Leary v. Anderson

CourtCourt of Appeals of North Carolina
DecidedOctober 19, 2021
Docket21-230
StatusPublished

This text of Leary v. Anderson (Leary v. Anderson) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leary v. Anderson, (N.C. Ct. App. 2021).

Opinion

IN THE COURT OF APPEALS OF NORTH CAROLINA

2021-NCCOA-560

No. COA21-230

Filed 19 October 2021

Mecklenburg County, No. 19 CVS 19930

MARY LEARY, by and through her Power of Attorney William Leary; WILLIAM LEARY, and ROBERT McCLINTON, Plaintiffs,

v.

RITA ANDERSON and GOKAM PROPERTIES LLC, Defendants.

Appeal by plaintiffs from order entered 7 October 2020 by Judge Carla N.

Archie in Mecklenburg County Superior Court. Heard in the Court of Appeals 7

September 2021.

Justice in Action Law Center, by Alesha S. Brown, for plaintiffs-appellants.

Offit Kurman, P.A., by Robert B. McNeill and Alexandra M. Edge, for defendant-appellee Gokam Properties LLC.

TYSON, Judge.

¶1 Mary Leary, by and through her attorney-in-fact William Leary, with William

Leary and Robert McClinton, individually (together, “Plaintiffs”), appeal from a

superior court’s order granting summary judgment in favor of Gokam Properties,

LLC” (“Gokam Properties”) regarding its acquisition of property from Rita Anderson

(“Anderson”) under a power of attorney, (together, “Defendants”). The superior court

granted summary judgment and dismissed all claims against Gokam Properties and LEARY V. ANDERSON

Opinion of the Court

dismissed Plaintiffs’ lis pendens. Plaintiffs timely appealed.

I. Background

A. The Home

¶2 Mary Leary (Mrs. Leary) and Will Leary purchased property located at 1418

Russell Avenue, Charlotte, North Carolina (“the home”) as tenants by the entirety in

June 1963. Will Leary died in 2001, and Mrs. Leary acquired full title to the home

by right to survivorship. Mrs. Leary continued to occupy the home as the sole owner

until January 2017. Gokam Properties acquired the home on 20 September 2019

from Anderson under acting as Mrs. Leary’s limited power of attorney to sell real

estate.

B. Rita Anderson’s Purported Durable Power of Attorney

¶3 Mrs. Leary was 87 years old in January 2017 when this case arose. Rita

Anderson moved her mother, Mrs. Leary, into her own home in January 2017. Mrs.

Leary purportedly executed a durable power of attorney (“DPA”) before a notary on

11 January 2017 for Anderson. The purported DPA appointed Anderson as Mrs.

Leary’s agent and empowered Anderson to act on behalf of her mother.

¶4 The purported DPA was not filed with the Mecklenburg County Register of

Deeds until 21 October 2019, roughly one month after Mrs. Leary’s home was

conveyed to Gokam Properties on 20 September 2019 and 11 days after this lawsuit

was filed. LEARY V. ANDERSON

C. Mary Leary’s Capacity

¶5 On 12 January 2017, Anderson accompanied Mrs. Leary, who presented for a

doctor’s visit with Michelle L. Foster, M.D. The medical records specifically state,

“her [Mrs. Leary’s] daughter [Anderson] is seeking power of attorney and

guardianship asthma (sic) some areas no longer able to make informed decisions,”

and “[t]oday I did advise her daughter that she cannot stand alone and I do suggest

that she obtain power of attorney to handle all of her affairs.” Dr. Foster further

wrote “I am asking that her daughter (Rita Leary Anderson) assume power of

attorney for Ms. Leary.”

¶6 Dr. Foster stated the following concerning Mrs. Leary’s condition: (1) “past

medical history significant for coronary artery disease, hypertension, hyperlipidemia,

increase in memory loss and some mild dementia as well as worsening weakness and

weight loss;” (2) “[s]he also has had worsening vision and increasing memory loss and

worsening dementia;” (3) “[s]he still has limited judgment and insight secondary to

her mild dementia;” (4) “Dementia: Appears to be worsening;” and (5) “Mary Leary is

under my care for multiple medical problems including dementia, anemia,

hypertension and increasing cognitive difficulty secondary to dementia.”

¶7 William Leary recorded a general power of attorney (“POA”) from Mrs. Leary

giving him authority to conduct real property transactions, estate transactions and

other responsibilities less than five months later on 7 May 2017. William Leary avers LEARY V. ANDERSON

in his sworn affidavit he was granted a DPA at that time.

D. Incompetency Hearing

¶8 A hearing was held in a special proceeding, In the Matter of Mary Alice Wilson

Leary before the clerk of superior court in file number 18-SP-1559, to determine Mrs.

Leary’s competency and her ability to function on her own on 8 June 2018. Mrs. Leary

was 89 years old by the time of the hearing.

¶9 During the 8 June 2018 hearing, the guardian ad litem (“GAL”), Attorney

Fatina Lorick, issued a report, which noted:

I spoke with Respondent about her home, and the fact that her sons lived in the home. Respondent expressed a desire to allow them to remain in her home. She also emphasized th[at] she took pride in her home, and that she and her late husband worked hard to obtain and maintain her home. ....

Based upon my investigations, I believe that it is in (sic) [Mrs. Leary] has some competency but requires assistance. I have concerns regarding the validity of [Anderson’s] Power of Attorney and whether or (sic) [Mrs. Leary] had an adequate level of competency when she executed the document.

¶ 10 At the June 2018 hearing, the court found Mrs. Leary was “incompetent to a

limited extent” and could “understand[] conversation and communicate[] personal

needs,” “make and communicate decisions about residential options,” “demonstrates

willingness to vote and can acquire information accordingly,” as well as had capacity

to determine her social and religious involvement. The court ordered Mrs. Leary had LEARY V. ANDERSON

“final say for her living arrangements.” Mrs. Leary as declared incompetent to make

legal decisions or to execute legal documents at that hearing, and “if M. Anderson

[was]unable to be bonded and qualify within 90 days of this order, atty (sic) to be

appointed GOE [Guardian of the Estate].” Anderson failed to qualify as Mrs. Leary’s

guardian.

E. Selling the Home

¶ 11 Over a year later, Anderson signed Mrs. Leary’s name on a Limited Power of

Attorney to Sell Real Estate on 6 September 2019. Based upon this purported

Limited Power of Attorney to Sell Real Estate Mrs. Leary’s home was sold and deeded

to Gokam Properties on 20 September 2019.

¶ 12 Anderson knew Plaintiffs were residing in their mother’s home, but Anderson

did not tell Plaintiffs of the sale until 23 September 2019. Anderson purportedly told

an agent of Gokam Properties not to notify Plaintiffs of the sale until after it was

completed. A representative of Gokam Properties met William Leary and Robert

McClinton at the home and offered each of them $300.00 if they would move out in

two days.

¶ 13 Anderson did not place the proceeds of sale into an account for the benefit of

Mrs. Leary. Instead, she contacted her brother, Robert McClinton to divide the

proceeds between them, offering him $20,000.00 and she would keep the remaining

$75,000.00 in proceeds. LEARY V. ANDERSON

F. Trial Court Proceedings

¶ 14 Plaintiffs filed this instant lawsuit on 10 October 2019 to challenge the

conveyance of the home. Defendants subsequently answered. On 9 December 2019,

a hearing was held in 18-SP-1559 to modify Mrs. Leary’s guardianship. In the GAL

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Leary v. Anderson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leary-v-anderson-ncctapp-2021.