Nicholas v. Wright

301 S.W.2d 540, 42 Tenn. App. 241, 1956 Tenn. App. LEXIS 127
CourtCourt of Appeals of Tennessee
DecidedMay 18, 1956
StatusPublished
Cited by6 cases

This text of 301 S.W.2d 540 (Nicholas v. Wright) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nicholas v. Wright, 301 S.W.2d 540, 42 Tenn. App. 241, 1956 Tenn. App. LEXIS 127 (Tenn. Ct. App. 1956).

Opinions

CARNET, J.

Mrs. Katherine C. Prothro and Major General Clifton B. Cates appeal from an order of the Chancery Court of Lake County overruling the exceptions filed by them to the report of Mrs. Louise Lewis Nicholas as guardian of Mrs. Katie L. Wright, now deceased. They contend that Mrs. Nicholas received gifts from Mrs. Wright totaling $136,150 during the period 1947 through 1951 and that said gifts were illegal and therefore that [243]*243Mrs. Nicholas should he required to account for the same. Mrs. Nicholas had not been appointed guardian at the time the gifts were made.

General Cates and Mrs. Prothro are brother and sister and are nephew and niece respectively of Mrs. Katie L. Wright, deceased. Mrs. Louise Nicholas is also a niece of Mrs. Wright and lived in the home with Mrs. Wright as a member of her household since she was about seven years of age and for a period of about forty years prior to the death of Mrs. Wright.

Mrs. Wright owned several thousand acres of very valuable farm land in Lake County, Tennessee, at the time of her death on August 8,1953, at the age of ninety-three years. Mrs. Wright left no children or grandchildren surviving her and her closest relatives were nieces and nephews including the three parties involved on this appeal.

Mrs. Wright’s husband died about 1912 and left considerable farm lands to Mrs. Wright which she managed very successfully and in addition she accumulated additional farm lands and personal property throughout the years. Two sons were born to her, both of whom died over thirty years ago leaving no children.

On January 28, 1953, Mrs. Wright was adjudged mentally incompetent by a jury and Mrs. Nicholas first became temporary guardian and then on April 1, 1953, she was appointed and qualified as regular guardian.

After the death of Mrs. Wright in August, 1953, the guardian filed a petition for approval of a final settlement as such guardian. The appellants, General Cates and Mrs. Prothro, filed exceptions to the approval of this final settlement alleging, in substance, that Mrs. [244]*244Wright had been incompetent for several years prior to her death and before the appointment of a regular guardian; that Mrs. Louise Lewis Nicholas had been living in the home with and managing all of the financial affairs of their aunt, Mrs. Wright, for several years and that Mrs. Louise Lewis Nicholas had received, during the course of this period, illegal gifts in the total amount of $136,150.

The exceptors, General Cates and Mrs. Prothro, contend that even if Mrs. Wright were mentally competent, yet the gifts were void nevertheless because obtained by Mrs. Nicholas at a time when she occupied a confidential relationship with Mrs. Wright.

The gifts received by Mrs. Nicholas which are under attack are as follows:

During the year 1947 a total of $ 19,650.00
During the year 1948 a total of 75,500.00
During the year 1949 a total of 10,000.00
During the year 1951 a total of 31,000.00
Total gifts of cash and bonds $136,150.00

The gift taxes paid by Mrs. Wright on the above gifts to Mrs. Nicholas amounted to $18,041.10.

The exceptors also contend that Mrs. Nicholas received title to two parcels of real estate in Tiptonville which were purchased with funds belonging to Mrs. Wright. The deeds to these parcels of property were made to Mrs. Nicholas who in turn conveyed a life estate to Jim Taylor, the Negro cook who had worked for Mrs. Wright for some forty years, and a life estate in the other to Eugene Hicks, the Negro man who had worked for Mrs. Wright [245]*245during the last eight or nine years as chauffeur, house hoy, etc.

We agree with the insistence of appellants that there was a confidential relationship existing between Mrs. Nicholas and Mrs. Wright. For several years prior to Mrs. Wright’s death Mrs. Nicholas handled a large portion of Mrs. Wright’s business including the receiving and disbursing of money, collection of farm rents and management of farm property. Bayliss v. Williams, 46 Tenn. 440; Miller v. Proctor, 24 Tenn. App. 439, 145 S. W. (2d) 807.

Upon the evidence in the record we concur in the finding of the Chancellor that Mrs. Wright was mentally competent at the time these gifts were made during the period from 1947 through 1951.

Since we have found that the gifts were received by Mrs. Nicholas during the period when she occupied a confidential or trust relationship toward Mrs. Wright, a court of equity must review such transactions with the strictest scrutiny.

From the case of Miller v. Proctor, 1940, 24 Tenn. App. 439, 145 S. W. (2d) 807, at page 811, we quote as follows:

“ (4) The existence of such a relation between two persons does not of course prevent the one who is dependent upon the other from giving him his property; but such relation does raise a presumption of the invalidity of such a gift, and the burden is upon the donee to show by the ‘clearest and most satisfactory evidence to be adduced, that at the time the transaction took place, no advantage whatever was taken, either of the confidential relations exist[246]*246ing in order to obtain a benefit, or of tbe weakness and frailty of tbe party from whom tbe benefit was received.’ Graves v. White,. 4 Baxt. 38, 41, 63 Tenn. 38, 41. In Pomeroy’s Eq. Jnr. it is said: 'Tbe transaction is not necessarily voidable, it may be valid; bnt a presumption of its invalidity arises, wbicb can only be overcome, if at all, by clear evidence of good faitb, of full knowledge and of independent consent and action.’ (Citing many cases.) Vol. 2, sec. 957, pp. 2042, 2043.
“(5) It is beld in many jurisdictions that where a confidential relationship exists tbe donee must show not only that no undue influence was used and tbe gift was under standingly and voluntarily made by the donor, but also that be bad tbe benefit of competent and independent advice of a disinterested third party. See cases cited in annotations, 16 L. R. A., N. S., 1088, 15 Ann. Cas. 1033; 24 Am. Jur. 757.”

This rule has been reannounced in subsequent cases including Roberts v. Chase, 25 Tenn. App. 636, 166 S. W. (2d) 641; Turner v. Leathers, 1950, 191 Tenn. 292, 232 S. W. (2d) 269; Black v. Pettigrew, 1953, 38 Tenn. App. 1, 270 S. W. (2d) 196.

When we review tbe evidence in tbe instant case concerning these gifts wbicb are under attack in tbe light of tbe foregoing* decisions we find tbe following evidence:

Soon after Mrs. Wright became a widow about 1912, her sister, Mrs. Lewis, together with her young daughter, Louise, then aged about seven years, came to make their home with Mrs. Wright. Mrs. Lewis bad little or no money and Mrs. Wright paid all of tbe expenses of [247]*247the household and supported Louise Lewis and her mother. The mother died in 1933 and Louise Lewis continued to live in the home of Mrs. Wright occupying the status of an only daughter until about a year before Mrs. Wright’s death when the household was broken up and Mrs. Wright spent the remaining days in Memphis, Tennessee, in the hospital or in a nursing home. Miss Louise Lewis married a few years before the death of Mrs. Wright but her marriage does not seem to have interrupted her close association with and attention to Mrs.

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Bluebook (online)
301 S.W.2d 540, 42 Tenn. App. 241, 1956 Tenn. App. LEXIS 127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nicholas-v-wright-tennctapp-1956.