole surviving child, filed this action shortly after decedent's death in April 2005. She claimed the subject transfers were the result of Ary's breach of her fiduciary duty, fraud, and undue influence. Ary responded that the subject transfers were valid gifts.

At trial, the parties presented conflicting evidence as to whether the subject transfers resulted from a breach of fiduciary duty, fraud, and undue influence. During trial, Krueger tendered jury instructions similar to two pattern instructions on the presumptions of undue influence and unfairness created by evidence showing that parties to a fiduciary or confidential relationship entered a transaction from which the fiduciary benefited. The trial court refused to instruct the jury on these presumptions. The jury returned a verdict in favor of Ary, and this appeal followed.

*925 IL Jury Instructions

Krueger contends the trial court reversibly erred by refusing to instruct the jury on two presumptions regarding the subject transfers. Specifically, she contends the court erred by refusing to instruct the jury that the subject transfers were presumed to be (1) the product of undue influence because Ary and decedent shared a fiduciary or confidential relationship, and Ary actively participated in the creation of the documents under which the transfers were made; and (2) unfair, unjust, and unreasonable because of the confidential relationship between decedent and Ary. We disagree because we conclude these presumptions "disappear" from the case when rebutting evidence is presented.

A. Standard of Review

The trial court has discretion to determine the form and style of the instructions to be given to the jury. We will not overturn a trial court's decision on a jury instruction absent an abuse of discretion. Woznicki v. Musick, 119 P.3d 567, 573 (Colo.App.2005). If the instructions properly inform the jury of the law, no reversible error can be found. Id.

B. Elemental Instructions

Here, on Krueger's claim regarding the transfer of real property, the trial court gave the following elemental instruction:

JURY INSTRUCTION NO. 11
For the plaintiff, Mary K. Krueger as Personal Representative of the Estate of Iver M. Villa decedent, to recover from the defendant, Marlyn L. Ary, on her claim for return of real property conveyed into joint tenancy, you must find all of the following (item 1, item 2a or 2b, and item Sa or 3b) have been proved by a preponderance of the evidence:
1. The decedent, Iver M. Villa, by warranty deed, conveyed real property into joint tenancy between himself and defendant Marlyn Ary;
2. At the time, the decedent and the defendant were either (a) in a confidential relationship in which the defendant was the dominant member of that relationship or (b) in a fiduciary relationship;
3. Either (a) the warranty deed was procured from the decedent by the defendant's exercise of undue influence upon the decedent, or (b) the conveyance was unfair, unjust or unreasonable.
If you find that one or more of these three (8) statements has not been proved, then your verdict must be for the defendant.
On the other hand, if you find that all of these three (8) statements have been proved, then your verdict must be for the plaintiff.

Similarly, on Krueger's claim regarding the $5000 check, the court instructed the jury as follows:

JURY INSTRUCTION NO. 12
For the plaintiff, Mary K. Krueger as Personal Representative of the Estate of Iver M. Villa, decedent, to recover from defendant, Marlyn L. Ary, on her claim for money conveyed by check from decedent to defendant, you must find all of the following (item 1, item 2a or 2b, and item 3a or 3b) have been proved by a preponderance of the evidence:
1. The decedent, Iver M. Villa, conveyed money by check to defendant;
2. At the time, the decedent and the defendant were either (a) in a confidential relationship in which the defendant was the dominant member of that relationship or (b) in a fiduciary relationship;
3. Either (a) the check was procured from the decedent by defendant's exercise of undue influence upon the decedent, or (b) the conveyance was unfair, unjust or unreasonable.
If you find that one or more of these three (8) statements has not been proved, then your verdict must be for the defendant.
On the other hand, if you find that all of these three (8) statements have been proved, then your verdict must be for the plaintiff.

The trial court also gave instructions to the jury defining fiduciary and confidential relationships and undue influence. None of those instructions is challenged on appeal.

*926 C. of Undue Influence

Krueger first contends the trial court erred by refusing to instruct the jury that the subject transfers were presumed to be the product of undue influence if the jury found that Ary was in a fiduciary relationship with decedent and actively participated in preparing the documentation of the transfers. She further contends that, because the jury was not instructed to consider this presumption along with the evidence presented, she was substantially prejudiced by the trial court's error and the judgment should, therefore, be reversed. We disagree, because we conclude the trial court followed the applicable Colorado law, including binding precedent from the supreme court, when it rejected Krueger's tendered jury instruction on the presumption of undue influence.

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Related

Gasteazoro ex rel. Eder v. Colorado
2014 COA 134 (Colorado Court of Appeals, 2014)
Krueger v. Ary
205 P.3d 1150 (Supreme Court of Colorado, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
220 P.3d 923, 2007 WL 4336226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krueger-v-ary-coloctapp-2008.