Walton v. Davy

586 A.2d 760, 86 Md. App. 275, 1991 Md. App. LEXIS 57
Court of Special Appeals of Maryland·Decided March 1, 1991·No. 719, September Term, 1990·Published·Cited by 11 cases

Opinion

BISHOP, Judge.

Appellant, Charles Walton, personal representative of the estate of Nancy Davy, filed an election on behalf of Nancy Davy to take the surviving spouse’s intestate share of the estate of the decedent’s husband, Myron Davy, pursuant to Md.Est. & Trusts § 3-203(a) Code Ann. (1990). In the alternative, if the court found that the election was barred by Md.Est. & Trusts § 3-204 Code Ann. (1974), appellant filed a claim against the estate of Myron Davy which alleged conflicts of interest by Walter Davy, its personal representative, and Hyman Rubin, Esq., its attorney of record. Following a bench trial, the election and the claim against the estate of Myron Davy were disallowed by the Circuit Court for Montgomery County sitting as the Orphans’ Court for Montgomery County. 1

*279 ISSUES

Appellant presents five issues on appeal which we have re-ordered and consolidated as follows:

I. Whether the attorney for the estate of Myron Davy is a party within the meaning of the Dead Man’s Statute, Md.Cts. & Jud.Proc.Code Ann. § 9-116 (1989);

II. Whether Hyman Rubin’s status as the attorney of record for the estate of Myron Davy, and his prior representation of Walter Davy in a divorce case, amounted to a conflict of interest with the interests of Nancy Davy such that Hyman Rubin’s advice to Nancy Davy concerning her spousal rights would void her election not to file a request for her intestate share and thus permit the court to direct or permit a spousal election by the personal representative of her estate;

III. Whether Walter Davy improperly influenced Nancy Davy not to file a request for her intestate share and thus permit the court to direct or permit a spousal election by the personal representative of her estate; and

IV. Whether there was failure of notice to Nancy Davy of the probate proceedings and, if so, whether such failure of notice will permit the court to direct or permit a spousal election by the personal representative of her estate.

FACTS

Myron and Nancy Davy (Myron and Nancy) died approximately three months apart in 1988. No children were born of their marriage, but each had children from a previous marriage. Myron had two sons, Charles and Walter Davy, and Nancy had one son, Charles Walton. Both Myron and Nancy had considerable personal estates.

At the time of his death on September 13, 1988, Myron left a gross estate valued at almost $2.4 million. Myron’s principal assets were properties located in Washington, D.C. and Virginia, and stock in Boulevard Housing Corporation (BHC), a closely-held corporation of which he was the *280 president. BHC’s principal business was the rental of residential and commercial real estate in Washington, D.C. At the time of Myron’s death, the BHC stock was owned by Myron (263) shares, Nancy (180) shares, Walter (297) shares and Charles Davy (160) shares.

In 1978, Myron and Nancy executed separate wills prepared by attorney Clarence Keiser. Nancy’s will bequeathed her tangible personal property to Myron and the remainder of her estate to her son, Charles Walton, if Myron survived her. If Myron did not survive her, Nancy’s will bequeathed half of her estate to Charles Walton and one quarter each to Myron’s children, Charles and Walter Davy. Charles Walton was nominated to be personal representative. Myron’s will bequeathed approximately half his estate and all his tangible personal property to Nancy, one-fifth of the residuary to Nancy’s son, Charles Walton and two-fifths of the residuary each to Myron’s children, Walter and Charles Davy. Walter Davy was nominated to be personal representative. At the time of the execution of these wills the estimated value of Nancy’s estate was $500,000.00 and the value of Myron’s estate was estimated at $750,000.00.

In 1984, Nancy became ill and permanently bedridden. Nonetheless, she remained mentally alert until her death on December 20, 1988. There was testimony, however, that she became increasingly weak during the last few weeks of her life.

In 1985, Myron executed a new will which was again prepared by Keiser. He bequeathed his properties in Washington, D.C. and his stock in BHC to his son, Walter, his tangible personal property to Nancy, if she survived him, and equal shares of the residuary of his estate to his two sons, Charles and Walter Davy. Walter was again nominated to be personal representative. Keiser also prepared codicils to Walter and Nancy’s wills that created identical trust funds for their servants. Keiser did not inform Nancy about Myron’s new will.

*281 In 1988, Myron executed a second codicil which was prepared by attorney Hyman Rubin. Rubin had done legal work for BHC from 1962 to 1984, and was a family friend on a first name basis with Myron, Nancy and Walter. Most of Rubin’s work for BHC concerned landlord and tenant matters, real property issues and dealings with various departments of the District of Columbia government. Rubin also handled Walter’s divorce during 1981-82. Myron’s second codicil bequeathed to Walter three properties located in McLean, Virginia and all indebtedness due to Myron from BHC.

At Myron’s death, Walter qualified as personal representative and Rubin became the attorney of record for the estate. Walter informed Nancy of the terms of Myron’s 1985 will and 1988 codicil and advised her that she could elect to take one third of Myron’s estate, pursuant to Md.Est. & Trusts Code Ann. § 8-203 (1990), instead of the tangible personal property bequeathed to her under the will. At about the same time, Walter retrieved Nancy’s will from the house safe and learned that she had bequeathed one quarter of her estate to Mm and his brother, Charles. He suggested that she change her will to be more beneficial to her son, Charles Walton. She agreed and asked that Rubin prepare her new will. Her final will created a trust for her servants, bequeathed her BHC stock to Walter and bequeathed the residuary of her estate, both real and personal, to Charles Walton. Rubin reviewed each paragraph of the will with Nancy before she signed it.

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Walton v. Davy, 586 A.2d 760, 86 Md. App. 275, 1991 Md. App. LEXIS 57 (Md. Ct. App. 1991).

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