Gallagher v. Taylor

• Decision Date: 28 March 1989
• Docket Number: No. 88-P-20,88-P-20
• Citation: 26 Mass.App.Ct. 876,534 N.E.2d 14
• Parties: John E. GALLAGHER v. A. Leavitt TAYLOR, executor, et al. 1
• Court: Appeals Court of Massachusetts

Page 14

534 N.E.2d 14

26 Mass.App.Ct. 876

John E. GALLAGHER v. A. Leavitt TAYLOR, executor, et al. ¹

No. 88-P-20.

Appeals Court of Massachusetts,

Suffolk.

Argued Jan. 10, 1989.

Decided Feb. 15, 1989.

Further Appellate Review Denied March 28, 1989.

Robert M. Novack (Robert Michael Murray, Fall River, with him), for Richard P. Desharnais.

Gerald B. Gallagher, Acton, for plaintiff.

Before GREANEY, C.J., and ARMSTRONG and KASS, JJ.

GREANEY, Chief Justice.

The plaintiff, a legatee under the will of Edith R. Hartnett, brought this action in a Probate Court against the executor of the will and the other legatees named therein. See note 1. The amended complaint sought to determine ownership of certificates representing shares of the common stock of the Gillette Safety Razor Company (Gillette), which at the time of Hartnett's death stood in the names of Hartnett and the defendant Richard P. Desharnais as joint tenants with the right of survivorship. A judge of the Probate Court heard the case and entered "Findings of Fact and Conclusions of Law." She determined that the stock certificates and the dividends on the stock received after Hartnett's death by Desharnais were the property of the estate. A judgment to that effect (with other provisions which are not in issue on appeal) was entered. Desharnais has appealed from the judgment, and the plaintiff has appealed from the allowance of a motion by Desharnais to amend his answer. We affirm the judgment.

The judge's findings include the following facts. In June of 1970, Desharnais, a member of the congregation of the Holy Cross Fathers, began to administer spiritually to Hartnett who had been his longtime friend and benefactor. Thereafter, Desharnais established a relationship of trust with Hartnett, and he began to help her with her financial affairs. In 1973, Desharnais was given a power of attorney, which had been prepared by Hartnett's attorney, the defendant Taylor, so that Desharnais could write checks for certain of Hartnett's bills. This power of attorney also gave Desharnais access to Hartnett's safe deposit box. At this time, Hartnett was eighty-three years old and in failing health. Desharnais was forty-three years old.

Between November, 1973, and the spring of 1974, title to certain of Hartnett's bank accounts was placed in the names of Hartnett and Desharnais as joint owners. This was done to facilitate Desharnais's management of Hartnett's financial affairs.

Desharnais retained possession of the bank books, with the understanding that the money was still Hartnett's money, that she could have her money upon request, and that he was merely "doing errand[s] for her." He knew that he had no interest in the bank accounts even though they were held in joint names. Desharnais made withdrawals from the accounts as Hartnett requested.

About this time, Hartnett, Desharnais, and Taylor had discussions about 1,200 shares of Gillette common stock which Hartnett owned individually. ² On July 19, 1974, Taylor, Hartnett, and Desharnais talked about a contemplated change in ownership of the stock to joint names. At this meeting, Taylor explained the legal significance of joint ownership, indicating that the signatures of both parties would be required to effect any future transfer of the stock. Desharnais stated that he would do whatever Hartnett wished relative to the certificate, including having his name removed from the certificate if she so requested. Under these conditions, title to the stock was changed. Based on the conversations that took place at the time of the transfer, and the arrangement with the bank books, the judge inferred that the parties understood that Hartnett did not intend to give up control of the stock, that she could always change the title to the stock, and that Desharnais would agree to any change.

Hartnett, Taylor, and Desharnais went to the bank where the safe deposit box which contained the stock certificate was located. Taylor went downstairs to the vault and obtained the certificate. Some time later, Desharnais returned the certificate, which had been changed to reflect the joint ownership of Hartnett and Desharnais to Hartnett's safe deposit box where it remained until Hartnett's death. Desharnais testified that he had been given a key to Hartnett's safe deposit box for her convenience so that he could store or remove articles upon her request. It was in this context that Desharnais put the stock certificate back into the safe deposit box. Dividends on the stock were received and cashed by Hartnett alone until her death.

