Matter of Estate of Goins

615 N.E.2d 897, 1993 Ind. App. LEXIS 655, 1993 WL 204817
CourtIndiana Court of Appeals
DecidedJune 16, 1993
Docket48A05-9112-CV-405
StatusPublished
Cited by6 cases

This text of 615 N.E.2d 897 (Matter of Estate of Goins) 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
Matter of Estate of Goins, 615 N.E.2d 897, 1993 Ind. App. LEXIS 655, 1993 WL 204817 (Ind. Ct. App. 1993).

Opinions

BARTEAU, Judge.

Ruthana Goins appeals the refusal of the trial court to set aside quit-claim deeds which she executed at the request of her late husband, Harold Goins, relinquishing all of her ownership interest in property once held by her and Harold as tenants by the entireties. Ruthana claims that the deeds should be set aside on the theory of constructive fraud because her husband exercised undue influence over her. Greg Goins, Harold’s nephew, cross-appeals the trial court’s conclusion that Harold did not make an inter vivos gift to Greg of a certificate of deposit and of a John Deere tractor.

We affirm.

FACTS

Harold and Ruthana Goins were married for thirty-one years before Harold’s death in 1989. after a long struggle with cancer. During his life, Harold was a successful farmer, acquiring over 250 acres of farm property which Harold and Ruthana owned as tenants by the entireties. All of the farming expenses as well as the Goins’ living expenses were paid from joint accounts owned by Harold and Ruthana. Ru-thana was a housewife during the marriage; however, in 1983, she inherited a 95-acre farm from her father, which she managed by herself. Ruthana also successfully managed cash she received from her father as well as income from the farm. She maintained a separate account for the expenses and income from her farm, and did not contribute any income to the joint accounts owned by her and Harold. Harold and Ruthana did not have any children.

In August, 1988, Ruthana executed three quit-claim deeds, relinquishing all of her ownership interest in the 250 acres. One of the deeds transferred some property to G. & C. Goins Farms, Inc., (G. & C.), the farming corporation owned by Greg and his wife Cathy. The other two deeds transferred the remaining acreage to Harold individually. The deeds were prepared by Harold’s attorney at Harold’s request, and were executed in the attorney’s office. About a week after Ruthana executed the deeds, Harold deeded an acre of this property to his neighbor.

Harold died testate in July, 1989, leaving all of his real property to Greg, subject to a life estate in Ruthana. Ruthana was appointed executrix of the estate after Harold’s will was admitted to probate. Several claims were made against the estate by Greg, Irvin Goins, Harold’s brother, and Ruthana. Ameritrust National Bank was eventually named as successor personal representative.

The claims that are relevant to this appeal involve only Ruthana, Greg and the estate. Ruthana’s claim against the estate sought to have only the deeds she executed in favor of Harold rescinded on the basis of constructive fraud and undue influence. She also initiated a separate action for rescission against Greg and G. & C. (collectively “Greg”). These two claims were consolidated. Ruthana also claimed that Greg owed her $125,000.00 on a note executed in Greg’s favor by Ruthana and Harold, and that Greg had converted property of the estate, specifically, a John Deere tractor, a field cultivator, and a backhoe. Ruthana also sought rent from Greg on his use of the equipment.

Greg claimed that he paid off the note when he turned over to Ruthana funds held in a certificate of deposit given to him by Ruthana and Harold. He also claimed that Harold had given him the farm equipment. Greg further claimed the estate owed him for harvesting the crop that had been planted on Harold’s farm before Harold’s death in July. By agreement of the parties, evidence was heard on the claims against the estate as well as the dispute between Ruthana and Greg at the same time.

After entering extensive findings of fact and conclusions of law pursuant to the [899]*899parties’ requests, the court held that 1) Harold did not exercise undue influence over Ruthana in the execution of the deeds; 2) Greg did not own the certificate of deposit; therefore, he still owed Ruthana on the note held by her; 3) Ruthana owned the tractor and Greg owed her rent for his use of the tractor; 4) Harold did not give the backhoe to Greg; 5) the field cultivator was Greg’s; and 6) G & C Farms was not entitled to reimbursement for farming expenses.

The sole issue raised by Ruthana is:

I. Whether the trial court’s conclusion that Harold did not unduly influence Ru-thana is contrary to law.

Restated, the issues raised by Greg on cross-appeal are:

I. Whether the trial court erred in finding that the certificate of deposit did not belong to Greg and that Greg owed Ru-thana on the note; and

II. Whether the trial court erred in finding that Harold did not make a completed inter vivos gift to Greg of the John Deere Tractor and that Greg must pay Ruthana rent for using the tractor after Harold’s death.

DISCUSSION

Here, the trial court entered specific findings of fact and conclusions of law pursuant to the parties’ requests. We are therefore governed by the following standard of review: First, we must determine whether the evidence supports the findings. Second, we must determine whether the findings support the judgment. The judgment will be affirmed if we conclude that the special findings support the judgment and are not clearly erroneous. A judgment is clearly erroneous where a review of the record leaves us with a firm conviction that a mistake has been made. South Bend Carpetland U.S.A. v. Sandock (1991), Ind.App., 570 N.E.2d 123, reh’g denied, trans. denied.

DEEDS

Ruthana seeks to have the deeds she executed in favor of Harold set aside on the basis of constructive fraud. She argues that Harold procured her signature on the deeds by exercising undue influence over her. She argues that once she proved at trial that she and Harold were married and that Harold was the dominant party in their relationship, a rebuttable presumption of undue influence arose. The burden then shifted to the defendants (Harold’s estate and Greg) to rebut the presumption by clear and convincing evidence to the contrary. She argues that defendants failed to meet this burden.

It is well-settled in Indiana that transactions involving parties to certain legal and domestic relationships give rise to a rebut-table presumption that the transaction was constructively fraudulent “upon a showing that the transaction resulted in an advantage to the dominant person in whom trust and confidence was reposed by the subordinate.” Lucas v. Frazee (1984), Ind.App., 471 N.E.2d 1163, 1167. See also Womack v. Womack (1992), Ind.App., 605 N.E.2d 221, reh’g denied; Bedree v. Bedree (1988), Ind.App., 528 N.E.2d 1128, reh’g denied; McClamroch v. McClamroch (1985), Ind. App., 476 N.E.2d 514, reh’g denied, trans. denied. Among the relationships often cited as giving rise to such a presumption are attorney and client, guardian and ward, principal and agent, pastor and parishioner, husband and wife, parent and child. Lucas, 471 N.E.2d at 1167. The law presumes that the first party, i.e., the attorney, guardian, principal, etc., is the dominant and the other is the subordinate. Womack, 605 N.E.2d at 224.

In Womack,

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Matter of Estate of Goins
615 N.E.2d 897 (Indiana Court of Appeals, 1993)

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615 N.E.2d 897, 1993 Ind. App. LEXIS 655, 1993 WL 204817, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-estate-of-goins-indctapp-1993.