Mowrer v. Eddie

1999 MT 73, 979 P.2d 156, 294 Mont. 35, 56 State Rptr. 300, 1999 Mont. LEXIS 77
CourtMontana Supreme Court
DecidedApril 9, 1999
DocketNo. 98-647
StatusPublished
Cited by23 cases

This text of 1999 MT 73 (Mowrer v. Eddie) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mowrer v. Eddie, 1999 MT 73, 979 P.2d 156, 294 Mont. 35, 56 State Rptr. 300, 1999 Mont. LEXIS 77 (Mo. 1999).

Opinion

HONORABLE WARNER, District Judge,

delivered the Opinion of the Court.

¶1 This is an appeal from a judgment of the District Court of the Eleventh Judicial District, Flathead County, entered July 24,1998, in favor of Clara Mowrer and against Maurice Eddie and Peggy Eddie, in the amount of $807,582.44, imposing a trust on certain of Eddies’ property, and dismissing their petition to be appointed guardians and conservators of Mowrer. We affirm.

ISSUES

¶2 We restate and address the issues as follows:

¶3 Did the District Court abuse its discretion when it denied appellants Maurice Eddie and Peggy Eddie’s motion to disqualify respondent’s counsel, grant a mistrial, and order new discovery?

¶4 Does Montana or Kansas law apply in determining if transfers of property made in Kansas from Mowrer to the Eddies were the result of undue influence?

¶5 Is the evidence sufficient to sustain the judgment that Mowrer was acting under undue influence exerted upon her by the Eddies when she transferred property to them?

BACKGROUND

¶6 Clara Mowrer was born September 13,1894. She lived in Kansas until August of 1995, when she was brought to Montana by her niece, Peggy Eddie, and her niece’s husband, Maurice Eddie. She has remained in Montana and now lives at a care facility in Kalispell.

¶7 Mowrer fell and broke her hip in June of 1995. She was hospitalized for about two months. The day before she was released from the hospital, Peggy Eddie arrived in Kansas. Maurice Eddie arrived in Kansas shortly thereafter. Mowrer was released from the hospital in late July 1995 and returned home. The Eddies stayed with her in her home.

¶8 On August 5,1995, Mowrer executed a durable power of attorney to the Eddies at her attorney’s office in Kansas. That same day, several of Mower’s bank accounts were closed, and the funds transferred [38]*38to the Eddies. Other assets, including cash and certificates of deposit, were also transferred to the Eddies.

¶9 The Eddies brought Mowrer to Montana in late August of 1995. Before the end of that year, $594,715.00 of Mowrer’s assets had been transferred to Peggy and Maurice Eddie by means of the power of attorney and upon Mowrer’s signature. In addition, in September of 1995, Maurice Eddie received cashier’s checks in the amount of $99,950.00, from certificates of deposit that had been owned by Mowrer.

¶ 10 In the fall of 1995, the Eddies took stock certificates with a value in excess of $300,000.00 from Mowrer’s safety deposit box in Kansas, brought them to Montana, and made arrangements with a broker for the transfer of such stock to themselves on the death of Mowrer. '

¶11 In October of 1995, Maurice Eddie consulted attorney James Johnson, a partner of Gary Christiansen, concerning Mowrer making a new will and filing a gift tax return. Near the end of this meeting Johnson and Maurice Eddie also discussed a possible estate plan for the Eddies. An appointment was made to return to Johnson’s office with Mowrer. That appointment was not kept. Later, the Eddies took Mowrer to an attorney in Kalispell who had previously represented them and their family. This attorney prepared, and Mowrer signed, a new will that left all of her property to the Eddies. This new will excluded her other nieces, nephews, long-time friends, and charitable organizations to which she had bequeathed property in prior wills.

¶12 The Eddies used their power of attorney to spend Mowrer’s money on living expenses and to acquire land, remodel their home, travel, and make gifts to their son and grandson. They also spent some of Mowrer’s funds that are not accounted for.

¶13 During 1995,1996 and until February, 1997, Mowrer lived with the Eddies. She then moved to the BeeHive care facility in Kalispell, where she still lives. On May 16,1997, Mowrer revoked the power of attorney to the Eddies. Her counsel, Gary Christiansen, wrote the Eddies a letter demanding an accounting.

¶14 On June 19,1997, Eddies filed a petition to be appointed guardians and conservators of Mowrer. She responded by resisting the appointment of either a guardian or conservator, and counterclaimed for an accounting. Substantial discovery was undertaken. The trial took seven different days between December 22,1997, and March 10,1998. On July 27,1998, the District Court entered its Findings of Fact, Conclusions of Law and Judgment. The court found that Mowrer was com[39]*39petent, did not need a guardian or conservator, had not made gifts to the Eddies and that the transfers to the Eddies had been the result of duress and undue influence. The court ordered the Eddies to repay $807,582.44 to Mowrer, and imposed a trust on certain real property owned by Eddies to secure the judgment. Eddies’ motion for new trial was denied September 22, 1998, and they appeal from such denial.

DISCUSSION Issue 1.

Did the District Court abuse its discretion when it denied appellants Maurice Eddie and Peggy Eddie’s motion to disqualify respondent’s counsel, grant a mistrial, and order new discovery ?

¶ 15 Eddies first claim that Mowrer’s counsel, Gary R. Christiansen, must be disqualified, the case be remanded for a new trial, and any discovery or other proceedings in which Christiansen participated be declared a nullity, stricken, and not used for any purpose. They assert because Maurice Eddie consulted with Christiansen’s partner James Johnson in October of 1995 about a possible estate plan for themselves, as well as Mowrer’s estate plan and gifts she had made to them, Christiansen had a conflict of interest. Thus, he must be disqualified from representing either side in this action.

¶ 16 Mowrer, acting through counsel Christiansen, called Johnson to testify on the fourth trial day, February 24,1998. Johnson stated that he had represented Mowrer and described his October 11,1995, meeting with Maurice Eddie only as it concerned her.

¶17 Prior to re-commencing the trial on March 4, 1998, Eddies moved for a mistrial on the grounds that a conflict of interest existed requiring that Christiansen be disqualified. The District Court heard the motion, found that Johnson had represented Mowrer and thus no conflict existed, and denied the motion. Eddies petitioned this Court for supervisory control, which petition was ultimately denied as Eddies had an adequate remedy by way of appeal.

¶18 The standard for review of the District Court’s denial of Eddies’ motion for a mistrial is whether the District Court abused its discretion. Garrison v.Averill (1997), 282 Mont. 508, 513, 938 P.2d 702, 705.

¶19 In support of their motion for mistrial, Eddies presented the District Court the affidavit of Professor David J. Patterson who instructs an ethics course at the University of Montana School of Law. Professor Patterson, based on the limited information he was given, was of the opinion that Christiansen should be disqualified from representing Mowrer based on Rules 1.8 and 1.9 of the Montana Rules of [40]*40Professional Conduct, and related provisions of the American Bar Association Model Rules of Professional Responsibility. We do not necessarily disagree with Professor Patterson’s interpretation of these rules, but reach a different conclusion based on an examination of the entire record, not merely the limited facts presented to him.

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Bluebook (online)
1999 MT 73, 979 P.2d 156, 294 Mont. 35, 56 State Rptr. 300, 1999 Mont. LEXIS 77, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mowrer-v-eddie-mont-1999.