Brecht v. Schramm
| Decision Date | 05 May 1978 |
| Docket Number | No. 47519,47519 |
| Citation | 266 N.W.2d 514 |
| Parties | Minnie BRECHT, Respondent, v. Viona SCHRAMM, Appellant. |
| Court | Minnesota Supreme Court |
Syllabus by the Court
On the facts of this case, the trial court's rescission of a deed and a written agreement between the parties was justified by the mutual misunderstanding as to the effect of the agreement. In order to avoid an inequitable result with respect to appellant, it is necessary to grant an additur in the amount of $4,500.
John E. Mack, New London, for appellant.
Smith, Hendricksen & Theis, Glencoe, for respondent.
Heard before PETERSON, KELLY, and IRVINE, JJ., and considered and decided by the court en banc.
*
Plaintiff, Minnie Brecht, and defendant, Viona Schramm, were aunt and niece, respectively. Minnie and her husband, Adolph, were childless. In 1964, Adolph's eyesight was failing badly, and Viona, at Minnie's request, began to furnish transportation to Minnie and Adolph, taking them shopping and to church. When Adolph died in May 1965, Viona made most of the funeral arrangements, and thereafter, she continued to run errands for Minnie and to furnish transportation for her. She also visited Minnie, sometimes at Minnie's request. Viona's testimony is conflicting as to whether or not she expected to be paid for these services. 1
Early in 1971, a change took place in the situation between the two women. In November 1970, Minnie had been found unconscious in her home and had been taken to the hospital in Glencoe. In January 1971, she was moved to the Glenhaven Rest Home (Glenhaven), also in Glencoe. An administrator at Glenhaven suggested that it would be well for Viona to secure a power of attorney from Minnie so that Glenhaven would be certain of being paid. Viona discussed this with Minnie, who sent her to Hubert G. Smith, an attorney in Glencoe, to have such a document drafted. Minnie signed the document on January 22, 1971. 2
After receiving the power of attorney, Viona almost completely took over the handling of Minnie's business and personal affairs. Minnie had savings accounts or certificates of deposit in banks and savings institutions in Glencoe and Hutchinson. She also kept an undetermined amount of cash in a strongbox at home. Viona used the cash and drew on the bank accounts as necessary to pay Minnie's bills. She also cashed Minnie's social security checks.
Minnie continued to have health problems, and she divided her time between her home in Glencoe, the hospital, and Glenhaven until February 1973. At that time, she entered the Golden Age Rest Home, also located in Glencoe, where she remained until March 1, 1975. During this time, Viona either visited Minnie or checked on her three or four times per week. Using her power of attorney, Viona paid the charges at the hospital and at the rest homes, the final cost at Golden Age Rest Home being $325 per month for room, board, and incidentals. Viona also looked after Minnie's house and either did the work herself or hired someone else to do it.
Viona apparently first indicated to Minnie in August 1971, that she would like to be compensated for her services. Minnie told Viona to "go to Smith and have something drawn up," which Viona did. Mr. Smith composed a document, in the form of a letter from Minnie to Viona, in which Minnie acknowledged that Viona had performed services for her since 1964 and assured Viona that she would be paid for her services from Minnie's estate. Minnie also requested that Viona continue to act as her business agent and to furnish transportation for her, payment for which would also come from Minnie's estate. The letter was dated August 27, 1971, and was signed by Minnie in the presence of a witness. In November 1971, Viona took Minnie to the law office of Smith and Hendricksen in Glencoe, where a new will was drafted for Minnie. The will supposedly made provision for Viona in accordance with the letter of August 27, 1971, although at the time of trial the will could not be found.
In August 1973, Viona, who said she was "getting poor" taking care of Minnie's house, took $1,500 of Minnie's funds for herself with the consent of Minnie and one of Minnie's attorneys, Harald Hendricksen. Mr. Hendricksen also authorized Viona to have a new roof put on Minnie's house, to have it painted, and to make other repairs.
In 1974, Minnie began to be very unhappy with the Golden Age Rest Home, and she asked Viona to take her out of there. Viona suggested several other rest homes in various locations, including Glenhaven, however, none of these was satisfactory to Minnie. After several months of being importuned by Minnie, Viona finally suggested that Minnie come to the farm home 8 miles from Glencoe which was shared by Viona, her husband, and her mother. This suggestion was acceptable to Minnie. Viona said she wanted to be paid for room and board and, according to Viona, Minnie offered to pay her $1,000 a month if she would only get her out of the rest home.
On March 1, 1975, Minnie left the Golden Age Rest Home and went to live with Viona. Viona testified that she actually charged Minnie $600 per month for room and board. Shortly after arriving at the Schramm home, Minnie started talking about selling her house. Viona testified that she "jokingly" had suggested that Minnie give her the house "in payment of my work." After considering and discarding the possibility of placing the house in the names of both of them, Minnie finally agreed to give the house to Viona.
Soon thereafter, Viona went to see her attorney, Arnold Beneke. Mr. Beneke drafted a deed conveying Minnie's house in Glencoe to Viona. He also drafted an agreement which recited the conveyance to Viona of Minnie's house having a value of $15,800 and that services were rendered in the past by Viona to Minnie. The agreement further stated:
Both the deed and the agreement were dated April 16, 1975. They were taken to the Schramm home on that date by Doris Heil, Mr. Beneke's secretary. Mrs. Heil testified that she first handed the agreement to Minnie, who read and signed it, and then the deed, which Minnie also signed. The only discussion that took place concerned the value of the house, which Minnie thought was much too low. Both Mrs. Heil and Viona explained to her that the figure was taken from the tax statement. 3 Minnie never talked to Mr. Beneke or to her own attorney about the documents before signing them.
Minnie seemed to be reasonably happy in Viona's home until about July 3, 1975, when Viona suggested that perhaps Minnie should pay for room and board. This offended Minnie, who thought that the gift of her house was sufficient payment for both past and future services. Viona backed off immediately and agreed to furnish room and board, but Minnie would not be placated and she called her grandniece, Eldonna Soeffker, who took Minnie to her home on July 5, 1975. Minnie immediately revoked Viona's power of attorney and on August 20, 1975, she commenced this lawsuit. At the time of trial, Minnie was 79 years old.
In her complaint, Minnie alleged undue influence; her own mental incompetence at the time of executing the agreement of April 16, 1975; lack of consideration for that agreement; fraud on the part of Viona; and failure of Viona to account for funds belonging to Minnie. She sought an accounting from Viona; damages for all amounts for which Viona could not account; an order rescinding the agreement of April 16, 1975, and cancelling the deed of that date or, in the alternative, an order requiring Viona to convey to Minnie a life estate in the house. Viona interposed an answer and a counterclaim in which she requested that Minnie be required to carry out the terms of the agreement of April 16, 1975, or, in the alternative, that Minnie be required to pay Viona $33,000, the value of Viona's services.
Because of later developments, dates become important. The case was tried to the court without a jury, commencing on December 2, and ending on December 4, 1975. Briefs were to be filed by December 22, but the clerk's file indicates that briefs were still being filed in February 1976. On March 26, 1976, the trial judge filed his findings of fact, conclusions of law, and order for judgment, dated March 23, 1976. There was no stay of entry of judgment, and judgment was entered on March 26, 1976.
The trial court found, inter alia:
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