VanderWall v. Midkiff

421 N.W.2d 263, 166 Mich. App. 668
CourtMichigan Court of Appeals
DecidedMarch 7, 1988
DocketDocket 89918
StatusPublished
Cited by21 cases

This text of 421 N.W.2d 263 (VanderWall v. Midkiff) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
VanderWall v. Midkiff, 421 N.W.2d 263, 166 Mich. App. 668 (Mich. Ct. App. 1988).

Opinion

Beasley, J.

Plaintiff, Joel VanderWall, as personal representative of the estate of decedent Claude J. Gelderloos, appeals as of right from an order granting defendants’ motions for judgment notwithstanding the verdict and ordering that a new trial be held. Intervening defendants, Kenneth V. and Dorothy E. Ray, cross-appeal, claiming that their status as bona fide purchasers of residential property insulates them from plaintiff’s action. Third-party defendant, Transamerica Title Insurance Company, cross-appeals to ascertain its liability should plaintiff prevail in his claim.

*672 On October 13, 1980, Claude J. Gelderloos died intestate, leaving behind an estate that included numerous bank accounts, the family home, a cottage and a large amount of stock certificates. The next day, his wife of ten years, Zula Gelderloos, died after an extended bout with cancer. Prior to their marriage, Zula had been Gelderloos’ live-in housekeeper. Four of her children from previous marriages, Jean Rowbotham, Jeannette Fenn, Alvias A. Nicholes and Danny Midkiff (now deceased, but by his estate), are defendants in this case. Danny Midkiff lived with Gelderloos and Zula. Even before Gelderloos married Zula, he treated Danny as his own son. He continued to do so after Danny had grown up.

A few months before his death, Gelderloos became ill and was unable to care for himself. Although his mind remained sharp, his physical condition and mobility diminished greatly; signing his name became an arduous task. On or about September 5, 1980, before he resided at a nursing home and while Zula was terminally ill, Gelderloos executed a power of attorney appointing his stepdaughter, defendant Rowbotham, as attorney-in-fact and granting her certain powers. The powers included the authority to (1) withdraw money from or deposit money into any of his several bank accounts and gain access to his safety deposit box, (2) rent, lease, mortgage, sell, repair or occupy his real property, and (3) do any other act which he would have the legal right to perform.

At trial, Rowbotham testified that this actually was the second power of attorney given to her by Gelderloos; she claimed that he had executed an earlier one August 26, 1980, and later, subsequent to trial, produced an instrument purporting to be the earlier power of attorney. She said the first power of attorney was deficient, however, in that it *673 failed to give her the authority to transact business with a certain bank. She claimed that for that reason a second power of attorney was executed. When Rowbotham testified that she could not find the first power of attorney, plaintiffs counsel suggested during cross-examination and closing argument that she was not telling the truth about its existence.

Rowbotham redistributed the contents of several bank accounts which Gelderloos held individually or jointly with Danny Midkiff, Jean VanderWall (his sister) and John VanderWall (his nephew). She deposited the money in several new accounts naming either herself or her two sisters, Fenn and Nicholes, as joint owners with Gelderloos. Rowbotham also transferred to Midkiff title to the family home and cottage. She did this by signing Gelderloos’ name to the deed, although she failed to indicate that she was acting pursuant to a power of attorney. According to Rowbotham, Gelderloos or Zula allegedly directed all of Rowbotham’s acts, which had the effect of dividing his assets approximately equally between his side of the family and Zula’s.

After Gelderloos passed away, his nephew, Joel VanderWall, was appointed personal representative of his estate. While attempting to marshal the assets and administer the estate, VanderWall discovered some of Rowbotham’s acts. He believed those acts were fraudulent and against the wishes of Gelderloos, basing that belief on a statement made by Gelderloos that he had made provisions in writing to take care of Jean and John VanderWall.

On November 4, 1983, VanderWall commenced the instant suit against defendants Rowbotham, Fenn, Nicholes and Judith Midkiff, personal representative of the estate of Danny W. Midkiff (Danny *674 Midkiff died shortly before the suit began) for the return of the money transferred from Gelderloos’ bank accounts and title to the family home received by Midkiff. Kenneth and Dorothy Ray, who purchased the family home from Midkiff without knowledge of the alleged fraudulent conveyance, moved to intervene. On March 27, 1984, the court issued an order pursuant to an agreement between the parties that the estate of Midkiff could use the proceeds from the land contract with the Rays to pay for legal costs and attorney fees incurred in defending this action. On March 29, 1984, the Rays filed a cross-claim against Judith Midkiff, as personal representative of the estate of Danny W. Midkiff, for specific performance of the land contract and for damages resulting from Danny MidkifFs failure to convey marketable title to them upon tender of the full purchase price. Subsequently, pursuant to an agreement between the parties, the court directed the Rays to pay the balance of the land contract price to the clerk of the court, who would hold the money in escrow. Later, Judith Midkiff filed a cross-claim against Rowbotham for damages which might be incurred because of the alleged unauthorized conveyance of the home to Midkiff and for the return of the money held jointly by Gelderloos and Midkiff which Rowbotham had transferred to a different bank account. Midkiff amended her cross-claim to add Transamerica as a third-party defendant, claiming that Danny Midkiff was a third-party beneficiary to a title insurance policy issued by Transamerica to the Rays.

The court severed the Rays’ cross-claim against Judith Midkiff and MidkifFs cross-claim against Transamerica. Those claims are not part of this appeal.

In August, 1985, a jury trial was held to deter *675 mine the principal claims. Plaintiffs theory of the case was that the power of attorney given to Rowbotham was intended only to allow her to pay certain bills and to handle Gelderloos’ personal affairs. Plaintiff alleged that Rowbotham had transferred title to the family home and redistributed the money without authority from Gelderloos. Defendants argued that Rowbotham acted pursuant to Gelderloos’ direction only. Judith Midkiff also claimed that Midkiffs estate was entitled to the return of money held jointly in an account with Gelderloos and that, if the sale of the home was declared invalid, Midkiffs estate was entitled to damages from Rowbotham. The Rays asserted that, as bona fide purchasers of the home, they were entitled to clear title regardless of the outcome of the other claims.

Using a special verdict form agreed to by the parties, the jury found that Rowbotham had not acted under the direction of Gelderloos. Pursuant to that verdict, the court entered a judgment incorporating the jury verdict with remedies agreed upon by the parties. Plaintiff was awarded $55,930.12, the amount transferred from Gelderloos’ individually held bank accounts, plus title to the family home or $45,000. Jean VanderWall was awarded $21,823.58 and John VanderWall $10,051.47, the money held jointly with Gelderloos prior to Rowbotham’s transfers.

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Bluebook (online)
421 N.W.2d 263, 166 Mich. App. 668, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vanderwall-v-midkiff-michctapp-1988.