Desharnais continued to assist Hartnett with her affairs until June, 1976, when, pursuant to a telephone request relayed to Desharnais by a friend, he returned to her two bank books along with a letter dated June 3, 1976. In that letter, Desharnais requested, in strong language, that Hartnett refrain from making contact with him (as her last attempts to do so had caused him embarrassment), and that she "take [his] name off of [her] will and ... whatever other consideration [she] had in mind." ³ Desharnais also stated that he had no interest in any of her funds and that he would communicate with Taylor to "confirm this observation and make it factual." Desharnais, however, did not make contact with Taylor during Hartnett's lifetime concerning the matter. Further, Desharnais stated that Hartnett was to consider his letter as "an absolutely final note" because he could not suffer the loss of peace of mind attendant to helping her. ⁴ Shortly thereafter, Desharnais called Hartnett to verify that she had received the bank books. At the time of this letter, Hartnett, who had a heart ailment and poor vision, had annoyed Desharnais by her persistent telephone calls to him. The only other communication between the two thereafter was Hartnett's telephone call to Desharnais to extend Easter greetings in 1977. In that call there was no discussion of the stock. Hartnett died on September 2, 1979.

Desharnais made a demand upon Taylor, as executor of Hartnett's estate, for delivery of the stock certificate. After an exchange of correspondence, Taylor sent to Desharnais a copy of a letter addressed to him (Taylor), the original of which had been signed by Hartnett on January 27, 1977. In this letter, Hartnett communicated her wish that the stock certificate be reissued in her name alone. She further stated in the letter that the certificate had been placed in joint names in 1974 solely "as a matter of convenience to me and with no intent on my part that Father Desharnais should be the individual owner of the assets upon my death." Nothing was done by Taylor to comply with Hartnett's wishes, and no evidence was introduced that Hartnett ever asked Desharnais to change the stock certificate back to her sole name.

When the dispute over ownership of the stock could not be settled, Taylor, as executor, was asked to commence an action to determine the question. Taylor delayed doing so, apparently hoping that the question could be resolved without litigation while he attended to other matters connected with the probate of the estate. In the absence of action by Taylor, the plaintiff, John E. Gallagher (also a Roman Catholic priest), commenced the present action on January 9, 1984.

1. The judge allowed a motion by Desharnais's counsel, filed on the day trial commenced, to amend his answer to allege that the plaintiff's action was barred by the statute of limitations. The judge then found that the action had been brought in a timely manner.

We pass the question whether amendment of the answer was properly allowed over the plaintiff's objection because, on the facts found, the judge's conclusion that the action was not time-barred was correct. Contrary to Desharnais's argument that another statute of limitations applies, the action is governed by G.L. c. 197, § 19, and was seasonably brought by the plaintiff to determine and recover the amount of the legacy due to him. See Kent v. Dunham, 106 Mass. 586, 591 (1871); Smith v. Wells, 134 Mass. 11, 13 (1883); Newhall, Settlement of Estates § 236 (4th ed. 1958).

2. The essential questions are whether the judge's findings of fact are clearly erroneous, and, if not, whether they support her legal conclusion that no gift of the stock had been intended by Hartnett at the time of registration of the stock certificates in joint names. The nature of the "clearly erroneous" test, which Mass.R.Civ.P. 52(a), 365 Mass. 816-817 (1974), establishes as the standard governing the reliability of findings of fact made by a trial judge, has been stated many times. See Building Inspector of Lancaster v. Sanderson, 372 Mass. 157, 160-161, 360 N.E.2d 1051 (1977); New England Canteen Serv., Inc. v. Ashley, 372 Mass. 671, 675, 363 N.E.2d 526 (1977); Simon v. Weymouth Agricultural & Indust. Soc., 389 Mass. 146, 148-149, 449 N.E.2d 371 (1983); First Pa. Mortgage Trust v. Dorchester Sav. Bank, 395 Mass. 614, 621, 481 N.E.2d 1132 (1985). We emphasize the following three principles of the standard which have relevance to this case. First, the judge's assessment of the quality of the testimony is entitled to our considerable respect because "it is the trial judge who, by virtue of his firsthand view of the presentation of evidence, is in the best position to judge the weight and credibility of the evidence." New England Canteen Serv., Inc. v. Ashley, 372 Mass. at 675, 363 N.E.2d 526. Second, "[i]f the [trial] court's account of the evidence is plausible in light of the record viewed in its entirety, the [appellate court] may not reverse it even though convinced that had it been sitting as the trier of fact, it would have weighed the evidence differently. Where there are two permissible views of the...