Moore v. Moore

Facts

As they grew older, Ps set up a trust that provided for the disposition of three quarter sections of land they owned including farmland and the house they lived in. The trust permitted the surviving spouse to use the house and all of the land. Upon his or her death, the trust assets were to be divided among Ps' four adult children. Steven (D) assisted John in running the family farm and took over more and more of the operation as his parents aged. Jebediah (D) actively participated in the farming business as both a child and an adult. In its final form, the trust directed that upon the deaths of Ps, Steven (D) would receive the quarter section of farmland on which he lived and all the farm equipment. The trust severed Ps' house and about 2 acres of land from the rest of the homestead quarter section and directed that both parcels go to their other children: John W. Moore, Sue Hartter, and Wilma Rainwater. John W., Sue, and Wilma also were to receive the third quarter section of farmland. The trust gave Steven (D) the first right to purchase the farmland from his siblings at a fair market price to be set through an appraisal process. Family members understood the intent behind the trust to be that Steven (D) would continue the farming operation on all the land, thus his first option to purchase any of the farmland his siblings might wish to sell. At some point, Ps signed powers of attorney for their financial affairs and medical directives naming Steven (D) as the successor to whichever of them died first. In early 2014, John, then 81 years old, was dying of pancreatic cancer. Joyce, then 80 years old, had been caring for him at home with the help of a hospice program. On May 16, Joyce was admitted to a local hospital with fever, chills, and nausea; she was diagnosed as having a severe abdominal infection. Later that day, Steven (D) went to see his father and had him sign a contract selling his and Joyce's house and the surrounding 2 acres to Jebediah (D) for $110,000. The contract called for a down payment of $20,000 with the balance to be paid to Ps in monthly installments over 20 years at 2 percent interest. Steven (D) then took the contract to the hospital and had his mother sign it. John died six days later. Steven (D) assumed full control of the farming operation and consistent with the power of attorney began handling Joyce's (P) personal finances in addition to those of the business. Joyce was 'completely devastated,' 'distraught,' and 'grieving' following John's death. Over the next several months, Steven (D) repeatedly told Joyce (P) that she should let Jebediah (D) buy the farmland to preserve the family business and that if she did not, the other children literally could sell the property out from underneath him. On September 9, Ds, and Joyce went to see a lawyer with the firm that had regularly done work for Ps for about 30 years. The firm had advised Ps on business and personal legal matters, including the trust disposing of their land. The lawyer presented Joyce (P) with a contract to sell the remainder of the homestead quarter section and the third quarter section to Jebediah (D) for $292,000. The contract required a down payment of $5,000 with the balance to be paid to Joyce in annual installments over 30 years at 2 percent interest. Steven (D), rather than Joyce (P), had asked the lawyer to prepare the contract. Joyce (P) had not seen the contract before the meeting. And the lawyer did not discuss with Joyce (P) the effect of the sale on the trust. Joyce (P) signed the contract then and there. John W., Sue, and Wilma received no advance notice of the sale. The only remaining trust asset of substantial value was the quarter section of land designated to go to Steven (D). Jebediah (D) bought real estate worth about $1.4 million for $402,000 with nearly 95 percent of the purchase price due in installments through 2044. By agreeing to the installment arrangements, Joyce (P) personally financed the transactions except for the down payments. At trial, about a year later, Joyce (P) specifically claimed that she and John lacked the capacity to enter into the contract for the homestead and she lacked the capacity to sell the farmland. She pressed an alternative claim that the contracts should be set aside because Steven (D) exerted undue influence over John and her after cultivating their confidence that he would look out for their best interests. Ds got the verdict. and Ps appealed claiming the district court incorrectly instructed the jury in a way materially disadvantaging Joyce (P) on her undue influence claims, rendering its verdicts in favor of Ds on that theory deficient.

Issues

Rule of Law

Holding and Decision

Legal Analysis

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