Stacy v. Burke

269 A.2d 837, 259 Md. 390
CourtCourt of Appeals of Maryland
DecidedNovember 12, 1970
Docket[No. 55, September Term, 1970.]
StatusPublished
Cited by34 cases

This text of 269 A.2d 837 (Stacy v. Burke) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stacy v. Burke, 269 A.2d 837, 259 Md. 390 (Md. 1970).

Opinion

Barnes, J.,

delivered the opinion of the Court.

The two principal questions in this appeal are whether the Circuit Court for Montgomery County (Shook, J.) in a suit by a decedent’s executor to declare a constructive trust on certain property of the decedent in the hands of the appellant erred (1) in declining to admit two documents signed by the decedent in regard to alleged gifts of the property and (2) in withdrawing its original order ruling for the defendant and entering a second order ruling for the plaintiff, executor, after the plaintiff (appellee) had already filed an appeal to this Court from the initial order.

The basic facts are substantially undisputed. Erie Edwards Stacy, the decedent (Uncle Erie) died on January 23, 1969, at the age of 88 in a nursing home in Wheaton, Maryland. He was a widower at the time of his death. He had no children. His only surviving heirs were a brother and the children of a deceased brother Arthur Stacy. The appellant, Erie M. Stacy (Nephew Erie), who was the defendant below, was one of the children of the *392 deceased brother Arthur and was named for his Uncle Erie.

Uncle Erie was an educated person who had graduated from William and Mary College in 1901. He became a professor of mathematics at William and Mary College and at the University of Texas.

There was a close business relationship between Uncle Erie and his brother Arthur. Uncle Erie had founded a plumbing, heating and roofing contracting business in Washington, D. C. in 1907. He operated it himself until 1921 when his brother Arthur joined him as a partner. Together they operated the business until 1932 when Arthur bought out his brother’s interest in the business. Uncle Erie, however, never lost interest in the business; and whenever Nephew Erie, who was employed in the business, visited his Uncle Erie, he always inquired about collections and other relevant business matters. After Nephew Erie acquired and operated the business, Uncle Erie’s interest in it continued. The relationship between Uncle Erie and his Nephew Erie was a close one and Uncle Erie was interested in his nephew’s progress and welfare.

Uncle Erie’s wife, Bertha, died on January 4, 1967, leaving him alone in their home in Arlington, Virginia. Nephew Erie obtained a housekeeper for his uncle; but after four months, Uncle Erie desired to move to Maryland and thereafter did move to Montgomery County to a nursing home where he could be close to Nephew Erie and his family as well as to his brother William. The Arlington house was closed and remained vacant for approximately one year.

Thomas F. Burke was a co-executor and a co-trustee with his Uncle Erie under Bertha’s will. Shortly after Bertha’s death on January 4,1967, Thomas F. Burke, who had represented Uncle Erie from time to time, met Uncle Erie and Nephew Erie at the Riggs National Bank in Washington, D. C., where Uncle Erie and his wife had their bank accounts, and assisted in obtaining a power of attorney for Nephew Erie so that he could draw funds from Uncle Erie’s account to pay bills. On February 22, *393 1967, Uncle Erie executed a general power of attorney with broad powers. This general power of attorney was duly witnessed by a notary public who took Uncle Erie’s acknowledgement of the power of attorney.

On April 5, 1967, when Uncle Erie moved to Montgomery County, he signed a letter offered in evidence by Nephew Erie, but not admitted into evidence by the trial court. The letter read as follows:

“April 5,1967
“Dear Erie:
“Along the lines of our previous discussion, please place the proceeds from the sale of my home in Arlington in one or more joint savings accounts, using my name and yours.
“I intend that you have full ownership of these funds should I predecease you and that they shall not in any way be considered as a part of my estate.
“I truly appreciate all of the time and effort you are devoting to help get my affairs in order.
“Affectionately yours,
,/s/ Uncle Erie /s/ Erie E. Stacy”

After the Arlington house was sold but prior to the settlement and distribution of the proceeds of sale, Uncle Erie, on December 6, 1967, signed a document which read as follows:

“December 6,1967
“TO WHOM IT MAY CONCERN :
“I have asked my nephew, Erie M. Stacy, to write these instructions for my signature so that he may act legally in conducting my business and financial affairs; while acting under the General Powers of Attorney I previously gave to him:
“1. In keeping with our prior understanding I have agreed that he should pay to himself forty *394 dollars ($40.00) per month for his services to me.
“2. I want the money from the sale of my Arlington house in his name alone. It is my wish that he have these funds.
“3. I have instructed him to purchase shares in the B. F. Saul Co. Investment Trust. The shares to be purchased from the proceeds from principal payments of first trust notes that I own. These shares are to be made out in our joint names, with the right of survivorship.
“4. These instructions have been discussed with my nephew and have been carefully read by me. Accordingly I sign my name.
/s/ Erie Edwards Stacy”

This document was offered in evidence by Nephew Erie but was not admitted by the lower court into evidence.

It was stipulated that the signatures of Uncle Erie on the letter of April 5, 1967, and the document of December 6, 1967, were genuine—and written by Uncle Erie. The evidence indicates that Uncle Erie was mentally alert during all times relevant in the present case and there is no contention that he was mentally incompetent at such times.

Beginning December 7, 1967, Nephew Erie drew checks through September 10, 1968, on Uncle Erie’s account in-a total amount of $23,944.93 payable to B. F. Saul Company for the purchase of B. F. Saul Real Estate Invest-ment Trust shares of stock registered in the joint names of Uncle Erie and Nephew Erie as joint tenants with the right of survivorship.

On March 15 and 20, 1968, Nephew Erie drew checks on Uncle Erie’s account in a total amount of $25,480.00 which was deposited in the name of Nephew Erie alone or in the joint names of Nephew Erie and his wife Virginia. These funds were the proceeds from the sale of the Virginia house of Uncle Erie.

Two checks for $1,926.00 and for $2,000.00 were drawn *395 by Nephew Erie to A. A. Stacy & Son, Inc. on June 14, 1967, and August 22, 1968, respectively, as loans to that corporation. The $1,926.00 loan has been repaid by the corporation; the $2,000.00 loan was unpaid at the time of the hearing and was due and owing to the executor of Uncle Erie’s estate.

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Bluebook (online)
269 A.2d 837, 259 Md. 390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stacy-v-burke-md-1970.