Nolte v. Wittmaier

977 S.W.2d 52, 1998 Mo. App. LEXIS 1450, 1998 WL 427386
CourtMissouri Court of Appeals
DecidedJuly 28, 1998
Docket72416
StatusPublished
Cited by15 cases

This text of 977 S.W.2d 52 (Nolte v. Wittmaier) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nolte v. Wittmaier, 977 S.W.2d 52, 1998 Mo. App. LEXIS 1450, 1998 WL 427386 (Mo. Ct. App. 1998).

Opinion

GRIMM, Judge.

This case basically involves a suit by two sisters against a third sister 1 . They seek *54 recovery of assets previously owned by their parents which their mother gave the third sister. Following a bench trial, the trial court denied their request.

On appeal, they raise five points. First, they allege the trial court erred in adopting verbatim defendant’s proposed findings, conclusions, and judgment, and then, thereafter, adopting all defendant’s proposed corrections thereto. The next two points allege error in granting a summary judgment against them on Count I, alleging an agreement to make a will. In their fourth point, they allege trial court error in finding on Count II that “there was no legally enforceable partnership agreement among” the parties. Finally, they allege the trial court erred in finding on Count II that defendant did not exercise undue influence on mother. We affirm the trial court’s judgment on Count II and reverse and remand the trial court’s grant of summary judgment on Count I.

I. Background

In the 1960’s, father invented a boat leveling device and he and mother began manufacturing it. In 1966, they formed Boat Leveler Manufacturing Company. Ultimately, father, mother, and two of their sons-in-law, worked in the business. In addition, defendant worked for a time as a secretary.

In 1974, father and mother executed wills. Each will provided that basically all assets were left in trust for the benefit of the survivor during the survivor’s lifetime. Upon the death of the survivor, the trust was to be distributed equally to the three daughters. Further, each will stated that the provisions made for the survivor were in lieu of any homestead allowance or statutory right to maintenance.

Father died in 1979. Plaintiffs testified that in the months before his death, he, mother, daughters, and their husbands discussed tax liabilities, both personal and business. Then, plaintiffs said, within a month of his death, plaintiffs, mother, defendant, and plaintiff Nancy’s 2 husband Bill met at a Howard Johnson’s. Plaintiffs and Bill testified the taxes were discussed and mother asked if the daughters would be willing to relinquish their inheritance for the purpose of paying the IRS. The women said they would.

Plaintiff Judith testified that the three sisters agreed to let my mother use some of the assets out of our estate, and then we were to share in the rest of my mother’s and my father’s estate when she died, a third, a third, a third.” Defendant was supposed to take care of the paperwork for us, [because] she had always done that for my mother and father, and that then she would do it because she was more available.”

Plaintiff Nancy’s testimony was similar. According to her, mother said that “we could divide it all up equally, anything that was left.” She said they agreed that defendant would do the paperwork and that someday after mother died, the three of them would divide everything up equally.

According to Bill, mother said that when the daughters agreed to relinquish their inheritance, she said “that when her time or demise came that she would make sure that each one— what was left in the estate would be divided equally, share and share alike or a third, a third, a third.” He too said that defendant was to take care of the paperwork.

In contrast, defendant testified that she never participated in a conversation at a Howard Johnson’s such as plaintiffs and Bill described. Moreover, she said that she never participated “in a conversation like that anywhere.” Further, several witnesses said that father had established a rule, which the family followed, not to talk business in a public place.

Father’s will was probated. According to his federal estate tax return, his one-half of Boat Leveler’s stock was valued at $813,550. The return shows other assets of about $500,-000. However, father’s estate owed about $350,000 in estate, inheritance, and delinquent income taxes. In addition, his estate *55 owed other sums. Mother owed about $160,-000 delinquent income taxes.

Although father’s will stated that mother should not receive either a homestead allowance or support, mother applied for both. She asked for $53,000 for one year’s living allowance; her daughters gave their written consent to this request. She also requested $7,500 homestead allowance. The court approved both requests, but nothing in the record indicates that father’s estate paid either amount to mother.

Father’s will provided that his estate was to pay his debts. However, it did not have sufficient cash to do so. To raise the necessary funds, mother as executrix of the estate petitioned the court for permission to sell $438,012.50 of Boat Leveler stock to Boat Leveler. The court approved the request in October 1982.

Father’s estate closed in 1983. At that time, final distribution was made to the trustees of the trust established by the will. The distribution consisted of $462.25 and 1166 shares of Boat Leveler valued at $349,800.

In 1983, mother decided to withdraw from the business. In a series of complex transactions, she effectively conveyed the business to the sisters and their husbands. In exchange, mother received a promissory note.

In the fall of 1984, the sisters and their husbands entered into restrictive stock transfer agreements. The agreements provided that if a shareholder’s employment with the corporation was terminated, the corporation had the right to purchase the terminated employee’s shares for “book value.”

In 1986, mother suffered a stroke leaving her with physical disabilities. Although she was disabled, witnesses described her as “a very determined, clear-thinking individual” and one who “was very confident about what she was doing.” Her younger brother said that she was “the boss” even after her stroke and that she “knew exactly what was going on” the last day of her life.

In April 1986, defendant and her husband formed a new corporation, Kay’s Dist., Inc. The purpose of the corporation was to purchase, develop, and distribute marine accessories. Evidence would support a trial court finding that this corporation was in competition with the business mother had sold to the three sisters and their husbands.

In December 1986, mother revoked the 1974 will and executed a new will and a revocable trust. This revocable trust agreement contained provisions for gifts to other relatives, with the remainder divided equally among the sisters. All three sisters were aware of the new will and trust and evidence would support a trial court’s finding that they consented to the changes.

Within the corporations owned by sisters and their husbands, conflicts arose. Apparently without any previous discussion with plaintiffs or their husbands, defendant’s husband sent each of the four a letter on November 15, 1988. Each letter said that the corporations were going to redeem a parties’ shares at a specific price with the sale to close on January 12,1989.

Shareholder meetings of the corporations were held on December 12, 1988. At that time, defendant’s husband said he wanted to either completely own the business or wanted to sell out.

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Bluebook (online)
977 S.W.2d 52, 1998 Mo. App. LEXIS 1450, 1998 WL 427386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nolte-v-wittmaier-moctapp-1998.